How Charities Can Combat the Impact of Recessions

It won’t have escaped your attention that everyone in the UK is feeling the squeeze right now. Energy prices have soared, the cost of filling your car with fuel has skyrocketed and the weekly grocery shop has gone through the roof.

UK inflation hit a 40-year high in July and is expected to rise an extra 13% in October.

To combat this, the Bank of England has raised interest rates to a level not seen in 27 years and warned that the UK faces a recession that will last until the end of 2023.

However, it's not all doom and gloom.

The charity sector was hit hard in the recession of 2008, and it bounced back. This time will be no different.

How did the 2008 recession impact the third sector?

Back in 2008, a global financial crisis brought about what has become known as ‘The Great Recession.’As a result, charitable donations in the UK dropped by 11% and charities large and small experienced a reduction in income at the same time as a rise in demand for the services they provide.

Government funding dried up and organisations that had come to rely on this income stream had to find alternative sources – fast.

To be fair, many of the charities that relied on statutory funding had known for years that they needed to establish a ‘Plan B’ but hadn’t done so.

If there’s one positive to take away from the situation, it’s that the recession made them take action, by accelerating changes that were going to be made anyway.

It was hard. But they survived.

So, what can you do to ride out the recession and minimise the impact of future recessions?

Maintain Communication

Communication is key – in good times and bad.

Maintaining visibility is as important, if not more so, during times of hardship. Donations may decline, but people will still give to the causes they care about, albeit in smaller amounts.

What's more, the dip won’t last forever

.You want your voice to remain heard, so you don’t lose out when things pick back up.

Diversify Your Revenue Streams

From large-scale donors and private investment to public events, government grants and legacy giving, there’s more than one way to add to those coffers.

Give yourself options. Don’t focus your attention on one- or two-income channels.

Form Partnerships

Get together with like-minded charities with similar missions and fundraise together.

After all, half of the pie is better than none of it. And many hands make light work, as the saying goes.

Remember though, that trust is vital for partnerships to be successful. Don’t jump in with both feet before researching potential partner organisations first. Choose the wrong one and it will be more detrimental than beneficial to your cause.

Final Word

These are just a few actionable ideas for charities to combat the impact of recessions and come out the other side shining.

If you need recruitment assistance or advice on effective hiring during the current cost of living crisis. Give us a call on 0203 750 3111.

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The Evolution of Fundraising

Fundraising, like most things, has undergone a huge transformation in the past 50 years, thanks to advances in technology and the ever-expanding digital world.

The ways we raise and give money constantly change due to new situations, needs, priorities, and technologies.

But how did charities fundraise before everything went digital? And what new fundraising methods have emerged in recent years?

Let’s go on a little journey through time and find out.

The ‘Olden Days’

Fundraising has always been about connecting donors with a cause. Fifty years ago, volunteers organised fundraising activities to do just that. From flag days and cake sales to sponsored walks and jumble sales, the activities may not have been very efficient or sophisticated, but they got the job done.

In addition to events, asks were made by telephone, hand-written (yes, hand-written!) letters and door-to-door fundraising.

By 1980, advances in technology meant that non-profits were experimenting with TV advertising and live broadcast telethons.

The Worldwide Web

In 1990, everything changed with the advent of the Internet.

At first, charities used it in a similar way to print and direct mail - websites provided static information about their causes and beneficiaries, much like a brochure.

As charities became more comfortable with technology, websites became more hi-tech and interactive. And with the advent of online payment systems, such as PayPal, which was founded in 1998, people became more comfortable paying for things online.

Social Media

In the early part of the 21st century, the Internet became more interactive with the advent of social media sites. Facebook entered the scene in 2004 and offered charities an easy and cost-effective way to communicate with donors and run fundraising campaigns.

Other social sites soon followed suit.

Online Events

Everything ticked along nicely until 2019 when COVID-19 hit.

The pandemic had an enormous impact on charities, not least because it prevented them from holding fundraising events (a major source of income for many). Glitzy balls, gala dinners and sports events were banned for almost two years, as was any face-to-face contact with donors.

In order to survive, charities had to adapt and embrace digital fundraising: Online events became a lifeline in the fundraising calendar.

