The Blog.
The Leadership Gap: Why US Fundraisers Earn Double Their UK Counterparts
Why UK Fundraising is Falling Behind
Why is fundraising in the US a respected, high-paying profession—while in the UK, it's still struggling to be taken seriously? This isn’t just cultural; it’s strategic. British charities are losing millions by underinvesting in professional talent and clinging to outdated perceptions. This blog unpacks the salary gaps, return on investment, certification advantages, and cultural divides that are holding UK fundraising back—and explains how closing the professionalisation gap could transform the sector’s future. Backed by data, driven by urgency, and aimed at decision-makers ready to lead change.
Why is fundraising in the US a respected, high-paying profession while in the UK it’s still fighting for recognition?
This isn't just a cultural curiosity; it's a strategic flaw that costs British charities millions. While the US invests in talent and sees massive returns, the UK's reluctance to professionalise is creating a leadership gap we can no longer afford. The data tells the story…
Key Findings: The US/UK Divide in Numbers
The Professional Pay Gap
US Median Salary: £68,500 - £75,400
UK Median Salary: £35,000 - £45,000
US Director of Fundraising: £190,000+
UK Director Equivalent: £66,800
The ROI of Professionalism
For every £1 invested in a skilled fundraiser, £3-£4 is returned
Underinvestment isn't frugality – it's lost opportunity
Certification & Skills Premium
CFRE holders in the US see up to 16% higher salaries
ACFRE credential can add over £62,500 per year
UK's chartered status is still in its early stages
Culture & Perception Barrier
78% of UK public value fundraising
Yet 47% of UK men don’t see it as a profession for them
Education Infrastructure Deficit
US: 25+ specialist Master’s programmes
UK: A handful, often limited to modules within broader courses
The Crisis of Perception in UK Fundraising
The UK nonprofit sector is facing a self-inflicted talent crisis. While leaders lament how hard it is to recruit skilled fundraisers, we simultaneously maintain a culture that repels them.
The persistent British narrative of fundraising as either noble volunteer work or an unfortunate necessity is outdated and damaging. The truth? Professional fundraising is an advanced discipline that blends:
Data analytics
Strategic planning
Digital marketing
Complex relationship management
US organisations understand this. They invest accordingly. And they outperform.
Why the US Model Succeeds: Investment, Not Overhead
Professional Philanthropy
In the US, fundraising is core to organisational strategy
Trustees often follow the “Give, Get, or Go” mantra
Career Infrastructure
AFP: 30,000 members, 213 chapters
UK CIoF: 6,000 members
US has clear professional pathways (CFRE, ACFRE, specialist degrees)
Data-Driven ROI
Professionally run programmes: 40-50% donor retention
UK average: 30.7%
A 20% increase in donor retention boosts lifetime value by 50%
The UK's Underinvestment: A Look at the Data
Country | Entry Level | Median | Director Level |
---|---|---|---|
United States | £39,000 | £72,000 | £193,000 |
Canada | £35,000 | £54,000 | £85,000 |
Australia | £32,000 | £48,000 | £78,000 |
United Kingdom | £24,900 | £40,000 | £66,800 |
Netherlands | £16,200 | £37,000 | £73,400 |
Germany | £11,900 | £28,700 | £57,800 |
It's Time to Close the Perception Gap
In the US, 'fundraiser' signals a seasoned professional cultivating multi-million pound donor relationships.
In the UK, the image remains stuck on face-to-face collectors, mailshots, and TV ads. This outdated perception devalues the work and deters top-tier talent.
Take the First Step with Fern Talent
If your leadership team is serious about unlocking the true potential of fundraising, it starts with changing the way it is seen.
We offer a free, no-obligation consultation with one of our senior fundraising consultants. It’s a practical, expert-led way to:
Diagnose current gaps
Explore income growth potential
Begin the journey toward a fully professional fundraising function
Let’s build something better.
Email: contactus@ferntalent.com
Call: 0203 880 6655
Visit: www.ferntalent.com
The UK's Biggest Government-Charity Reset Since Blair Is Happening Right Now
Whilst most charity CEOs and Directors are grappling with immediate pressures like employer National Insurance contributions and funding cuts, a potentially transformational shift in government-charity relations is taking shape behind the scenes. The Civil Society Covenant, announced by Prime Minister Keir Starmer in October 2024 as a "fundamental reset" of the relationship between government and civil society, is set to be finalised this summer.
Key Headlines:
1,000+ charities consulted in the most extensive sector engagement in 25 years
First major reset of government-charity relations since the 1998 Compact
6 concrete mechanisms to transform how government works with charities
All government departments required to maximise VCSE procurement by April 2026
800+ responses received during consultation - but most charity leaders remain unaware
Summer 2025 publication date for this transformational framework
Whilst most charity CEOs and Directors are grappling with immediate pressures like employer National Insurance contributions and funding cuts, a potentially transformational shift in government-charity relations is taking shape behind the scenes. The Civil Society Covenant, announced by Prime Minister Keir Starmer in October 2024 as a "fundamental reset" of the relationship between government and civil society, is set to be finalised this summer.
Why This Matters More Than You Think
This new Covenant will essentially replace the old "Compact" from 1998/2010, which sector leaders acknowledge had "faded away" and become ineffective during the austerity years. But unlike its predecessor, this agreement aims to be genuinely transformational.
Based on input from over 1,000 charities and voluntary organisations gathered through an extensive consultation process led by NCVO and ACEVO, the Covenant is built around four core principles:
Recognition - ensuring a strong and independent civil society Partnership - effective service delivery and policy making Participation - ensuring communities can be heard and make a difference Transparency - providing the information needed to serve communities
The Hidden Revolutionary Elements
What makes this particularly significant for charity leaders are the specific commitments being negotiated. Culture Secretary Lisa Nandy has explicitly stated that charities don't just have "a right but a duty to speak up on behalf of their beneficiaries when they think we're getting things wrong" - a stark contrast to the defensive relationship of recent years.
