Charity fundraisers are warning they are not being backed by their boards and senior leaders to target high net worth donors, according to research by the Chartered Institute of Fundraising (CIoF).

Its research also warns that efforts to attract philanthropic giving are being hindered by a lack of skills in using technology to improve this revenue stream.

The findings have emerged in the second part of the fundraising body’s Philanthropy 2035 research project, which is looking into long term trends in high value giving.

It found there are “significant challenges preventing charities from reaching their full fundraising potential”.

“Many organisations reported a lack of buy-in and investment from boards and senior leadership teams, limiting their ability to provide the personalised and tailored donor experiences needed to build long-term, trusted partnerships,” it found.

It added that “many charities lack the skills, confidence and resources needed to adopt new technologies that could improve fundraising efficiency and supporter engagement”.

‘Great wealth transfer’

Despite the concerns the research found “there are strong reasons to be optimistic about the future of philanthropy” in the UK, especially around a “great wealth transfer” that will see £5.5trn pass between generations of wealthy individuals in the coming decades.

This is set to create “a new cohort of philanthropists with their own giving habits and expectations”.

It also welcomes “renewed government focus on philanthropy”. In April the government launched its Our Place to Give policy paper to improve high net worth giving, especially outside London, through better collaboration between government and the financial services sector.

Strategic mayors are also acting to improve philanthropic giving through their partnerships with their local charitable sector, a report released last month found. This calls for more mayors to adopt this approach to boost social investment in their areas.

“For charities to make the most of these opportunities, however, will require addressing some of the core problems holding many organisations back from reaching their full fundraising potential,” said the CIoF.

“Real progress will depend on sustained long-term investment in fundraising coupled with greater support for fundraising from trustees, senior leadership and key teams within the charity.”

CIoF director of policy and communications Claire Stanley added: “Amidst a challenging and evolving giving landscape, it is positive to see opportunities to grow high-net worth giving.

“Many of the challenges fundraisers and charity leaders shared with us, however, are deep-rooted in the sector and will need a fundamental step-change in how boards see, understand and support fundraising.”

---