Leila Hashemi says the sector has to evolve alongside its supporters
When I joined Shape History in early 2018, trust in charities was at an all-time low in the UK.
Numerous scandals had eroded public confidence, leaving the nonprofit sector grappling with how to steady the course and regain trust with supporters and society at large.
Since those troubling times, trust in the charity sector has seen a positive overhaul. For example, recent Charity Commission statistics show that 63% of people who are aware of the charity regulator report high levels of trust in charities. This increase in trust is largely driven by the visible societal impact charities have had in recent years during periods of uncertainty.
More people are directly benefiting from charitable services, such as financial assistance, food, or medical care. In 2023, 9% of the population reported receiving such support, a significant rise from 3% in 2020.
However, this hasn’t translated into the financial returns that charities desperately need to stay afloat.
David Holdsworth, the Charity Commission chief executive, has warned that there is no room for complacency. We need to see the third sector continue to demonstrate its value to society, especially in a difficult economic climate where fewer people donate and more rely on charity services.
Challenges in traditional fundraising approaches
Fundraising has traditionally relied on methods like direct debits and regular giving programmes, which have long been the foundation of financial support for many charities. However, the landscape is shifting. Emergency fundraising events, often triggered by global crises such as the Covid-19 pandemic, natural disasters, and conflicts, have become important draws in the fundraising calendar. While these emergency appeals can boost immediate revenue, they don’t always lead to long-term donor relationships.
Equally, while events allow charities to connect with donors, these connections are often short-lived, fading as the issues lose media attention.
Economic uncertainty has further complicated fundraising efforts. In the UK, for example, two million fewer people have recently reported donating to charity, largely due to the rising cost of living. A similar trend is emerging in the USA, where donor confidence is also waning. Given these challenges, the traditional reliance on regular giving programmes may soon face a significant decline.
To adapt to this shifting landscape, charities must embrace innovative communications and fundraising strategies.
For example, during Britain's acute cost of living crisis, Big Give – the world’s leading match fundraising charity – successfully raised more funds than ever before for UK charities.
Our approach involved creating a quirky flagship video that resonated with people on social media. We also targeted commuters on their journeys home via radios and train station billboards. The campaign even found its way into mainstream media.
This strategy tapped into both hearts and minds, demonstrating the power of approaching fundraising communications differently in challenging times.
Embracing innovation
Despite these challenges, the changing landscape presents real opportunities. Younger donors, in particular, are showing a preference for one-off or irregular donations, reflecting a broader trend towards flexibility and immediacy in all areas of life. This shift calls for a rethinking of traditional fundraising strategies. Instead of viewing these new patterns as a decline in commitment, charities should see them as an opportunity to connect with donors on their terms.
To effectively bridge the gap between trust and action, charities must innovate. This could involve offering more transparent, short-term projects with clear, measurable impacts or developing digital solutions that enable spontaneous, on-the-go giving.
It also requires reimagining how charities communicate with younger donors, focusing on building relationships based on trust, authenticity, and a shared vision, even if the nature of support is less predictable.
By embracing these changes, charities can not only maintain but also deepen engagement with donors, ensuring that the enthusiasm of today’s supporters translates into meaningful, lasting impact.
The future of philanthropy hinges on the sector’s ability to evolve alongside its supporters, turning the challenges of today into opportunities for tomorrow. While traditional fundraising methods face significant challenges, the rising trust in the sector and shifting donor behaviour present a unique chance for innovation and growth.
Leila Hashemi is associate strategy director for Shape History.