Fast forward to 2022, and although physical events are returning, virtual events continue to be a valuable source of income and are likely to be a staple in the fundraising toolbox going forward.

The Future is Online

A report by WPNC found that online giving doubled during the pandemic, with online donations growing by 115% in volume and 97% in income.

The stats say it all. Online platforms such as JustGiving and GoFundMe have made it easier than ever for people to donate.

Social media has also evolved, with Facebook’s birthday fundraisers and Instagram’s ‘add a fundraiser’ function, making fundraising easily accessible and user-friendly. And then there’s mobile giving. The public’s appetite for mobile technology has grown markedly in the last few years. Today, at least eight out of ten adults use a smartphone and spend more than two hours online on their devices each day.

Savvy charities have invested in mobile tech, enabling them to run campaigns on mobiles and accept donations by text and QR code. And these organisations are reaping the rewards, as text donations increased by 64% to £65.8m in 2021.

As mobile technology advances so will mobile giving.

This is one fundraising method that’s here to stay.

Cashless/Contactless

The move away from cash towards card and contactless payment methods has been happening for years.

Debit cards have been the preferred method of payment in the UK since 2017 and the simple act of tapping a card on a machine is fast becoming the go-to method of cashless payment, particularly for those looking to donate to charities.

It's predicted that by 2027, 36% of payments will be made via contactless methods – as opposed to 16% with cash. So, if you’re not set up for contactless, you’re going to miss out.

Demographics

In terms of demographics, historically, the majority of charitable donations came from those in the 40-50 age bracket, as they typically had the largest amount of disposable income.

As such, this was the group that organisations targeted with their fundraising campaigns.

However, this has shifted with the surge in online fundraising. Today, millennials are the largest donating demographic, with around a third of Gen Z donating to charitable causes each year. (It’s worth noting that, in contrast to older generations, young people tend to donate smaller amounts to multiple charities instead of committing to a single cause).

The Evolution of Fundraising

As you can see, fundraising has come a long way, but this isn’t the end of the story.

Technology, trends and ideas will continue to evolve, and the fundraising landscape is likely to have changed beyond all recognition again in another 50 years.

Until then, if you’re in the market for a new team member, give us a call on 0203 750 3111. 

Charity in the royal blood: Queen Elizabeth’s incredible charitable legacy

Along with the rest of the world, we at Bamboo were shocked and saddened to hear of the death of Queen Elizabeth II on Thursday, May 8.

We send our deepest condolences to her family.

In tribute, we’re reflecting on the incredible work she did for charitable causes during her 70 years on the throne, and the powerful legacy she’s left behind.

Throughout her reign as Britain's longest-serving monarch, Queen Elizabeth II was a patron of more than 600 charitable organisations across the United Kingdom and the Commonwealth. From Cancer Research UK and Girlguiding to The Bible Society and the RNIB, her support spanned a wide range of causes, and she helped to raise a staggering £1.43 billion during her reign.

Here’s an insight into the Queen’s association with just a few of her favoured causes.

British Red Cross

As a young princess, the Queen travelled overseas to visit Red Cross nurses working on the frontline. She then became a patron of the charity in 1949.

She made personal visits to many people facing bleak times, cheering them up in their darkest hours. One of her earliest visits was to a Red Cross hut caring for tuberculosis patients in 1951.

Since her coronation, she maintained a keen interest in the charity’s vital work supporting people in crisis in the UK and across the world.

From financial donations for those hit by disasters at home or travelling overseas to meet the victims of crises in the UK, the Queen spent nearly a lifetime supporting the charity.

Leonard Cheshire

When Leonard Cheshire died in 1992, the Queen singled him out for praise in her Christmas message. Recalling a visit to one of his Homes, she said “this shining example of what a human being can achieve in a lifetime of dedication can inspire in the rest of us a belief in our own capacity to help others,” she said.

She was a patron of his charity, Leonard Cheshire, from 1980 and held a reception at St James’s Palace in 2014 to celebrate the charity’s work, which supports disabled people in the UK and across the world.

YMCA

The royal family’s association with the YMCA dates back to 1894 when its founder Sir George Williams was knighted by Queen Victoria.

Over 120 years later, that association remained strong. The Queen was a patron of the iconic charity, which received an annual gift from the Privy Purse. For the YMCA’s 150th anniversary in 1982, the Queen attended a service at Westminster Abbey.

