2021
9
UK Charitable Giving Market Report 2021
2021-09-24T04:11:16+01:00
OX1049553
2195
142658
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Report
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“The COVID-19 outbreak has had a seismic impact on the charity sector, as fundraising events were cancelled, charity retailers were forced to close and consumer lifestyles shifted in-home. Virtual and…

UK Charitable Giving Market Report 2021

£ 2,195 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the UK Charitable Giving market, including the behaviours, preferences and habits of the consumer.

Despite some job uncertainty and the gloomy wider economic climate, 60% of adults say that they have given about the same among to charity as they did in the previous 12 months, while 21% gave more. These indicates the wider demographics of charitable giving, with younger adults being among the most likely to say they that they have given more to charity in the last year compared to the previous 12 months. This is undoubtably encouraging for the charity sector, illustrating the young’s engagement with charitable causes and therefore the potential they pose to the future of charities and charitable giving statistics.

Hygiene concerns surrounding cash during the COVID-19 outbreak and the more general digitisation of consumer lifestyles have only accelerated the shift away from cash to online donations. As a result, digital has overtaken cash to become the top channel for charitable donations. Charities must therefore ensure they have a strong, easy-to-use online donation strategy, while also creating more compelling digital campaigns.

Concerns surrounding exposure to the virus has also seen volunteering levels fall, with fundraising events shifting into virtual and hybrid formats. We can expect to see this continue post-pandemic due to the lower cost and ease of organisation involved.

There are further opportunities for brands to partner with and support smaller and local charities. Larger, more affluent brands and charities can offer expertise and financial support to smaller organisations; helping them develop a stronger digital strategy, whilst also benefitting from the higher levels of trust that smaller charities hold.

Read on to discover more details or take a look at all of our UK Finance market research.

Quickly understand

  • The impact of COVID-19 on charitable giving.
  • Charitable causes donated to.
  • How people donate money.
  • Preferred method of donation.
  • Amount donated to charity.
  • Changes in levels of donation.
  • Reasons for donating less to charity.
  • Demographics of charitable giving.
  • Charitable giving statistics.

Covered in this report

Brands: Comic Relief, London Marathon, Shelter, Guide Dogs UK, Battersea Dogs and Cats Home, Royal Marsden Hospital, Cancer Research UK, Cancer Research UK, British Heart Foundation, Age UK, British Red Cross, Water Aid Charity, Water Aid Charity, Water Aid Charity.

Expert analysis from a specialist in the field

This report, written by Katie Martin, a leading analyst in the Research Analyst sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The COVID-19 outbreak has had a seismic impact on the charity sector, as fundraising events were cancelled, charity retailers were forced to close and consumer lifestyles shifted in-home. Virtual and hybrid events have been key in buoying charity engagement with consumers and fundraising levels in the last year, driving new levels of digital campaign innovation. Even as life starts to return to normal, the persistent threat of COVID-19 means digital initiatives will remain crucial to charities for the foreseeable future, both when it comes to fundraising and delivering their services.

Katie Martin
Research Analyst

Table of Contents

  1. Overview

    • Key issues covered in this report
    • COVID-19: market context
    • Economic and other assumptions
  2. Executive Summary

    • Impact of COVID-19 on charitable giving
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on charitable giving, August 2021
    • The market
    • The charity sector continues to grow but takes a financial hit
    • Volunteering levels decrease across all age groups
    • Companies and brands
    • Adspend increases throughout 2020
    • Opportunities for charities to increase digital adspend in order to reach a younger, on-the-go audience
    • The consumer
    • Health and medical research remains the top area for charitable donations
      • Figure 2: Types of charitable cause consumers have donated to in the last 6 months, 2021
    • Online overtakes cash donations as the most common type
      • Figure 3: How consumers have made charitable donations in the last 6 months, 2021
    • Ease of making an online donation cements it as the favourite method
      • Figure 4: Preferred method of charitable donation, 2021
    • Almost a quarter of those who donated to charity are over the £60 mark
      • Figure 5: Size of charitable donations given in the last 6 months, 2021
    • 60% of consumers say they donated the same as before the pandemic
      • Figure 6: Changes to donation amount in the last 12 months, 2021
    • Hybrid and virtual events will continue to be the future of fundraising
      • Figure 7: Reasons for donating less money to charity in the last 12 months compared to the previous 12 months, 2021
    • 2021 lockdowns see a fall in charity shop donations
      • Figure 8: Other charitable activities conducted in last six months, 2021
    • Food and drink the top area that consumers look for charitable donations
      • Figure 9: Areas in which consumers look for products which give a portion of the profit to charity, 2021
    • The growing focus on localism
      • Figure 10: Selected attitudes towards bigger and smaller charities, 2021
  3. Issues and Insights

