Cancer Research UK – Fundraising strategy

October 1, 2017 September 2nd, 2019 Marketing

Cancer Research UK – Fund-raising scheme

Table of contents


2Organisation’s background and history

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3Mission statement, values and stakeholders

4External analysis – Macro environment

5External analysis – Micro environment

6Internal analysis

7Portfolio analysis

8Finance and Cost efficiency



Appendix 1 – Stakeholder analysis

Appendix 2 – Power matrix

Appendix 3 – PESTEL

Appendix 4 – Five forces

Appendix 5 – Rival Gap analysis

Appendix 6 – Value concatenation

Appendix 7 – BCG matrix

Appendix 8 – Swot analysis

Appendix 9 – Tow analysis


The purpose of this study is to supply an analysis of the fundraising scheme presently employed by Cancer Research UK with the purpose being to place how efficaciously this scheme fits with the purposes and aims of the administration. Using the concern theoretical account described by Johnson et Al ( 2007, p.12-13 ) the study will measure the strategic capablenesss of the administration, how successfully these are employed to accomplish fundraising purposes and the impact that internal and external forces have upon fund-raising programmes and the mode in which Cancer Research UK responds to these forces.

Following this rating and appraisal, the aim of the study is to place countries of concerns and do recommendations as to betterments that can be made to increase the efficiency and effectivity of the current fundraising scheme and direction ( Sargeant and Jay 2004 ) .

2Organisation’s background and history

Cancer Research UK is a company limited by warrant, a construction that provides it with charitable position. As a registered charity the administration is regulated by the charities committee ( 2008 ) and has to subject one-year studies to this regulator, which besides undertakes regular reviews and appraisal of the organisation’s public presentation.

Cancer Research UK has merely been in being since 2002. It was in that twelvemonth that the administration was formed following the meeting of Cancer Research Fund and the Imperial Cancer Research Fund ( Cancer Research 2008 ) . Prior to this day of the month each of these administrations operated independently, both in footings of their fundraising activities and the malignant neoplastic disease research undertakings they were engaged upon.

The intent of this amalgamation was to maximize the synergisms that existed between the two administrations. This included the proviso of one focal point for malignant neoplastic disease fundraising programmes and provided the new administration with the economic systems of graduated table ( Lynch 2000 ) , enabling it to maximize its selling and publicity activities and significantly better the graduated table and size of research undertakings to be undertaken ( Thompson 2001 ) .

Presently, the administration raises its financess chiefly through public contributions and the returns gained from its 600 charitable mercantile establishments. These financess are used to back up the work of about 4,250 scientists, physicians and nurses across the UK ( Cancer Research 2008 ) . This work includes transporting out research for new malignant neoplastic disease remedies, which in the twelvemonth 2007-2008 accounted for ?344 million of the organisation’s outgo and going involved with surveies and programmes that are specifically designed to cut down malignant neoplastic disease mortality rates.

3Mission statement, values and stakeholders

The mission statement of Cancer Research UK ( 2008 ) is clearly stated in their vision, which is encapsulated in the phrase “Together we will crush cancer.”To this terminal it is has set itself 10 specific ends that are aimed to be achieved by the twelvemonth 2020 [ 1 ] . These include guaranting that at least 75 % of the population by that clip will be cognizant of the lifestyle alterations they can do to cut down the hazard of undertaking malignant neoplastic disease, seeking to cut down the figure of UK tobacco users by four million and bettering survival rates by doing earlier diagnosing and better interventions more readily available.

Efficaciously hence, when developing its scheme, Cancer Research UK has to plan this procedure in order to react to a figure of stakeholders to which it is responsible ( Johnson et al 2007 ) . In executing this process the administration needs to take into history the outlooks and engagement of these stakeholder, which is best achieved by mensurating their several power and involvement ( appendix 1 ) . Based upon this theoretical account, the stakeholders of Cancer Research UK will fall within two chief classs, these being those who are straight or indirectly involved with the administrations merchandises and services.

