Outsourcing – the way forward?
Howard Lake | 13 July 2010 | Blogs
In recent weeks, there have been stories of cuts and redundancies in a number of charities, including fundraising teams. With so many charities restructuring and slimming down their operations, I wonder how they will maintain their incomes with a smaller staff contingent?
It is generally true in fundraising that the greater the inputs (of time, money, energy etc) the better the results. So, if charities are reducing their investment in fundraising staff, unless they have found radically more effective ways to raise funds, they are likely to see their income fall in the medium term, if not sooner.
It may be of course, that some fundraising charities are switching to new methods, such as new media donor acquisition and development and are achieving better results. However, I have the impression that job cuts are being driven more by falling incomes and the need to make savings.
In parallel I have noticed a growing number of fundraisers turning freelance (including some of those made redundant by cost cutting charities). This suggests that, alongside a smaller contingent of employed fundraisers, there is a growing market of self-employed looking to provide services to the sector. Perhaps this is the answer to my question? In other words, charities are reducing their in-house staff contingents in order to save money and are buying in services only when they need them – otherwise known as outsourcing.
The benefits of outsourcing are many. As well as removing employment liabilities, it can save money and lets the supplier take the slack – in other words, when they are not needed, the charity does not pay them. Charities can also use a range of self-employed or agency fundraisers at different times, depending on their needs. So outsourcing provides a more flexible solution, as well as being cost effective.
Perhaps in this age of austerity outsourcing will really come into its own? OK I would say this, as our Fundraising Placements service has been delivering outsourced fundraising support to charities since 1998 and is effectively the fundraising department of quite a few of our clients.
My expectation is that cost cutting by charities is set to continue as they seek new ways to achieve better results. However, if this leads to new ways of working and a more flexible market, then it may not be such a bad thing.
For further details of Fundraising Placements see http://www.wgconsulting.co.uk/fundraising-services/fundraising-placements
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.