Friday, March 20, 2009

UK charity commission report on downturn

The UK Charity Commission has just published a useful report based on feedback from charities.

Being a data, I prefer analysis of actual data not just what people say is happening but I think it is still useful - especially in looking how the financial mess is impacting charities beyond fundraising.

Bottom line in UK Charity Commission report is that charities are being hit on several fronts:

* Reserves / investment income
The most common source of income, the most important source of income and most damaged by the recession.

* Services
Only 20% reported an increase in demand for services, and three quarters of them most reckon they can meet the demand.

* Currency exchange
Those raising pounds and spending other currencies are smarting with the pound exchange rate being so bad. (Us Australians are finding this even harder - I was in USA last year where 1AUD=0.97USD, now it is 0.69USD! So everything being bought in Australian dollars now costs a massive 40% more - an increase that makes any potential fundraising woes pretty insignificant).

* Fundraising
Not flagged as being down by many, and one in nine said they were spending more on fundraising. None seemed to have flagged spending less on fundraising as being a mitigating measure they intend to follow.

In summary I reckon that those fundraisers that managed to persuade their boards / finance managers that fundraising is a good alternative investment -especially regular giving - deserve a medal.

View the full report here.

1 comment:

Todd said...

Interesting article
Cyrus