Direct stakeholders

Based upon the power/interest matrix analysis it is deemed that those with high power and involvement in the merchandises and services of the administration can be identified as direct stakeholders. In this instance survey direct stakeholders would dwell of four chief groups. The first of these would be those individuals or corporations who donate financess to Cancer Research UK ( the providers ) . The outlook of this group is that the financess they provide will be used to back up research into malignant neoplastic disease issues and the development of medical interventions and remedies. The 2nd group would be the research and medical establishments supported by the charity, much of whose work is reliant upon funding support provided by the administration. The 3rd group would consist of those administrations that the administration partner’s with in order to help with its purposes and aims. Finally, the malignant neoplastic disease sick person would besides be considered a direct stakeholder, as these are the individuals expected to profit most from the consequences of the research conducted by Cancer Research UK.

It follows hence that these stakeholders are cardinal participants and it is of import for the administration to fulfill their demands and outlooks, peculiarly as there is a high degree of mutuality between the successes of the scheme for each group. For illustration, if sufficient financess are non raised from the donators, so the degree of research is restricted, which in bend reduces the possible benefits for the malignant neoplastic disease sick person.

Indirect stakeholders

However, other stakeholders besides have an involvement in its merchandises and services despite the fact that their power and involvement in the charity’s merchandise and services. These can be described as indirect stakeholders and include members of the public, peculiarly those who are non malignant neoplastic disease sick persons, the authorities, National Health Service and malignant neoplastic disease patient carer administrations.

In regard of these stakeholders Cancer Research does non hold to widen the same degree of attempt as they do for direct stakeholders, as these groups are non the chief mark of the charity’s scheme. However, any developments made by the administration are likely to impact upon this group of stakeholders. For illustration, with people likely to contract malignant neoplastic disease in the hereafter it is of import to maintain them informed about remedies and interventions every bit good as the life style alterations that might cut down the hazard. Similarly, in regard of the authorities, NHS and other caring administrations, informing them of research consequences that can do good alterations in footings of the intervention given to sick persons is besides of import. Additionally, the activities and undertaking support degrees might besides cut down the outgo demands of these other administrations.

4External analysis – Macro environment

It is considered that the most appropriate manner in which to measure the impact of external forces in footings of the macro environment is by utilizing a PESTEL model. This allows the designation of countries that could be of concern to the administration now or in the hereafter. For this instance survey, these forces have been determined in a figure of countries, as summarised in appendix 2.


In footings of the political environment, three major issues will impact the charity’s future public presentation.

  • Environment

With increasing focal point being placed upon the protection of the environment and commanding clime alteration this has increased the degrees of internal controls required by administrations to guarantee conformity with current emanation demands.

  • Tax

Recent proclamations made by the authorities have indicated that revenue enhancement degrees will increase during the class of the following few old ages. One country in peculiar that will impact Cancer Research UK is in relation to the cost of employment. Furthermore, with additions likely in VAT, personal and corporate revenue enhancement, the administration might happen maintaining current degrees of fund-raising coming under force per unit area.

  • Licensing Torahs

Licensing of drugs and interventions is another issue that needs to be considered. Unless the drugs and interventions are accepted by the NHS as portion of the malignant neoplastic disease intervention procedure, which has late been an issue, the figure of malignant neoplastic disease sick persons who will profit from these will be limited.


The national environment and its position requires taking into consideration when developing fund-raising schemes designed to accomplish the organisation’s purposes and aims. In actuality when related to Cancer research, four countries need to be addressed in this regard, each of which is interrelated.

  • Current UK economic system

The growing rate of the UK economic system at any given clip will impact the degrees of fund-raising programmes and activities. In times of high growing the return against cost is likely to be higher than when economic growing is lower or negative.

  • Disposable incomes

As growing degrees fluctuate so will disposable incomes. Furthermore, the economic position of the state will besides act upon the donor’s determinations sing the degrees of support they are likely to widen to charities, as has been witnessed in recent months ( Sherman and Bahra 2008 ) .

  • Handiness of capital

Handiness of capital is another factor driven by the economic clime. In periods of downswing commercial administrations are likely to cut down charitable and research support as they seek to protect their concern net income and solvency. This leads to a state of affairs where research undertakings have to trust more to a great extent upon charitable contributions, therefore increasing force per unit area on the charity resources.

  • Handiness of labor

Cancer Research, in maintaining with most charities, relies upon a big pool of voluntary workers ( Cancer research 2008 ) . In times of economic downswings certain elements of this work force sector might necessitate to seek paid employment to assist with household budgets. Particularly in footings of voluntary store workers, this can take to vacancies staying unfilled, which could cut down hours of gap or, in the worst instance scenario, closing of retail mercantile establishments.


