Fundraising income in Australia is predicted to fall by more than 20 per cent over the next nine months due to the COVID-19 crisis, according to a survey carried out by Fundraising Institute Australia (FIA), the Australian Institute of Company Directors reports.
“A significant number of charities feel it will have a 20 to 30 per cent impact on their fundraising revenue,” Katherine Raskob GAICD, CEO of FIA told the AICD during an interview. “One reason for pessimism is due to charities pulling back from physical face-to-face events, which is a really big source of fundraising revenue for many.”
According to the survey, carried out jointly in March by FIA, More Strategic and Donor Republic, around half of respondents predict that the fall will be more than 20 per cent. The main impact is on the loss of gala and ticketed events like dinners, networking and social gatherings and the loss of face-to-face contact such as door knocking and the temporary suspension of street fundraising.
Another survey carried out recently by a group of suppliers who are FIA members shows that 38 charities reported an actual 14 per cent drop in fundraising income for March 2020, compared to March 2019. The survey, reported by consultancy More Strategic, shows the biggest impact was in the area of events, where income was 43 per cent lower than this time last year. “This figure is significant,” says Raskob.
Smaller charities appear to be most threatened by the COVID-19 crisis, with 19 per cent reporting in the FIA survey that “their very existence is threatened”. Raskob says potentially there could be a number that close down operations, although government assistance under the JobKeeper scheme is now helping many.
Charity giving forecast to fall 20-30 per cent (Australian Institute of Company Directors)
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