Big support for charities campaigning on political issues

Half of people (51%) say they want charities to campaign on political issues, according to research from Enthuse, the donations, fundraising and event platform. There is a clear divide between age groups however, with 64% of under 45s supporting charity political involvement versus 61% of over 45s who don’t. 

The latest edition of the platform’s quarterly Donor Pulse research follows the Charity Commission's new guidance on use of social media released after the RSPB’s comments about the government’s shift on environmental policies.

THE POLITICS OF GIVING. Good news for charities comes in the form of the public understanding and valuing their role within society. Six out of 10 (59%) people say that they believe charities are the most effective at standing up for those in disadvantaged circumstances. This is more than double that who say central or local government (28%). In fact, the public believes celebrities such as Gary Lineker and Marcus Rashford do a better job than the government at standing up for those in need (42%). 

While there is a divide among the general public about whether or not charities should get involved in the political arena, it’s clear that charities which do and are met with criticism will receive donations in support - particularly from younger people. 

In the last six months, one in five (18%) people have taken part in “inverse giving”. This is when someone donates to a charity which has received criticism in traditional or social media as a signal of support. The figure grows to nearly two in five (37%) of 18-24 year olds.

When it comes to giving habits, the Enthuse/Donor Pulse research shows that younger people are more likely to support minority causes (e.g charities supporting LGBTQIA+, ethnic minorities and migrants). Half (51%) of under 45s say they’re likely to support LGBTQIA+ charities versus 29% of over 45s. Under 45s are also more likely to support ethnic minority causes (70%) and migrant charities (66%) compared to over 45s at 40% and 38% respectively. 

TRUSTING CHARITIES. Trust in charities is at a healthy level, with an average score of 6.94/10, with nearly half (45%) scoring their trust between 8 and 10. The level of trust in charities is at such a level that two thirds (67%) believe the government should provide more funding to good causes.

When it comes to the best way to donate, 57% of people feel very confident about where the money goes to when donating directly to a charity online; this is nearly double that of consumer giving platforms (30%). This would suggest that people feel more comfortable giving when they don’t have to go via a visible third party. 

STRONG WILLINGNESS TO DONATE. The research shows the public appears to be adjusting to the cost of living, although it’s clear that money is still tight. Nevertheless, the public’s appetite to donate remains strong though, with 71% planning to donate to charity in the next quarter and 86% of those who have given in the last three planning to give again over the coming quarter.

UK charities are adjusting to economic realities

Newton Investment Management’s tenth annual UK Charity Investment Survey, titled “Reflection Point”, has found that the priority concerns of charities are shifting, whilst the sector adjusts to the new realities of a challenging economic backdrop.

Whilst economic pressure on operations remains a central concern, the results show a decline in these concerns more broadly, highlighting how charities are adapting to the “new normal”. The data also signifies a return towards longer term planning within the sector.

IMPACT OF THE COST OF LIVING CRISIS. The Newton Investment Management survey says that the majority of charities (89%) are still experiencing some pressure or negative impact from the cost of living crisis, with 59% of charities reporting an increase in demand of services from last year. However, there is hope for the future as over half of charities do not believe the cost of living crisis will have a lasting impact on their investment policy.

Similar to last year’s survey, inflation and rising salaries remain pressing concerns, with two thirds of charities identifying inflation (66%) and nearly half selecting rising salaries (49%) – reflecting continued inflationary pressure on the costs of staff and materials, and reduced income from investments and fundraising.

However, says Newton, a decline in charities’ level of concern on most major issues compared to last year may demonstrate that, while these economic pressures still remain, the sector is learning to operate within this “new normal”.

CYBERSECURITY CONCERNS INCREASE. Since the pandemic, charities are more reliant on online services, with moves to digital fundraising and operating exposing them to the risk of cybercrime. Nearly half (44%) of charities now consider cybersecurity to be very concerning, an increase of 9% from last year, significantly outscoring the direct effects of the cost of living crisis. This spike in concern further reflects a shift away from short term reactions to shocks and back towards longer term planning within the sector.

CONSIDERABLE MOVEMENT WITHIN ASSET ALLOCATION. The survey findings also reveal a period of significant asset allocation change last year, with charities increasing their exposure to overseas equities, overseas bonds and UK bonds, and a notable rise in the use of UK bonds. Elsewhere, there has been a decline in allocation to UK equities, property, hedge funds and private equity. Global rises in interest rates are likely to have incentivised charities to reposition assets.

