How charity comms teams can unlock new ways to generate income

The chancellor’s recent spending review has significant implications for the third sector. 

There are positives, including the reinstatement of winter fuel payments, the extension of free school meals, and NHS core funding set to increase. 

However, with inflationary pressures lingering, the rise in employer national insurance contributions embedding, and traditional contract-providers being abolished (eg NHS England) or having their budgets hit in real-terms (eg with council pots forecast to grow by only 1.1%), the next three years could be bleak. 

The government’s updated impact assessment says the planned welfare cuts could put 150,000 people into relative poverty which inevitably, will lead to more requiring support.

While charities are no strangers to financial resilience, the economic outlook for many seems at best, challenging and at worst, catastrophic.

We are at a crossroads: if charities want to continue to provide their vital services to the people and institutions who need them most, they will need to transform how they sustain themselves. Old models involving donations, membership fees, public sector contracts, and grants are not enough on their own. 

The role of PR in diversifying a charity's income

Income diversification has been a common feature of charities for some time but it is no longer just optional – it’s essential. 

Before you think that this issue is exactly why we have commercial and sponsorship teams, that is very much still the case. But, communications professionals have a massive, and often overlooked, role to play in this shift.

We are creative storytellers. We extend right across the business and the external environment, allowing us to spot opportunities, manage risks and build connections. As brand architects, we develop narratives and plans that shape perception, protect reputation and incite action. We know our audiences inside out.

At this juncture, this know-how should be maximised to facilitate new opportunities that can not only continue to deliver but also enhance our charitable purposes.

Whether this is in providing safeguarding training and consultancy to public, private and other voluntary sector bodies like Barnardo’s, or offering mental health services to employers as delivered by Mind, lots of charities are already using their existing knowledge and skills to embrace this opportunity alongside their mainstream work.

This vital income that can then be reinvested back into the charities’ missions while positioning them as credible experts in their fields.

Elsewhere, the British Red Cross has for some time been investing in its digital infrastructure to pioneer new fundraising approaches and reach broader audiences.

Recognising in-house communications talent

Effective communications underpin these initiatives but our contribution as a business function can be far more than in the marketing, promotion and engagement of these strategies. 

As the largest membership body in the health sector, the NHS Confederation has leveraged its own expertise to launch a communications agency for NHS, public and independent sector organisations across the UK. The agency, HealthCommsPlus, is a separate service to our core advocacy and support to members, while remaining central to our charitable mission.

Why this? We recognise we have in-house communications talent, sector insights and deep networks that we have developed over several decades. We want to harness these to support our members even more and ultimately, improve the NHS and health outcomes. 

While every charity will have different considerations, for communications teams wanting to explore ways to unlock additional income-streams, here are five top tips that can guide the process:

1. Get a seat at the top table: It sounds obvious, but comms teams can still be seen as a support function, rather than a strategic partner. Comms should be involved at an early stage in business-planning, especially where new services, products and partnerships are being considered. Our understanding of audience insight, risk, and positioning is critical.
    
2. Find your ‘USP’: Given our bird’s eye view that combines internal and external perspectives, comms is well placed to identify our organisations’ strengths and explore how they could be made profitable. What does your brand stand for and what does it offer that others don’t? Make sure you carry out robust market testing as part of this including by engaging your various audiences and looking at what others in your field are doing.
    
3. Invest in digital: The need for comms teams to embrace AI is a big one right now (which the NHS Confederation and HealthCommsPlus have just reviewed) but investing in digital tools and training remain vital in enhancing audience engagement, streamlining operations, and uncovering new opportunities. A report last summer showed that charities with above average digital maturity were more likely to see income growth.
    
4. Explore partnerships: Collaborating with other organisations, for example via joint advocacy campaigns, co-branded initiatives, and shared services can be a gateway to new audiences and income opportunities. Start with some stakeholder mapping to identify where you are connected already and build from there. Make sure any ventures align with your organisation’s values and brand identity.
    
5. Continue to engage your existing audiences: When entering a new space, taking your members, donors, supporters and others with you is essential. Regularly update them on your activities, your successes, and your plans, all of which should be reinforced by robust impact measurement. Engaged supporters are more likely to advocate on your behalf and may want to access more of what you have to offer.

The need for charities to diversify their income is more critical than ever. Commercial thinking does not mean drifting from your charity’s mission: it means being open to finding ways to deliver and enhance it in this new economic reality. Strategic communications must be at the heart of this shift.

Paul Cooney is assistant director of communications at the healthcare membership body, the NHS Confederation which has offices in England, Wales and Northern Ireland and is executive team member of its communications agency, HealthCommsPlus.

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