2022
9
UK Charitable Giving Market Report 2022
2022-07-15T04:12:53+01:00
OX1103171
2195
153256
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Report
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"Charities are facing an extremely difficult time – just as they begin to recover from the disruption and financial losses of the pandemic, they are hit with high inflation and…

UK Charitable Giving Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Charitable Giving Market Report identifies consumers’ attitudes towards donating to charitable causes, the impact of the cost-of-living crisis on charitable giving and future innovations to help engage prospective donors. This report covers the UK charity market size, market forecast, market segmentation and industry trends for the charity market in the UK.

Current Charity Market Landscape 

The charities in the UK have faced a difficult couple of years due to the pandemic with disruptions to service delivery, fundraising and volunteering. The charity market is now dealing with challenges from rapidly rising inflation and the devastating humanitarian and financial impact of the Ukraine conflict. These challenges are subsequently increasing in cost-of-living and rising financial concerns among consumers.

While cash use is declining across consumer spending, it remains important and relevant for donations to charities in the UK. Cash has been the most common method of donation in the last six months across all age groups, and it is also a popular choice when consumers are asked about how they would most like to donate in the future.

 

Charity Market Size and Key Industry Trends

High inflation means that the philanthropy market is facing higher operational costs and demand for wage increases from employees. All while still recovering from the disruption and financial losses from the pandemic, the charity market size is expected to shrink slightly as many charities will, unfortunately, struggle to stay afloat.

On top of this, the effects of rising living costs mean those with lower income will need to economise and refrain from donating, widening the already existing gap between those able and unable to donate to charity.

  • 17% of adults who donated to charity contributed £10 or less in the past six months.
  • 42% of adults who donated money to charity did so by donating cash.
  • 47% of those who didn’t donate to charity didn’t due to affordability.
  • 84% of 16-24-year-olds think it is important that charities have a social media presence.

 

Charity Market Future Innovations

Future trends in the charity market will see 16-24-year-olds increased willingness to donate despite their typically weaker financial capability when compared to over-65s. They also show a lot of interest in innovative methods of donating and engaging with charities, such as using app, contactless donation points in public spaces and virtual reality at fundraising events. Charities in the UK should continue to focus on expanding their digital offering and social media presence to build a relationship with 16-24-year-olds.

To discover more about the UK Charitable Giving Market Report 2022, read our UK Ethical Retailing Market Report 2022or take a look at our extensive Consumer Lifestyle Market Research.

 

Quickly Understand

  • The impact of the cost-of-living crisis on charities and charitable giving.
  • Charitable causes donated to, and participation in charitable activities in the last six months.
  • Amount donated to charitable causes in the last six months.
  • Method of donation in the last six months, and preferred method of donation in the future.
  • How donors hear about charitable causes.
  • Reasons for not donating to charity in the last six months.
  • Interest in digital fundraising and donating methods.
  • Explores the charity market size and share.

 

Covered in this Report

Charities:  British Red Cross, Macmillan Cancer Support, Cancer Research UK, Omaze Limited, Guide Dogs UK, RSPCA, British Heart Foundation, Sightsavers International, UNICEF, Battersea Dogs & Cats Home.

 

Expert Analysis from a Specialist in the Field

This report, written by Francesca Smith, a leading analyst in the Lifestyle sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Charities are facing an extremely difficult time – just as they begin to recover from the disruption and financial losses of the pandemic, they are hit with high inflation and a cost-of-living crisis. Not only are charities managing increases in their own operational costs, rising demand from service users and demand for wage increases from employees, but potential donors are also facing budget squeezes that are impacting their ability to donate. Charities can, however, use this time to further push ‘micro-donations’, which have become increasingly common in recent years, and encourage consumers to engage in other, less costly charitable activities.”

Francesca Smith
Lifestyle Analyst

 

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
  2. Executive Summary

    • The market
    • Number of charities continues to grow in 2022
      • Figure 1: Number of charities, England and Wales, 2010-22
    • Formal volunteering numbers fall in 2020/21
      • Figure 2: Participation in formal volunteering, England, 2013/14-2020/21
    • Inflation is the biggest concern for consumers and charities in 2022
      • Figure 3: Consumer concerns about household finances, 2021-22
    • Brand/Company
    • Charities’ advertising spend increased significantly in 2021/22
      • Figure 4: Total above-the-line, online display and direct mail advertising expenditure by charities, 2017/18-2021/22
    • TV remains most popular channel for advertising
      • Figure 5: Total above-the-line, online display and direct mail advertising expenditure by charities, by media type, 2017/18-2021/22
    • The consumer
    • Two thirds of adults have donated to charity in the last six months
      • Figure 6: Charitable causes donated to in the last six months, 2022
    • Charity donation amount varies widely
      • Figure 7: Amount donated to charity in the last six months, 2022
    • Cash remains important for charitable giving
      • Figure 8: Method of charitable donations in the last six months, 2022
    • Young adults prefer to digitally donate
      • Figure 9: Preferred method of donating to charity, 2022
    • Having a personal connection to a charity influences donation
      • Figure 10: How adults have heard about the charitable cause(s) they have donated to in the last six months, 2022
    • Money is the most prominent barrier to donating
      • Figure 11: Reasons for not donating to charity in the last six months, 2022
    • Heightened sense of community among consumers encourages charitable behaviours
      • Figure 12: Other charitable activities conducted in the last six months, 2022
    • Young donors are on board with digital fundraising
      • Figure 13: Digital fundraising behaviours, 2022
  3. Issues and Insights

