Corona - Impacts on Fundraising

To write a piece about the impact of COVID-19 on fundraising might appear to be self-indulgent, but collectively sharing thoughts and ideas might help those of us feeling "isolated".

From a business perspective as a free-lancer, two clients who were about to invest in fundraising advice and support have just postponed their decision - understandably..., Their work programmes have been curtailed and their confidence in the future diminished - so I thought it an apt time to use some of the spare moments to reflect.

Traditional Income Streams

In the last week, several partners have said to me "well at least it won't affect X income stream" only to pause and realise that fundraising and society and the economy are entwined:

Corporate donors

The impact on company giving is fairly obvious: Companies will be concerned about their income and to fund a charity project that might never happen would take an extraordinary leap of faith. Even for revenue or ongoing project asks, corporate backers will think twice about spending based on the impending hit to profits and share-holders.

Trusts and Foundations

I love trusts and foundations - they do so much good in our communities and are often born out of an individual or collective desire to make a difference. Instinct might tell us that trust donations will hold up well but those of us who remember the last financial crisis will recall that trust giving correlates with investment performance. It's likely that trust giving will diminish over the next 18 months as trustees become more cautious.

Event income

Working with up to six charities in any given month, you meet some super people. Having seen the effort put into charity walks, dancing competitions and mass gatherings, I share the pain when each event is cancelled and the anticipated income lost.

Retail

A good charity shop set-up is a well-oiled machine; from seeking stock from businesses, collecting bags, sorting, selling and restarting the process ad infinitum. The impact of shop closures are not just a loss of income, but also the need to keep the wheels turning; incurring costs without the income.

Individual giving

From the High Net Worth millionaire receiving increasing requests (whilst investments dip) to the man on the street who has concerns and less in his pocket, the impact on individual giving will be felt too.

Other sources of income

Many fundraisers have "dabbled" with a legacy campaign, but now would not seem to be the time to invest in this to plug "short term" gaps in budgets. It will also be interesting to see how charity lotteries hold up in the coming months.

Impact on the charity's work

Over the last week, we have spoken to half a dozen clients who undertake programmes in schools. They now have to return grants to donors and to ask themselves how they deal with the contracted artists/advisors. All this without confidence to reschedule the programmes of activities.

And for every Glastonbury and Eurovision, there will be hundreds of charities undertaking their flagship projects over the Spring and Summer, unsure of whether - or when- to cancel their event.

The answer?

If only there was a simple solution. Over the course of the last 18 months the headlines have moved from Brexit, to "be kind" to Corona.

If COVID-19 can teach us anything within the charity sector it's to support each other, to nurture and thank every single backer that helps:- To communicate with them and to share the importance of our work - and their contribution.

I realise the same thought processes will be happening in retail, restaurants, service industries and manufacturing and, collectively on the other side of the Corona, I genuinely believe we will all be far more thankful for these industries.

We will get through this as a sector, but instinct (and 30 years of experience) suggests it will be through partnership and by reaching out to those who have become friends along the way that we fundraisers will continue to create opportunities for our wonderful charities.