How to increase donations to your charity: streamline fundraising, capture donors, and show impact

On average, people in the UK give just 0.75% of their income to charity, placing it among the lowest in developed nations. Across the UK, charities are facing declining donor numbers and increasing competition for funds, making fundraising more challenging than ever.

So why do donors stop giving and how can not for profit organisations increase donors to their charity? Let’s explore the most common challenges and how to overcome them.

Why UK charities struggle to increase donations

According to the UK giving report 2025, the number of people donating is decreasing and is lower than ever. Just half of people in the UK are donating – a figure that has fallen by a third since 2017.

On top of that, donor loyalty remains a challenge. Fewer than half of supporters return to give again after their first donation, leaving charities in a constant cycle of chasing new donors.

Most not for profit organisations are working with real passion and commitment, but are held back by outdated processes and disconnected systems. They can make donors reluctant to give – or to give again.

Here are some of the most common obstacles that make fundraising harder than it should be:

1. Capturing new donors and retaining existing ones

Fundraising is always two-fold: attracting new donors and keeping existing ones engaged. For non-profits in the UK, this means not only expanding their donor network through targeted campaigns, leveraging current supporters, and demonstrating impact with transparency, but also investing effort into retention.

Retaining donors and keeping them engaged requires even more effort than winning someone’s first donation. For example, a first-time donor who never hears back after giving £20 online? They probably won’t come back. They might feel their donation wasn’t valued enough. Or they simply forget.

Without the right donor engagement tools to nurture relationships, charities risk losing supporters after a single donation.

2. Overcomplicated donation journeys

People feel frustrated with every extra click, form field, or confusing step. Complicated donation forms increase the chance of a donor dropping off. Supporters expect seamless donation journeys, so simplifying donation processes is a must.

Studies show the average online donation journey takes 4-6 clicks, while more digitally savvy nonprofits reduce it to 1-3 – the same as most online shopping. That small change makes a big difference.

The goal is clear: make giving as donor-friendly as possible. Convenience has become the standard and donors expect the same when they support a cause. How many clicks does it take from your homepage to complete a donation? If Amazon proved anything with one-click ordering, it’s that fewer steps mean fewer lost supporters.

3. Limited insight into donor behaviour and fund allocation

Knowing why people give and showing them the difference their money makes is at the heart of successful fundraising. Donors want to feel connected to the cause and reassured that their contribution is making a real impact – what their money helped achieve, whether the fundraising goal was met, and how they were part of making it happen. Without that feedback, donors can quickly lose interest and move on to another cause that communicates impact more clearly.

However, data is often scattered across multiple platforms, reports are pulled together manually, and insights arrive too late to act on. Instead of having a clear picture of donor behaviour, fundraisers are left piecing things together from spreadsheets and guesswork. Charities often lack the fundraising analytics tool needed to see the full picture.

4. Manual, error-prone administrative tasks

Manual work, such as processing payments to reconciling accounts takes valuable time away from what matters most: making a difference. It also leaves room for mistakes that affect building trust with donors. Picture an administration team spending hours combing through spreadsheets, only to find the totals don’t add up at the end of the week.

5. Managing donor relationships at scale

Supporters want to feel seen and valued, not like one of many. But without a donor management system, personalising communication and maintaining strong relationships quickly becomes much harder.

For example, sending tailored thank-you notes to every donor without a centralised system is too complicated.

Charitable giving at record lows

Across the UK, charities are facing declining donor numbers and increasing competition for funds, making fundraising more challenging than ever.

Best ways for UK charities to raise more money with custom fundraising software

Fundraising doesn’t have to feel like an uphill battle. With the right digital tools, charities can remove friction, cut down on admin, and give supporters the kind of experience that makes them want to give again.

This is exactly where custom fundraising software comes in. Unlike off-the-shelf fundraising software built for the average not for profit organisation, custom software is built around your charity’s processes, data, and supporters, making it easier to streamline workflows and increase donations.

Here’s how:

Building smooth donation journeys with custom fundraising platforms

Instead of clunky forms and abandoned carts, charities can guide supporters through simple, intuitive donation funnels and mobile apps. The whole process is made seamless which boosts conversion rates and makes donors more likely to return.

Imagine you’re running a campaign to provide meals for community centres supporting homeless people across the country. With a custom fundraising platform, you can create a donation form that lets supporters choose exactly how they want to contribute – from covering the cost of one meal to funding a week’s worth of groceries. Clear options, mobile-friendly design, and instant confirmation all help donors feel confident their gift is making a real difference.

Secure, integrated payments for online donations in the UK

Donors expect to pay in the way that suits them best, whether that’s card, PayPal, Apple Pay, or direct debit. Custom platforms bring all these options together securely, making giving as easy as ordering a coffee online.

