Fears that the charity sector would face a Covid wipe-out have proved wide of the mark with new figures for 2021 showing that both income and recruitment outperformed 2020 and hit levels similar to or above pre-pandemic levels.
The State of the Sector Report, complied by data agency Wood for Trees from its InsightHub platform, reveals charity income was 9% higher than in 2020 and recruitment up by 24%.
Performance was good across most products and channels but particularly notable was the continued high level of one-off donations which took off again in 2020.
There was also evidence that charities and donors are further embracing digital channels, as well as confirmation that the spikes in direct mail seen in 2020 have not relapsed.
Another significant insight was the fact that the value of donations is increasing, predominantly in the early stages of supporter relationships.
Average lifetime value after three years is up from around £100 to nearer £120. Time will tell if this is sustained but early results of cross sell and attrition look promising, the study shows.
Wood for Trees managing director Jon Kelly said: “These latest results show the resilience of the sector and the continued generosity of the UK population.
“They do show some shifts in the way that people are giving, with more people donating in ad hoc ways rather than a commitment to regular giving which had become standard in recent years.
“It is likely that this is partly down to the effects of the pandemic but also perhaps an underlying social trend. The next few years will determine if this continues.”
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