...that seems to be the current fashion, 2025 is not – looking into our crystal ball – going to be a terrible year. Fundraising numbers overall have remained, for the most part, robust during 2024 despite most charities having many issues to deal with.
Children in Need is always a good barometer of what the giving public is feeling. 2024 exceeded last year’s total and raised £39.2m on the night; the most for three years and 16% more than in 2023.
Yes, there are challenges, but there are opportunities too.
The biggest one is legacies. The continued rise in house prices has meant that families have a lot more assets than they thought. And the recent Budget has created a lot of interest in Inheritance Tax, even if you’re not a farmer. In addition, we expect an ongoing decline in TV airtime rates as the result of the rise of the streamers. This means that many charities can use the power of TV to really reinforce their legacy messages to an audience that will be more receptive than ever before.
The standard ‘free will’ guide will remain popular. But charities must give some thought to websites such as Adeus, which could change the face of will-writing services.
There are some interesting legislative challenges coming up, too.
Charities are calling on the Government to address a key amendment to the Data (Use and Access) Bill to extend the ‘soft opt-in’ for email marketing to the third sector. At present, the Bill proposes removing this, which would prevent charities from being able to communicate to donors in the same way as businesses can. This must change: research suggests it could cost charities as much as Ј290m in lost donations.
There is also the arcane issue of PCI compliance. This is the standard that online platforms need to comply with to collect donations. But PCI compliance is becoming ever more rigorous, and some charities are deciding that they do not have the resources to keep pace. Outsourcing their donation platforms will become progressively more attractive.
And, of course, there is artificial intelligence and other tech developments to keep us all on our toes. Marketing leaders and their teams will seek greater specialist and technical support from agencies and/or consultants.
Last, but by no means least, charities should carefully consider showing the need in fundraising communications. The pressure on charities’ resources is not going to go away. The rise in National Insurance for employers affects everyone, and you can sadly bet on at least one emergency coming up to strain those resources.
But need remains the greatest driver of charitable giving, and as that need becomes more public, then fundraisers should be telling their story loud and clear. The test is the so-called ‘lift conversation’: what can you say in a few simple words that makes it clear why you need my money? Try it: it’s more difficult than you think!