The State of the Sector in 2012
Posted By Alex Le Vey on January 18, 2012
Shortly before Christmas, I read a very interesting article that claims the UK is now the fifth most charitable nation in the world. This is great to hear, particularly in these challenging economic times. I feel quite strongly that supporting a charity financially is the best thing an individual can do as the majority of charities employ highly skilled people to deliver the services that they provide, and their work needs to be funded. I am not meaning to diminish the fantastic and valuable work of volunteers, but they often support, rather than deliver the objectives of charities; which makes financial support the most valuable contribution an individual can make.
When looking at monetary support in isolation, the UK is in an even stronger position, ranked 2nd globally. According to the report, 79% of us donate to a charity each month – a staggering statistic. In another report ‘UK Giving 2010’, (which is available to download for free on the DSC website) we see that (discounting the peak year of 2007/8) there seems to be a steady increase in the amount of money individuals are choosing to give to charity on a monthly basis: in 2008/9 the median amount given was £10, and the mean amount £30; in 2009/10, this rose to a median amount of £12, and a mean amount of £31. Indeed, individual giving accounted for just over 20% of all charitable income in 2009/10 (valuing sector income at £52bn), reaching a grand total of £10.6bn.
Despite the difficulties individuals and families face due to squeezed household budgets and government austerity, the generosity and compassion of the UK public seems thankfully robust. One thing is certain, charitable funding available from government and statutory sources is going to decline for charities in 2012. There are going to be fewer funds available and increased competition for them; unless charities change the way they operate they may struggle. Charities may need to think much more innovatively about the ways in which they deliver their services, and meet their funding needs. Joining up services and collaborating more, not only with those in the charity sector, but with partners in the public and private sectors too, could not only save money, but also lead to a better, integrated, service for those in need, should it be done in the appropriate way. Joining up also provides an opportunity for joint fundraising initiatives, or bidding opportunities. BIG are strongly encouraging this type of working by creating funding opportunities that demand this type of collaborative approach.
2012 is not going to be easy, but it may not be as bad as most think, it is very positive to see that, as individuals, the UK public are continuing to support causes they care about. Charities will need them to be even more generous this year to help them meet their objectives, and perhaps encourage the companies to be as generous as possible, too!
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