Is your income down because of the cost-of-living crisis?

There are some gut-wrenching figures shared by Rathbones Charity Investment Management today. Put simply, senior execs at UK charities have reported that the financial health of 61% of UK charities has deteriorated over the last few years. For 13% it has deteriorated dramatically.

As a result, as the chart above shows, charities are selling assets, reducing headcount and cutting back services (blue columns). And what’s even more worrying is that these cost-management strategies look set to continue (red columns).

But the other side of cutting costs is raising more money, and at Bluefrog we are seeing across our client base that you can raise significantly more money when times are hard – if you adopt the right strategies.

If you are struggling (or even if you aren’t) here are five approaches that I would recommend that all charities should adopt now based on what we have seen to be most effective in the current market…

1. Legacies need to remain front and centre. A great legacy plan recognises that approximately 15%-20% of your income will come from estates that reach probate within 18 to 24 months after each campaign is run. A short-term reduction in spending will be felt for many years to come.

2. Put the rebrand on hold. Older donors rarely respond favourably to a rebrand. When times are hard, they appreciate the stability of familiarity and continuity. So, save money by not rebranding and reap the benefits in increased IG income over the short and long-term.

3. Focus on identifying and recruiting wealthier donors who have been broadly insulated from the worst impact of the cost-of-living crisis. The FTSE 250 remains up the best part of 50% since the lows of the pandemic. Wealthier donors constantly tell us in our research that they will and can give more if you focus on inspiring them. And then means significantly increasing what you ask of people who can afford it.

4. Sort out your thanking and reporting back. The pandemic reset people’s attitudes to giving and reframed loyalty. Many people found renewed purpose in giving to help fight Covid-19. That feeling hasn’t left them. The more they feel they are achieving great things as a valued member of your charity, the more likely they are to give more.

5. Shelve that engagement / value-exchange product. This is not the time to invest in an expensive product to get people to sign up with a focus on raising money years down the track. We have seen a number of examples of these ideas burn up budget with no real hope of ever recovering costs. And the current financial outlook simply does not favour them.

There you go. Five simple things to do now that IMHO will boost income over the short to medium-term and keep those essential services running. More details on the report can be found here – https://lnkd.in/eheqPkG5

Best of luck.