Society and communities are in a changeless form of development and alterations that occur during this procedure will do a difference to fund-raising activities.

  • Age demographics

With an aging population the demand for malignant neoplastic disease interventions and remedies increases. This means that more financess are required to fulfill the increasing demands of the population.

  • Population alterations

Changes in the makeup of the UK population conveying about the debut of new discrepancies of malignant neoplastic diseases that antecedently might non hold afflicted the autochthonal population. For illustration, the rise in the immigrant population has caused a rise in malignant neoplastic disease conditions that are specific to non-Caucasian people. This means that extra countries of research demand to be entered into to cover with and bring forth interventions for these new conditions.


Technological progresss and developments have advantages and disadvantages for Cancer Research UK.

  • New developments

Technological progresss in the Fieldss of package and procedures used for administrative and research intents can assist to better the cost effectivity of the administration, for illustration by cut downing reproduction of information and velocity of informations retrieval. In add-on, it can take to betterments in research conditions and procedures, enabling new processs to be discovered. Recent studies and surveies show that the charity is availing itself of these new engineerings ( Pulse-check 2008 ) .

  • Media growing

The past three decennaries have witnessed an detonation in media chances through which charities like Cancer Research UK can advance its fundraising activities. Not least of these is the progresss made in the usage of the Internet through web sites, societal networking and communicating. The charity has taken full advantage of the development of a comprehensive web site and advertises extensively in other countries of the Internet, such as streamer publicities.

However, the disadvantage to Cancer Research in all of these countries is that their execution has to be balanced against capital handiness, cost and return on investing.


  • Additions in costs

Additions in costs throughout the organisation’s supply concatenation have an consequence upon the net gross available for distribution for research undertakings. If this impact is excessively great so, to prolong current charitable parts Cancer Research is left with two options. These are either to cut down costs elsewhere or increase monetary values. The latter means that the cost of obtaining interventions or remedies will lift.

  • Additions in monetary values

Whilst it is possible for any administration to react to be additions by raising the monetary value of the merchandise or service they offer to the terminal user, in footings of Cancer Research these additions have to be measured against the demands, outlooks and ability to pay. For illustration, in many instances, where interventions are sold to the National Health Service, there are budget restraints that limit the possible rise in monetary values. Similarly, due chiefly to their status, malignant neoplastic disease sick persons might hold limited disposable income and hence be unable to run into the addition in monetary value, therefore get the better ofing portion of the aim for the intervention or remedy.

  • Decrease in extra gross

Both of the above mentioned issues will hold an impact upon the net disposable gross that Cancer Research UK is able to put in the myriad of research and development undertakings that form the Southern Cross of its aims and hence necessitate to be closely monitored.


Cancer Research UK is besides subjected to possible legal issues in the same manner as other corporations and administrations.

  • Litigation

Increased media exposure to the success of insurance claims and led to increased insurance premiums and the debut of stricter guidelines to guarantee that interventions and remedies have a higher degree of safety and quality control to extinguish or cut down the hazard of possible damaging judicial proceeding claims being made against the charity.

  • Corporate statute law and ordinance

Demands for more transparence and dependability in the procedures and operations of charities, together with additions in external regulative controls, monitoring and reviews has added administrative force per unit areas to Cancer Research, which increases costs in these countries of the administrations procedures.

Cancer Research UK is affected by all of the issues that have been discussed in this subdivision of the study and needs to guarantee that its fundraising activities are flexible plenty to be able to react positively to alter that occur within the macro external environment. Armstrong and Baron ( 2005 )

5External analysis – Micro environment

Michael Porter ( 2004 ) in his survey of the external micro environment within industries and the viing administrations within these markets developed the five forces theoretical account ( appendix 3 ) . When analyzing the effectivity Cancer Research UK in covering with these forces it can be seen that the administration is, in most countries, in a positive place.

  • Menace of new entrants

Due to the complexness of the conditions and interventions being research by Cancer Research the menace of new entrants, at least from UK based charities and administrations is little. Furthermore, as the charity collaborates with international research administrations it is considered that there is no benefit to new entrants to foreign houses and charities every bit long as Cancer Research continues to present its aims.