Perhaps most significantly, in February 2025, central government issued new guidance requiring all departments to "maximise procurement spend" with voluntary, community and social enterprise organisations, with departments needing to set two-year direct spending targets by April 2026.
The Timing Paradox
Here's the fascinating contradiction: whilst some sector leaders describe this as "poor timing" given the financial pressures from employer NICs increases, others see it as precisely the right moment to establish new ground rules. The government is essentially saying they want charities as genuine partners whilst simultaneously implementing policies that harm their finances.
What This Really Means for You
The final recommendations from NCVO and ACEVO include six specific mechanisms: appointing civil society leads in each department, creating a Partnership Hub, establishing a Treasury civil society unit, reforming commissioning frameworks, protecting campaigning rights, and introducing annual accountability reviews.
For charity CEOs and Directors, this represents the first genuine opportunity in over a decade to influence how government works with the sector systematically rather than reactively. The Covenant is explicitly designed to be "a living set of principles" that will guide future policy development across all government departments.
Why Most Haven't Heard About This Yet
The consultation closed in December 2024, and whilst over 800 responses were received, the final document is only being published now. Most sector attention has been focused on immediate financial pressures rather than this longer-term structural shift.
The sophisticated charity leaders who understand this development are already positioning themselves to engage with the new mechanisms being established. For those still focused purely on crisis management, this represents a significant strategic opportunity that's been hiding in plain sight.
The Bottom Line
This isn't just another government initiative - it's a fundamental restructuring of how the state and voluntary sector will interact for years to come. The charities that engage early with these new partnership mechanisms will likely find themselves with unprecedented access and influence over policy development.
The Civil Society Covenant may well prove to be the most significant development in UK charity-government relations since the original Compact 25 years ago - but this time, it's being designed with genuine sector input and political commitment at the highest level.
Ready to position your charity for this transformational opportunity?
The team at Fern Talent specialises in helping charities navigate strategic change through expert interim and permanent leadership support. Contact us today for a free consultation to discuss how we can help you prepare for and capitalise on the Civil Society Covenant's new partnership mechanisms. Whether you need interim expertise to manage the transition or permanent leadership to drive long-term engagement, we'll provide a tailored proposal to meet your organisation's specific needs.
If a big beautiful bill gets unfurled in Florida, does a direct debit get cancelled in Hull?
How does financial and social instability affect fundraising?
To speak to an expert charity consultant to get some advice on where to generate revenue or to an recruitment expert about how to get the best experience and range of services for your budget get email tim@bamboofundraising,co.uk.
With a ‘once in a lifetime’ economic rollercoaster looming over the horizon for the fourth time in 17 years I found myself thinking ‘there’s probably enough data to predict where development will be resilient, and where other income streams might be more ‘flimsy’.
Personally I think the the AGI hype train is further away than the people who need a constant source of investment would have us believe. I watched the Diary of a CEO with Geoffrey Hinton where the edit showed him saying ‘retrain as a plumber now’ so convincingly I looked up how easy it is.
As it happens if you stuck with it, his view is we ‘might’ be there in 20-30 years, so I’ll keep my plunger in the shed for the moment.
Even if the most optimistic people are right we’re still 2 years off that particular can of worms to upset to global finances and we’ve got Iran / US, Israel then probably the UK France etc, Russia, Belarus / Ukraine, Moldova, etc., North Korea / whoever, India / Pakistan, China / Taiwan, trade wars, aging populations, sovereign debt, wealth inequality, inflation, shrinkflation and low quality-flation landing with cuts in institutional and statutory funding right now.
Will the butterfly cause a hurricane or my incredible Hulk helium balloon to float away? what parallels can be drawn?
To paraphrase the quote ‘If you don’t learn from history, you’re doomed…’ so maybe delegate someone else to read this or get GPT to get it down to 50 words (in fact, I’ll just do that for you, scroll to the end).
The UK charity sector has weathered three distinct economic shocks since 2008, each revealing unique patterns of vulnerability and resilience across fundraising revenue streams. Legacy giving emerges as the most resilient stream, growing even during crises, while individual giving remains highly vulnerable to economic pressures. The current 2023-2025 polycrisis introduces unprecedented challenges including AI disruption, geopolitical funding cuts, and a paradoxical donor behavior shift where fewer people give significantly larger amounts. Source.
The data reveals a sector in transition, where traditional fundraising assumptions no longer hold. While total giving reached £15.4 billion in 2024, NCVO donor participation collapsed from 58% in 2019 to just 50% in 2024 - equivalent to 4 million fewer donors. This fundamental shift, combined with massive government aid cuts totaling £5 billion and accelerating AI adoption, demands new strategic approaches for charity leadership. Source.
Fern Interlude”
In need of some advice? We can put you in touch with a charity consultant to conduct a feasibility study for free.
Need someone interim? We have you covered.
Permanent support? Our freelance network means our minimum offering for a typical project (e.g. Director of Development) this includes a project team of 4, two exec search consultants, a fundraising consultant and someone with overarching senior strategy experience at somewhere similar (CEO of a similar charity).
You also get a gold plated rebate and 6-months of peer mentoring. Depending on the outcome of the initial report we can include other services (exec coaching for the board to help them better facilitate fundraising is a popular one), the proposal is as bespoke as needs be and aside from the core service it’s up to you.
Anything additional doesn’t need to run concurrently with the recruitment process and instead when the new person is embedded.
Call Tim on: 0203 880 6655 / 07480877734
Revenue stream impact patterns across three crises
2008 Financial Crisis: The slow burn recovery
After saying that we’re a long way from AI taking of the world I couldn’t have collated these stats in an internoon without Anthropic - guilty as charged your honour.
The 2008 financial crisis created a U-shaped recession with prolonged recovery periods that tested sector resilience over a decade. 59% of charities were affected by the downturn, Source. with larger organizations showing greater impact susceptibility than smaller ones.
