Charitable Giving - UK - September 2016
“As donors become more discerning in their giving, impact-driven donations could become the gold standard in the sector. In an era when social media drives a greater share of donations, transparency and proper data management will be key to engaging and holding on to donors, particularly as the impact of the Brexit vote may make giving to charity a more considered outlay.”
- Ina Mitskavets, Senior Consumer and Lifestyles Analyst
This report will cover the following areas:
- Putting the bad publicity behind
- Raising accountability in the charity sector
- From Brexit to Chexit?
Charities’ finances have been under huge pressure, and – some may argue – as a result, they have turned a blind eye to aggressive fundraising practices that have developed in an increasingly competitive market for donations.
Poor fundraising practice, inappropriate data sharing, damaging commercial relationships and the high-profile collapse of Kids Company have all combined to knock the public’s trust in the charity sector.
To turn around the fortunes in a sector additionally challenged by the Brexit vote, charities need to account better for how they spend their money, increase ethical fundraising and prove to donors they are making a positive difference to their causes.
The charity sector has suffered from a recent succession of negative news stories. As a result, there were noticeable drops in the proportions of people donating as a result of street and door-to-door collections between July 2014 and June 2016.
Should bans on street collections become widespread, the implications for charities could be severe. However, this could create opportunities to redirect focus and efforts towards more innovative, less antagonistic ways of fundraising to engage with new demographics.
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