Charities feeling the recession

New research released by the Charity Commission reports that around 52% of charities in England and Wales say they have been adversely affected by the credit crunch - up from a figure of 38% when similar research was carried out in September 2008.

The survey included more than 1000 charities, and shows clearly how the impact of the financial downturn on charities is widening and deepening.

Nearly two thirds of charities with an annual income of £1m said they were concerned the economic problems would impact on their work, and one in charities has taken steps to try to combat the impact.

14% of charities have reduced costs as a result of the downturn

11% have increased fundraising

6% are drawing on reserves

5% are holding off from offering new services

2% have cut head count

3% have considered collaborating with another charity

Many charities face the double-whammy of a drop in income along with an increased demand for services.

Charities who rise to this challenge by focussing on the most cost effective channels and techniques for acquiring, retaining and upgrading donors, are the charities who will ride safely ride out the recession.

Getting the 'thank you' right is a critical piece in all charities' donor care strategies.

Now more than ever it is essential for charities to effectively use both the online donation experience and email campaigns to thank and reassure donors and supporters of their value and importance, and keep the donor relationship recession-proof.