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Charity Insights

Year two of the World Giving Report's Charity Insights reveals even more about the landscape for social purpose organisations in 33 countries around the world. Uncover the key trends and challenges facing the sector.

Charity Insights

Year two of the World Giving Report's Charity Insights reveals even more about the landscape for social purpose organisations in 33 countries around the world. Uncover the key trends and challenges facing the sector.

Less than two in five charities feel well set up for future success.

When we asked charities around the world whether they feel financially and operationally set up for success over the next three years — less than two in five of them responded positively, and less than one in ten feel ‘very well set up’ for future success.

Larger charities, with over fifty employees, are more confident than their smaller counterparts, while those organisations that work on the frontline — providing crucial services — are among the most pessimistic.

Globally, there is no continent where the majority of charities feel well set up for the years ahead. However, the outlook is more positive for those based in North America, Oceania, and Asia, where over 40% feel well set up, while in South America it falls to only 26% who feel the same.

To what extent is your organisation financially and operationally set up for success over the next 3 years?

Base: All charities, N=4,132.
Only 26% of organisations in South America feel well up for success
Organisations in lower income countries feel most confident about future success
Organisations with over 50 employees are twice as likely to feel very well set up for success

What challenges are charities facing that affect their resilience?

Based on CAF’s extensive research and charity advisory work, we have developed six characteristics of organisational resilience in social purpose organisations:

Across the world, charities are facing a variety of challenges that affect their resilience for the future. Below, we look at how often each challenge was cited as one of their top three, so we can understand which aspects of resilience are more and less important to social purpose organisations.

Funding is the key challenge for charities everywhere

This aspect, which is about being financially and operationally fit with sufficient income from different sources, is the most challenging for charities around the world. Nearly all of them (92%) mention at least one of these six challenges, with financial sustainability the most commonly cited.

92% mentioned at least one financial or operational issue
61%
Financial sustainability
39%
Increased competition for funding
28%
Increasing costs
16%
The balance of restricted and unrestricted funding
16%
Meeting demand for services
11%
Making the most of technology

Well networked

Being well connected and able to get support by working in partnership with others.

External awareness

Awareness of the political, economic, local and national context. Scanning the horizon for threats and opportunities.

These two aspects of resilience are very closely related and often mutually reinforcing. Just over a third of charities (36%) mentioned one or more the challenges relating to them.

36% mentioned at least one external issue
19%
Raising awareness of our charity
14%
Government intervention
6%
Persuading people that we can be trusted

People and culture

A similar proportion (35%) cite challenges around People and culture, which is about having the right employees, supporting them and leading effectively.

35% mentioned at least one team challenge
23%
Hiring or maintaining a strong team
15%
Securing and maintaining volunteer engagement

Evidencing impact

The ability to identify and communicate the needs being met and the impact this is having is a top issue for a quarter of charities.

25% mentioned at least one impact issue
19%
Measuring and demonstrating our impact
9%
Making an impact

Purpose

Understanding what the organisational purpose is — and just as importantly, what it is not are the least cited challenges, with only one in ten placing them in their top three.

10% mentioned at least one purpose issue
7%
Communicating our mission
3%
Clarifying our mission

Building resilience despite increasing demand.

Charities are continuing to see increasing demand. Almost seven in ten (67%) have seen an increase in the past year, and the majority of them say they are finding it difficult to cope. However, amongst the adversity are stories of innovation and adaptation — for every challenge, charities have found practical ways to build resilience.

Below we showcase some of the hard-earned wisdom of charity leaders from around the world, spotlighting their successes and amplifying how funders and policy-makers could help contribute further to the resilience of civil society more broadly.

Building mutually supportive networks and strengthening the team in Mozambique…

"We work in collaboration with other civil society actors, which helps respond to demand. At the same time, hiring more qualified staff to respond to specific projects and demands was crucial."


Community Development Charity, Mozambique

Calling on funders to recognise the limitations of project-specific grants in Canada… 

“The single most impactful shift would be a transition toward multi-year, flexible operational funding.”

“Like many organizations, we navigate a landscape dominated by short-term, project-specific grants. Flexible funding would allow us to invest in our internal capacity, retain our highly specialized talent, and plan strategically for the long term rather than constantly managing year-to-year cycles.”

Education Charity, Canada

Building trust through transparency in Nigeria…

“If a donor or partner has to work hard to understand what you do, you've already lost them… Radical transparency and simplicity build trust faster than anything else. Aim to be understood immediately, not just admired for your vocabulary.”

Community Development Charity, Nigeria

Read the full report for more insights, on:

Purpose:

What charities with the clearest missions are getting right.

Evidencing impact:

How using a framework dramatically affects charities’ confidence at capturing their impact.

Well networked:

How many charities are making use of civil society networks to help achieve their goals.

Financially and operationally fit:

The proportion of charities who say their balance of restricted funding makes it difficult to succeed.

People and culture:

The unhealthy balance Charity leaders have between day-to-day and strategic tasks.

External awareness:

Whether charity leaders around the world feel the sector is valued by the public.

Download the report