Why is the cost of raising funds rising so fast?

The cost of acquiring a pound of charitable income has grown swiftly since the start of the century.

The latest edition of the UK Civil Society almanac contains a section on the cost of generating funds, which shows that in the year to March 2001, adjusted for inflation, the charity sector spent a total of £3.1bn on generating funds. Now it’s £5.9bn. That’s an increase of 90 per cent.

The sector’s income, meanwhile, has grown by 50 per cent. So the cost of raising money has grown by around 33 per cent in real terms.

Each pound spent on raising income now yields around £4.16, down from somewhere around £5.50 per pound at the start of the century.

David Ainsworth examines the causes of the change.

https://www.civilsociety.co.uk/voices/david-ainsworth-why-is-the-cost-of-raising-funds-rising-so-fast.html

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