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We understand that rising costs are putting a strain on everyone, including sports clubs and community groups.

Organisations like these often rely on charitable donations, fundraising efforts, and local contributions to support their activities, but recently have been affected by the ‘cost of giving’.

'Cost of giving' is a term used to describe the increasing challenges that charities, and the organisations and people they support, face due to increasing living costs, a reduction in community donations and an increasing demand for support.

Wereham Village Hall, a smart timber-clad building with honey-coloured wood, surrounded by a field and trees

Without the vital contributions of charitable organisations and donations, it’s becoming harder to secure the funds needed to keep sport and physical activity organisations running smoothly.

Research from the National Council for Voluntary Organisations suggests that one in five charities in the UK could be forced to close unless financial conditions improve. 

There are many factors contributing to the cost of giving:

  • Worldwide conflicts causing increased costs on certain goods and services.
  • Continued effects of the pandemic and the health inequalities it emphasised. 
  • Environmental concerns. 
  • Inflation and rising energy costs.
  • Reduced disposable income, meaning fewer are in a position to donate.

The impact of the cost of giving on community organisations can mean that individuals and families who rely on additional support find themselves excluded from activity.

This may be the case when people use transport services to attend sessions, require carers or additional support staff to be active, make use of food banks, kit donations or subsidised fees to take part, or attend free activity sessions that can no longer go ahead. 

As you try to manage these challenges, you may rely more on volunteers, who could be facing their own financial difficulties.

Evidence from Sport England shows that some volunteers and paid staff, particularly those on low wages, are leaving for higher-paid opportunities elsewhere.

If the situation continues, there is a worry that some programmes that rely heavily on volunteers might have to close, reducing opportunities for people to stay active and healthy.

Pic: Laurence Sweeney Photography. Boxers perform drills at Forest Hall Young People's Club, North Tyneside.

What’s next?

There’s lots you can do to combat these issues and try to ensure the cost of giving won’t affect your involvement in, or your organisation’s capacity to, produce high-quality, accessible and inclusive activity. Consider:

  • Exploring our ‘Money matters’ guidance to find information on raising funds, managing money and planning ahead. 
  • Taking part in, or sharing with your networks, our free regular workshops on finance management and raising money.
  • Talking to local businesses, influencers, or Councils for Voluntary Service to see if partnerships can be formed. 
  • Offering your current contributors flexible donation options that encourage charitable acts when their finances allow, rather than a consistent requirement some may find hard to meet. 

Keep your eyes peeled for more supporting resources from Buddle on the cost of living and its impact. We’re in this together and will continue to find effective ways to tackle these challenges head on and keep our activities happening.