Are clients worried about their wealth during this economically turbulent time?
Page: The economic climate definitely has an impact on donors, especially HNW/UHNW individuals. They can feel like they have less money to give, even in situations where their wealth hasn’t been dramatically affected.
We’ve seen over the years that the amount given to charity has remained relatively stable. Having said that these are unique times and the response is yet to be fully assessed.
We know that charitable giving is an important dimension of an individual’s or family’s wealth, so at the moment it’s unclear how the climate will impact it.
Moon’s tip: This highlights the importance of keeping your current donors as engaged as possible. There is a growing trend of donors engaging with charities beyond giving; as such charities should consider whether their current cultivation plans are appropriate in order to maximise the engagement of that donor.
An example could be to focus on family philanthropy, which is recognised as a powerful engagement tool. If economic turbulence is making a client reconsider their funding altogether, engage with them on cost-effective strategies so that they can give regularly whilst still having a significant impact on their chosen area.
Are your clients looking to engage with charities beyond financial giving?
Page: Certainly among our clients, there has definitely been an increase in the number of them looking to offer more than financial support.
While they’re all very busy people, some others who may have retired want to help the charities they support in a more in depth manner; whether that’s becoming a trustee, volunteering, or providing free consultancy.
Moon’s tip: Make sure to share volunteering opportunities at your organisation. And try to be flexible with your options. Also, be willing to share information; high net worth individuals, especially those who are retired, will take time to visit your organisation and do research into your charity. That’s one of the ways you can build a long-lasting relationship with those individuals. And depending on their skills, they can help with areas such as finances, corporate partnerships, etc. They could even open doors to wealth managers, solicitors and accountants, who will be advising other high net worth individuals.
Have you found clients responding to the need created by the current economic climate?
Page: Unfortunately the economic climate has helped create the situation where many people need to use services like food banks and the decline in government funding has brought issues into visibility.
Clients feel the need to respond and we’ve observed an increase in clients donating to more local causes. In particular clients have been looking into splitting their charitable money more strategically into ‘pots’, with separate pots for different causes or geographical areas.
Moon’s tip: Again we are seeing the importance of local giving and a response to need. This could particularly benefit causes that have a very clear or single focus. The example above of food banks is a great example, as donors are not left in any doubt what this type of organisation does. Charities, particularly small ones, are often quite humble about what they are doing; but this is often to their detriment, particularly if there are donors that want to support their specific cause.
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