Charitable donations hit by energy price hike
The UK is in the midst of a financial crisis. Bill-payers aren’t just tightening their belts, they’re tightening their shoelaces. And many were living on a shoestring in the first place.
Figures from the Office of National Statistics show that 4 in 10 Brits are struggling to pay their energy bills. And, in six months, they’re due to rise again.
Unfortunately, it’s not just energy prices that are increasing: fuel, water, council tax, and food are all going up, but wages aren’t.
No money to burn
With energy prices soaring, people don’t have spare cash to give to charities. Enthuse’s Spring 2022 Donor Pulse report claims that over half of us (53%) are finding it harder to donate to charity than we were six months ago.
Strapped for Cash
Despite being squeezed, charity-minded individuals are continuing to do what they can to help the less fortunate. You only need to look at the response to the Ukraine crisis to see that the good in people persists in hard times.
However, with costs set to rise again, the situation is going to get worse before it gets better.
Wondering what you can do to protect your charity? Here are a few tips.
1. Assess your financial situation
Before anything else, you need an accurate picture of your financial situation.
So, dig out those bank statements, log on to your online banking, and do some number crunching.
The key things to identify are:
The number and value of payments the charity will need to make over the next six months.
The amount of cash available to cover the payments
You also need to figure out how much the charity is likely to receive over the six months
This information will help you identify whether the charity is at risk of running out of cash, and how long you’ve got to address the issue.
2. Renegotiate deals with suppliers
Are you on the most cost-effective tariffs with your suppliers? Now is the time to check and re-negotiate. You don’t want to be paying through the nose unnecessarily.
3. Speak to your funders
Explain your financial situation to your funders. They may agree to relax the restrictions on how you spend their money or bring forward a payment to help you out of a rut.
4. Team up with other charities
When times are tough, it pays to collaborate.
Why not look at joining forces with another charity?
You and your charity partner could save money by:
sharing office space and equipment
providing joint training for your staff
splitting the cost of fundraising activities/events
Bonus tip: Check out the Charities Buying Group. The organisation exists to help charities save money when making purchases.
Final Thoughts
The energy price hike is a real blow for charities. But it’s also an opportunity to innovate and find new ways to fundraise.
Are you looking for a fundraiser to help boost your income? Contact us on 0203 750 3111 to get the ball rolling.