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Trends in high value fundraising worldwide - Sharon Jackson

Trends in high value fundraising worldwide - Sharon Jackson



ActionAid International

ActionAid International



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  • New research from The Charity Commission shows people are placing increasing importance on knowing how charities spend their money and what they achieve; 42% of people now say ‘ensuring that a reasonable proportion of a charity’s income reaches the end cause’ is the most important single factor influencing their trust. They want transparency, and are willing to challenge and go out there and do the digging themselves. This includes a willingness to examine every aspect of a product; ethics, credentials, pricing etc.The public is becoming more discriminating about financial management in charities, and are demanding more transparency from the sector Examples: New research shows that people are placing increasing importance on knowing how charities spend their money and what they achieve. This is closely linked to the social trend of consumers expecting more from organisations than ever before. Implications for Fundraising…Donors at higher levels are becoming more demanding in terms of reporting and demonstrating the impact of our work. They are also being more restricted in their giving and have higher expectations around level of engagement and involvement with the charity • One sub-trend of transparency in the charity sector is to make products and services that have been hard to pin down more tangible. Rather than give a donation to a village in Africa, buy them a cow.
  • (http://blogs.telegraph.co.uk/finance/ianmcowie/100006882/charity-tax-reliefs-break-1bn-barrier-are-you-doing-your-bit/ )Examples: There is growth in the number of countries who are offering tax incentives to donors (individuals and corporates) to encourage philanthropy There is growing pressure across Europe for donors to be able to benefit from their countries tax incentives even when they give to organisations in another European country (recent rulings from European court have set strong precedents that this barrier to cross-Europe giving must be removed).Implications for Fundraising… Legal and tax barriers currently hamper the cross-border activities of voluntary organisations. According to HMRC, the total value of Gift Aid donations in the UK in the year to April 2005 was £2.82bn but that had risen to £4.57bn by 2009. Better still, because individuals who tick the ‘Gift Aid’ box when they help good causes enable them to reclaim basic rate tax relief from HMRC, the tax authorities made total charitable donations of just over £1bn last year.
  • The global recession is re-shaping giving practices.Examples:The growth in charitable giving in the UK slowed during the last recession, prompting concerns recently among many charities. Individuals have generally given more money as national wealth has increased, although in recent years there have been fluctuations. According to a report in the Guardian, big value donations, of £1m or more, have fallen far more than other donations in the recession. Implications for Fundraising… The impact of the recession on charitable giving is debateable….however, if we look across our existing markets there is no doubt its having an impact, but what do we do about it? Some sources are claiming that payroll giving is less affected than other forms of giving, and that charities seen helping people in difficult times are the ones people give up luxuries to support. http://news.bbc.co.uk/1/hi/uk/7937183.stmhttp://www.guardian.co.uk/society/joepublic/2010/mar/05/banker-bonus-charity-donations
  • Most emerging markets- especially in Asia – will outpace the developed economies Growth in all the emerging regions will recover in 2010 and, with the possible exception of Emerging Europe, will outpace the USA, Europe, and Japan. Non-Japan Asia will be at the forefront, with GDP growth of 7.1%. Latin America, the Middle East, and Africa will see gains in the 3 – 4% range. The laggard will be Emerging Europe, which will expand only 1.7%.Top Ten Economic Predictions for 2010 – NarimanBehravesh, IHS Chief EconomistImplications for Fundraising… There is a need to move fundraising investment to where the growth is, so we don’t only grow where we already are. We need to act quickly to maximise the potential for income in the long term… Building income takes a long time and early market leaders continue to lead and grow.
  • Research:Communities & Local Government Citizenship Survey: 2009-10Institute of Volunteering ResearchAlthough figures don’t vary drastically from previous years, the study does show a firm commitment to volunteering and charitable giving in difficult times. Volunteering currently adds huge value to our economy and the charity sector in general- estimated contribution is £22.5billion and 1.9 billion volunteer hours Volunteering England , April 2009Furthermore, 76% of Volunteer Centers reported volunteers to a have high level of interest in using their experience of volunteering to find employment. (Institute of Volunteering Research)
  • http://www.looktothestars.org/celebrity/...lists over 2340 celebrities and the charities they support
  • Recent research from the Ireland Funds identified 70 million people worldwide claiming Irish descent, a single example of the 248 nationalities in the world today with the endless subset ‘tribes’ that people would see themselves as part of.http://www.thinkcs.org/2009/10/diaspora/
  • According to Nielsen, the average number of mobile calls we make is dropping each year, after hitting a peak in 2007. And our calls are getting shorter. In 2005 they averaged 3 minutes – now they’re almost half that.Calls and face to face calls in particular (through Skype and new mobile telephony like FaceTime) will be reserved for the sort of deep discussion that the medium does best.
  • Viral ticketing article:http://www.bbc.co.uk/news/business-11643405Further potential for emergency appeals? / events posted through facebook/twitter/you tube etc…donate/pass it on…)The microsite for AA’s Tesco viral spoof in 2008 (www.actionaid.org.uk/5p/) generated 67,000 hits within the first 48 hours of launch.

