There is no doubt that a year of uncertainty lies ahead. The previous years have not been forgiving to the third sector moving through one crisis straight into another, now as charities face the cost-of-living crisis, they are also feeling years of fatigue. The impact of the cost-of-living crisis is estimated to reach its peak in early 2023 with Resolution Foundation predicting that the effects will be felt until 2028.

As household bills continue to rise, charities will continue to have an increase in demand for their services, while also facing a loss of individual donations. A recent report produced by Donor Pulse indicated that 55% of the public believe that their financial situation will make it harder to donate. Charities will have to look ahead and adapt their services to cope with the demands of the UK population as well as reviewing their expenditure and managing their income.

The cost of running a charity has risen with UK inflation rates reaching their highest in 40 years. Many charities are facing closure or have closed as the cost of running crisis has swept the sector. The UK government recently confirmed cuts to the energy bill support scheme which will be consequential for the voluntary sector. The Energy Bill Discount Scheme, set to replace the current Energy Bill Relief Scheme in April of 2023, will provide a significantly lower amount of support, capped at £5.4bn for its year of operation, causing the cost of running a voluntary organisation to rise.

Recruitment for the third sector remains a challenge, a recent study conducted by NCVO revealed that 56% of charities said they had difficulty filling vacancies, in comparison to only 46% of employers across other industries. With the UK job market being in workers' favour, the third sector needs to compete against both public and private salaries to attract candidates. Charities are finding it particularly difficult to recruit fundraisers, a study by CIPD suggested that 53% of charities are struggling to recruit this specific role.

Collaborating with fundraising consultants can provide charities access to specialist expertise quickly and at a lower cost than recruiting. Multi-year grants are becoming harder to find and secure, with application lead times longer than before. Organisations that receive local authority funding are also at risk of losing funding as councils face real-term cuts. For example, Midlothian council proposed budget cuts for 2023/24 include a 100% cut to large and small grants funding for charities and an end to funding grants for community transport services. Both charities and fundraisers will need an innovative approach to secure income in 2023.

At BTA we have a pool of highly skilled knowledgeable fundraising consultants that can support all aspects of fundraising from writing and submitting trust and grants applications, to reviewing and assisting you deliver your income generation strategy. Whether you’re looking for consultancy support, an interim, or recruiting your next fundraiser, BTA’s deep knowledge of the third sector paired with our network of connections can help you navigate the challenging funding landscape.

The increased demand for services and the challenges we’re facing along the way may feel overwhelming, however together, we can achieve our vision and mission!

Contact our consultancy support administrator today to find out how we can help: [email protected] or call 01786 542224.