The Queen of Fundraising

According to data collected by the Charities Aid Foundation (CAF), the Queen was among the world’s largest supporters of charities, doing more than any other monarch in history.

John Low, chief executive of CAF sums up the Queen’s philanthropic legacy perfectly: "the Queen has set an amazing example when it comes to her charitable support making an enormous difference to millions of people up and down the country. We want to promote a culture where supporting charities by giving time or money is the norm. The Queen's work for charities of all types is an example to all of us." 

Feel Good Friday: Rocco's charity car show

It’s always heart-warming to see a community come together to support a good cause. And that’s exactly what happened in this week’s feel-good Friday post…

Rocco Dowsett was born on September 11, 2020, during the height of the pandemic.

A car-loving toddler from Clacton, he’s known in the community for the miniature green Lamborghini he loves to drive around. But Rocco was not always such a healthy and happy child.

Born with Tetralogy of Fallot, (a serious congenital heart defect), he had to undergo a series of operations to save his young life.

In October 2021, Rocco was admitted to the Royal Brompton Hospital for open heart and lung surgery. Thanks to the hard work of doctors and hospital staff, he came through the operation and has made a full recovery.

Rocco’s mum Leah told the East Anglian Daily Times: “He is now just like a normal child. You wouldn't know, unless you saw his scar, that there was anything wrong with him”.

Rocco’s parents, Leah Purkiss and Alfie Dowsett, expressed their gratitude to the hospital staff, saying “If it wasn't for the hospital, I don't think our boy would be here right now”.

Though their son will always have heart issues, he now has a much better chance of living a normal and happy life.

His family have documented his story on their Instagram account under @baby.roccodowsett.

As a family of car fanatics, what better way for the family to combine their joy at having their little boy safe and healthy and their desire to give back than to fundraise with a car show?

On the 21st August, Rocco and his family teamed up with Double Clutch UK and Torque Show to bring a community of car enthusiasts together to raise funds for the Brompton Foundation: a specialist charity which supports children receiving cardiac, respiratory and intensive care at Royal Brompton Hospital.

The event was promoted on social media, and drivers were invited to bring their cars.

The gates opened at 11am and within five minutes, the whole road was blocked. Over 150 local drivers brought their cars along to show their support.

Between the entrance fee, raffle, and stalls, the event raised over £2,400.

And for those who couldn’t make it on the day, Rocco’s mum set up a GoFundMe page for The Brompton Foundation. Though its initial target was just £100, the fundraiser easily surpassed it, hitting over £1,000 in less than a month on top of the money raised at the event.

The car show may be over, but the GoFundMe page is still live. If you want to donate a few pounds to support children like Rocco, click here.

Do you want to make a difference in the lives of children like Rocco? Maybe you want to run exciting fundraising events like his car show? We can help you find a job in fundraising and turn making a difference into your full-time job. Give us a call on 0203 750 3111 or email info@bamboofundraising.co.uk to get started. 

Chasing Salaries: The existential threat to career progression

Before we get into this topic, I think it’s worth setting out our stall at the top. Here at Bamboo HQ, we believe that fundraisers are worth their weight in Francium (the most valuable element- see ya’ later gold) and should be remunerated as richly as reasonably possible.

But, if salary becomes your only guiding light when making career decisions, the risk is that one day, you’ll find yourself in an unfulfilling, going nowhere role…

There are two main reasons this happens:

1. Selling your skills, rather than building them

Salaries are less competitive when you have as much to gain from the role, as the charity does from hiring you. It’s simple supply and demand.

If I’m joining Save the Children’s corporate team to build strategic, global partnerships in a non-leadership position, I am probably being paid less than if I were setting up a major donor programme for a small charity from scratch.

This is because the former know they have a lot to teach me, and that working for them will make me a more valuable employee, whereas the latter know they have nothing to teach me and need my expertise.

This is fine if you’ve finished growing as a professional, but not if you’re still climbing the ladder.

2. Golden handcuffs

Chasing salaries will almost certainly get you way above the market average for your level of experience, but there’s a risk you’ll be promoted to the limits of your competence. You’ll have been selling your skills rather than building them, for a while and you won’t be as competitive when you’re next looking for a role.

