When money gets tight, people rein in their spending. These types of decisions have a social impact as well. When disposable income decreases, people need to make tough decisions across their budgets, and how much they help others is part of that. Currently, there’ll be pressure on services for certain charities, as more people become reliant on their help.
This is why periods of economic downturn can be particularly challenging for the third sector and those who rely on it. As a result of feeling worse off, 55 per cent of people in a recent poll said they are finding it harder to donate to charity.
Thankfully for charities, donations have held up so far. 74 per cent of Brits say they have donated in the past three months but as the cost of living crisis worsens, it is likely that charities will receive donations of a lower value.
Advancements in digital giving might help plug the gap in these circumstances by engaging new donors. For good causes, driving fundraising directly through their own websites will be particularly important during the cost of living crisis as it can help increase the amount of money donated.
Charities should have their own fundraising channels to maximise donations and build longer term supporter relationships.
Chester Mojay Sinclare