Nearly two thirds (64%) of charities managed to maintain or build on their fundraising income in 2022 despite cost-of-living pressures, according to new research. This is tempered by 29% who say their income has decreased since 2021.
The second edition of the annual Charity Pulse report from Enthuse, the donations, fundraising and event reg platform, surveyed individuals at over 218 UK charities to find out how their organisations fared in 2022, reasons for optimism and potential challenges in 2023.
Looking ahead to fundraising streams in 2023, the area the charity sector reportedly feels most confident about is fundraising events and activities of all sizes, with 53% expecting this to grow and only 12% forecasting a drop in income.
Mass physical events appear to be back on the agenda with 55% of charities planning to get involved in large scale events such as the TCS London Marathon or Great North Run, and 47% stating they are organising their own mass participation events.
When looking across these two categories, a total of 81% of the charities surveyed said they were planning to be involved in mass physical events. This figure stood at 33% this time last year, showing a notable shift in sentiment since the pandemic.
Additionally, 39% think that corporate fundraising will increase, while 18% predict a drop. Legacy giving seems to be at a tipping point, 25% predict growth in this area while 19% expect a dip.
When looking at 2022 charity income by size, small charities fared the best – with 70% saying their income stayed the same or rose. This was followed by larger charities at 64%. The research reveals that it was medium sized charities who faced the greatest challenges with 38% seeing either volatile or lower fundraising. However, this is a better picture than last year when this figure was 45% for medium sized charities.
Charities of all sizes are cautiously optimistic about 2023, with 72% stating they are either very or fairly optimistic about the year ahead. What’s more, 59% said that charity supporters seem keen to take part in events post Covid.
Good causes also believe there will be more opportunities to make use of digital channels in 2023 (55%) and that younger generations are feeling more positive towards charities (51%).
On the other side of the coin, the cost of living is seen as the biggest obstacle to success, with concerns that supporters have less to donate. Nearly half (47%) said this was a significant challenge for charities this year. This was followed by fundraisers being reluctant to ask for donations in the current financial climate (37%).
The Charity Pulse report also looks at the most important methods charities can utilise to help event participants raise money.
Coming out on top was providing information on how donations will be used, with half (49%) of respondents saying this was very important. Other helpful tools to help maximise fundraising included: providing ideas for fundraising (48%), taking part in a big name event, such as the London Marathon or Great North Run (39%) and using official event apps to secure more donations on the day (39%).
Commenting on the research, Chester Mojay-Sinclare, Enthuse Founder and CEO, said “Despite the challenging backdrop, it’s encouraging to see that the sector is cautiously optimistic about the year ahead.
“Participation in mass events seems to be key to this. Charities are recognising the appetite for great experiences post Covid and are looking to make the most of it.”
