The days when charities relied heavily on the “collection-box rattlers” appear to be over, with organisations increasingly using technology to streamline business processes, reduce costs and boost fundraising efforts as they strive to survive the cost of living crisis.
According to The Rewarding Industries 2023 report from Endsleigh, nearly half (45%) of charities surveyed said their financial situation was worse now than during the Covid pandemic, with a similar proportion (43%) fearing their charity is at risk of closure due to financial challenges.
The report highlights growing use of gamification for raising funds, with 58% of charities saying they had used the metaverse, augmented or virtual reality, online games or partnered with gamification providers to encourage donations, in the past year.
These range from live streaming, quizzes and interactive games in digital fundraising. Some charities are also looking into ways to secure more regular donors as part of a subscription service model of fundraising.
Around a third of organisations have also increased their use of social media channels, such as TikTok, Instagram and Snapchat, to extend marketing activities in the past 12 months. The same number said they were now partnering with influencers to raise awareness and help increase donations online.
Nearly a third (29%) are using AI tools to fill talent gaps within the industry.
However, with greater reliance on tech comes increased risk of cybercrime, with the report finding that 26% of organisations were a target of cyber fraud in the past year.
Endsleigh Insurance CEO Alison Meckiffe said: “The cost-of-living crisis has put even more pressure on charities, social enterprises, and not-for-profit organisations. While the report highlights the financial threat many organisations face, it also highlights the resilience of the sector, with many identifying ways to evolve their operations to continue to support those most in need.”
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