Understanding giving in 2021 can help fundraisers navigate 2022

Last year saw the easing of social distancing measures across the UK and in England the summer months almost felt like normal! But the emergence of new COVID variants reminded us that fundraisers need to be ready for anything. Whilst no one can be certain about what will happen in 2022, by understanding how donors' have changed, charities can put plans in place to meet their objectives.  

Below is a snapshot of just some of the pieces in our Research Roundup. Click here to find out more and discover a range of research on giving.   

CAF's UK Giving Report 2021 found that after the initial surge in donations in April 2020, giving struggled to maintain momentum, leading to a decline in donation towards the end of 2020. This pattern continued into 2021 with April 2021 seeing the lowest levels of monthly giving since 2016. There is, however, reason to be optimistic as the average monthly donation remains slightly elevated compared to 2019, indicating that the pre-pandemic shift towards fewer supporters giving larger sums is still relevant. Public trust also high, peaking at 60% in January 2021, reversing the downward trend we saw in 2017.   

We can also still be confident that there are pools of motivated donors. Enthuse's Donor Pulse Report found that although rising fuel prices and inflation might impact giving, 45% of respondents commented that their financial situation remain about the same and 83% might give over the Christmas period- up from 74% in 2020. The festive period has always been an opportunity for charities to engage new donors, 2021 was no different, with 38% of respondents prompted to donate because they saw more campaigns, and a further 42% looking for opportunities to give.  

The pandemic revealed a huge list of factors that can help or hinder a charity's fundraising, but we can still see patterns emerging. NFP Synergies outlined that charities who saw income increase tended to have a solid fundraising approach pre-2020, with up-to-date supporter databases and an appetite to try new things. Strong leadership was also pivotal, as faster decision making facilitated the transition to online services, campaigning and fundraising. Unsurprisingly, digital maturity, from quickly providing staff with the tools to do their jobs, to increasing activity on social media channels, proved to help make up any gap in income.   

This increased focus on digital was mirrored in Salesforce and EFA's report- Tracking the impact of COVID on European Non-Profits- which highlighted that 70% of charities who took part are increasing digital activity, with 38% confirming they moved to new channels and 33% developed online events. Investment in digital proved successful, respondents who said they did reported a greater increase on income from digital channels, than those who didn’t.   

Although fundraisers have proven to be adaptable and innovative, continuous change and uncertainty still had an impact on them.  Salesforce and EFA found that UK charities who took part reported larger workloads (63%) and that staff are more stressed (48%). Equally, Pro-Bono Economic's Charity Tracker found optimism decreased in Q4 and 75% of charities were worried about the wellbeing of their managers or staff. As we move forward, fundraiser wellbeing must remain a priority otherwise innovation and fast-paced change won't be sustainable. 

Despite ongoing uncertainty, here are some great reports that may help your planning for the year ahead: 

• Massive’s Virtual Fundraising Monitor found virtual events in 2021 raised on average twice as much as 2020 and the number of events raising more than £1M also doubled. 

• Smee and Ford’s Legacy Trends 2021 highlighted that charitable estates are growing YOY.  

• PBE’s Mind the Giving Gap revealed that a typical top earner gives less than 0.2% of their income to charity each year, if this changed to 1% then charities would receive up to £1.4 billion additional income annually.   

• 360 Giving’s Analysis of Grant Giving found 26% of grant recipients had not previously received funding from the grantmakers in the report, suggesting increased outreach by funders and more flexible funding programmes. 

There is clearly a potential for charities of all sizes to unlock additional income in the year ahead. If you want to find more information on other areas of fundraising, including corporate partnerships, digital fundraising, and wider sector trends, you can find them here.