Charities face mounting challenges as we enter 2024. Prolonged economic uncertainty, rising costs, increased competition for donations, and more are converging to put greater strain on nonprofits than ever before. At the same time, the need for charitable services continues to expand. This combination threatens to severely impact charities in the coming year.
In around 20 years working with charities of all sizes, we’ve seen firsthand the risks they routinely encounter. Drawing from our experience and insights, we’ve put together guidance to help charities navigate the unique landscape of 2024.
Economic Turbulence Squeezes Charities
Forecasts suggest the cost-of-living crisis may persist until 2028. This could spur a ‘cost of giving’ crisis where donations decline but demand rises. Stagnating inflation and recession fears also point to reduced charitable contributions in 2024.
Charities must account for this pressure in contingency budgets and brace for heightened competition for every pound donated. With operating costs still ballooning, nonprofits need to seek expense cutting where possible, even as community needs climb.
External Events Magnify Uncertainty
From extreme weather events to cyberattacks and public health issues, external shocks look to further rattle charities in 2024. Having emergency and crisis management plans in place is essential to ride out storms.
Fortifying operations against phishing schemes and security breaches is also mission critical as charities handle sensitive supporter and staff data. Staying resilient amidst a landscape of volatility will help sustain communities in need.
Bolstering Risk Management & Governance
With slim margins for error, charities must ensure fiduciary self-care from financial procedures to reputational crisis response. Verify insurance valuations, bolster legal compliance and ensure employee policies follow best practices or risk stability when it’s needed most.
Rethink Risk In a Changing World
While risks feel amplified today, by understanding and addressing them charities can build durability for the trials ahead. We stand ready to advise as together we work to help nonprofits build a resilient future. Though the path looks daunting, staying vigilant and responsive means we continue doing good, even in the hardest times.