Individual giving suffered the most immediate damage, declining 11% from 2006-2007 to 2007-2008. Higher-income donors (£200k+) reduced giving by 4.6% while lower-income donors (\u003c£100k) actually increased giving by 4.5%, suggesting economic stress concentrated among middle-income brackets. Recovery proved painfully slow - it took 10 years to restore sector finances to 2007-2008 levels. Source.
Investment income hit charities hardest, with 62% of organizations experiencing reductions Source. portfolios collapsed. This particularly affected grant-making foundations, creating cascading impacts on their future giving capacity. Trading income remained relatively stable compared to later crises, as physical restrictions didn't exist.
Legacy giving demonstrated early resilience patterns, declining in only 6 out of 30 years historically. Even during the crisis, bequest income remained relatively stable, establishing its reputation as the most crisis-resistant revenue stream.
2020 COVID-19 Pandemic: The digital acceleration shock
COVID-19 created a V-shaped recession with severe immediate impacts but faster recovery patterns. The sector lost £1.8 billion in total income (3.06% decrease) from £58.7 billion to £56.9 billion, representing a 6% real-terms decline after inflation adjustment. Source. Trading income collapsed by 72% - the most severe impact across all revenue streams and crises. Charity shops faced mandatory closures, events were cancelled wholesale, and venue hire income disappeared. Mass participation events alone faced estimated £100 million losses, with the top 25 events normally raising £143 million annually. Source.
Individual giving fell 14% to £26.5 billion but remained the largest income source at 46% of total sector income. Critically, this crisis accelerated the digital transformation - online donation requests jumped from 24% in 2019 to 30% in 2020. Source. Organizations with mature digital capabilities significantly outperformed digital skeptics across all metrics. Source.
Face-to-face fundraising practically ceased during lockdowns, forcing rapid adaptation to digital alternatives. Street fundraising and door-to-door campaigns were suspended, creating lasting changes in supporter acquisition strategies.
Government funding paradoxically increased during the pandemic through furlough schemes and emergency funding packages, Source. demonstrating how crisis type determines funding responses. However, this masked underlying cuts - central government funding had already declined 3% in 2019-2020 pre-pandemic. Source.
Legacy giving proved its resilience credentials, with organizations like Cancer Research UK maintaining legacy income at £206 million (down only slightly from £213.5 million previously). Processing delays occurred, but the underlying pipeline remained robust.
2023-2025 Polycrisis: The compound disruption era
The current polycrisis introduces entirely new dynamics that break historical patterns. Total giving increased to £15.4 billion in 2024, but this masks a fundamental shift: donor participation collapsed from 58% in 2019 to 50% in 2024. Source1 Source2 Average donations rose dramatically from £47 monthly in 2019 to £72 in 2024, creating sustainability risks through donor concentration.
Youth giving particularly suffered, with only 36% of 16-24 year-olds donating in 2024, down from 52% in 2019. This age demographic shift threatens long-term sector sustainability as traditional donor pipelines weaken.
AI disruption accelerated massively - 61% of charities now use AI daily, up from 35% in 2023. Source1 Source2 However, 41% of charities lack digital trustees, creating strategic governance gaps. AI-enabled organisations report £500,000+ increases in cash giving through predictive analytics and dynamic donation optimisation. Source
International development funding faced unprecedented cuts. The UK reduced aid from 0.5% to 0.3% of GNI by 2027 (£14.1 billion to £9.2 billion), while the US halted 82% of USAID programmes (~5,200 of 6,200), creating a $40-60 billion global ODA gap. Source
Lag time analysis: When revenue streams respond to economic shocks
Immediate response (0-3 months)
Individual giving and corporate partnerships show the fastest response to economic uncertainty. During COVID-19, 53% of UK charities experienced donation drops within the first quarter. Source Corporate giving typically falls 6%+ immediately as companies focus on survival, representing among the first budget cuts during downturns.
Prize-led fundraising demonstrates unique counter-cyclical growth, with National Lottery ticket sales increasing £25 million during 2008-2009. Source This reflects the "hope factor" psychology where people seek escape during economic hardship.
Medium response (6-18 months)
Major gifts typically show delayed responses as wealthy donors assess longer-term economic impacts. However, high-net-worth individuals (top 1%) actually increased giving by 36.1% in 2020, demonstrating their relative insulation from economic shocks.
Trust and foundation giving adjusts over 6-12 months as boards reassess strategic priorities and investment income impacts become clear. During 2020, grant spending increased 7% while other expenditure fell, showing foundations' counter-cyclical potential.
Digital fundraising adaptation occurs within 6-12 months, with COVID-19 demonstrating rapid channel migration. Source Organisations had to rebuild supporter acquisition and stewardship systems, creating permanent behavioural changes.
Delayed response (18+ months)
Legacy income shows the longest lag times, typically 2-3 years, due to legal processing requirements and housing market correlations. However, this delay provides stability - bequest income reached record £4 billion in 2022 despite ongoing economic uncertainty. Source1 Source2
Statutory funding changes follow political cycles and budget processes, often taking 12-24 months to fully impact organisations. The DFID merger effects took 18+ months to fully materialise across the international development sector.
Government policy tsunami: DFID merger and aid cuts impact.
The merger of DFID into FCDO represents the most significant restructuring of UK development funding in decades, with cumulative cuts totalling £5 billion over 2020-2021 alone. Source The 40% reduction from 0.7% to 0.3% of GNI by 2027 creates unprecedented challenges for statutory funding streams. Source
Small charity funding streams were eliminated entirely. The Small Charities Challenge Fund was completely terminated, affecting 95% of UK's 10,000 international development organisations. Source UK Aid Direct - a £150 million programme supporting 4.5 million people across 37 countries - was ended, alongside the Community Partnerships Fund and UK Aid Connect. Source
Specific organisational impacts include CARE International UK facing "material uncertainty" with 15% revenue drops to £62.7 million, while smaller organisations like UK Bangladesh Education Trust lost £50,000 (100% of funding) for girls' education programmes, threatening entire organisational viability. Source
Sector-specific decimation occurred across key areas: girls' education cuts of 40% affecting 700,000 fewer girls, water and sanitation bilateral funding cuts of 80% (£140 million), and neglected tropical diseases funding reductions of 90%. Source
Multilateral funding also faced systematic cuts: World Bank contributions fell 54%, UN Women funding dropped 77% (2020-2022), and the UN Development Programme saw 80% reductions over the same period.
