Great Fundraising Organizations, by Alan Clayton. Book cover.

Almost two thirds feel worse off but donations weathering the storm

A man's hands take a credit card out of a brown wallet. He is wearing white trousers and a red and black top.

Some 63% of people are feeling worse off than they were six months ago with the increase in the price of groceries, fuel and energy all having an impact, Enthuse’s latest Donor Pulse Report has found. However, it also suggests that so far donations are weathering the storm.

Despite the economic pressures (and based on a nationally representative sample of 2,018 members of the UK public) 75% have donated in the past three months. This has been bolstered by the under 40s with 79% of this age group having donated. 71% of people also say they intend to give again in the next three months. 82% of households earning £40,000 or more having donated to charity in the last quarter, and 64% of households earning £20,000 or less.

A quarter (25%) of those feeling worse off expect to make fewer donations while 17% expect to make smaller donations. Among regular givers, 5% said they plan on cancelling them, 8% decreasing them. However, 15% plan to increase them.

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The Enthuse report also highlights a decrease in the number of over 65s making regular donations. This has dropped from 40% to 33% in the last year, which it says is concerning because the average donation amount of this group tends to be higher. The average monthly donation for regular giving across all age groups is £17.32 versus £22.99 from those over 65. 

Reasons for giving

44% of people have given online in the past three months. Two in five (39%) people said moral duty was a key reason why they gave, followed by 27% saying the charity helped someone close to them and 24% saying they wanted to help others to have a basic standard of living. Onlly 13% said they were inspired by social media posts although this figure was higher for Gen Z (27%) and millennials (20%). 

Impact of rising costs

Overall, 63% of people say they feel worse off than six months ago, an increase of five percentage points since the last report and a jump of 17 percentage points from Spring 2022. The average figure is improved by Gen Z, where 58% feel better off or the same. All other age groups have at least 60% feeling worse off with 40-64 year olds having the most difficult time. Among those aged 55-64, 73% feel worse off.

Energy (81%) and food prices (67%) are the biggest contributors. Further down the list a quarter of people are concerned about the prospect of recession and one in five (22%) are worried about their rent and mortgage costs. Energy and food cost concerns increase significantly with age. 94% of 65-80 year olds are concerned about gas and electricity prices versus just 55% of 18-24 year olds. Rent and mortgage costs are of most concern to Gen Z at 36% in comparison to 55-64 year olds at 15%.

Chester Mojay-Sinclare, Enthuse Founder and CEO, said: 

“It has been a stormy period for the economy with increasing interest rates bringing new challenges to charity supporters, alongside inflation driving the rising cost of energy and food. Despite this, donations have remained high, and although this will not be an easy winter the public remain steadfast in their intention to donate in the coming months, compelled by a sense of moral duty and a need to help people with the cost of living.”

 

“And many of those donations will be given at work. Nearly half of employees have taken part in a workplace charity event in the last few months. This is despite hybrid working being the norm for many – people have not returned to 2019 ways yet. For charities to make the most of this opportunity it’s important that campaigns are flexible enough to cater for this.”

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