Why community fundraising should be a higher priority for charities

Digest those figures in the image.

£640,000 was lost by charities who were unsuccessful/declined in Henry Smith's latest funding round. More than 49,000 hours were wasted, and that related to just one funder. If we consider how many funders there are out there (though they are in decline), it's actually quite scary to calculate the number of hours and the likely millions of pounds that are lost across the entire sector each year in the pursuit of income from grants.

I speak to small charities on a regular basis, and it always surprises me just how many of them have grant funding as their only source of income.

Figures like those above should show that focusing solely on chasing grant funding is actually a risky strategy for charities of all sizes. It's not the fault of funders (though, in my opinion, they could be a lot clearer in their funding guidelines and criteria about what they will/won't fund). Sometimes, charities blindly apply for funding without doing their due diligence, which is time that could be better spent elsewhere.

Mainly, though, the reason why these hours - and, ultimately, pounds - have been lost is simply down to the sheer competition vying for the pots of money available.

Your project is no doubt a good one, but so are the other 99% of proposals funders receive. I sit on funding panels - it's actually a very tough job to shortlist the most appropriate projects for funding; the process is not one to be envied.

Those 49,000+ hours in this one example could have been hours better spent by the charities in question building up their local connections, small donor/supporter base and community champions. People who will (literally) buy into their good cause and who will support them in any way they can.

Community fundraising is a hugely important piece of any charity's income generation jigsaw, yet most small charities don't utilise or value their audience. Build your supporter base online and offline, using some of the time you'd spend writing funding applications. Get out from behind your desk; tell people about your charity and what impact it has.

Effective community fundraising in 2024 no longer involves outright asking for donations/begging for money (funnily enough, both terms would be an appropriate way to describe the act of applying for grant funding).

We've been in a cost-of-living crisis and a shaky economy for a few years now, and people simply don't have money spare to give away.

But they do have money to spend on small-scale events of interest, and they will come to local fundraisers.

Think of community fundraising as a transaction, which is much more than an ask. Think of events you can hold that your supporters would want to come to. They can't afford to do all the things they may have done prior to the pandemic, but neither do they want to sit inside and stare at four walls all the time. They may also really want to support a cause that's close to their heart, but nowadays, they have to be realistic with their disposable income and balance charitable donations with their spend on family entertainment to enjoy precious time together and make memories.

Community events can be a win/win situation. Think of people in your network who could provide an event of interest. Calculate their fee/cost against an appropriate price for a ticket, and work out what the difference would be. If this net figure is worth the time and effort of a couple of your volunteers to marshall/help with the event, and the cost of your social media provider to promote it; if, after these considerations, it will still bring you a few hundred pounds, do it.

You'll put on an event that your ambassadors and local community will enjoy; they'll be able to justify the cost of the event because of the experience they'll receive, and they'll also love the thought that they're helping their favourite charity at the same time

• You'll be engaging with your supporters through this exercise far more than simply talking at them through your newsletters or social platforms. You'll be finding out more about the needs and issues on your doorstep and making valuable connections in the process (maybe they have a sister who's the top dog at Sky or Barclays Bank - you don't know until you talk to them!)

• The funds raised, after costs have been deducted, represent unrestricted income. This is money that can be used to pay for your staff, your office rent, your insurances...all the things grant funding tends not to cover

• You'll likely receive great coverage in the (social) media due to the event, which could reach and attract more ambassadors and community champions to your charity

• Once you've built your audience, you can connect with them again and again, and invite them to event after event

• And everyone has a good time in the process

Win-win-win-win. Most of the work will be done by the entertainment provider - and holding regular community events will likely equal a lot less effort and be much more effective than writing 40-50 bid applications each month, throwing them at the wall, and seeing if any of them will stick.

Too often, community fundraising and events of this ilk are overlooked or under-utilised. Yet, in the VCSE's current landscape, they are probably the safest bet when it comes to generating income for your charity. A few hundred pounds a month from running just one event within those 30 days equals a few thousand pounds over a year. Thousands of pounds that could come into your organisation without any conditions, any formal monitoring. or any timeframe in which they should be spent.

Grant funding is likely to continue decreasing in the short-term, if not longer. Creating a calendar of community events could make all the difference to your good cause.

Evolve3 CIC's community event solutions start from £70 for an evening/half-day session. We bring all the materials and host the entire event; we'll even help you market it.

We reiterate: community fundraising events rely on a healthy, engaged audience and supporter base. If you don't yet have these, spend as much time on building them as you do on completing grant application forms.

If you'd like our help to increase your supporters, get in touch.