The Foreign, Commonwealth & Development Office scored 13.5 percentage points lower than DFID in aid transparency indices, indicating reduced accountability and effectiveness alongside funding cuts.
Resilience patterns: Which revenue streams compensate when others decline?
Legacy giving: The crisis-proof foundation
Legacy income demonstrates remarkable resilience, declining in only 6 out of 30 years historically. Source During the current crisis, bequest income increased 9% in 2024 versus 1.3% in 2023, reaching £4.5 billion. Legacy gifts now constitute 30% of fundraising income across top 1,000 charities, rising to 50% for animal and conservation charities. Source
Demographic tailwinds support continued growth, with 11% increases in bequest numbers expected 2023-2027 versus the previous five years. Housing market correlations show short-term 3% declines in average values, but increased death rates (700,000 annually by 2030) offset property value fluctuations. Source
Strategic projections show legacy income reaching £6 billion by 2050, making it the single most important long-term revenue stream for organisational sustainability. Source1 Source2
Major gifts: The wealthy donor resilience factor
Major gifts increasingly drive sector growth, with 49% of charity income growth in 2023-2024 coming from exceptional gifts. Source Wealthy donors show relative insulation from economic shocks - the top 1% increased giving 36.1% in 2020 while broader individual giving declined.
Relationship-based giving proves less sensitive to economic indicators than mass-market fundraising. Organisations with strong major gift programmes demonstrate faster recovery patterns and greater ability to compensate for losses in other revenue streams.
Prize-led fundraising: The counter-cyclical opportunity
Lottery and raffle income shows unique counter-cyclical growth patterns. National Lottery sales increased £25 million during 2008-2009, while raffle response rates are returning to 2019-2020 levels with increasing average gifts. Consumer spending on charitable gaming is expected to reach £9.4 billion by 2024. Source
The dual benefit proposition - entertainment value plus charitable giving - creates psychological appeal during economic hardship. This "hope factor" drives participation when traditional giving becomes constrained.
Sector-specific resilience variations
Healthcare charities benefit during crises, with health-related donations increasing 14 percentage points (35% versus 21% average) during COVID-19. Medical research and NHS-related giving surged as public priorities shifted toward health security.
International development organisations face the highest vulnerability through government dependency and ODA cuts. Source Previous crises showed 10-40% declines, but current cuts approach 40% reductions, creating existential challenges for smaller organisations.
Children and youth organisations prove most vulnerable, with 9 percentage point declines (18% versus 27% average) during 2020, as they're perceived as "less urgent" during health crises.
Current resilience factors and strategic projections through 2029
Technology-driven transformation opportunities
AI adoption accelerates dramatically, with 47% of fundraisers seeing AI as the biggest digital opportunity in 2025. Source Source Organisations implementing AI-powered donor analytics report 12% increases in per-session fundraising through dynamic donation optimisation. Source Predictive modelling enables major charities to achieve £500,000+ cash giving increases through behavioural analysis. Source
Hybrid engagement models become standard, with 57% of charities using digital tools for service delivery. Source Source Mobile-first fundraising strategies prove essential as younger donors prioritise digital-first engagement and interactive experiences.
Economic environment challenges
GDP growth projections remain modest at 1.0% for 2025 (revised down from 1.5%) and average 1.75% annually through 2026-2029. Source Source National Insurance contributions rising to 15% from April 2025 creates £800 per employee increases, with average employers facing £26,000 additional annual costs.
Government funding concentration increases, with 61% going to organizations with income \u003e£1 million, while competition for grants surges 30-50% across foundation applications.
Demographic and behavioral shifts
Generational changes accelerate as Millennials and Gen Z become influential donors with preferences for transparency, authenticity, and direct impact. Source They favour smaller donations to multiple causes versus larger donations to fewer causes, requiring adapted acquisition strategies.
Subscription and regular giving models thrive, with 60% of charities optimistic about 2025 fundraising (up from 44% in 2024). Source Experiential fundraising gains importance alongside gaming and crowdfunding platforms as emerging revenue streams.
Climate funding growth trajectory
Philanthropic climate funding significantly outpaced overall giving growth in 2023, with UK committing £11.6 billion International Climate Finance through 2025-26. Source Source The £13.2 billion "warm homes plan" confirmed through 2029 Source creates substantial opportunities for environmental organizations.
Currently, only 2% of philanthropy goes to climate mitigation, indicating significant growth potential for nature-based solutions and community-led climate action initiatives. Source
Strategic recommendations for charity leadership
Any advice I impart I get as recommendations from others, so no need to worry that I’ve plucked this out of thin air. This is air that’s been throughly examined and the most sensible advice presented like so:
Revenue diversification imperatives
Multiple income streams prove essential for crisis resilience. Growing charities demonstrate more evenly spread portfolios rather than over-dependence on single funding sources. Source Legacy giving programmes require immediate investment to capture the £5 billion growth opportunity projected through 2030. Source
Corporate partnerships must expand beyond traditional CSR into ESG-aligned strategic partnerships. With FTSE 100 charitable donations not keeping pace with profits over the past decade, significant growth potential exists through value-aligned partnerships.
Operational excellence requirements
Transparency and impact reporting become non-negotiable by 2029, with data-driven decision making becoming standard practice. Source Supporter experience optimization proves crucial for retention as donor concentration increases and acquisition costs rise.
Cost efficiency through shared services and collaborative models helps organizations navigate increased operational costs while maintaining mission delivery effectiveness.