    • Online donations and contactless will be the future of charitable donations…
    • …whilst the future of fundraising lies in virtual and hybrid events
    • COVID-19 highlights the importance of engaging with the younger generation
    • Working with local charities can boost support
  4. The Market – Key Takeaways

    • The charity sector continues to grow but takes a financial hit
    • Volunteering levels decrease across all age groups
    • Unemployment levels hold steady due to CJRS…
    • …but rising inflation now poses threat to financial confidence
  5. The Market

    • The impact of COVID-19 on charitable giving
      • Figure 11: Short-, medium- and long-term impact of COVID-19 on charitable giving, August 2021
    • Despite the pandemic, the charity sector continues to grow
      • Figure 12: Number of charities, England and Wales, 2009-21
    • Larger charities lead income growth
      • Figure 13: Charities by income band – 4 August 2021
    • Lockdowns hit volunteering levels
      • Figure 14: Participation in formal volunteering, England, 2013/14-2020/21
    • The importance of encouraging younger consumers to volunteer
      • Figure 15: Any participation in formal volunteering, England, by age, 2019/20-2020/21
  6. Market Drivers

    • Unemployment expected to further rise as the CJRS comes to an end
      • Figure 16: UK unemployment rate 2011-2021
    • Wages grow, but rising inflation poses a threat to donations
      • Figure 17: Headline CPI inflation (12-month percentage change), vs average weekly earnings (3-month average), March 2015-May 2021
    • Lockdowns see financial wellbeing improve for many
      • Figure 18: Financial wellbeing index, January 2015-July 2021
  7. Companies and Brands – Key Takeaways

    • Adspend increases throughout 2020
    • Opportunities for charities to increase digital adspend in order to reach a younger, on-the-go audience
    • Health and cancer charities collectively dominate advertising spend
  8. Advertising and Marketing Activity

    • Advertising spend increases throughout 2020
      • Figure 19: Total above-the-line, online display and direct mail advertising expenditure by charities, January 2017- August 2021
    • Opportunities for charities to increase digital adspend in order to reach a younger, on-the-go audience
      • Figure 20: Total above-the-line, online display and direct mail advertising expenditure by charities, by media type, January 2017-August 2021
    • Charities utilise the online space to raise funds during the pandemic
    • Comic Relief goes digital
    • London Marathon’s 2.6 Challenge plugs fundraising gaps
    • Shelter’s homelessness campaign reminds us of those in need
    • Guide Dogs UK’s record-breaking virtual event
    • Royal Marsden Celebrates a Life online
    • Ad spend on leading animal charities increases throughout 2020
      • Figure 21: Total above-the-line, online display and direct mail advertising expenditure by charities, by leading charities (based on top 10 for 2019), January 2017-August 2021
    • Health and cancer charities collectively dominate ad spend
      • Figure 22: Total above-the-line, online display and direct mail advertising expenditure by charities, by charity type
    • Nielsen Ad Intel coverage
  9. The Consumer – Key Takeaways

    • Exposure anxiety poses challenge for charity shops
    • Many consumers shift to shopping more online and from local businesses
    • Older age groups prove core donors…
    • …but younger adults become an increasingly important audience
    • Online overtakes cash as the most common donation type
    • 60% of consumers say they donated the same as before the pandemic…
    • Food and drink the top area that consumers look for charitable donations
    • The growing focus on little and local charities
  10. Impact of COVID-19 on Consumer Behaviour

    • Anxiety surrounding exposure poses challenge for charity shops
      • Figure 23: Extent to which people are worried about being exposed to the coronavirus and extent to which people are worried the outbreak might impact their lifestyle, 2021
    • Younger consumers’ finances hit hardest by the pandemic
      • Figure 24: Changes in financial situation since the start of the outbreak, by age, 2021
    • The pandemic sees cash usage decline
      • Figure 25: Proportion of adults who try to avoid using cash where possible
    • Many consumers shift to shopping more online and from local businesses
      • Figure 26: Changes in shopping habits since the start of the COVID-19/coronavirus outbreak, 21 April 2020-19 July 2021
    • Consumers cut back on non-essential spending
      • Figure 27: Changes in shopping habits since the start of the COVID-19/coronavirus outbreak, 2020- 2021
  11. Charitable Causes Donated To

