We’ve written several articles on charity fundraising trends since the upheavals of the pandemic subsided in 2022, but recent data on giving and funding trends merits a bit of an update.

Since the pandemic, finding grant funding has been really tough for many reasons that we have rehearsed before. The 2024 UK Grantmaking report, published in June 2024, confirms that this source of funding remains tough for most charities. For example:

• Central government grantmaking fell by a third in 2022/23 alone.

• National Lottery grant distributors reduced giving by over a fifth in the same period (although Arts Council England increased its grantmaking).

The Charity Times reported in February 2024 that local government grantmaking to charities continues to fall (by over £13bn in the last decade).

While grantmaking from the 300 largest trusts and foundations has risen slightly (by 3%) in the last year, many have reduced their funding and increasing numbers of such funders are closing down. In any case, this is far from enough to make up for the declines mentioned above.

Many reports provide evidence that cost of living impacts on charity giving by individuals have been very negative, particularly for smaller donations (with major donors often taking up the slack). However, recent reports suggest that the richest people in the UK are giving less while the 2024 Summer Donor Pulse report found that for small donations, 78% of people surveyed intend to donate in the next 3 months (a significant rise, particularly amongst younger donors).

Legacy and in-memory giving continues to grow rapidly, reaching record levels in the last year according to Legacy Futures, while corporate giving continues to be patchy (depending on how the current volatile economic conditions are affecting different business sectors).

This can be bewildering for small charities with limited fundraising resources. Anyone trying to predict the future needs to be cautious; it is tempting to follow trends as new reports come out but, as you can see, these reports can be contradictory, even with a short space of time.

It seems to us that charities need to be agile and respond to what their own donors and funders are saying and doing. Ask questions, monitor your own trends and don’t be afraid to try something new. If your cause is suitable, seriously consider making a longer term investment in legacy giving, but we understand this is difficult if you’re facing a short term funding crisis.

Whatever sources of funding you are pursuing, while there are no “magic bullets”, there are some fundamentals that you should make sure are right:

1. Stay focussed on what works for you and stop doing what isn’t working.

2. Evidence your impact; funders are looking for quality and projects that make a big difference in meeting beneficiaries needs. You need to evidence a track record of making a difference.

3. Embrace digital; if individual or event giving is a major source of income for your charity, the trend away from cash to digital giving is inexorable, don’t try to buck the trend.

4. Nurture existing donors; whether it’s individuals or grant makers, focus attention on sustaining and deepening relationships with existing supporters.

5. Be realistic; for example, there is often little merit in spending time on speculative bids when your proposal is not central to the funder’s priorities, particularly as many are narrowing their focus.

6. Test and learn; if you are going to try new things, start small and see how you get on. Do more of what works and stop what doesn’t as soon as that is clear.

7. Collaborate with like minded organisations to innovate and extend the reach of your services and funding sources.

If you would like to know more about the services we offer or to discuss your fundraising needs further please contact us.