Charities are having to be increasingly savvy as they look to compete for a smaller pool of funds from grantmakers amidst the COVID-19 outbreak.
COVID-19 has transformed the relationship between charities and grantmakers, such as corporate partners, government funders and foundation trusts.
There is simply less money for funders to invest and distribute to good causes, amid financial uncertainty globally caused by the pandemic.
According to National Council for Voluntary Organisations (NCVO) data and research manager Lisa Hornung: “Investment values have fallen in 2020 and so will have the reserves of some organisations.
“In the longer term, the fall in investments will impact on the ability of grantmakers to give out funding to the sector, since many of them are heavily reliant on investment income.”
The pandemic has also altered grantmakers’ funding priorities, with long-term recovery from the pandemic and supporting at-risk communities increasingly key to their decisions.
Knowing what grantmakers want to spend their falling funds on is key to success for charities amid COVID-19.
Targeting grantmakers is especially important as many charities are currently being left vulnerable by an over-reliance on public donations, which have been hit by the cancellation of in-person fundraising events and charity shop closures during lockdown.
The fall in public donations to charities could be around £1bn, according to estimates in July this year by online fundraising platform Omaze.
According to Blackbaud Europe’s Status of UK Fundraising 2020 Benchmark Report, 27% of charity professionals say their income has fallen, an increase on the 21% who said there had been a decline in 2019.
Diversifying income streams, especially by ramping up the search for grant-giving could ensure the long-term future of those charities reliant on the public.
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Source: Charity Digital News