The charity sector is navigating one of its most complex operating environments in recent memory. A combination of reduced government funding, the lingering impact of National Insurance increases, and the ongoing cost of living crisis has placed sustained pressure on income streams. As a result, resilience and the sector’s ability to adapt is being tested.

At Mackie Myers we are seeing a number of growing trends impacting how the charity sector recruits as well as a shift in the type of talent that is now most in demand.

A Rise in Mergers and a Shortage of the Right Skills

One of the most notable changes we are seeing is an increase in conversations around mergers, particularly among smaller charities. For many, consolidation is becoming a necessary route to survival, offering opportunities to pool resources, streamline operations, and protect frontline delivery.

However, this trend has started to expose a clear and growing skills gap.

There is a limited pool of candidates who bring both deep charity sector experience and a track record of delivering mergers. Where merger experience does exist, it is often rooted in the commercial world, which brings salary expectations that are simply out of reach for many third sector organisations already operating under financial strain.

This misalignment is creating a real challenge for charities trying to navigate complex structural change at pace. The need is there, but the market is not yet equipped to meet it.

A Changing Recruitment Landscape

Hiring in the current climate is also becoming more unpredictable.

In one recent search for a mid-to-senior level role within a national charity that chose to recruit directly, six candidates were invited to interview, with five withdrawing the day before. While striking, this is far from an isolated incident for charities taking on the task of recruitment themselves, and we have heard similar reports from multiple organisations.

It is difficult to pinpoint a single cause for this trend, but there are some likely contributing factors. Candidates are increasingly applying for multiple roles simultaneously, hedging their bets in what is a highly competitive job market. This can lead to late-stage dropouts as priorities shift or alternative offers emerge.

For in-house teams, already stretched for time and resource, this creates significant disruption.

It also highlights the value of using an external recruitment partner that takes a more consultative, relationship-led approach to recruitment. At Mackie Myers, we ensure we properly understand candidate motivations before we submit them to our clients for consideration. By ensuring candidates’ goals, expectations and values are in alignment with that of the role and the organisation, and by maintaining consistent engagement throughout the process, we can make a meaningful, positive difference to recruitment outcomes.

The Role of AI: Opportunity Meets Uncertainty

Like many sectors, charities are actively exploring the potential of using AI within their organisations. And in some cases, there is clear appetite to harness these tools, whether to improve operational efficiency, enhance fundraising, or better support service users.

However, in many instances, implementation of these emerging technologies remains a challenge.

Unlike more established areas of digital transformation, there is no single blueprint for AI adoption within the sector. This lack of a defined pathway can make progress feel uncertain - but it also creates space for innovation.

At the moment, dedicated AI or systems-focused roles still represent a small proportion of overall hiring activity in the charity sector. But the direction of travel is clear. As use cases become more defined and success stories emerge, demand for this skillset is likely to grow.

Looking Ahead

The charity sector has always demonstrated an extraordinary ability to adapt in the face of challenge. The current environment is no different, but it is undoubtedly testing.

Financial pressure, organisational change, and evolving skill requirements are all reshaping how charities operate and how they think about talent.

For leaders, the focus is increasingly on clarity: knowing where to invest, where to partner, and where to evolve. For the talent market, it is about bridging gaps: between sectors, between expectations, and between the skills organisations need and those currently available.

What is clear is that people remain at the heart of the sector’s success. In a time of uncertainty, finding, engaging, and retaining the right talent has never been more important.

If you have any questions about securing the best finance talent, from both within and outside of the Charity Sector, we are here to help. For a conversation, please contact Felicity Akins, our Charity sector lead: Felicity@mackiemyers.co.uk