A fifth of charity professionals say increasing media scrutiny of the sector is having a negative impact on their fundraising, according to the latest Managing in a Downturn survey published today.

The report, Managing in the New Normal, is the seventh in the series of surveys produced by the professional services firm PwC for the Institute of Fundraising and Charity Finance Group.

Ninety per cent of the fundraisers and finance professionals polled said they felt charities had fallen under a "negative spotlight" and felt media interest and scrutiny of the charity sector had increased this year.

One in five said this had impacted negatively on their fundraising, the survey shows. 
 
The report is based on a survey of 467 charity professionals carried out in January and February this year.

In response to growing scrutiny, 49 per cent of charities have taken steps to improve transparency and the disclosure of financial information during the last year, the survey shows.

This year, 45 per cent of charities will be increasing transparency around administration/governance costs and 43 per cent around the cost of fundraising, it finds.

Charities were thrust into the public eye in 2013/14 with the Cup Trust scandal, reports about chief executive salaries, questions over the right of charities to campaign and the Lobbying Act.

In response, this year’s poll asked about the effects of media scrutiny and reputational concerns for the first time since the survey was launched in 2008 to track how the sector has coped with the economic downturn.  

Overall, the report says the results on fundraising provide the basis for some “cautious optimism” this year.

Although the majority of respondents still say fundraising was tougher this year and think it will get tougher next year, the numbers for both questions have dropped compared to previous years.

Last year, 89 per cent of charities expected the year ahead to be tougher for fundraising, but this survey finds that 77 per cent thought that had been the case.

In this year’s report, 68 per cent said the next 12 months will be tougher for fundraisers.

Less fundraisers say the challenges of “donors having less disposable income” and “donors uncertainty about economic security” are key concerns this year, the survey shows.

Peter Lewis, chief executive of the IoF, said: “While there are undoubted challenges facing our sector, it is encouraging that the findings of this survey start to show a more positive and optimistic outlook.

“Donor acquisition rates are also improving, as is workforce morale.”

Two-thirds of respondents reported the demand for their services had increased over the last year, with the same proportion expecting further increase in the year ahead, the survey shows. It finds, 27 per cent said they were aiming to deliver more with the same resources as last year and 16 per cent said they would have to make cuts in other services to meet demand.

Caron Bradshaw, chief executive of CFG, said: “The results show some cautious optimism emerging across the sector with charities beginning to feel more positive about the future. It’s important to remember how long the challenging economic climate has extended.

“The Chancellor was clear in his budget that there will be no let-up in public spending cuts. Charities continue to take bold and proactive steps to cope with ever-increasing demand for their services – for some this continuing situation is critical and threatens their survival.”