This can place people in the highly uncomfortable position of having to consider a heavy reduction in salary to secure the roles they’re interested in, which is often something they’re unable to accommodate once they’ve adjusted their lifestyle.

Career progression v salary

These problems occur when your plan for your career becomes secondary to salary expectations.

Of course, you should push to be valued to the greatest extent possible, but within the context of a role that fulfils your long-term career aspirations.

To fulfil your potential, we’d advise the following:

Speak to people who’ve achieved what you want

You might be someone who has their career mapped out and knows they want to be Cancer Research UK’s Director of Fundraising one day, or you might know you want your next role to be in international development.

It doesn’t matter how well-developed your plans are - find someone who has already done what you’re looking to do (LinkedIn is a fabulous tool for this) and ask if they’ll meet you for a coffee. Ask them how they did it, and what they’d suggest you do to accomplish the same.

Have clear aims for each career move

Before beginning to explore new roles, have a clear idea of what your non-monetary objectives are and don’t compromise on them, regardless of the salary on offer.

If you’re looking for a role where you’ll work on international projects, (on multi-country partnerships), don’t settle for an international role where you’ll be working on traditional charity of the year partnerships because the high salary helps you rationalise it.

These sorts of compromises might result in a higher salary now, but at the cost of even higher salaries in the long term.

I know what you’re thinking: ‘Why would I listen to a recruitment consultant? Of course, they’re going to tell me to accept a lower salary’.

Okay, you don’t have to listen to me, but what about those who have been there and done it? Here are two real-life accounts that highlight the pros and cons of salary chasing:

“I was there during the major donor boom in UK fundraising when the new wave of philanthropy came over from the US and the majority of UK charities were looking to build out teams. I was incredibly fortunate to have previously worked at a US University and was receiving plenty of lucrative job offers.

In the end, I settled on a small charity with an extremely fundable proposition, with no track record in major donor fundraising. I felt that the strength of my experience would allow me to build the fundraising platform quickly, and resolutely demonstrate my impact.

Unfortunately, it involved 3-years of painstaking work, often fielding internal arguments whilst I embedded the lessons and learnings from my previous role. I was extremely proud of what we had achieved, but it was small fry compared to what my peers were achieving. I felt like I was playing catch-up as the techniques, approaches, and language had changed so much around me.

In the end, I had to take a salary drop to take on a more junior role with a larger charity, as they were unconvinced of my ability to work with their larger donors, due to the smaller, less well-developed programme I had been working on.

I now have the job of my dreams, but that misstep cost me about 2 – 3 years of career progression and I always warn my team against similar choices. Fundraising is a valuable, misunderstood, complex area of work and there are charities who will dazzle you with salaries to have you solve their problems for them, but they aren’t thinking of your long-term prospects. You have to be the guardian of your own career.”

- Director of Partnerships & Philanthropy, International Charity

“One of the best things I ever did for my career was make a series of sideways moves. It helped me accomplish what I wanted to in the long-term.

My first boss in fundraising was a phenomenal fundraiser and leader, who went on to become Director of Fundraising for one of the UK’s largest charities.

He was a keen teacher and sat down with me one day to map out my career ambitions and what my plan was for getting there. I wanted to be Director of Fundraising for a charity having impact within my local community one day and he pointed out that my progress through high-value fundraising left a gap in my knowledge around individual giving, community, and events, which form an incredibly important part of the puzzle for smaller charities.

He convinced me to take a sort of high-value fundraising sabbatical, to make a series of sideways moves into these areas of fundraising to broaden my experience. I spent 4 years exploring these other areas, before returning to high value.

This experience has proven to be invaluable. Earlier in my career, it provided me with perspectives my colleagues didn’t have, and later it gave me the breadth of experience I needed to secure the Director of Fundraising job I had coveted.

In the short-term, I probably fell £5k behind my peers in the salary stakes, but in the long-term, I have gone on to get the leadership role, while many of my peers have become stuck as expert leaders within their chosen income streams.”

- Director of Fundraising, Local Homelessness Charity

Final Word

When making career decisions, try to focus on your future pension pot rather than tomorrow’s bank balance. The future you will thank you.

If you’d like to discuss your next career move, get in touch on 0203 750 3111.