By the Altair team
In December 2024, the Charity Finance Group (CFG) released the results of a survey examining the potential impact of the government’s recently announced increase in employer National Insurance Contributions (NICs) and minimum wage rate rises. The findings revealed that 87% of employers in the charity sector are concerned about their organisation’s ability to afford these increased costs. Four in five respondents to the CFG’s survey said they were planning to offset the increase in costs by considering increasing fundraising efforts, applying for more grants, cutting back on activities, charging more for goods and services, handing back public contracts, freezing pay and/or reducing staff headcount.
Diversifying income sources has always been important but, in the face of the above news, doing so in 2025 will be more critical than ever for many charities. CEOs will need to consider several things when looking to increase fundraising efforts.
Get the basics in place
While it is tempting to jump straight into introducing new fundraising activity given the current financial pressures, this can be a risk. Rushing into fundraising efforts without taking the time needed to make a proper plan could result in resources being wasted in the wrong areas or reduce your chances of success. Instead, take some time to ensure your organisation is ‘investment ready.’ Look at your organisation through the lens of a potential funder (whether that is a grant maker, corporate partner or individual giver) and identify any issues which may hinder your income generation goals. Some areas to examine include:
- Governance – Is your strategy up to date? Do your vision, mission and objects still align to your charity’s current activities? Have you got all of the necessary organisational policies in place? Does your trustee board have the right level of skills and experience (including some with lived experience if relevant)?
- Finance – What is the current makeup of your income? What are your current levels of reserves and are they in line with your reserves policy? Have you filed your accounts on time over the last few years?
- Impact measurement – Do you track your outputs and outcomes? What case studies and partner testimonials do you have? Are beneficiaries involved in shaping your offering? Have you shared any impact reports recently?
- Marketing & communications – Are you clear about your organisation’s purpose and how to communicate it to different audiences? Does your website highlight the ways in which people and organisations can support you? Do you acknowledge current partners on your website and social media channels?
While some of these areas may seem basic, addressing these fundamentals is essential to showcasing your organisation as an effective and credible charity that inspires confidence in potential donors and partners.
Review your resource
When deciding where to focus your fundraising efforts, review your current resources, including:
- Fundraising activity – Which of your current income streams/products are growing and declining? What can you scale up, and what can you phase out? Do you have a fundraising strategy in place to provide clarity and focus? Investing time in creating a fundraising strategy will enable long-term planning and help you avoid the cycle of constantly chasing ‘quick wins’.
- Capability – Where do your team’s skills and experiences lie? Could these be applied to other income streams? If there’s an opportunity for a specific fundraising area but you don’t have the relevant skills or knowledge within your team, where could that come from? This could be from upskilling staff through training or bringing in a freelancer/consultant with the necessary experience.
- Capacity – Who will deliver the additional fundraising activity? If it’s your existing staff, what can they deprioritise to free up time? If you can’t cut any current work, instead of putting more on team members who may already be stretched thin, consider whether you could invest in fundraising by recruiting a new member of staff or bringing in a freelancer/consultant for a set number of days per month.
Altair helps organisations with a social purpose to excel through effective strategic planning, fundraising and capacity building. Our team works closely with charities to develop tailored strategies that address their unique challenges and opportunities.
At Altair, we understand the critical role charities play in delivering social impacts, and we are committed to helping you maximise your potential. If you’d like assistance with income diversification or any aspect of organisational development, please don’t hesitate to get in touch.