Over 80 per cent of charities will increase fundraising activity in response to the economic downturn, says a new report from the Charity Finance Directors’ Group (CFDG), the Institute of Fundraising and PwC.

The fourth report from the Managing in a Downturn series quizzed 250 charities on their response to the financial squeeze.

Fundraising was the top solution to address cash shortfalls, with 83 per cent of respondents planning to increase activity in this area.

Further, for those respondents who receive statutory income (51 per cent), over half (58.5 per cent) plan to start fundraising in new areas.

However, the predicted increase in fundraising is concerning respondents with 91 per cent stating that they feel it will become more difficult to fundraise.

Some 88 per cent indicate that donors will be feeling the effect of increased taxes and cuts, while 85 per cent cite the increasingly competitive environment for fundraising.

Some 46 per cent of respondents state that fundraising targets will become more challenging.

The report says: “It is likely that fundraising will become more competitive and challenging in the future which means some charities may not gain the outcome they anticipated with further funding gaps to fill.”

It continues: “By investing in fundraising and expanding fundraising capabilities, charities can greatly increase their services and impact on beneficiaries and the wider society.

“However, to do this well, charities need to ensure that they have consider all the options and made the right choices.”