Which fundraising trends will dominate 2024?

In our experience, there’s no such thing as an easy year in fundraising. Global developments in technology, the economy, the environment and politics all have a huge impact on giving. Issues such as the cost-of-living crisis, the continued fallout from Covid-19 and global conflicts continue to affect institutions, their stakeholders and their donors. 

But despite this, fundraising data for 2023 generally paints a positive picture, with all key metrics on the rise. It’s clear that fundraising institutions have been doing a great job in navigating multiple complex challenges, and that fundraising is becoming more integral in an institution’s overall income generation strategy.

At Cairney & Co, we may not have a crystal ball, but the current geopolitical and financial circumstances, coupled with conversations we have on a daily basis, give us a really good indication of what we can expect over the next 12 months and beyond when it comes to fundraising. 

Here’s a summary of some of the themes we expect to emerge, develop and even dominate over the coming year.

VAT on private school fees

Labour has stated that, if elected, they will introduce VAT on private school fees within their first year in office, with the aim of raising around £1.7bn for state schools. Labour Leader Keir Starmer has also previously said that he intends to strip private schools of their charitable status (thereby removing tax relief and business rate discounts). 

All of this is likely to amount to a significant drop in numbers for private schools, which in turn would have a significant impact on income. It’s hard to predict what the outcome might be just yet, but if this becomes a reality, then the role of fundraising within private schools will be more crucial than ever. The smart institutions are the ones which are preparing for that eventuality already and factoring it into their strategic planning. At Cairney & Co, we’ve been helping clients to look ahead and consider what this might mean for their institution.

The cost-of-living crisis isn’t going anywhere

The pressure on the public purse is still very much with us, and universities will continue to face increasing pressure on hardship funds as a result. As one of the most important mechanisms for increasing inclusion and widening participation (WP), the role of scholarships is likely to be given even more importance within fundraising campaigns. We know that financial support on its own is often not enough to retain WP students, so it’s good to see universities starting to approach this more holistically by including mentoring and pastoral support in their offer.

Student recruitment numbers are likely to take a hit, as a university education becomes even further out of reach for students with families on low income. In fundraising terms, we believe that development teams that can skillfully demonstrate how donations can level the playing field in terms of equal opportunities will be most successful in securing new funds. 

Geopolitics will continue to have a profound effect

Ongoing conflicts between Ukraine and Russia, and Israel and Palestine will continue to threaten the stability of UK educational institutions. Many institutions are taking on refugee scholarships from Ukraine, and this is set to continue - possibly also including scholarships from Israel and/or Palestine.

Increased humanitarian needs may well dominate when it comes to donors’ giving priorities. As we know, wars can have catastrophic economic implications, and a global economic downturn is likely to affect donors’ giving capacity. This is something for all fundraisers to keep an eye on as things unfold.

But… there’s reason to be optimistic about fundraising

According to the 2022 CASE Ross survey, fundraising data for 2023 was overwhelmingly positive, with key metrics like average donation amount and funds received all on the increase. In times of increasing hardship, fundraising arguably plays a more important role than ever. So we expect to see good fundraising results going forward.

As fundraisers, we are agents for change, and the work we do has the power to transform the futures of individuals and institutions. In times like these, fundraising plays an increasingly critical part in the strategic direction of a non-profit institute. Yes, there are plenty of challenges right now, and there always will be. But never forget that fundraising is a vehicle for good, and donors clearly still want to give - you just need to help them do it in a way that aligns with both their giving priorities and the institution’s needs.

We wish you the best of luck for your fundraising in 2024 and beyond, and we’re only a call away if you need some extra support.
If you would benefit from some additional fundraising expertise, support and guidance, we’re here to help. Whether it’s campaign planning and feasibility, resource assessments, portfolio analysis or coaching and mentoring, get in touch for an exploratory chat.