Charities confront giving decline

Latest research shows there has been a dramatic decline in the public’s awareness and perception of children’s charities over the past decade, with evidence that this is hitting the financial health of the sector.

Analysis by NFP Research, which tracks the public’s attitudes to the charity sector on a monthly basis, found the proportion of the public that called children and young people a favourite cause to support had fallen from 40 to 25 per cent over the past decade.

The finding reinforces a 2019 NFP study that found awareness of children’s charities among the public had fallen from 33 to 25 per cent in the seven years prior and comes just weeks after children’s charity umbrella body Children England announced it is to close after 81 years due to “extraordinarily difficult economic circumstances”.

Challenges of decline

In a blog, NFP Research’s Ben Roberts says the effects of the decline cannot be underestimated.

“The almost unique case of diminishing attention towards children’s charities almost certainly had its role in the difficulties experienced by Children England and has likely been felt by a wider number of children’s charities across the sector,” he adds.

“Children’s charities used to be massively popular, and although they are still an important cause in the eyes of the public, the figures show there has been a shift away from prioritising these charities.”

These concerns are shared by Sarah Vibert, chief executive of the National Council for Voluntary Organisations (NCVO), who says the closure of Children England is indicative of broader challenges facing the sector.

“Like the rest of the sector, children’s charities are facing a triple threat of rising costs, declining income and increasing demand,” she said.

“Our latest data in the NCVO civil society almanac paints a difficult picture of smaller charities being hit the hardest as income for the whole sector declines. Public giving has also declined, demonstrating how the squeeze on household incomes has a knock-on impact for charities. Many charities are worried how they will continue supporting those most in need this winter, and some are reducing services or closing for good.”

Roberts says there could be several factors behind the decline, including a “reframing” of some young people’s issues into a mental health context, “a cause we’ve seen grow in popularity over the past few years, and which is likely to be reflected in public priorities”.

Changing demographics are also likely a factor, Roberts says. “We often see that the public are most keen to support a cause they have a personal stake in,” he explains. “As the population ages, the personal connection to children’s causes diminishes. Older generations, who once passionately supported initiatives aimed at helping children, are now turning their gaze toward other issues more relevant to themselves and their peers.”

Meanwhile, young people in their 20s and 30s have tended to wait longer to start families due to economic challenges and “may be missing the key personal connections that lead them to donate to children’s charities”, explains Roberts.

These demographic changes are being compounded by a 14 per cent fall in donations to charities in the past year and fewer people being able to volunteer (see graphics). Even before the pandemic and cost-of-living crisis, voluntary income to children’s charities fell by around eight per cent between 2013 to 2018, according to NFP figures.

With the immediate economic outlook remaining uncertain, NFP recommends children’s charities need to highlight the specific expertise and purpose of their own brand. “Transparent plans and a clear mission statement can help charities to reclaim audiences who might need to know the hows and whys of [their] operation,” says Roberts.

Connecting with the young

Increased involvement and commentary around mental health and climate change could help children’s charities connect with younger groups. “Seizing the attention of younger audiences can be a long-term investment, but is sure to be a key element in maintaining a dedicated supporter-base,” he adds.

Vibert says NCVO will “continue providing practical support and training to our members through this incredibly tough period, as well as calling on government to address this escalating crisis in communities”.

Charlotte Lamb, children and young people lead at third sector think-tank NPC, says funders could help charities by offering longer-term support through this difficult economic period.

“We know many children and young people’s charities are struggling for funding in the current environment, but we don’t see any signs from our work across the social sector that’s due to any specific issues with children’s charities – it’s simply very tough out there,” says Lamb.

“What doesn’t help is the stress of constantly chasing one-year restricted grants. That’s why we’re calling on funders to help support organisations with more long-term, unrestricted funding.”