Over the last few months we’ve written a few articles on charity fundraising trends in the UK. Recently we were asked by a client to write a succinct summary of how we see various fundraising channels and markets developing in 2023.  You can read our summary here.

The question in our minds after writing this was “so what”?  If it’s really that tough out there right now what should small charities do to respond to these challenges?

Clearly there are no “magic bullets” to succeeding in difficult times but we have noticed a few trends that are worth pointing out:

1. Stay focussed. Lots of small charities diversified their offer during the pandemic and this helped win a lot of money for some. However, what we are seeing is that now funding is harder to come by, and emergency needs brought on by lockdowns have receded, those who are doing best are focussing on their strengths.

2. Evidence your impact. Funders are looking for quality and projects that make a big difference in meeting beneficiaries needs. That is what you need to demonstrate. You’ll need to show a track record of making a difference and that you are offering value for money, including embracing digital delivery and other learning from lockdowns, to ensure value for money. So stick to what you do best and make sure you have good data and stories .

3. Embrace digital. If individual or event giving is a major source of income for your charity, the trend away from cash to digital giving is inexorable. It may feel like hard work to make the change to contactless, for example, but even very small charities have done that successfully and it really pays.

4. Nurture existing donors. Whether it’s individuals or grant makers, focus attention on sustaining and deepening relationships with existing supporters. When times are tough people want to help causes they know and (apart from responding to major crises like the war in Ukraine) they are less likely to start supporting new causes. In many cases they will increase giving to charities they know well at the expense of other giving.

5. Be realistic. There is even less merit now in spending time on speculative proposals to grant makers when your proposal is not central to their giving priorities. Grant makers are narrowing their focus rather than broadening it and therefore they want proposals that are a really strong fit with their priorities.

6. Test and learn. If you are going to try new things, adopt a test and learn approach. Start small and see how you get on. Do more of what works and stop what doesn’t as soon as that is clear. Growing earned income and approaching local businesses for support are areas that might be worth trying as other sources are squeezed by the recession.

7. Collaborate. Working with like minded organisations can often be a great way to innovate and extend the reach of your services, and funders love it. Thinking strategically about partners whose offer complements yours and who can access funding that you perhaps cannot, is a really good option.

If you would like to know more about the services we offer or to discuss your fundraising needs further please contact us at julian@almondtreeconsulting.co.uk.