Having previously gifted £200,000 to Norwich University in the United States, entrepreneur and philanthropist Arif Efendi – who is also the founder and a principal of UK advisory company and single-family office Aethos Capital – is proud to support a variety of worthy causes. This article will look at fundraising, outlining key trends seen in the UK charity sector.
Amid the current cost-of-living crisis, experts from the Charity Excellence Framework predict slow recovery over the course of the next 12 months, albeit with potential for AI and sector-level collaboration to potentially change that trajectory.
The Office for Budget Responsibility does not predict significant economic growth in the UK over the course of the next five years, suggesting that the 2024 Autumn Budget merely boosted the economy temporarily, throwing into question government promises to reboot growth. In addition, the Charity Excellence Framework warns that tax increases and National Insurance contribution hikes spell bad news, particularly for larger charities.
For the UK’s charity sector, public sector funding cuts have also sparked significant concern, posing the potential to derail the sector’s fragile recovery. Funding cuts to unprotected departments are having a significant knock-on effect on charities. Take for example Hackney Council, which cut grants for local charities by over £800,000. Analysts predict a real risk of the problem being compounded by further funding cuts throughout 2025 and beyond.
COVID-19-related lockdowns and restrictions on in-person interactions triggered a significant fall in cash donations. According to the Charities Aid Foundation, while 51% of charity supporters pledged cash donations in 2019 this figure fell dramatically in 2021, dropping to just 29%. Although 2022 saw a modest increase in cash benefactors, with cash donations rising to 35%, this figure remains far below pre-pandemic levels.
One emerging trend in fundraising is digital fundraising, with Enthuse’s Donor Pulse Report revealing that 44% of the British public donated to charity via online portals in 2023 despite an overall drop in charitable giving. Worryingly, despite the rising popularity of online giving platforms among benefactors, 41% of charities admitted that they were ‘poor’ at digital fundraising in the Charity Digital Skills Report 2024, with a staggering 25% of charities admitting that they didn’t engage in digital fundraising at all. More reassuringly, 52% of charities recognised the need to make online fundraising a priority moving into 2025.
The increased proliferation of AI is a trend that has the potential to revolutionise the charity sector across the UK and beyond. According to the Charity Digital Skills Report, 61% of charities were already using AI in their day-to-day operations in 2024. The research revealed the most significant uptick in AI adoption among foundations and grant-making trusts, with 83% of this demographic embracing AI tools.
According to Enthuse’s Donor Pulse Report 2023, increasing numbers of donors were showing a preference for giving via their chosen charity’s website or app rather than through fundraising platforms. The report revealed that 26% of benefactors gave via charity websites or apps. The report also suggested that donors were giving more via these channels, with the average direct donation rising from £32.25 to £41.37. According to Enthuse’s poll, donors were also 38% more likely to remember the name of a charity they had given to directly.
For several years, gaming fundraising has been on the rise. With the UK games industry valued at £7bn, the sector presents significant opportunities for fundraisers seeking to unite gamers behind a good cause. Streaming fundraising is an emerging trend that also seems likely to continue an upward trajectory. Georgia Paton serves as Gaming and Streaming Manager for the British Red Cross. She suggests that 2023 saw a major shift towards streaming fundraising, paving the way for a ‘creator economy’. Like gaming fundraising, streaming fundraising encourages donors to pledge gifts as they watch their favourite creator’s stream, covering a range of niche activities, including everything from making glass art to crafting miniature buildings.
