As the UK heads deeper into the cost of living crisis, with Martin Lewis describing the next few months as a “national financial cataclysm”, a new report finds that 3x the number of people plan to reduce their charity giving (15%), rather than increase it (5%).
The Cost of Giving Monitor is a quarterly report to provide a clear, real-time picture of the donor landscape as it evolves during the cost of living crisis.
This impact on giving is also reflected in new donors, with only 6% of Brits considering setting up a new regular gift to charity in the next 3 months.
However, sentiment is still high in Britain with over half of respondents saying they would like to give more to charity but can’t afford it. This is also reflected in the legacy market, with 1 in 5 charity givers saying they are likely to consider leaving a legacy gift in the next three months.
The report reveals an unprecedented sense of national crisis. Almost 7 in 10 people believe more people in Britain need support in the cost of living crisis than they did in the pandemic, meaning emergency appeals would reach a receptive audience.
Delving deeper, the report shows that over half of Brits think UK poverty is the most urgent cause to support in the next three months.
However, less than half of charity donors (45%) and only a third of the population (33%) think charities are doing an effective job at supporting people in the cost of living crisis.
This lack of belief in charities, combined with the finding that half of charity givers (52%) feel their finances are worse off than three months ago means that charities are going to need to stand out from the crowd more than ever before.
Chris Norman, CEO and Founder of GOOD Agency behind the Cost of Giving Monitor, says “The future for charity giving is more uncertain now that it has been for many years, and at a time when the demand for their services is growing rapidly. Our cost of living monitor in partnership with YouGov provides the sector valuable insights to not only understand the change attitude and behaviour of donors but adapt to become more resilient to the changes.”
Other key findings include:
- 3 in 4 of charity givers say they are paying more attention to their monthly outgoings than they did three months ago
- Over half of Brits would rather give a one off gift than a regular gift to charity in the next 3 months
- Gen X (40-57) are the generation most likely to say their finances are worse off now than three months ago
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