The news that the UK is still in recession, despite predictions to the contrary, means that we still – unfortunately – need to keep an eye on what’s happening to UK philanthropy.

Despite disappointment that the light remains firmly at the end of the tunnel, a bullish outlook is still evident amongst many UK philanthropists and philanthropy experts, many of whom gathered at the recent ‘Raising Funds from the Rich’ conference in London on the 14th October. The conference began with Martin Brookes of New Philanthropy Capital telling the 1,800 delegates that, “There are still a lot of very rich people who are still giving very generously” and making the case that the recession could have the counter-intuitive effect of increasing donations if the rich are encouraged to feel an increased sense of duty to give back to others who are less fortunate.

Upbeat contributions from internet entrepreneur Martha Lane Fox, Virgin founder Richard Branson and hedge fund manager Stanley Fink all underlined Brookes’ stance. Lane Fox urged charities to continue seeking support despite the economic crisis saying, “The stories I hear from people like you are the most exciting thing – please don’t stop!”.

Branson began his remarks by reminding the audience he had told the BBC’s Business Editor, Robert Peston, in January 2008 that there were opportunities to be found in a recession and there was still money to be made. Equally, he argued, there was still money to be given away during these difficult times. Further, he suggested that “business leaders need to stop looking for the least we can get away with and instead ask what’s the most we can do”. Fink’s remarks were also directed to fellow philanthropists, who were encouraged to turn the question of ‘how much to give’ (whether in a recession or more normal times) on its head by asking how much one needs to live on and then consider giving the rest away.

The largely buoyant tone set by these contributions was accompanied by some concrete advice. Brookes offered a three-point plan for charities willing to take an optimistic stance towards the recession: invest more resources in fundraising activities; make the experience of giving more exciting and rewarding for the donor; and celebrate those who are willing to give so they will ‘break cover’ and talk about it to encourage other donors.

A new briefing paper produced by the research team at the Charities Aid Foundation (CAF) is also aimed at helping charities trying to weather the recession and plan for what comes next. Research with CAF account holders and the general public revealed three key messages. Firstly, charities should show responsiveness to changing times by embracing new media to communicate with donors; secondly, charities should sharpen their processes, become more efficient, show the impact of their work, review their finances to reduce costs, be transparent and consider partnering with other charities; and thirdly, charities should dedicate more resources to fundraising and find additional ways to generate income, such as using volunteers, applying for more grants and asking for gifts in kind as well as money-donations.

A new analysis of charitable giving and donor motivation published by the Center on Philanthropy at Indiana University, Understanding Donor Motivations, finds that the single most important reason for giving to charity is to help meet people’s basic needs, such as for food, shelter, clothing, and heat. As these sorts of needs rise during a recession, the implication is that the motivation to give will also rise. The report also found that amongst donors with incomes of $100,000 or more, many echoed the UK philanthropists described above, by agreeing with the phrase that “those with more should help those with less”, which again bodes well for a resilient philanthropy sector in the face of the recession.

Finally, a new European survey from Blackbaud, drawing on data from the UK, Germany and the Netherlands, found a greater level of optimism regarding income for 2009, but also that the majority in all three countries anticipated a higher level of demand for their services. Online donations were widely expected to increase and committed giving was also seen as an important type of fundraising for European non-profits.

Despite the ongoing nature of the current recession, the UK philanthropy sector continues to focus on becoming more robust and resilient, and continues to strive to look on the bright side.

However this positive mood is somewhat tempered by news from across the Atlantic, which suggests that the worst is yet to come. A survey of the top 400 fundraising charities in the US, conducted by the Chronicle of Philanthropy, predicts that giving will decline by 9% in 2009 and the outlook will not improve in 2010. The time-lag between the recession starting and donors feeling the impact in their pocket is a factor, as are cuts to fundraising departments, which means that charities are trying to maintain voluntary income with fewer staff and a smaller budget. 

However, echoing the points made in Brookes’ speech at the London conference, the Chronicle article profiles charities that have successfully grown donations by implementing better communication with donors and by using online media, demonstrating that philanthropy in the US and UK often shares similar problems and solutions.