    • Inflation presents further challenges to charities and their donors
    • Young donors’ journey will be predominantly online in the future…
    • …but charities should continue to accommodate multiple methods of donating
    • Virtual reality can be a useful tool when fundraising
  4. The Market

    • Charity sector continues to grow
      • Figure 14: Number of charities, England and Wales, 2010-22
    • Charity income driven by larger charities
      • Figure 15: Charities, by income band, 30 June 2022
    • 2021 saw a dip in volunteering numbers…
      • Figure 16: Participation in formal volunteering, England, 2013/14-2020/21
    • …but rise of digital volunteering opens up wider volunteer base
      • Figure 17: Participation in formal volunteering, by age, 2020/21
  5. Market Drivers

    • Inflation is the key concern in 2022 for consumers, brands and the economy
      • Figure 18: Consumer concerns about household finances, 2021-22
    • The conflict in Ukraine will hurt the UK economy
    • Consumers’ financial wellbeing slipping will threaten charitable donations
      • Figure 19: Household financial wellbeing index, 2016-22
    • Charities will benefit from pandemic-induced digitisation
  6. Advertising and Marketing Activity

    • Advertising spend soars in 2021/22
      • Figure 20: Total above-the-line, online display and direct mail advertising expenditure by charities, 2017/18-2021/22
    • Digital advertising sees growth, but TV remains most popular channel
      • Figure 21: Total above-the-line, online display and direct mail advertising expenditure by charities, by media type, 2017/18-2021/22
    • British Red Cross steps up advertising spend in 2021/22
      • Figure 22: Total above-the-line, online display and direct mail advertising expenditure by charities, by leading charities (based on top 10 charities in 2021/22), 2019/20-2021/22
    • Adspend on leading animal charities continues to increase in 2021/22
      • Figure 23: RSPCA’s ‘The Gift’ campaign, 2021
    • Nielsen Ad Intel coverage
  7. Charitable Causes Donated To

    • Two thirds of adults have donated to charity in last six months
      • Figure 24: Charitable causes donated to in the last six months, 2022
    • Under-25s hold great potential as donors
      • Figure 25: Charitable donations in the last six months, by age, 2022
    • Donations for health and medical research lead the way
    • International aid becomes a higher priority
  8. Amount Donated to Charity

    • A wide range of donation values…
      • Figure 26: Amount donated to charity in the last six months, 2022
    • …and methods of donation
    • Older consumers donate more
      • Figure 27: Amount donated to charity in the last six months, by age, 2022
  9. How People Donate Money

    • Cash donation returns as most popular method of donation
      • Figure 28: Method of charitable donations in the last six months, 2022
    • Younger adults favour digital methods of donating
      • Figure 29: Method of charitable donation in the last six months, by age, 2022
    • Charities benefit from the boom in gaming and streaming
    • Older adults stick to traditional methods
  10. Preferred Method of Donation

    • Cash is the most preferred method of donating
      • Figure 30: Preferred method of donating to charity, 2022
    • Young adults prefer to digitally donate
      • Figure 31: Preferred method of donation, by age, 2022
  11. How People Hear about Charitable Causes

    • Personal connection to charities is most influential factor
      • Figure 32: How adults have heard about the charitable cause(s) they have donated to in the last six months, 2022
    • Social media is a powerful advertising channel for charities for young adults
      • Figure 33: How adults have heard about the charitable cause(s) they have donated to in the last six months, by age, 2022
    • Unlock the potential of corporate partnerships
  12. Reasons for Not Donating to Charity

    • Money is in fact an object
      • Figure 34: Reasons for not donating to charity in the last six months, 2022
    • Exposure needed, particularly for smaller charities
      • Figure 35: Reasons for not donating to charity in the last six months, by financial situation, 2022
  13. Other Charitable Activities

    • Donating goods is the most common charitable activity
      • Figure 36: Other charitable activities conducted in the last six months, 2022
    • Renewed sense of community lends well to charitable acts
    • Young consumers are supporting charities online
      • Figure 37: Other charitable activities conducted in the last six months, by age, 2022
  14. Digital Fundraising Behaviours

    • Social media is a necessary part of advertising strategy
      • Figure 38: Digital fundraising behaviours, 2022
    • Transparency of online donating is acknowledged, but cash still comes out on top
    • Expand accessibility of contactless donation points
      • Figure 39: Interest in donating to a charity using a contactless donation point in a public place, by living location, 2022
    • Digital fundraising is the future for young donors
      • Figure 40: Interest in attending a charity event using virtual reality, by age, 2022
  15. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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Data

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