Charities missing out on donations from SMEs
Nearly half of charities lacking a fundraising strategy that will help tap into the lucrative SME market
Nearly half of all charities (47%) do not have a fundraising strategy in place to target donations from SMEs, according to a new report by Work for Good, a new business giving platform.
The research highlights the missed opportunity for charities. A recent survey by Work for Good showed that as many as 60% of SMEs already donate to charity, demonstrating the appetite for giving within these businesses.
In 2017, SMEs made up 99.3% of all private sector businesses according to the Federation of Small Businesses. On average, SMEs donate 1.8% of their turnover, and recognise multiple benefits of charitable giving such as increased profits and enhanced company reputation, according to the research conducted in February.
The research marks the launch of a new giving platform, Work for Good, which connects charities with businesses who want to give to good causes. The platform makes it easy for businesses to build giving into their day to day work. Work for Good handles all donations, and tax and legal admin, freeing up charity time to focus energy where it really makes a difference.
As many as 97% of registered charities are classed as small charities, with annual incomes of less than £1m. Although many of these organisations are dependent solely on donations, 70% claim they do not have enough time and resources to target SMEs. But they are failing to unlock this vital stream of income from SMEs. Work for Good enables charities to make new connections to access much needed unrestricted funding and encourages businesses to give more by showing that giving is good for business too.
Harriet Colley, Corporate Partnerships Fundraiser, Evelina London Children’s Hospital said, “We’re delighted that the idea behind creating Work for Good started right here at Evelina London Children’s Hospital, helping us raise much needed funds to provide life-changing care to some of London’s sickest children.”
Helen Mabberley, Head of Fundraising at Malaria No More UK commented, “Securing corporate support can be very difficult. Work for Good’s magic lies in their ability to bring us interest we wouldn’t otherwise find, freeing up more of our time to focus on the fight against malaria.”
Work for Good also provides the solution for businesses and charities faced with complicated Commercial Participation Agreements (CPAs), as required by the Charities Act to set out an agreed partnership between them.
Danny Witter, CEO and Co-Founder, Work for Good said: “Our platform is unique in the way it enables charities to connect with businesses, which they otherwise wouldn’t be able to reach. We help charities, which often rely solely on donations, to open up vital new sources of funding, matching them with businesses which want to make a real and tangible change in the world.”