Technology integration priorities
AI-powered donor segmentation and personalisation capabilities become competitive advantages. Automated stewardship workflows and predictive analytics for campaign optimisation enable organisations to maintain relationship quality while managing larger donor pools efficiently.
Digital-first but human-centred approaches balance technological efficiency with authentic relationship building, particularly important as donor expectations evolve.
Conclusion
The UK charity sector through 2029 faces unprecedented complexity requiring adaptive strategies that balance technological innovation with human connection. Source Legacy giving provides the most stable foundation with £5 billion growth potential, while major gifts offer immediate resilience for organisations investing in relationship building. Source
The polycrisis environment demands diversified revenue strategies that reduce dependency on vulnerable streams like individual giving and government funding. Source Organisations embracing AI-powered optimisation, hybrid engagement models, and crisis-adapted communication strategies will capture disproportionate market share as the sector consolidates.
Success factors center on building authentic donor relationships, maintaining operational flexibility, and investing in technological capabilities that enhance rather than replace human connection. The charities that navigate this complex landscape through strategic revenue diversification, operational excellence, and adaptive leadership will emerge stronger and more sustainable by 2030.
TL;DR
Major Donors
Typical timeline: 12-24+ months
Best case growth: +50%
Worst case growth: +5%
Leads to: Capital campaigns, bursary/endowment funding, building projects, naming rights
Notes: High value, long-term relationship building; trustee involvement likely
Regular Giving
Typical timeline: 3 months to establish and grow
Best case growth: +15%
Worst case growth: +2%
Leads to: Unrestricted income, steady cash flow, Gift Aid uplift, donor retention
Notes: Admin-heavy over time; strong for long-term sustainability
Trusts & Foundations
Typical timeline: 6 months from application to award
Best case growth: +30%
Worst case growth: +5%
Leads to: Project-specific funding, restricted income, detailed reporting
Notes: Time-intensive applications; clear impact evidence required
Events
Typical timeline: 2–3 months to organise
Best case growth: +25%
Worst case growth: –10% (loss)
Leads to: Short-term income spikes, alumni engagement, community visibility
Notes: High staff cost, reputational risk if poorly executed
Corporate Partnerships
Typical timeline: 6–9 months from first contact to activation
Best case growth: +35%
Worst case growth: 0%
Leads to: Medium-term cash/in-kind income, staff volunteering, branding opportunities
Notes: High stakeholder complexity; requires alignment of values
Legacy Giving
Typical timeline: 5–10 years
Best case growth: +100%
Worst case growth: 0%
Leads to: High-value windfalls, often unrestricted
Notes: Long-term cultivation; sensitive comms required; legal readiness essential
The Great Funding Shift: Why UK Public Services Are Turning to Fundraising Professionals
As government grants decline and service demands rise, public sector organisations across the UK are turning to philanthropy to bridge the gap. From NHS charities to local authorities, fundraising professionals are becoming essential to long-term financial resilience. This blog explores why—and what it means for the sector.
In the last few months approaches from schools (state, MAT and independent) and NHS Trusts enquiring about first steps in developing professional income generation have shot up. The short answer is have a chat to a fundraising consultant and the short answer to where to find someone is to contactus@ferntalent.com, we’ll introduce you to someone for no mark up and no obligation.
It’s become a bit of a cliché (in my mind at least) that the government cuts funding to a core service then slowly hands over responsibility to the third sector, but how true is it?
I thought I’d use my last credits with Anthropic to dig through the stats, here they are summerised.
If you’re not a fan of stats the TL;DR is that yes through manipulation, necessity or pragmatism the government has been shifting the way many institutions are funded from statutory to anything else.
My feeling it’s that is a self fulfilling prophecy, cuts are made, charities fill the void. At the moment it feels to me a bit like PFI, except as there’s no profit to be made from say, the homeless VS a large infrastructure project, it’s the public who foot the bill.
So, what did Claude have to say?
Since 2010, the UK has seen a huge shake-up in how public services are funded. With £110 billion slashed from government budgets, many schools, hospitals, and councils are now relying on charitable donations to keep going. The charity sector has exploded—doubling in size to £96 billion a year—as more public services hire professional fundraisers to fill the gap left by austerity.
This isn't just a budget tweak—it’s a massive rewrite of Britain’s social contract. Charities now provide £14 billion worth of public services each year. Schools are running major fundraising campaigns, and over 230 NHS charities are contributing £1.2 million every single day to keep healthcare going. COVID-19 only sped things up, showing just how willing the public is to help—and how much help is needed when government funding falls short.
But while this opens doors for fundraising experts, it also raises some tough questions. Who gets left behind when some schools or hospitals can't fundraise as well as others? And what happens when postcode or personal networks decide who gets better services?
Austerity Sparked the Fundraising Boom
The spending cuts since 2010 have been some of the harshest since WWII. Even sectors like education and health—claimed to be “protected”—faced tough times and were pushed to look elsewhere for money.
Education took one of the biggest hits. Between 2009 and 2019, schools lost 8-9% in per-pupil spending, and local authority education budgets were slashed by over half. Even by 2024-25, schools are still operating with 3% less than they had in 2010. That shortfall adds up to £1.8 billion a year.
The impact? About 70% of English schools have less real funding than in 2010. One in seven schools is now running a deficit—the highest number since the cuts began. That’s like losing 1 to 4 teachers per school, just to make ends meet.
The NHS didn’t fare much better. Despite a growing population and rising demand, funding barely grew—just 0.1% annually from 2010-2015. The decade saw the lowest funding growth in NHS history. By 2023/24, NHS trusts were £1.2 billion over budget, and investment shortfalls hit £37 billion.
Local councils were hit hardest. Between 2009 and 2016, budgets dropped by over 50%, leading to the closure of 738 libraries, 859 children's centres, and 1,224 subsidised bus routes. Library spending fell by nearly 30%, leaving communities to rely on volunteers and donations to stay afloat.
