Yet despite these challenges, the charity sector remains remarkably resilient. Research from CAF’s Charity Landscape Report found that while only around half of charity leaders felt optimistic about the future of the sector as a whole, 81% remained positive about the future of their own organisation.

The Reality of the Cost of Living Crisis

There is no escaping the fact that charities are operating in an extraordinarily difficult environment.

Across the country, organisations are reporting:

• Increased demand for services
• Rising energy and operating costs
• Higher staffing costs
• Greater levels of financial hardship among beneficiaries
• Pressure on fundraising income
• Growing challenges in recruitment and retention

Data shared during the webinar highlighted significant increases in demand for crisis support, including food bank referrals and emergency financial assistance. At the same time, inflation has placed additional strain on both charities and the communities they serve.

For many organisations, this means trying to do more with fewer resources while supporting people whose needs are becoming increasingly complex.

Why Charities Must Not Stop Asking

One of the strongest messages from the webinar was simple: do not stop fundraising.

When financial uncertainty emerges, many charities become hesitant. They assume that donors cannot give or that funding opportunities will disappear.

However, evidence suggests this is often the wrong response.

As Rob Cope from the Chartered Institute of Fundraising explained, the UK remains a generous nation. While some people have reduced their charitable giving, others continue to support causes they care about and many still prioritise charitable donations despite their own financial pressures.

The most important lesson is clear:

If you do not ask, you cannot receive.

Maintaining fundraising activity, nurturing donor relationships and continuing to tell your story remain essential, even during difficult economic periods.

Focus on Long-Term Supporter Relationships

Fundraising is not just about immediate income.

Successful charities think in terms of lifetime value rather than one-off donations.

Supporters who remain connected to your organisation over many years may:

• Donate regularly
• Increase their contributions over time
• Volunteer
• Introduce new supporters
• Leave a gift in their Will
• Become advocates for your cause

This makes stewardship more important than ever.

Charities should continue to communicate openly with supporters, demonstrate impact and provide meaningful opportunities for engagement.

Maintaining existing relationships is often more effective and more cost-efficient than constantly trying to find new donors.

Working With Funders During Challenging Times

For organisations already receiving grant funding, communication is critical.

Many grants awarded several years ago were based on budgets developed before inflation reached current levels. As a result, some projects are now significantly more expensive to deliver.

The webinar encouraged charities to:

• Speak proactively with funders
• Explain changing circumstances
• Discuss increased operating costs
• Request flexibility where necessary
• Explore whether additional support is available

Funders generally want projects to succeed. Most would rather have an honest conversation about challenges than discover problems later through reporting processes.

Don’t Assume Funding Isn’t Available

A common mistake during periods of economic uncertainty is self-censorship.

Many organisations conclude that funding is unavailable and reduce their application activity as a result.

The speakers strongly challenged this approach.

While competition for funding remains high, charities should continue researching opportunities, building relationships with funders and submitting strong applications.

Success rates may vary, but charities that stop applying guarantee a poor outcome.

As several speakers noted, rejection does not necessarily mean an application was weak. Sometimes demand simply exceeds the funding available.

Put Your Cause at the Centre of Every Conversation

People do not give because they love charities.

They give because they care about causes.

This distinction is important.

Whether speaking to an individual donor, a corporate partner, a trust or a foundation, the conversation should always begin with the change you are trying to create.

Talk about:

• The problem being addressed
• The lives being improved
• The future you are helping to build
• The impact supporters can make possible

Facts and figures matter, but emotional connection remains one of the strongest drivers of charitable support.

Think Beyond Immediate Service Delivery

Several speakers highlighted the importance of addressing root causes as well as immediate needs.

While charities often focus on helping people facing crisis situations, they also have a role in influencing the conditions that create those crises in the first place.

This means:

• Campaigning for change
• Sharing evidence
• Working with policymakers
• Building local partnerships
• Raising awareness of systemic issues

Charities should not underestimate their ability to influence decision-makers, particularly at a local level.

Relationships with MPs, councillors, local authorities and community leaders can be just as important as national campaigning efforts.

Collaboration Is More Important Than Competition

When resources become scarce, it can be easy to view other charities as competitors.

The webinar challenged this mindset.

Most social problems cannot be solved by a single organisation acting alone.

Stronger outcomes are often achieved when charities:

• Share knowledge
• Build partnerships
• Coordinate services
• Collaborate on funding applications
• Advocate together

The organisations supporting a community are often stronger when they work as a network rather than as individual entities.

The Importance of Being Honest With Your Team

The cost of living crisis affects staff as well as beneficiaries.

Leaders face difficult decisions around pay, recruitment and resources.

One recurring theme was the importance of transparency.

Teams are more likely to understand difficult decisions when organisations communicate openly about financial realities, strategic priorities and future challenges.

Trust is built through honesty.

And in uncertain times, strong organisational culture can be one of the most valuable resources a charity possesses.

Reasons for Hope

Despite the pressures facing the sector, the webinar ended on an overwhelmingly hopeful note.

The speakers reminded attendees that:

• Charities have faced difficult periods before
• Communities continue to care
• Donors continue to give
• Volunteers continue to step forward
• Funders still want to create impact
• New opportunities continue to emerge

Legacy giving is growing. Philanthropy remains strong. Corporate engagement is evolving. Communities continue to support causes that matter to them.

Most importantly, charities continue to make a profound difference to people’s lives every day.

Final Thoughts

The cost of living crisis has undoubtedly increased pressure on charities throughout the UK.

But while this period presents significant challenges, it also offers an opportunity for organisations to strengthen relationships, communicate impact more effectively and focus on long-term sustainability.

The key messages from the webinar were clear:

• Keep fundraising
• Keep telling your story
• Be honest about challenges
• Work collaboratively
• Focus on impact
• Continue advocating for change

And above all, remember that the work charities do matters.

For many people, charities are not simply providing services. They are creating opportunities, rebuilding lives and offering hope when it is needed most. That remains as important today as ever.