  • Menace of replacements

At present most of the interventions, drugs and remedies developed by Cancer Research and its spouses require licensing and are chiefly restricted to prescription merely usage or via the NHS. Therefore, the menace of replacements is likewise limited. However, it needs to be borne in head that many old prescription drugs have been made available over the counter and had patents expire, which has enabled other retail merchants to develop replacements that affect hereafter grosss.

  • Power of purchasers

In footings of the power of purchasers, with most end users of the merchandises developed by Cancer Research being restricted to individuals with malignant neoplastic disease, the power of the purchaser in this regard is limited in that for these people there is small pick. However, the same is non true in footings of the NHS, which is a major purchaser. The NHS wields considerable power in footings of licensing and pricing of malignant neoplastic disease drugs and interventions in the prescription drug market and this power has an consequence upon research and development costs.

  • Power of providers

The Cancer Research provider has the greatest degree of power over the administration. With these providers being givers who do non come in into contracts with the administration or derive any immediate benefit, their pick of discontinuing to donate demands to be carefully considered. If Cancer Research does non accomplish its aims or fails to pull off its fiscal gross in a mode expected by the giver, they can halt their support instantly, which will instantly hold an inauspicious consequence upon gross.

  • Rivalry amongst administrations

Prior to 2002 there was a considerable degree of competition between the two chief viing charities mentioned in subdivision 2 of this study. However, it had become evident to the direction of both that this competition was holding an inauspicious impact upon the aims of both, peculiarly in footings of duplicate of costs in countries such as selling and disposal. The subsequent amalgamation has eliminated this competition.

In add-on Cancer Research makes it plain that there are other charities that have more specialization and expertness in footings of the lovingness for malignant neoplastic disease patients ( Cancer Research 2008 ) , therefore making a distinguishable spread between itself and these viing charities, such as Macmillan.

However, with over 400,000 charities registered in the UK ( Charities Commission 2008 ) , there is still a serious degree of competition and competition within this sector.

6Internal analysis

To analyze the internal facet of Cancer Research UK it was decided that another of Michael Porter’s ( 2004 ) theoretical accounts provided the best model, this being the value concatenation analysis ( appendix 5 ) . This method identifies the capablenesss and competences of the administration and the competitory advantage that is has developed through its usage and direction of resources.

In this regard it has been determined that in footings of the touchable resources the charity has made strenuous attempts to derive advantage through expertness, cognition and location. For illustration, Cancer Research has a wealth of experience in pulling and pull offing its human resources, peculiar those who are employed on a voluntary footing, which is indispensable for the success of the administration ( Armstrong 2006 ) . Similarly, by taking advantage of the benefits available to charities that operate from high street locations Cancer Research has besides been able to develop a concatenation of successful retail locations throughout the state. Through these locales the administration operates a successful “give and take” fund elevation scheme where the giver receives goods in exchange for their contribution ( Kolter et al 2004 ) .

Another advantage that Cancer Research has is the success of its scheme in developing the intangible concern assets. In peculiar this relates to the development and increased consciousness of its trade name ( Arnold 1992 ) . Over the past six old ages the charity name has become synonymous with charity research and the development of interventions and remedies for this intent. This consciousness has been enhanced by the development of a web site that is recognised as being of exceeding value and through cardinal publicity and advertisement programmes conducted through other media and within the local community. In these media ‘s the administration has expanded its “give and take” publicity by offering draw awards in exchange for contributions ( Editorial 2008 ) .

Furthermore, its record of helping through the research it has funded has been critical to the charity’s continued and turning success. Equally long as these consequences continue so the administration should see continued growing in fund-raising in the hereafter.

7Portfolio analysis

In world, the portfolio of Cancer Research UK is concentrated upon the sum of hard currency it can raise to fund the Numberss of research undertakings that it is involved with and the consequences that these achieve in footings of bettering cognition, interventions and drugs for usage in the battle against malignant neoplastic disease. Therefore, if one applies the BCG matrix [ 2 ] to this administration ( see appendix 6 ) it could be described as a high hard currency generator. However, in a sector where there are big Numberss of charities competing for a portion of the populaces disposable income, to keep this place does intend that the administration needs to go on to happen new and advanced methods in order to prolong and increase grosss, peculiar in times of economic adversity.

