Tranquility or turmoil

http://www.fundraisingtraining.co.uk

Interesting summary from Bill Bruty and his team here in the UK of research they've conducted with charitable trusts to look at whether their giving will decrease in the short term as a result of the recession.

Dowload the summary report from the link above (currently in the newsflash section), but the two things that really grabbed me were (1) the fact that while Trust balance sheets have decreased somewhat in the past year or two, many of them had unimaginably good years in 2006 when the market was strong so the pool of potential income increased dramatically back then. We'd all forgotten that... or at least I had as I was out of the country then.

(2) The report also points out that most large trusts make their grants from their dividend income which is actually remaining pretty stable.

Smaller trusts undoubtedly are more likely to be buffeted by the economic climate as they are much more reliant on exceptional income and donations for their ability to give.

So, as with all fundraising, know your donor. Check their specific circumstances and don't assume they haven't got any money. Anecdotally I'm hearing about trust application numbers falling as fundraisers assume the money is going to be tight. Maybe it is and maybe it isn't - but our charities' needs are still as important, so hang on in there, do your research and don't forget to ask.

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.