Giving still a priority for high net worths

Although the ongoing challenging economic climate has seen belt tightening across the board, the UK’s high net worth individuals (HNWs) and business owners have continued to give to charities. So says research from Rathbones Investment Management.

Concerns about being able to support charities and those in need are being felt broadly: half (49%) of HNWs and business owners are concerned about their charitable donations over the next 12 months, with 16% admitting being very concerned. Despite this, one third (31%) have plans in place to pass their wealth on to charities, either by continuing to make regular donations or by establishing a legacy or foundation.

HNWs and business owners in Aberdeen and Aberdeenshire were the most likely to continue making financial gifts to charity, with 42% saying they will do so in the future. In the North East of England, 34% of HNWs have plans to do the same, with 32% of those in the North West, South West and Greater London also hoping to make future donations.

Despite financial pressures generally, one third of HNWs and business owners have been supporting charities with regular financial donations over the last six months. A further 30% have offered one-off cash payments to charities.

Charities turn to new technology for fundraising 

Charities are rethinking the traditional fundraising model and adopting new technologies to create innovative income opportunities and streamline business processes, according to a report by broking firm Endsleigh Insurance.

An emerging trend highlighted in the report is the use of gamification for raising funds. 58% of charities surveyed said they had used the metaverse, augmented or virtual reality, online games or partnered with gamification providers to encourage donations, in the past year alone. These range from live streaming, quizzes and interactive games in digital fundraising. Some charities are even looking into ways to secure more regular donors as part of a “subscription service model” of fundraising.

Around a third of charities have also increased their use of social media channels, such as TikTok, Instagram and Snapchat, to extend marketing activities in the last 12 months. Alongside this, the same amount said they were now partnering with influencers to raise awareness and help increase donations online.

However, says Endsleigh, the increased use of technology isn’t solely focused on fundraising efforts. Charities are now harnessing tools like AI to streamline efficiencies, reduce costs and increase revenue in the same way private sector businesses typically do.

Most notably, 29% of charities are using AI tools to fill talent gaps, a challenge which the sector has struggled with in recent years. The research found that 55% of those working in the sector have been forced out in search of better paid jobs.

Of course, points out Endsleigh, with the advancement of technologies in fundraising and general admin processes, there is a higher threat of cyber-crime. Although over 70% of charities surveyed said their cyber security was good, more than one in four (26%) have fallen victim to cyber fraud within the past 12 months alone.

Groups of donors give more in-memory

The UK in-memory market has grown significantly over the last 10 years and is now larger than many would expect with an estimated annual value between £1.8bn and £2.4bn, according to forecaster Legacy Foresight’s research programme In-Memory Insight – Remembering Together.

As the research points out, one third of all UK adults have given an in-memory donation in the past year.  Young people (18-44) are a key part of the in-memory market, giving higher than average donations – almost three times more than was donated in-memory by people in the 65-75 bracket.  Online payments are most popular, and evidence is starting to be seen of newer payment methods being used, such as through gaming and social media. 

The Legacy Foresight research shows health charities and hospices receive over half of all in-memory donations (by volume). Funeral donations remain the largest source of income, but their dominance on in-memory income is declining, while in-memory group giving is growing fast.   Around half of donors surveyed think a charity knows their gift is in-memory motivated – but benchmarking data suggests otherwise with many charities being unaware, especially of group in-memory donations. 

Group in-memory fundraising (when three or more people fundraise in memory of someone they have lost) is on the rise. An estimated 41% of in-memory income is being given as part of a group. The survey found that donations as part of a group are likely to be higher than donations made by individuals. It is believed this is largely due to the emotional power and logistical benefits that group fundraising can bring. 

In-memory teams however are often unaware of group in-memory fundraising activities, as groups are engaging with community fundraising or charity events teams.   

“The analysis highlights a lack of joined-up structures within fundraising teams, leading to the group dynamic being overlooked,” states Ashley Rowthorn, CEO of Legacy Futures, owner of Legacy Foresights.  “Being able to identify in-memory groups and record their motivation for giving is key to enhancing the supporter experience and maximising fundraising potential.” 