8Finance and Cost efficiency

The fiscal consequences of Cancer Research UK for the twelvemonth ended 2008 have been attached to this study in appendix 7. These have been accessed from the returns delivered to the Charities Commission ( 2008 ) .

It is evident from the statements that although the charity gross has increased during the twelvemonth by merely under ?9 million, the charitable activities have decreased by ?78 million. However, this is merely because of the exceeding point that was included within the 2007 histories.

However, to mensurate the cost efficiency of the administration, a figure of cardinal public presentation indexs have been used. These include the undermentioned, in all instances utilizing the net entrance resources available for charitable application as the effectual net net income of the administration, In all instances, apart from fixed plus turnover, it can be seen that the place for 2008 has worsened from that reported for 2007: –


  • Tax return on assets1.111.29
  • Net asset/Turnover0.180.27
  • Debt Ratio0.880.70
  • Fixed Asset Turnover-0.64-0.75
  • Current Ratio0.651.03

Whilst this reflects the general force per unit area that charities have experienced in fund-raising over the past two old ages, which have been partly due to the province of the UK economic system, it can besides be said to hold been exacerbated by the addition in demands being made of the populace for charitable contributions.


In an attempt to determine where betterments can be made to the current challenges and chances confronting Cancer Research UK, two methods of analysis were used, these being a SWOT and TOWS analysis, the former being used to place these from an external facet and the latter from an internal facet ( see appendices 8 and 9 ) .

It is evident from these analyses that despite the fact that Cancer Research UK is the market leader in footings of the causes it represents, together with the fact that it has a good established trade name, there are menaces and failings that need to be addressed if it is to prolong and better current degrees of fundraising.


In position of the issues raised above the undermentioned recommendations are deemed appropriate for the administration: –

  1. That the charity continues to use the “give and take” attack to fund-raising. Although this attack should be continued within the organisation’s retail concatenation, it is strongly felt that the charity will besides profit by widening this theoretical account in other countries of fund-raising. This is viewed as being peculiarly of import in the current economic clime, where disposable income of givers is being restricted. If such givers believe that there is an chance of having something in return for their part, even if that is related to opportunity, as is the instance with a draw or lottery, there is an increased likeliness of engagement.
  1. That the charity needs to go on to implement the latest technological progresss within its fundraising activities every bit good as other countries of the organisation’s processes, such as disposal, in an attempt to cut down costs and hence maximize the return achieved from the gross collected.
  1. It is further recommended that the administration should spread out its collaborating and confederations with commercial administrations, peculiarly in footings of the fund-raising programmes as has been successfully achieved with the air hose Flybe ( 2008 ) . By utilizing these confederations it will be able to both cut down its ain administrative costs and benefit from a higher degree of exposure through the consumers of those merchandises ( Smedley 2008 ) .

It is considered that the execution of these recommendations within the concern scheme will better the consequences being achieved by Cancer Research and assist the concern to be able to keep its fiscal strength, which has shown marks of failing in the latest one-year study.


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Appendix 1 – Power matrix

Beginning:Adapted from A. Mendelow, 1991.

Appendix 2 – PESTEL




Environment protection

Tax policy – employee costs

Licensing Torahs – drugs and interventions


Economic growing rate – current crisis

Disposable incomes

Handiness of capital

Handiness of labor


Age demographics

Population alterations – in-migration


New developments

Media growing


Cost of research

Monetary value of merchandises and services


Increase in judicial proceeding

Increased corporate statute law and ordinance

Appendix 3 – Five forces

Menace of New Entrants

Dickering power of providers Rivalry amongst Bargaining power of purchasers

bing administrations

Menace of replacements

( Michael E. Porter )

Appendix 4 – Rival Gap analysis

Appendix 5 – Value concatenation

Beginning: Adapted from M. Porter ( 1985 )

Appendix 6 – BCG matrix

Appendix 7 – Annual Report

Figure 1 Income statement

Figure 2 Balance sheet

Appendix 8 – Swot analysis



Market leader

Increased costs

Economies of Scale

High provider power NHS

Innovative engineering

Charity competition

Brand consciousness



Increased promotional chances

Political ordinances and Taxation

Strategic confederations with commercialism

Litigation costs

Donor weariness

Appendix 9 – Tow analysis



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