How inflation is eroding the value of charitable donations
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How inflation is eroding the value of charitable donations
In today's rapidly changing economic landscape, we’re all feeling the squeeze of the challenges posed by increased costs of living. The rising cost of living is making it harder to bridge the gap between donations received, and the amount of aid needed for children. This disparity is particularly concerning for organisations like UNICEF, that are 100% donor funded. It’s the generosity of donors that allow us to provide life-saving aid to children worldwide.
Over 2 million people, including over 770,000 children, were affected by devastating floods that occurred in 2024 in north-eastern Bangladesh. Three-year old Ayesha’s family was just one of many who received an emergency hygiene kit to address their basic needs.
Inflation diminishes the purchasing power of each donation. This threatens UNICEF's ability to deliver critical services and supplies. As the purchasing power decreases, the impact on our ability to deliver aid becomes more pronounced. This situation highlights the urgent need for innovative solutions and collaborative efforts to ensure that no child is left without the essential resources they desperately need.
We’ll be exploring how inflation has affected UNICEF’s operations in recent years. Also covered will be some of the potential opportunities for our dedicated supporters to amplify their impact. Together, we can explore ways to bridge the gap and ensure that every child receives the support they deserve, regardless of economic challenges.
The increased costs of life-saving supplies
If you’re already familiar with UNICEF’s work, you might know about ready-to-use therapeutic food – or RUTF for short. These small but mighty life-saving sachets are packed full of nutrients and are used to treat kids suffering from severe acute malnutrition – allowing them to recover from home in a matter of weeks.
One year ago, Parwana was so severely malnourished, her mother feared she wouldn't make it. It was thanks to RUTF that today, Parwana skips, giggles and nags her mum to get her to school on time.
In most cases, kids suffering from malnutrition can be treated with RUTF, allowing them to recover in their own homes and communities rather than in a health facility.
UNICEF procures and distributes 80% of the world’s RUTF supply. Millions of children each year benefit from this effective treatment to overcome malnutrition, but there’s a threat to this remedy.
Inflation of global food and fuel prices puts pressure on manufacturers due to a sharp rise in the cost of raw ingredients and the expense of shipping costs. This threatens nutrition programmes and urgent treatment of children.
Bear with us as we go through some quick math. The average cost of each RUTF sachet in 2020 was $0.49, whereas the average cost of each RUTF sachet in 2023 was $0.58. That’s an 18% increase in only 3 years!
Think a 9 cent difference doesn’t sound like much? In 2023 UNICEF delivered 1.1 billion packets of RUTF to treat malnourished kids. That equals up to $99 million of added cost on RUTF alone!
It’s not just RUTF. With so many different life-saving supplies and services going up in the last few years, this means we’re needing to call on our supporters, like you, to help us bridge this funding gap.
Now is the time to step up.
Make more impact by changing the way you give
1. Becoming a Global Parent
The consistency of receiving monthly donations gives UNICEF a stable stream of funds and enables us to plan for the big picture! By giving monthly as a Global Parent, you help UNICEF strategically map out how every dollar can make long-term positive change for kids – for generations to come!
2. Increased monthly support
If you already support UNICEF monthly but would like to increase your purchasing power to help us keep up with costs, you can choose to increase your monthly contribution. To do so, please contact our team who’ll be able to make the changes for you.
3. Donate your Tax Rebate back to UNICEF
Did you know you can give more for less when you claim a third of your donations back and donate back to UNICEF? Grow the power of your dollar at tax time.
Donate it. Claim it.
4. Galvanise your community
We have some really awesome supporters who are doing great things in their communities and running their own fundraisers. So even if you can’t give a lot as an individual, the power of a community rallying together has limitless potential to make a positive difference for kids in need!
5. Leaving a gift in your Will
Leaving a legacy gift in your Will – even just a small amount - to go towards children in need is a simple and easy process. It’s a way for you to impart your legacy and make an impact for generations to come without the financial commitment right now. And if you want to future-proof the impact you’re making, you can consider leaving a percentage of your assets rather than a fixed amount to account for inflation. Thanks to our partner Footprint, there’s even the option to get a will written up digitally at no charge.