As so eloquently stated in Delia Maguire’s novel ‘The Rural Gentlemen’, charity may well begin at home as the old saying goes, but it simply cannot remain there. By the nature of the national lockdowns and the enforced remote working that has kept everybody in their homes and out of the office, COVID has been an innately insular time.
It has been a time to reflect on the relationships and partnerships that define our personal and professional lives, and, for many, this introspection has brought with it new or renewed understanding of their importance. But as the UK economy slowly rebounds from the cold-water shock of the pandemic, there is a pressing need for businesses and individuals to start to look outwardly once more.
The plight of the community, voluntary and charity sectors has been recognised and documented during the COVID-19 crisis. Earlier this year, research from the specialist insurer Ecclesiastical found that almost one in five (19%) charities are considering downsizing as a result of the COVID-19 crisis, while 17% are considering closing some or all of their offices. Meanwhile, further research from the Charity Retail Association found that the average store lost more than £33,000 in income during the early 2021 lockdown.
Charities are facing a two-tiered crisis under the shadow of COVID, battling an increased demand for their aid in conjunction with a significant decrease in their fundraising income. Making up the shortfalls facing charities is going to be a substantial task, even as the easing of the lockdowns allows for more in-person fundraising events.
Last month, the Fundraising Regulator and the Chartered Institute of Fundraising (CIF) published guidance on how charities and their fundraising partners can fundraise safely and responsibly and those insurance professionals active in the space would be well-served by reading this report. Key recommendations include keeping up to date with government guidance, carrying out thorough risk assessments and identifying the steps required to protect all relevant stakeholders.
I imagine that each of those steps will seem deeply familiar to insurance professionals and so it will not be too much of a stretch to apply these recommendations to any charitable initiatives they will be looking to roll out in the short or the long term. Indeed, many companies are already embracing the opportunity to throw their weight behind aid agencies, with sponsorships and partnerships pledged by several companies, among them Allianz, Zurich, Aviva and Sedgwick.
Invariably it is insurance giants that have the pockets deep enough to afford multi-million-pound sponsorships, donations and aid programmes. Yet there remains a great deal that smaller businesses can do to get involved in this space and make a difference to the people reliant on the services charities provide.
From participating in industry-wide events such as the Movement for Good awards, to providing volunteer leave to staff, to providing insurance-related advice and guidance to struggling aid organisations – insurance brokers can be at forefront of serving the needs of their local communities. And such opportunities to take up the mantle of being a community fixture and a force for good do not come around all that often for financial services institutions.
Beyond the brand equity implications of getting involved in charitable initiatives, there are several distinct positives for the individuals who do so, which should not be ignored. The Charities Aid Foundation, or CAF, has outlined several of these - including that giving to charity or volunteering can give you a mental health boost, strengthen your personal values and encourage those around you to do the same.
CAF also highlighted that donating is more impactful than ever, as, if you’re a UK taxpayer, you can boost the amount of every donation you make by giving through Gift Aid, an income tax relief developed to ensure charities can make the most of any funds received. The foundation highlighted that Gift Aid enables the charity to recover the basic rate of tax on your donation, and the scheme adds 25p to each £1 you give at no extra cost to you.
There is a great deal of truth to be found in Kathy Calvin’s statement that giving is not just about making a donation but also about making a difference. It’s a simple message and it should perhaps resonate more clearly with this profession than any other as it so closely ties with the governing principle of insurance – to protect what can be protected and to rebuild what can’t.
