Charitable giving is falling. But does that mean people are becoming less generous? Not necessarily. So, who needs charities?
People may simply be choosing different ways to make a difference. They might make a small loan to an entrepreneur, buy ethical products or give directly to someone through crowdfunding.
This is known as ‘disintermediation’: people giving or providing help without involving a charity.
This could create a serious challenge for charities. These other ways of giving can offer people a strong sense of personal involvement and a rewarding experience. If they provide something that charities do not, why would people choose to give through a charity?
We also need to ask a more difficult question. If other organisations or individuals can raise money and help people more effectively than charities, should charities step aside?
But what if these approaches are less effective? What if they do not direct money to where it is most needed—or sometimes cause unintended harm? Do charities have a responsibility to show the value they add and strengthen their relationships with supporters?
Hear discussion about this topic and get some answers and insight in this on-demand webinar from the Chartered Institute of Fundraising, Rogare - the fundraising think tank, and Kingston University.
