One of the most interesting findings from the charity return on investment survey featured in the cover story of this issue is the difference between small and large charities in terms of their fundraising bang for their buck. As the article highlights, small charities’ return across all types of fundraising averaged £11.44 per every pound spent (up from £9.27 in 2021), as opposed to £5.52 raised by larger charities (down from £8.07 in 2021). Good news, right? Well, as the author Caroline Danks points out, maybe not.
The findings suggest that smaller charities might be paddling twice as fast beneath the water to fight against the economic current. The reasoning is that general giving is down, as is expenditure, suggesting that although ROI is up for small charities, when viewed in the round, it just means that smaller charities are working harder to raise funds. They are most likely relying on personal connections of the CEO or founder, and leaning in to committed supporters, especially major donors and corporates. Not necessarily a bad thing, after all they are the ones with money to give. But is it sustainable? How long can we keep mining the same resources before they too become depleted?
Truth is that we are seeing small charities closing at an accelerated rate. Services that have been relied on by local communities, sometimes for decades, are disappearing, and in most cases, never to return. These organisations are threads in the fabric of society that hold communities together, not only through the services they provide but also through the connections and relationships they foster. UK society will be a poorer place once these are lost.
Large charities can play a role in reversing this trend. At a recent event, Sarah Elliott, chief executive of NCVO, said that “large, national charities and their boards have a responsibility of carrying out a generous style of leadership and collaboration in the sector”. She said that when collaborating, large charities should give up more space and power to smaller, local charities that are on the front line of addressing social issues. This could be in any number of ways, from joint fundraising campaigns, to providing facilities and amenities at low or no cost, or simply allowing them to take centre stage to raise awareness of the work they do. This might only be a stop-gap until economic horizons brighten or it could be a reimagining of the sector’s future. Either way, if we don’t do something now, it’ll be too late.
@stevejcotterill is editor of Fundraising Magazine.
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