    • The pandemic sees health and medical research remain the top area for charitable donations
      • Figure 28: Types of charitable cause consumers have donated to in the last 6 months, 2021
    • Older consumers are most likely to have donated to charity…
      • Figure 29: NET – Proportion of adults who donated to a charitable cause in the last 6 months, by age, 2021
    • …But younger adults provide important opportunity…
    • …particularly for environmental charities
      • Figure 30: Proportion of adults who donated to an environmental cause in the last 6 months, by age, 2021
    • City dwellers more likely to have donated money to charity than those in the countryside
      • Figure 31: NET – Proportion of adults who donated to a charitable cause in the last 6 months, by area, 2021
  12. How People Donate Money

    • Online overtakes cash donations as the most common type
      • Figure 32: How consumers have made charitable donations in the last 6 months, 2021
    • Charities can partner with banking apps to encourage the young to take out direct debits
      • Figure 33: Adults who have a direct debit/standing donation to a charity, by age, 2021
  13. Preferred Method of Donation

    • Ease of making an online donation cements it as the favourite method…
      • Figure 34: Preferred method of charitable donation, 2021
    • … but cash remains important
      • Figure 35: Adults who prefer to make cash donations when donating to a charitable organisation, by age, 2021
    • Consumers appear mistrusting of rounding up payments
      • Figure 36: Adults who prefer to round up payments and donate the difference when donating to a charitable organisation, by age, 2021
  14. Amount Donated to Charity

    • Almost a quarter of those who donated to charity are over the £60 mark
      • Figure 37: Size of charitable donations given in the last 6 months, 2021
    • Older consumers tend to donate more to charitable causes
      • Figure 38: Proportion of consumers who have donated over £60 in the last 6 months, by age, 2021
    • Those with a higher household income likely to donate more to charity
      • Figure 39: Size of charitable donations given in the last 6 months, by household income, 2021
    • Direct debits and online favoured by higher-level donors
      • Figure 40: Size of charitable donations given in the last 6 months, by preferred donation channel, 2021
  15. Changes in Levels of Donation

    • 60% of consumers say they donated the same as before the pandemic
      • Figure 41: Changes to donation amount in the last 12 months, 2021
    • Donation increase most common among younger adults
      • Figure 42: Proportion of consumers who have donated more or less to charities in the last 12 months, by age, 2021
  16. Reasons for Donating Less to Charity

    • Hybrid and virtual events will continue to be the future of fundraising
      • Figure 43: Reasons for donating less money to charity in the last 12 months compared to the previous 12 months, 2021
    • Continuing to grow confidence levels in charities
      • Figure 44: Mean trust and confidence in charities (out of 10), 2005-2021
  17. Other Charitable Activities Conducted

    • 2021 lockdowns see a fall in charity shop donations…
      • Figure 45: Other charitable activities conducted in last six months, 2021
    • … however, opportunities remain online
    • Financial worries put pressure on foodbanks during the pandemic
      • Figure 46: Adults who have donated to a foodbank in the last 6 months, by financial situation, 2021
    • Participation in events to raise funds is low
      • Figure 47: Adults who have taken part in an event to raise funds in the last 6 months, by age, 2021
  18. Charitable Products by Sector

    • Food and drink the top area that consumers look for charitable donations
      • Figure 48: Areas in which consumers look for products which give a portion of the profit to charity, 2021
      • Figure 49: GNPD examples of food and drink products carrying charitable donation claims, launched in 2021
    • Charitable donations prove effective in on-the-go foodservice
    • Financial services products appeal more to younger consumers
      • Figure 50: Adults who look for financial services products which give a portion of the profit to charity, by age and gender, 2021
    • BPC charitable donations hold particular appeal with younger females
      • Figure 51: Proportion of adults who look for BPC products or clothing, accessories and footwear which give a portion of the profit to charity, by age within gender, 2021
  19. Attitudes Towards Charitable Giving

    • The importance of long-term relationships with charities
      • Figure 52: Selected attitudes towards bigger and smaller charities, 2021
    • Charitable travellers seek local charity donations
      • Figure 53: Consumers who look for travel products which give a portion of the profit to charity and agree brands should partner more with local charitable causes, 2021
    • Younger consumers are keen to support smaller charitable organisations
      • Figure 54: Proportion of adults who agree that brands should partner with smaller charitable organisations, by age, 2021
  20. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology

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