The Public Administration and Constitutional Affairs Committee (PACAC) report and related charity fundraising shenanigans all over the news at the moment are rightly attracting significant attention. They have also been responded to with admirable speed. Indeed, I think the sector should be proud of how it has openly and proactively cooperated to establish stronger self-regulation.
I’m a bit of a latecomer to the whole story, however. Why? Because I work with small charities and, in reality, their issue with fundraising is believing they can and should ask for money at all, not asking too often. As Jane Hartley, CEO of VONNE in the North-East, commented in the December 15 edition of Charity Finance magazine, charities in the £50k-£250k bracket are struggling to adapt to the new funding environment. My worry is too much ‘anti-fundraising’ commentary will make hamper their likelihood of doing so.
Two stats previously pointed out on this post are worth repeating:
- 98.5% of UK charities have a turnover of less than £5million
- Altogether small charities receive only 7% of all donations in the UK
Smaller charities (the 98.5%) don't do mass fundraising calls. Smaller charities don't collect data they can then misuse. It is unusual if anyone other than the CEO is involved in fundraising. They will be lucky to have any donors, and spend much more of the time completing long applications for grants and squeezing the last few drops of funding out of public sector contracts that often pay less than the cost of delivering the service.
Indeed, one of the conversations we have often at Pilotlight is encouraging smaller charities to embed a culture of asking in their organisations. Most never think to ask for money from users, supporters, or those in the local community who can afford it; even with cash from other sources becoming more and more scarce. The PACAC report emphasises the role of trustees in driving change. Well, in my opinion the change they should be driving is in getting out there, building relationships and asking people for money to help deliver the massive social impact they achieve.
This point is made not to detract from some fair criticisms, but as a plea to those such as Bernard Jenkin and the Public Administration and Constitutional Affairs Committee to see the broader picture. Charities can't reduce dependency on government spending on the one hand while restraining their fundraising on the other.
We need to encourage charities to fundraise effectively and fairly and donors to give and engage intelligently, as well as regulating to ensure fundraising is carried out appropriately. If we don't, then our small to medium size charities and the essential services they provide will struggle to carry on.