Charities Step In to Fill the Gaps
As the government pulled back, the charity world stepped up. The sector has doubled in income since 2010, much of it going toward what used to be publicly funded services.
One big change? Government support has shifted from grants to contracts. Between 2021 and 2022, grants fell while contracts jumped 25%. For the first time ever, foundations now give more to charities than the government does.
Charities are now taking on core public services—everything from homelessness support (69% of contracts) to domestic violence services (66%). The sector employs 1.28 million people—30% more than a decade ago—filling the jobs left behind by public cuts.
Donations from the public have grown too, but not without issues. Health charities receive the most (£2.22 billion annually), but fewer people are donating overall. Wealthier donors are giving more, while everyday giving is on the decline, raising concerns about fairness and long-term stability.
Schools Are Getting Serious About Fundraising
Schools have undergone one of the biggest transformations. Professional fundraising is no longer a bonus—it’s becoming a necessity. Just 12 academy trusts raised nearly £20 million in two years, with wide differences based on their ability to network and fundraise.
Top trusts have gone all in. Ark Schools pulled in £6.2 million in one year from hedge funds. Ormiston got £2.7 million from charitable and lottery sources. Some have even hired full-time fundraisers—like the Harris Federation—and raised millions.
Independent schools have been doing this for a while. In two years, 119 schools raised nearly £270 million, with most now seeing heads spend up to a quarter of their time on development work. If a school raised over £500,000, chances are the head was heavily involved.
But this isn’t happening equally. High-performing or selective schools raise much more than others. Some, like London Oratory, raised over £150,000 while schools in less wealthy areas struggle to afford basics like books or sports equipment.
The NHS Turns to Fundraising to Keep Going
Fundraising is no longer a “nice-to-have” for the NHS—it’s a lifeline. With over 230 NHS charities raising £1.2 million a day, charitable support has become essential for modern healthcare.
NHS trusts are hiring full teams for fundraising: philanthropy managers, development directors, and major gift officers—roles paying up to £80,000+ for top talent. These jobs now require serious fundraising experience, especially with wealthy donors.
Big campaigns are also making waves. Cambridge Children’s Hospital is working on a £100 million campaign, already halfway there. Great Ormond Street pulls in around £100 million a year, with support from over 300,000 people worldwide.
NHS charitable funding goes far beyond extras. It helps with everything from MRI machines to ward refurbishments, research, and staff support. And with capital shortfalls piling up, this kind of funding is becoming vital.
COVID Changed Everything—Fast
The pandemic pushed these trends into overdrive. NHS Charities Together raised a record £160 million, with Captain Tom alone raising £39 million. It was proof: the public is willing to fund services they believe in.
Online giving exploded. Platforms more than doubled their donations, and mobile giving took off. More organisations began prioritising data and analytics, seeing big results.
But cracks showed, too. Government support to charities fell from 30% to 26% of their income—the lowest since 2004. After an initial £750 million relief fund, the support faded, with real-terms cuts hitting £1 billion by 2025.
Add in rising costs, more competition for grants, and cuts to international aid—and it’s clear the pressure isn’t going anywhere.
A New Industry: Fundraising Consultants for the Public Sector
All this demand for fundraising has created a booming consultancy sector. Firms now specialise in helping schools and NHS trusts raise serious money. But not all consultants are created equal—finding someone who truly understands your sector is key.
That’s where firms like Fern Talent come in. Instead of doing the fundraising themselves, they help organisations connect with the right specialist—saving time and avoiding costly missteps.
Healthcare-focused consultants have really taken off, offering everything from campaign planning to donor research. Meanwhile, charity sector jobs are booming—especially in fundraising—with salaries up 8.5% and many organisations struggling to hire.
Professional training has grown, too, with more certifications and courses now available for fundraising professionals.
The Bigger Picture: A Divided System
As public services lean more on charitable funding, the system is starting to split. Those with strong fundraising skills thrive. Those without? They fall behind.
Geography plays a big role. Top schools raise way more than struggling ones. Wealthy areas can fund new hospital wings. Poorer areas struggle to keep the lights on.
And this new pressure shifts leadership priorities. School heads now spend huge chunks of time on fundraising. NHS executives are doing the same. That’s time away from teaching and healthcare delivery.
Parents are also feeling the pinch. Many are asked to donate monthly, with some schools even tracking donation levels as a performance metric. Trips, sports, even textbooks are often paid for by families now—widening the gap for lower-income students.
Hiring fundraising consultants or building internal teams isn’t cheap either. Organisations need to weigh the cost against the value it brings.
And when wealthy donors give big, they may expect influence—raising questions about who really shapes public services in this new model.
So, What Now?
The shift from government to charitable funding is one of the biggest changes in UK public services since the welfare state began. With £110 billion cut, schools and NHS trusts have turned to fundraising out of necessity.
Done right, it can bring in millions and strengthen community ties. But it can also deepen inequality and shift focus away from the core mission of public service.
The big question now isn’t should you fundraise—it’s how you do it. And if you’re feeling overwhelmed by the options, that’s where expert advice can make all the difference.
Firms like Fern Talent are here to help. Whether you’re just starting out or looking to expand, they can connect you with the right people to plan smart, raise more, and stay focused on what really matters.
Looking for advice from a fundraising consultant, let me know and I’ll find you someone with the experience you need to make an informed decision with no obligation to use any of our services.
If you have a vacancy you’d like us to take a look at just let me know, we can arrange a chat to find out what your priorites are and we can get a proposal over. We work to a flat fee so you know what to expect from the outset,
Call me (Tim) on: 07480877734
UK charity fundraising requires institution-wide leadership
Breaking Down Silos: Why UK Charity Fundraising Must Be Everyone's Business
An organisational failure, not a fundraising problem
The most damaging myth in UK charity management is that fundraising can operate effectively in isolation. As sector experts increasingly recognise, when fundraisers find themselves stuck in silos, "it's an organisational failure" that creates a "veritable Gordian knot" of structural complexity. The evidence from successful charities, regulatory guidance, and sector research is unequivocal: sustainable fundraising requires institution-wide integration, not departmental isolation.
