Coronavirus briefing: what does the latest CAF report tell us?
Hindsight is a wonderful thing. Unfortunately, when you’re in the middle of a global pandemic it’s a luxury we do not have. But as the sector starts to shift from ‘crisis’ to ‘recovery’, the time has come to take a breath, reflect on recent events, and start thinking forward.
On the 23rd June, CAF published a new report highlighting the impact of COVID-19 on the charity sector. An important snapshot of an unprecedented time, we are pleased to share our key learnings with you.
- Service demand is up: since the lockdown started, more and more charities have reported an increase in service demand – with the number of respondents observing this trend rising from 25% (March-April) to 36% in May.
- Giving is volatile: it’s tempting to say that giving levels are down, and it’s true that at the end of April, half of all respondents saw charitable donations falling. But the picture isn’t entirely bleak. Despite having less disposable income, the number of people giving to charities in the last four weeks remains consistent with 2019. A good sign!
- The focus has shifted: one of the biggest challenges is that the destination of these gifts has changed. Understandably, April and May saw a surge in donations made to NHS charities, with people also pledging their commitment to local and national causes. How will this affect those working in areas like international development and humanitarian aid?
- The rise of cashless donations: cash has always been the most popular way for people to give. But COVID-19 looks like it might change this picture, with cashless donations an important part of the ‘new normal’. Yet research shows that 23% of charities are unable to accept digital donations. For those that can, websites are the most popular tool to process cashless gifts, with only 21% of charities making the most of contactless technology.
- Proven resilience and innovation: even in the darkest of times, the nation’s charities have shone through. We love how creative the sector has been – delivering new campaigns, running digital events and launching new partnerships. It seems you are too! Half of CAF’s respondents are surprised by how well they’ve adapted to the ‘new normal’, with organisations genuinely surprised by the resilience of staff, volunteers and the general public*.
- Hope for the future? the crisis might be moving into the recovery phase, but the hard work isn’t over. It’s beginning. During the lockdown, almost 30% of respondents believed they had less than 12 months before they shut their doors (if the situation continued). Restrictions might be easing, but three quarters of charities see the current measures making little difference to their ability to cope in a crisis, although the general outlook is more optimistic.
So what does the future hold? Looking forward, charities are most concerned about the impact and practicality of social distancing whilst returning to work. This is swiftly followed by fears around service reduction, a lack of volunteer resources, increased service demand and getting the equipment they need to become ‘Covid secure’. We know it’s daunting. But in spite of all the uncertainty it is important to remember how far you have come these last few months. Believe in yourself, your organisation and your abilities. We might be post-pandemic, but the fundamentals of fundraising haven’t changed. You will get there. Who knows? You might even be better off for it!
*According to CAF, around a fifth of people (18%) said they are likely to join a local group set up to respond to the crisis or co-ordinate local efforts via social media (20%). One in twenty said they are likely to set up a local group to deal with the crisis.
