Covid-19 has transformed the way the charity sector works, from generating income to reaching audiences. So what fundraising trends are emerging and how can cultural organisations harness these new strategies to maximise success?
The general trend across the board is that (1) funders want to know how covid-19 has affected your finances, staff and services; and (2) that funding has become more competitive. therefore, it’s now more important than ever that charities understand fundraising trends so that they can effectively generate income.
Trusts and foundations were quick to respond to the pandemic back in March 2020 and many responded with an unprecedented level of flexibility with existing grant recipients, whilst pausing opportunities for new funding applications.
More recent trends have found that trusts are opening back up to conversations around new funding and that there are distinct changes in what they are looking for. there is certainly an increased focus on funding core costs and looking at financial sustainability and resilience through investment into staff time and overheads – something that the sector has been requesting over the last few years.
Alongside this, the rise in prominence of the Black lives Matter movement has engaged people in long-overdue conversations about systemic racism, and trusts want to know what charities are doing beyond tick-box exercises. funders are now interested at looking at how projects address systemic inequality across the country and organisations should be having discussions on what role they play in alleviating these issues, as well as ‘levelling up’ opportunities outside of main cities.
Against a backdrop of accelerated social change, trusts are more comfortable to fund high-risk projects with organisations with small reserves. Many, however, are also aware of the ever-changing landscape and are therefore more cautious to fund long term projects. therefore, charities must demonstrate how short-term projects have long-term impact.
A significant number of companies have struggled during covid-19 and we are still seeing mass redundancies. despite this, sponsorship deals and socially responsible partnerships are still taking place. Whilst there was an initial focus on keyworker charities and those tackling food poverty, companies are now looking to build partnerships with organisations supporting local communities and those where they can build back an internal team culture through CSR initiatives or in-kind opportunities.
A chartered institute of fundraising report highlighted that companies in ‘pharmaceuticals, online retail of essential goods, e-commerce, technology and software’ have grown rapidly during the pandemic, so it is certainly worth investigating the industries that are currently thriving. Whatever decisions are being made in corporate fundraising, organisations should still consider ethical implications and consider an ethical fundraising policy is in place to ensure best-practice. covid-19 has definitely challenged our notions of responsible practice, and whilst ensuring that partnerships are sound and ethical, we also need to have our own house in order, making sure that through covid-19 we are doing the right thing and treating our people and communities as well as we can, despite the very difficult circumstances.
Despite the huge impact on the lives of many, 2020 has seen Individuals continue to support the sector and help keep cultural organisations afloat – with the proportion of people giving in the UK remaining the same despite the lockdown. public trust in charities has also grown significantly since 2019, a trend that is predicted to stay, as more and more people require support from the sector.
Trends are also showing a desire to give to local causes, something which can be harnessed by place-based arts and cultural organisations. There has also been a substantial increase in online giving, showing the need for arts and cultural organisations to invest in digital delivery and programming.