The pattern is depressingly familiar. Fundraisers aren't involved in financial planning by those spending the money. Mission delivery teams work to long-term targets whilst fundraisers face short-term financial pressures. Communications departments inadvertently create barriers between fundraisers and programme staff. The result? Charities spend precious resources trying to override the very structures they've created.
Legal obligations demand leadership engagement
The UK regulatory framework makes senior leadership engagement in fundraising non-negotiable. The Charity Commission's CC20 guidance establishes that trustees are legally responsible for their charity's fundraising activities as part of core duties under charity law. Ultimate responsibility rests with trustees regardless of who conducts fundraising activities, requiring formal supervision arrangements, monitoring procedures, and board-level escalation processes.
This isn't bureaucratic box-ticking. Recent enforcement cases demonstrate real consequences of inadequate trustee fundraising oversight, with personal liability for financial losses and potential removal from office. The law prevents fundraising from being treated as separate operational activity, instead requiring integration into strategic governance and organisational accountability systems.
Successful integration delivers measurable results
UK universities provide compelling evidence of what integrated advancement achieves, with annual fundraising nearly doubling to £1.5 billion by 2022. The University of Leeds exemplifies best practice through integrated advancement teams combining fundraising, alumni relations, and advancement operations under unified leadership, with "individuals from different backgrounds who are experts in their fields, from fundraisers to data specialists" working toward strategically aligned objectives.
The charity sector shows similar success patterns. Research by Blackbaud reveals that growth in income is "inextricably linked to commitment from the top to digital transformation," with successful organisations prioritising connected workflows and data-driven decision making. Guide Dogs exemplifies this approach with their Chairman's clear articulation: "Everyone at Guide Dogs is a fundraiser."
Creating cultures where fundraising flourishes
Stephen Pidgeon, fundraising consultant and visiting professor at Plymouth University, emphasises from his work with nearly 200 national charities that success requires "true dialogue, real cooperation across departments and establishment of trust." The evidence consistently shows that effective fundraising demands energy spent linking closely with service-providing colleagues, not just external stakeholders.
Successful organisations demonstrate specific cultural characteristics: fundraising is valued rather than merely tolerated, fundraising "ownership" extends across other functions, and internal communication patterns support collaboration rather than competition. Research from University of Warwick shows happy workers are 12% more productive, with poor organisational culture costing the UK economy £23.6 billion annually through staff turnover. For charities, this translates directly into fundraising capacity and donor relationship continuity.
The leadership imperative
CEOs and Directors face clear responsibilities: demonstrate that fundraising is valued through personal engagement, invest in integration through connected systems, model fundraising engagement, and ensure fundraising strategy aligns with organisational mission. For Trustees, this extends beyond oversight to active championing, requiring fundraising literacy as core competency and asking probing questions about fundraising performance and strategy.
The transformation from siloed to integrated fundraising requires fundamental cultural and structural changes led from the top. However, the evidence shows that charities making this transition achieve better donor retention, improved productivity, enhanced reputation, and sustainable income growth—outcomes essential for effective charitable purpose delivery.
The choice facing UK charity leaders is clear: continue with organisational structures that undermine fundraising effectiveness, or embrace integration models that align legal obligations with operational success. The evidence overwhelmingly supports the latter approach, making institution-wide fundraising integration not just best practice, but organisational necessity.
Successful UK charity fundraising demands organisation-wide integration rather than departmental approaches, with clear legal obligations requiring senior leadership engagement from trustees through to operational teams.
The UK charity sector has reached a critical consensus: fundraising cannot operate effectively in isolation from broader organisational strategy and culture. This represents a fundamental shift from traditional departmental models toward integrated approaches where senior leadership—CEOs, Directors, and Trustees—actively champion organisation-wide fundraising cultures that maximise both impact and sustainability.
The case against fundraising silos is overwhelming
Multiple UK charity sector publications, consultancies, and regulatory bodies consistently identify siloed fundraising as a persistent organisational failure. The evidence demonstrates that structural separation of fundraising from other functions creates what sector experts describe as a "veritable Gordian knot" of organisational complexity. When fundraisers are placed in structural silos and overlaid with departmental strategies, charities end up spending resources trying to override the very structures they've created.
The problem manifests when people raising money aren't involved in financial planning by those spending it, and when mission delivery targets are long-term whilst fundraisers face short-term financial pressures. As sector analysis reveals, this isn't actually a fundraising issue at all—it's fundamentally organisational. Research from leading UK consultancies shows that the most common failure pattern involves fundraisers not spending sufficient time building relationships with service delivery colleagues, communications departments creating barriers between fundraisers and programme staff, and insufficient investment in cross-departmental trust-building.
Stephen Pidgeon, fundraising consultant and visiting professor at Plymouth University, emphasises that success requires "true dialogue, real cooperation across departments and establishment of trust." The evidence from nearly 200 national charities he's worked with demonstrates that effective fundraising demands energy and time spent linking closely with service-providing colleagues, not just external stakeholders.
Legal framework mandates senior leadership engagement
The UK regulatory environment explicitly requires senior leadership engagement in fundraising through non-delegable trustee duties. The Charity Commission's CC20 guidance establishes that trustees are legally responsible for their charity's fundraising activities as part of core duties under charity law. This creates mandatory senior leadership involvement through six fundamental principles: effective planning, supervision of fundraisers, protection of reputation and assets, legal compliance, adherence to recognised standards, and transparency.
Trustees face personal liability for financial losses resulting from breached fundraising duties, with the Charity Commission able to take regulatory action including formal warnings and trustee removal. Recent enforcement cases demonstrate real consequences of inadequate trustee fundraising oversight. The legal framework prevents fundraising from being treated as separate operational activity, instead requiring integration into strategic governance, risk management, and organisational accountability systems.
