New report explores how charities are responding to the cost of living crisis

According to the Office of National Statistics, around 46% of adults are finding it difficult to afford their rent or mortgage payments due to the increased cost of living. As a result, 63% are spending less on non-essentials, including charity donations.

A new report by Ensleigh Insurance explores how the cost-of-living crisis is impacting fundraising and the ability to recruit and retain staff. It also analyses what charities are doing to overcome these challenges.

The findings

307 charities took part in Endsleigh’s survey. Here are the key findings.

Finances under pressures

Charities reported that their finances were under pressure across all areas of the UK. At just under 65%, the north of England and the Midlands have been hardest hit, followed by the South at 58%.

Notably, 45% of respondents said they are in a worse financial position now than they were during the pandemic, and 43% fear their organisation is at risk of closure due to ongoing financial pressures.

Social media marketing and technology are a priority

The report found that charities are responding to financial challenges by increasing their social media marketing activity and utilising innovative technologies to engage younger donors.

Let’s look at these two areas in a little more detail.

Social media marketing

According to the Donor Pulse Summer Edition, the age groups feeling the financial squeeze most are Gen X and Baby Boomers. The picture looks slightly different for the under 40’s, with 28% of Gen Z saying they are unaffected, or are better off financially, as do 30% of millennials.

To target this group, 31% of Endsleigh’s survey respondents said they’ve doubled down on their social media marketing efforts in the last 12 months. While 30% have partnered with social media influencers to raise awareness and boost donations.

Use of technology

The survey also found that charities are experimenting with new technologies to engage Gen Z and millennials.

58% of charities said they’ve used the metaverse, Augmented Reality, VR, or online games to encourage donations in the past year.  

They’re also using tech to make it easier for people to donate. Online payments, facial recognition, and fingerprint scanning technology are now widely used by the charities surveyed, with 63% adopting one or more of the technologies over the last 12 months.

Recruitment

The report also looks at the sector’s recruitment and staffing issues.

Of those surveyed, 45% reported increased staff turnover and 55% said employees had been forced out of the sector in search of better-paid employment in other industries.

To fill the gaps, 29% said they are increasing their use of automation and AI.

Alison Meckiffe, chief executive of Endsleigh Insurance, said of the report, ‘The cost-of-living crisis has put even more pressure on charities, social enterprises, and not-for-profit organisations. While the report highlights the financial threat many organisations face, it also highlights the resilience of the industry, with many identifying ways to evolve their business model to continue to support those most in need.

You can read the full report here.

 Need a tech-savvy fundraiser to help you navigate the cost-of-living crisis? We can help. Give us a call on 0203 750 3111 to talk tactics.