With almost half of adults having lost a loved one in the last two years, the potential for in-memory giving is enormous. The research reveals that all in-memory supporters appreciate and need acknowledgement, both of their loved one and their own fundraising efforts. Even supporters who chose to be more private about their motivation, noticed when there was no acknowledgement, suggesting that charities which lack in this area may experience reduced commitment from in-memory supporters in the future. 

Enabling a net zero investment strategy

Cazenove Charities, a unit of the investment house, in association with the Association of Charitable Foundations (ACF), has published a report exploring charities’ climate commitments and encouraging the use of investment strategies to take action on climate change.

The report, titled Climate confident: charity investments and net zero, highlights that there is a groundswell of concern and action by charities around climate change, with 76% of respondents believing that charities should be making commitments to act on climate change; with 54% having actually made a commitment to date.

However, charities are looking for more learning and guidance, and there appears to be an implementation gap. Only 16% of survey respondents have set a net zero target, and just 10% have a net zero target that also applies to their investment portfolios.

The report says the most common barriers to developing a net zero approach are concerns over investment returns and a lack of conviction in current investment solutions. There is a lack of confidence in how to address the transition to net zero in charity investment mandates.

Cazenove believes that clear and ambitious mandates which incorporate climate commitments can lead to transformative action.

Charity job candidates state their requirements

Job board CharityJob’s Benefits Report 2023 has been published revealing which benefits and perks charity employees receive in their current roles and which factors they prioritise when considering job opportunities. But apart from those mentioned below two aspects that stood out were organisation culture and organisation mission/purpose, with more than half of respondents finding them “very important”.

For candidates the most critical benefits and perks were: 1. 25+ days annual leave (not including bank holidays) (71%). 2. Flexible working hours (67%). 3. Remote working options (66%) These were followed by: 4. Training and development opportunities (44%). 5. Four-day work week on full-time pay (27%). 6. Health insurance or private medical insurance (23%). 7. Mental health or wellbeing support (23%). 8. Clear progression pathway (20%). 9. Above statutory paid sick leave (18%). 10. Enhanced pension (16%).

Some benefits were highly desired by candidates but received by only a small proportion of those who responded. These were: 1. Four-day work week on full-time pay. This was received by only 3% of candidates. 2. Health insurance or private medical insurance. Fewer than one in five candidates received this benefit. 3. A clear progression pathway. Fewer than one in ten candidates experienced this. 4. An enhanced pension. This was received by around one in five respondents.

Charity workers not alone in job commitment

Analysis by HR systems specialist Access PeopleHR in its Annual Leave Report shows that the charity sector is among those sectors showing dips in people taking annual leave in the last two years - despite an increased push on employee wellness. The number of annual leave days has dropped by almost 4% in the last two years.  This is despite the average allowance in the sector rising by 11% - from 37.2 to 41.4 days, including bank holidays. Nationally, the charity sector reports the highest allocation of annual leave for staff. 

Access PeopleHR feels that a contributing factor of low leave taking may be that charity workers feel that the necessity to overcome challenges in the sector may be leading to fewer people feeling like they have time to take annual leave. 

However, it is not just charity workers using less annual leave. Other sectors where the greatest dip is shown also reflect a commitment to meeting sector challenges, and indeed a greater commitment, e.g. the electricity, gas, steam and air conditioning supply industry where there is a nearly 12% drop. In fact, another way of looking at the Access PeopleHR research is that annual leave self-sacrifice by workers in other sectors is much greater reflecting that commitment to the job is certainly not confined to just charity workers.

The industries with the biggest drops of people using annual leave: 

Funding to support charity staff wellbeing

Derbyshire-based charity Safe and Sound has become the first organisation to successfully win funding from the British Safety Council to improve and support its staff’s wellbeing.The funding of up to £10,000 was awarded to the charity through the British Safety Council’s Keep Thriving campaign to improve workplace wellbeing.

Tracy Harrison, CEO of Safe and Sound, attended the first three-hour workshop to help her charity and other small and medium organisations develop a wellbeing strategy, delivered by experts from the BSC’s Being Well Together programme.

Workshop attendees are invited to apply for funding six months after attending workshops with only the most effective and innovative proposals receiving approval. Further awards will be made to other organisations having taken part in workshops between November 2022 and March 2023.

