About the market:

Some may say that charity begins at home but overseas aid has been the byword in the sector since the Boxing Day Tsunami of 2004 hit and as the world has been rocked by earthquakes, hurricanes and man-made disasters such as war and terrorism. These events played out in the world’s media have served to increase the number of UK adults giving to charity in 2005. But for those outside the Disasters Emergency Committee membership not engaged in international relief efforts but promoting other good causes this generosity has eaten into their share of income. Despite the enormous efforts of voluntary organisations to foster loyalty, for many people giving to charity is a spontaneous gesture.

Charities are competing for a slice of disposable income in a crowded market place and like commercial organisations face the challenge of attracting supporters in a mass market swamped with marketing messages. New definitions on charity in law, regulations on fundraising practice, control of cash collections, a new system of postal charges and the continuing campaign over VAT reform present the sector with lots more challenges. The traditional core supporter base of charities i.e. women, ABs and those aged 65+ is growing numerically but failure to engage with younger people is storing up severe problems for the future.

Mintel believes that much of the innovation in evidence in the fundraising and retailing activities of the leading charities is in fact defensive, guarding against competitors, rather than gaining competitive advantage. The highly fragmented nature of the supply structure which has lead to high levels of duplication between individual charities is a barrier to real progress.