Fundraising in the new normal
Julian Lomas
The UK Government recently announced its roadmap out of lockdown. But what is this likely to mean for charity fundraising, particularly for small and medium-sized charities?
The first thing everyone needs to be clear about is that there is still a huge amount of uncertainty about what the future holds. The roadmap is not fixed, developments such as new Coronavirus variants could still change things dramatically and long term trends are even harder to predict. This means that agility and flexibility must continue to be the order of day when it comes to planning services and fundraising to support them. Scenario planning, including a range of contingencies, will remain a must for the foreseeable future. For fundraising, this also means that your case for support is likely to need much more frequent review and updating as your charity continues to tack service delivery in response to changing winds.
Secondly, and no less importantly, it remains essential to ensure that those fundraising for your charity continue to be properly supported and that extra care is taken over their well-being, recognising the significant emotional and psychological toll the pandemic has had on almost everyone. This is not only morally the right thing to do, it make good business sense. Stressed people are unlikely to be motivated and creative and, as Dan Reeves explains in his recent blog for the Chartered Institute of Fundraising, how you feel will change the experience for your supporters.
Thirdly, despite (or perhaps because of) the undoubted uncertainty, keeping an eye on likely trends in fundraising and sources of funding is a critical building block for agile planning and fundraising. Important emerging trends currently appear to include:
A big shift towards digital fundraising, including through gaming platforms and growth in virtual events.
The disappearance of physical cash as a result of this digital shift and rising contactless payment thresholds; there’s no point asking for cash donations when many people no longer carry cash.
Continued volatility in the grant funding market. Many funders are continuing to focus their giving on response or recovery grants and the needs of groups disproportionately affected by Covid. A growing number of funders are also pausing grant making to reassess their strategy or because they have less funding available, possibly because endowments are not performing as well as in the past or because they gave more than usual in 2020 to respond to the immediate emergency.
Fewer people are giving but total giving by individuals has held up quite well so far. But will that continue as the economic impacts really start to bite after the end of the furlough scheme and other support in the autumn?
Early signs of a significant fall in company giving, which could accelerate as the economic impacts unfold.
A possible medium term slow down in legacy income arising from reduced house price inflation and higher numbers of people dying intestate.
Fundamentally, the basics of fundraising are unlikely to change. Focusing on supporter motivation, staying relevant and engaging, investing in relationships, evidencing impact and being alert to opportunities as they arise will always be the key weapons in the fundraiser’s armoury. Moreover, building income resilience, particularly through diversity, is more important than ever, given the inherent uncertainties in funding potential from almost all traditional sources.
It is equally important to ensure fundraising remains safe and compliant with standards, which will continue to evolve as the situation develops.
Our key message, therefore, is that if you haven’t already done so, take some time out to reassess your short. medium and long term approaches to fundraising. And if you have, do it again and again to make sure your plans remain credible and relevant.
If you would like to explore how we can help your charity with its fundraising strategy, please contact us at julian@almondtreeconsulting.co.uk.