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Are alternative charities Services in demand to overcome austerity?

charity fundraisingThis year’s red nose day the generally public raised over £75 Million, a record number! However, according to a report released by PwC, The Charity Finance Group and the Institute of Fundraising have found that 93% of charities are experiencing a squeeze on fundraising and are looking to alternative methods of fundraising prompting fresh demand for charity services. That said, the outlook for the next year is positive.

The report stated that 61% of the charities were optimistic and the remained worries about the year ahead. This is an improvement on last year’s statistics in which nearly half those who were surveyed said they were worried.

Other findings highlighted the possibilities of mergers which are often seen as a last resort for charities, but with the merge of Prostate Action and Prostate Cancer UK, collaboration seems an increasing possibility for charities with 16% exploring this avenue.

Austerity measures continue to hit the Charity sector with 29% of charities looking to implement a pay freeze and an increase in redundancies forecasted for 2013. So what can charities to cut costs? Are forms of charity outsourcing the way forward? Charity fulfilment services may seem an attractive proposition to charities as outsourcing charity services can lead to reduced overheads and a rise in profits.

In 2008 it was reported that there was an average saving of 40% on office administration costs, saving hundreds of millions of pounds for charities to spend on focussing on their core activities and growth. It was also apparent that the main charity services that are outsourced are usually financial services, Information technology, training and accounting. The PwC report stated that charities are looking for alternative donation processing technologies and fundraising. Maybe we will see an increase in fundraising via catalogue and online trading, charity direct mail or even the use of social media to modernise the way charities reach their supporters.

 It is somewhat surprising that many charities have not even considered outsourcing or a shift from traditional fundraising activity to assist in these difficult times. This may be attributed to the limited data available on which services are out there and widely available. Charity Dynamics provides charity services that can help charities reduced costs and survive despite the current economic condition. 

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