fundraising effort and help with tasks

The environment remains tough for charities but raising funds is still key

Doing good seems to be getting harder and harder, and for a number of reasons.

Volunteers are being put off by the increasing legislative burden such as safeguarding, data protection and GDPR, accounting rules and paperwork.

 

None of this makes the current climate easy for charities to recruit and operate in. However, the biggest elephant in the room for charities is still austerity and the problems this brings to fundraising.

 

There’s much talk at the moment, possibly as politicians jockey for position as a General Election approaches, that austerity is over. So how is that affecting the charity sector and their efforts to raise funds?

 

Hard times

In the aftermath of the 2008 financial crisis charities have been squeezed. In fact, austerity delivered a double whammy to the sector. Just as central and local government grants were being cut, public organizations were also reducing the level of services they provide to groups such as the homeless, disabled, children, domestic abuse victims or families needing extra support. Charities were then expected to step in and take up the slack.

So now those times are over, things should surely be getting better?

 

A vicious circle for charity fundraisers

Unfortunately, there’s been a lag between promises of more money and delivery. In fact, councils are still having to find savings and introducing new charges for some services to make ends meet.

 

There’s also a vicious circle at play; when times become hard, charities focus their funding on frontline services, to those in need, rather than raising the needed funds. Some charities that have approached us had left it too late and were just about to run out of funds. Unfortunately, their administration, especially their fundraising effort, had been reduced. They’d either stopped raising funds altogether or tried to do it themselves, which is difficult if there is insufficient expertise available.

 

How can charities deal with austerity?

There are steps a charity can take to keep an income flowing:

  • Plan ahead and take early action before you run out of funds. Without funding, fundraising can’t happen.
  • Ask key supporters to provide seedcorn funding for a fundraising capability you can work with. This works particularly for a cause close to a donor’s heart.
  • Join forces with other organisations with compatible goals. Combining efforts can cut administrative costs and duplication of effort. It also sends a positive sign to donors that you’re serious about using their money to best effect.
  • Prioritise fundraising. Cutting investment for generating income isn’t the best fix in the long run.

 

Take action

Times are still tough and they’re not going to change any time soon. Charities will come out of this leaner but possibly with fewer volunteers, expertise and supporters who have simply had the stuffing knocked out of them through money worries.

 

Unfortunately, we can’t help every charity that comes to us if they’ve already run out of money, so it’s important to take positive action before this stage. Charities have to plan more in advance, prioritizing fundraising to “speculate to accumulate”, putting it crudely.

 

But to finish on a positive note, there is still a lot of good people out there wanting to make a difference and deliver positive things to people in need. And there are organizations ready and willing to support those charities to continue helping those in need.

 

Stefan Lipa Consultancy helps charities to diversify their income

Stefan Lipa Consultancy helps charities to achieve their fundraising goals. We work in areas including heritage, religion, education, youth, culture, museums, the theatre, music, health and community services.

We offer bespoke, impartial and honest advice with consultancy and management services for capital campaigns and revenue fundraising.

 

We work on projects with targets of all sizes, mainly in Hampshire, the Midlands and the South of England, providing accurate, impartial and frank assessments, every step of the way.

 

Free initial consultation

Contact Stefan Lipa Consultancy or ring us on 01264 860003 to arrange a meeting for discussing your particular circumstances and the services we offer. This meeting is completely free of charge, with no obligation on either side.

 

01.11.2019

For more information, call us on 01264 860003 or send an email.

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