Charities hit by downturn, fight back

Fundraising | Celina Ribeiro | 10 Dec 2008

Charities are planning to beef up their fundraising activities ahead of the recession as one in five report that the downturn has already had an impact on their income.

A report produced by PricewaterhouseCoopers, the Institute of Fundraising and Charity Finance Directors Group (CFDG) reveals that 62 per cent of the 362 organisations surveyed expect to increase fundraising efforts, although only 22 per cent plan to increase the number of fundraising staff.

Corporate fundraising has already proven more challenging, with 37 per cent of charities reporting difficulty in attracting new corporate donors or a drop in income from existing corporate supporters. However nearly half (43 per cent) will invest more money in corporate fundraising in the coming months.

Similarly, the majority of charities plan to invest in major donor and trust fundraising even though 75 per cent believe income from that source will decline or remain steady during the economic slump.

Investment in legacy fundraising looks as if it will remain steady, with no charities expecting to reduce focus on this income stream.

The report warns against taking too much stock in the experience of previous recessions, noting many of the factors which worked to make charities resilient in the recession of the early 1990s are no longer present. And it reveals that charities are getting prepared, with 71 per cent saying they have already taken measures to steel themselves against tough times ahead. Only 3 per cent expressed fear they may not survive.

Keith Hickey, chief executive of the CFDG, said that it is imperative for charities to be forward-thinking before the true impact of the recession hits. “Action must be taken now in order to make the most efficient use of available resources, and thus to maximise the support for the beneficiaries who charities exist to help,” he said.

While charities on the whole expect demand for services to increase, the sector could be facing a wave of redundancies with 34 per cent of respondents expecting to make staff redundant within the next year.

Directory: Charity Finance Directors' Group (CFDG) | Institute of Fundraising | PricewaterhouseCoopers LLP
Who's Who: Celina Ribeiro

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