The Fundraising Regulator's Code of Fundraising Practice reinforces this through organisational responsibility requirements where charities must ensure compliance across all fundraising channels. Ultimate responsibility rests with trustees regardless of who conducts fundraising activities, requiring formal supervision arrangements, monitoring procedures, and board-level escalation processes.
Successful integration models demonstrate clear benefits
UK universities provide compelling evidence of integrated advancement success, with annual fundraising nearly doubling to £1.5 billion by 2022. The University of Leeds exemplifies best practice through integrated advancement teams combining fundraising, alumni relations, and advancement operations under unified leadership. Their approach demonstrates sophisticated cross-functional collaboration with "individuals from different backgrounds who are experts in their fields, from fundraisers to data specialists" working toward strategically aligned objectives.
The University of Edinburgh and Essex models show similar integration patterns: structured advancement functions aligned with institutional strategy, collaborative team approaches, and coordinated stakeholder engagement. The CASE-More UK Philanthropy Report identifies that the most successful institutions develop cultures across institutional leadership including academic leaders, with senior advancement professionals having "a seat at the top leadership table."
Asthma + Lung UK demonstrates integration success in the broader charity sector through CRM system integration allowing both fundraising and campaigns teams to view supporters comprehensively. Their Marketing Manager Rachel Egan notes: "We have been able to develop a much clearer picture of our supporters and this has helped inform strategic work across the charity. It has also helped us identify the needs of our audiences and tailor supporter journeys to benefit teams across the organisation."
Organisation-wide approaches drive sustainable income growth
Digital transformation research by Blackbaud reveals that growth in income is "inextricably linked to commitment from the top to digital transformation." Their analysis of UK charity performance shows that successful organisations prioritise connected workflows and data-driven decision making, with CEOs leading on breaking down organisational silos to unite entire teams within integrated systems.
The Guide Dogs success story exemplifies organisation-wide commitment. Chairman John Stewart articulated: "Everyone at Guide Dogs is a fundraiser," providing clear rationale that "there are still 180,000 people in the UK unable to leave their homes because of visual impairment." By making the head of fundraising responsible for both fundraising and marketing, they eliminated communication barriers and demonstrated organisation-wide value for fundraising activity.
Current sector data supports integrated approaches: 87% of UK charity decision-makers find productivity challenging, with 64% needing daily access to information from other departments but 51% unable to access needed information directly. This creates compelling business case for integrated systems and cross-functional collaboration.
Senior leadership responsibilities span strategic to operational
CEOs and Directors must demonstrate that fundraising is valued, not merely tolerated, whilst establishing fundraising "ownership" across other functions. Research consistently shows successful charity leaders allocate 10-20% of their time to fundraising activities, from meeting donors to supporting fundraising teams. They must create cultures supporting fundraising across the organisation whilst maintaining responsibility for both raising and spending money effectively.
For Trustees, responsibilities extend beyond oversight to active championing. The Chartered Institute of Fundraising emphasises fundraising training as core competency for trustees, with boards needing to ask probing questions about fundraising performance and strategy. Successful boards recruit trustees with fundraising expertise as valuable skills, acting as internal champions rather than passive monitors.
Fundraising Directors in integrated organisations build relationships across all departments, participate in non-fundraising strategic decisions, and share supporter insights organisation-wide. They create shared metrics benefiting multiple teams rather than operating from departmental perspectives. This represents fundamental shift from specialist roles toward collaborative leadership positions.
Culture change requires systematic implementation
Organisational culture directly impacts fundraising success through measurable productivity and retention effects. Research from University of Warwick shows happy workers are 12% more productive, with 34% of British workers leaving due to poor culture at an annual cost of £23.6 billion to the UK economy. For charities, this translates directly into fundraising capacity and donor relationship continuity.
Cultural determinants of fundraising success include: status of fundraising within the organisation (valued versus tolerated), extent to which fundraising is "owned" across other functions, risk tolerance and innovation appetite, speed of decision-making and implementation, and internal communication patterns. Successful organisations identify senior champions (trustees or board members) who understand fundraising, recruit trustees with fundraising backgrounds, highlight fundraising successes internally, and ensure fundraising teams build relationships across all departments.
The evidence shows that structural changes alone are insufficient—cultural transformation requires senior leadership modelling collaborative behaviour, creating common goals, and using positive future-focused coaching language to break down departmental barriers.
Implementation framework for senior leadership
The research provides clear implementation pathways for achieving fundraising integration across UK charities.
For Chief Executives and Directors: demonstrate fundraising value through personal engagement and resource allocation; invest in integration through connected systems and cross-departmental collaboration; model fundraising engagement and supporter stewardship; ensure fundraising strategy aligns with organisational mission and values.
For Trustees: maintain active oversight whilst championing fundraising investment; ensure board has fundraising expertise and literacy; balance fundraising ambition with reputation protection; ask probing questions about fundraising performance and strategy aligned with legal duties under CC20.
For organisations: design horizontal workflows rather than vertical departmental structures; prioritise organisational culture as fundraising foundation; implement connected systems enabling data-driven decisions; invest in fundraising skills development across all staff levels.
Conclusion
The evidence from UK charity sector publications, consultancies, regulatory guidance, and successful case studies overwhelmingly supports integrated approaches to charity fundraising. The legal framework mandates senior leadership engagement, successful organisations demonstrate clear benefits from integration, and the business case for organisation-wide approaches is compelling. Moving from siloed fundraising to integrated organisational models where "everyone is a fundraiser" represents not just best practice but regulatory requirement and operational necessity for sustainable charity success in the UK context.
The transformation requires fundamental cultural and structural changes led from the top, supported by trustees, and embedded throughout organisations. However, the evidence shows that charities making this transition achieve better donor retention, improved productivity, enhanced reputation, and sustainable income growth—outcomes essential for effective charitable purpose delivery in increasingly competitive environments.