Now that the Sector is emerging from the coronavirus crisis and all the restrictions on fundraising which that created, it is a good moment for small charities to consider the future and create new ways of fundraising as well as building on established good practice.
The Fundraising Regulator’s recently published vision of how the sector will be regulated from now until 2027 includes strong emphasis on the increase of digital in fundraising.
One area the Regulator will be looking at is the growth of online fundraising platforms which can be particularly valuable for small charities. Although small charities make up 95% of the sector, some 90% of donations are made to large charities.
Most of us are familiar with CAF Donate, Crowdfunder, GoFundMe and JustGiving – but there are over 20 different dedicated on-line platforms which enable charities and their supporters to raise funds easily and effectively.
But not all offer the same service – or at the same price. JustGiving, for example, waived its fee in 2019 and donors are now encouraged to make a voluntary contribution towards JustGiving’s operations. Some platforms charge a service fee or a processing fee – or both. This means that taxpaying donors making a £10.00 gift who would expect the charity to receive £12.50 including Gift Aid may be disappointed: annual and/or processing fees can reduce this figure to as little as £9.58.
One lesser-known fundraising platform especially suitable for small charities is Givey. Givey does not charge either service or processing fees, and helps small charities to reach supporters likely to choose small players over large ones. Businesses can run match-funding schemes in support of small charities, where they can match each employee’s gift and so double the amount raised.
The current economic situation notwithstanding, small charities need to engage with their existing and potential supporters in an increasingly competitive market. Online fundraising platforms offer a simple and effective opportunity to achieve this.