Charity budgets and the credit crunch…

Howard Lake | 8 October 2008 | Blogs

There are signs now that the crunch is, and should be, affecting the current budget process many of us are going through.

A charity CEO I talked to today reported one major donor pledge reduced from £50,000 to £10,000 and another for £350,000 cancelled. So, maybe, a writing-down of at least the larger ‘city’ major donor income is advisable. Of course legacies are falling along with the fall in house prices – another 10% next year anyone? And trusts are dependent on dividend income so, maybe not so much in 2009, but in 2010 there may be some severe reductions there.
Our ordinary donors, however, seem to be adamant that unless sacked they will maintain their support; though caution here may also be advisable, as donations may just be somewhat down if food and fuel prices stay high.
I hear mixed messages from heads of fundraising. Some seem to be experiencing a steady fall in income across the board, others say that their new or improved fundraising techniques and constant innovation will equal out any fall.
Does anyone have any additional advice or even experiences that could guide us?

About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale. He is the founder of Fundraising Camp and co-founder of GoodJobs.