The cost of living crisis will affect everyone. Already research indicates that the nation sees the crisis on the same level as the COVID19 pandemic in terms of its impact on our lives.
But what does this all mean for charities, and charity communicators, whose services and support will be more heavily relied upon during this difficult time?
Well, a roundtable of leading charity CEO’s convened by the GOOD Agency revealed the main concern at the moment is a lack of insight. The sector knows the crisis will affect fundraising, but it doesn’t yet have the detail on how it will – and what the impact will be. That’s why we responded by initiating a quarterly monitor – to help charities prepare for the impact and make decisions accordingly.
The bottom line is that the cost of living crisis presents a complex, mixed picture and will affect people differently. But our hope is that our new series of cost of giving monitor reports means we can monitor the situation closely and help charities prepare for what is ahead. Partnering with YouGov has allowed us to see how different people across the UK respond and by initiating this report with several waves we can keep a close eye on the changing picture.
Here’s what we know so far and some initial things to start thinking about…
The overall picture
The report reveals that the majority of people in the UK are feeling worse off financially, which is the same for charity givers as it is for the whole population. This is noteworthy as it shows that as a nation, we are collectively experiencing the impact of the cost of living crisis. 72% of Britons agreed that they are paying more attention to their outgoings than ever before. Families are feeling the pinch the worst, whereas older generations reported a greater sense of financial stability.
The impact of the cost of living crisis on giving
As expected with this in mind, a sizeable amount of people say they will reduce their giving (15%) rather than increase it (5%). The report also reveals that regular givers are the most likely to stick with the cause they support. Those with a more ad hoc relationship to giving, for example campaigners, volunteers and event participants say they’ll give less. The impact on giving is also reflected in new donors; there is a very low consideration of starting a new regular gift at the moment (6%). This is clearly going to be a challenge for charities, and the communicators tasked with securing public support for the causes they work for.
So what can charities do?
Think heavy and light givers.
The giving market can be split into heavy and light givers:
Two in three givers have a very light relationship with charity (giving less than £50 in three months), making them light givers.
One in three givers have a more significant relationship (giving more than £50 to charity in three months), making them heavy givers.
The light givers make up 65% of charity givers and they were much more likely to reduce giving over the next three months. This adds up, as they are the majority that means they are the main driver of the shrinking giving market. But they are also the basis to growth – and specifically, the Cost of Giving Monitor revealed their consideration of light asks was relatively high, e.g. Cash gifts and lottery. Therefore, low commitment asks are the answer to winning them over.
The heavy givers are more resilient. They were more likely to stay the same in their giving habits, or even give more. Their consideration of a legacy gift was also the highest, with one in four saying they would consider including a gift in their will. Over the next three months, heavy givers are more willing to support through cash gifts, raffles or lotteries and pledges.
A time of hardship for many but a sense of community prevails
Although a tough financial climate means people are looking to cut back, there is also an increased sense of empathy for those who are the most affected. The majority of the UK agrees that more people need support during this crisis than they did during the COVID19 pandemic. Support for domestic poverty, homelessness and mental health has surged – with more people saying they believe these are the most urgent causes to give to in the next three months.
However, charities need to prove they are up to the task. The belief that charities are really making a difference to people affected by the crisis is very low, with just 33% of Britons agreeing they are. Charities need to prove they really are having an impact on people’s lives.
Download GOOD’s Cost of Giving Monitor report here, and look out for Wave 2 launching in November.
You may also find this interesting: Applying insight to be agile and responsive in a cost of living crisis
Find out how charities are communicating the issues that matter on our Social issues hub.
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