Developer’s fund supports 23 organisations

Earls Court Development Company (ECDC) has awarded 23 local charities and other organisations with a total of £180,000 as part of the third annual Earls Court Community Fund, supporting the local community in and around the Earls Court site and surrounding boroughs of Hammersmith & Fulham and Kensington & Chelsea.

These organisations support a wide range of communities in the area, from displaced women and children to disabled, elderly and vulnerable individuals, and include Doorstep Library, For Women CIC, Action on Disability and Barons Court Project.

Since taking ownership of the Earls Court site in 2019, ECDC has committed to investing in and working with the local community to drive change in the surrounding areas. The Community Fund was launched in 2021, and has provided financial support worth up to £360,000 to 26 charities and community groups operating in the local area. As of 2022, ECDC has delivered £7.8m of social value and £2.7m of economic impact locally. 

10-year clothing bank partnership

Convenience store chain One Stop Stores, with over 1,000 company and franchise neighbourhood stores, is celebrating its 10-year partnership with the Salvation Army’s trading arm, SATCoL (Salvation Army Trading Company Ltd). There are currently over 200 SATCol clothing banks located at One Stop stores around the UK which have collected 7,718 tonnes of donated textiles, the equivalent of approximately 30 million items. 

Textiles deemed as unwearable can be turned into wipes, flocking for mattresses and much more. Other unwearable clothing items are processed through SATCoL’s Fibersort technology, designed to close the loop for fibre-to-fibre recycling.    

Music chain commits to happy living

Independent music retailer Rough Trade has entered into a partnership with Campaign Against Living Miserably (CALM) in support of suicide prevention and mental health. The charity is dedicated to “offering life-saving services, provoking national conversation and bringing people together to reject living miserably”. It operates a helpline and webchat.  

The retail chain kicked off the partnership with a live music fundraising event at one of its stores and now enables customers and music fans to donate to the charity in-store and online.

Partnership for community fridges

Environmental charity Hubbub has obtained £3 million of funding from the Co-op as part of a three-year partnership to invest in the charity’s Community Fridge Network. The funding is thanks to Co-op members raising funds by shopping at its stores.

The Community Fridge Network connected over 450 community fridges across the UK in 2022 and has continued to grow this year, creating spaces for people to come together to share food, connect with their local communities and learn new skills, while saving food that would otherwise go to waste. A total of new 75 community fridges are planned by the end of 2023.

Charities urged to enter for Charity Film Awards

The Charity Film Awards 2024 has opened for entries, inviting charities across all sectors to enter for free as part of a campaign to promote cause-based films. The seventh iteration of the awards will take place on 20 March 2024, the United Nations International Day of Happiness at the Odeon Luxe in Leicester Square, London.

The awards are sponsored by the Smiley Company, a brand licensing firm which creates products for licensed brand partners and retailers. Smiley’s long-time support for the awards with its Smiley Movement platform is based on its belief that film has a vital role to play in creative positive action.

Over a third (35%) of Brits are more likely to support a charitable cause after watching a film that highlights their work and of those who watched charity films in the past year, 62% went on to support those charities in some way, whether it be through monetary donations, fundraising or volunteering.

Since the creation of the Charity Film Awards in 2017, more than 3,000 charities have entered and benefitted – by raising awareness of their causes and consequently boosting exposure, volunteer numbers and donations. In 2023 alone Charity Film Awards drove an additional 35 million views across all entered films. Nearly half a million members of the public have voted in the awards and the moving, uplifting and powerful films have reached almost 500 million people around the world.

The awards are free to enter and charities, agencies and supporters of the charities will have the opportunity to nominate their videos. Charities and CICs (community interest companies), as well as agencies contracted or acting on their behalf, wishing to enter can do so now online before the deadline on 30 November. 

Sunday race raises millions

In just one Sunday the Royal Parks Half Marathon raised £5 million utilising the facilities of its official fundraising partner for the second year running, JustGiving. The money was given via more than 8,500 pages on the platform. The amount was a 53% increase compared to last year.

Since its inception in 2008, the Royal Parks Half Marathon has raised £60 million for more than 1,200 charities. The half marathon is organised by The Royal Parks charity, which conserves and enhances London’s eight Royal Parks, totalling more than 5,000 acres of green space in the capital.