This is lesson eighteen. This is towards one of our missions. Education. You’ll learn everything about marketing — from the basics to the most advanced strategies — for free, thanks to VellumWorks.
Every organisation — whether a business, charity, or community project — is shaped by forces far bigger than itself.
You can run great campaigns, have strong resources, and build a motivated team…
But external factors still affect how well you grow, fundraise, and serve your community.
That’s exactly what PESTEL analysis helps you understand.
It’s a framework that breaks down the six major forces influencing your environment so you can make smarter decisions and anticipate change - not react to it.
What is the PESTEL Analysis?
PESTEL analysis is a strategic framework used to understand the external forces that can affect an organisation, project, or marketing strategy.
It breaks the environment into six key categories:
Political - Government policies, regulations, taxes, stability, public funding.
Economic - Inflation, interest rates, donor income, and employment trends.
Social - Cultural shifts, demographics, attitudes, behaviours, community values.
Technological - Digital tools, automation, cybersecurity, innovation, platforms.
Environmental - Sustainability expectations, climate issues, ethical operations.
Legal - Laws and regulations affecting compliance, data protection, fundraising, and operations.
Political Factors
These are the government-related forces affecting your organisation.
For charities, this includes:
Funding policies
Charity regulations
Tax incentives for donors
Local authority decisions
International aid rules
Why it matters:
A policy change can open new opportunities… or create barriers overnight. Staying aware protects your mission.
Economic Factors
This is the financial climate you’re operating in.
Examples:
Inflation & cost of living
Donor disposable income
Employment and wage trends
Exchange rates (for international charities)
Why it matters:
When the economy shifts, behaviour shifts. Donors tighten spending, grants become competitive, and operations may cost more.
These are cultural, demographic, and societal trends.
Includes:
Ageing populations
Public attitudes towards your cause
Changing values (sustainability, diversity, fairness)
Community expectations
Media narratives
Why it matters:
Charities must align with people’s values. Social trends show you what the community cares about right now.
Technological Factors
Tech can transform how you fundraise, promote, and deliver impact.
You should consider the following:
AI and automation
Social media trends
Online fundraising tools
Cybersecurity
Data protection
Digital service delivery
Why it matters:
Tech isn’t optional. It’s the foundation of modern communication, donor experience, and operational efficiency.
Environmental Factors
Increasingly relevant for every organisation - not just climate charities.
Examples:
Sustainability expectations
Environmental regulations
Climate-related emergencies
Waste reduction policies
Ethical supply chains
Why it matters:
Supporters expect organisations to operate responsibly. Environmental stewardship builds trust and credibility.
Legal Factors
The laws that directly affect how you operate.
For charities, this includes:
GDPR & data protection
Fundraising regulations
Safeguarding rules
Employment law
Charity Commission compliance
Contract and liability obligations
Why it matters:
One legal mistake can damage reputation, funding, and long-term stability.
How Charities Can Use PESTEL
PESTEL isn’t just analysis — it’s protection and strategy. You can use it to:
Anticipate risks
Spot new opportunities
Strengthen your campaigns
Align with supporter expectations
Prepare for regulatory or economic shifts
The goal is not to predict the future perfectly. It’s to stay ahead of the curve.
10-Minute Exercise: Your PESTEL Scan
Choose a campaign or your organisation overall and answer:
Political: What government decisions could affect us this year?
Economic: How is the financial climate influencing donors?
Social: What cultural shifts shape how people engage with our cause?
Technological: Which tools or platforms could level up our work?
Environmental: Are we meeting modern sustainability expectations?
Legal: Are we fully compliant and protected?
You’ll uncover insights you can apply immediately.
Why is this important to know?
PESTEL helps you see the bigger picture.
It reminds you that success isn’t just about tactics. It’s about understanding the world you operate in.
When your charity aligns with political changes, economic trends, social values, technological advancements, environmental responsibility, and legal standards…
You become stronger, more resilient, and more trusted.
At VellumWorks, we believe knowledge should be free. That’s why this series will guide you, step by step, through everything from the basics to the most advanced strategies in marketing: no jargon, no gatekeeping, just education that empowers.
Social Factors