Automated donor tracking and reporting with fundraising software for non-profits

No more late-night spreadsheets or guesswork. Automated tracking shows exactly where donations come from and how they’re performing. Built-in reporting saves hours of admin and ensures nothing slips through the cracks.

For instance, instead of manually updating Excel sheets after every fundraiser, a charity running a scholarship programme can see all donations logged automatically in one dashboard. They can instantly generate a report showing how much was raised from corporate partners, online campaigns, or individual givers. At the end of the quarter, the system produces ready-to-share impact reports for the board and funders. That way, the staff don’t spend days pulling numbers together.

Show impact, build trust through impact reporting for charities

Dashboards and donor portals make it easy to highlight where money goes and the difference it makes. Whether it’s a progress bar on a campaign goal or real-life success stories, donors can see their impact clearly which strengthens trust and loyalty.

And why stop there? Imagine automated newsletters or personalised updates with photos from funded projects landing straight in donors’ inboxes. For instance, a supporter who helped fund a community centre could receive a short update and images from the centre’s opening day – a small gesture that turns a one-time donation into a lasting relationship.

We helped creating the first social network for philanthropy

Donors sometimes do not know where to start when it comes to giving. They find it difficult to connect and build relationships online. As their technical partner, we helped I.G. Advisors create a centralized ecosystem to unify donors within one platform.

See full case study

Easy-to-use interfaces and multi-channel fundraising for recurring donations

From one-off donations on your website to recurring gifts via mobile, charities can offer supporters the flexibility they expect. Automated receipts and reminders keep people engaged without creating extra work for your team.

For example, a donor might scan a QR code at a charity event to give £10 towards planting trees. At checkout, they’re offered the option to make it a recurring monthly donation via Apple Pay or Google Pay. With one tap, their donation is set up, they receive an instant digital receipt, and each month they get a short update with photos of the reforestation progress, making it easy, personal, and consistent.

Smarter campaign management with digital fundraising solutions

Plan, launch, and track campaigns in one place. With built-in tools for scheduling, A/B testing, and performance monitoring, fundraisers can focus on creativity and strategy rather than juggling multiple systems.

A charity running a holiday campaign can create emails, social posts, and landing pages in one platform. They A/B test subject lines, schedule posts, and track results in real time. Instead of jumping between spreadsheets, email software, and ad managers, the team sees a single dashboard that shows what’s working.

Personalised donor experiences through donor management software

No two supporters are alike. Custom donor management software can tailor communications based on donor history, preferences, and behaviour, turning one-time givers into long-term advocates.

A donor who regularly contributes to children’s education projects might receive personalised updates highlighting new scholarship recipients or volunteer opportunities. Meanwhile, a first-time supporter giving to environmental causes could get an automated welcome email with suggested campaigns aligned to their interests, helping each donor feel valued and engaged.

Seamless integration with charity CRM and marketing tools

Too often, information is scattered across multiple systems that don’t talk to each other. By connecting your fundraising platform with your CRM, email, and marketing tools, you get a complete view of every supporter, making it easy to send relevant messages and keep donors engaged.

We helped Tommy's increase donation amounts and streamline processes

When Tommy’s wanted to increase donations, we built integrations with Blackbaud and streamlined their email system. Donors could give more with just a click, and the charity reduced time spent on admin.

Find out here

The benefits of custom fundraising software for charities

When charities make fundraising easier, the results speak for themselves. Custom-built solutions don’t just remove today’s frustrations – they create lasting impact.

• Higher donor retention with donor retention tools
• More time, more meaningful work through fundraising automation
• Stronger trust with transparent online donation software
• Clearer decisions through data-driven fundraising
• Room to grow with scalable fundraising platforms

Why your not for profit organisation should partner with Vega IT

Choosing the right software development partner can make all the difference. At Vega IT, we’ve helped charities of all sizes modernise their fundraising with non-profit technology solutions that reduce admin, improve donor retention and build trust.
Here’s what sets us apart:

• Expertise in custom software for non-profits in the UK – We understand the unique challenges charities face and we know how to build solutions that directly address them.
• Collaborative approach – We see ourselves as an extension of your team. That means listening closely to your goals, co-creating solutions, and making sure the end product truly fits your needs.
• Focus on measurable impact – Whether it’s automating admin, increasing recurring donations, or improving transparency with donors, we design every solution with clear outcomes in mind.
• Scalable and future-proof solutions – The needs of a growing charity today may look very different in a few years. That’s why we build systems designed to grow with you.

If your non profit organisation is ready to modernise the way you fundraise, we are here to help.