Trends in high value fundraising worldwide - Sharon Jackson Trends in high value fundraising worldwide - Sharon Jackson Presentation Transcript

  • Trends in High Value fundraising Worldwide
    Sharon Jackson
    Head of International Market Development
    ActionAid International
  • In this session we will…
    Highlight some of the key global trends impacting on High Value fundraising – and the opportunities and challenges they present
    Explore ways in which we can respond to both the challenges and opportunities
    Pin-point areas of similarity and difference across different markets/regions
    Share real life examples of activities, approaches and practices that are working across the world
    First of all…. We need some clarity…
  • What do I mean by ‘High Value’ fundraising?
    For ActionAid, High Value donors are:
    Individual major donors,
    charitable trusts and foundations,
    Entry level gift?
    These areas are combined as require a similar approach
    account management
    proposal/reporting process
    relationships are key.
    Government donors…..Cross over??
  • Who is already doing High Value fundraising of any kind?
    Which kind? How long for? Which countries?
  • Who are our High Value Donors?
  • Why do major donors give?
    Putting something back
    Religion (part of all religions...)
    Socially aware
    Feel-good factor
    Social obligation (Russia)
    Conditions of inheritance
    Concern for the next generation...(Warren Buffet and Emma Thompson!)
    Social acceptance
    They love people, Africa, Brazil, Water, Land Rights, etc
    Hearts and minds…..
  • Why do Grant-making Trusts and Foundations give?
    Socially aware and charitable founder/benefactor
    Formal obligation to donate funds – clearly stated guidelines
    Often in-undated with proposals
    Need to comply with stated objectives and demonstrate due diligence – less flexibility
  • Why do companies give?
    True philanthropic gifts are rare – but not unheard of
    Social investment agenda
    CSR agenda
    PR opportunities
    Employee retention
    Different motives =
    different offer needed =
    different budget line
  • Where are ActionAid’s High Value programmes - 2011?
    • UK
    • USA
    • Italy
    • India
    • Greece
    • Denmark (new)
    • Australia (new)
    • Brazil (new)
    • Thailand (brand new!)
    • Kenya? Vietnam? Rwanda? China?
  • What are the key global trends impacting on High Value Fundraising?
    And how are organisations like ActionAid responding?
  • Political…
    Tougher Public Trust and Confidence in Charities
    “Next to doing the right thing, the most important is to let people know you are doing the right thing”
    John D Rockerfeller
    • Media coverage of controversies and corruption
    • ‘Experts’ questioning the validity and impact of aid
    • Consumers are expecting more than ever before
    • Increased competition
    Implications for Fundraising…
    • Increases in levels of restriction
    • Donors more demanding – SROI and impact measures
    • Interest in tangibles (build a school!)
    • Importance of building relationships – to build trust
    • Role of advisors and intermediaries
  • Political…
    • More countries now offer tax incentives to donors
    Implications for Fundraising…
    • Legal and tax barriers currently hamper cross-border giving
    • Third sector role in lobbying and promoting?
    • Motivation for giving????
    • Influence on how and when people give
    • Giving while living versus legacies
    In 1984, Charles F. “Chuck” Feeney, co-founder of the Duty Free Shoppers Group, transferred his business interests, then conservatively valued in the hundreds of millions of dollars, into a foundation - Atlantic Philanthropies….
  • Economic…
    Impact of global recession on charitable giving…
    The global recession is re-shaping giving practices.
    Implications for Fundraising…
    • Many wealthy individuals have done better than most
    • Foundations are being more selective and demanding – bigger grants to fewer
    • CSR budgets in Europe and USA affected – other budget lines?
    • Charities seen helping people in difficult times are the ones people give up luxuries to support
    • Keep your donors close even when they cannot afford to give
  • Economic…
    Emerging Markets will outpace rest of the world
    • Asia will lead with GDP growth of 7.1%.
    • Latin America, the Middle East, and Africa in the 3 – 4% range.
    • Emerging Europe will expand only 1.7%.
    Top Ten Economic Predictions for 2010 –
    NarimanBehravesh, IHS Chief Economist
    Implications for Fundraising…
    • Big opportunities for fundraising in middle income countries!
  • Highlights: study by Deloitte Center for Financial Services May 2011
  • Highlights: study by Deloitte Center for Financial Services May 2011
    Total wealth of millionaire households in these 25 economies forecast to grow:$92 trillion 2011 to $202 trillion 2020.
    U.S. and Europe will remain the global centers of wealth over the next decade, in terms of both the amount of wealth and number of millionaire households.
    Emerging market economies likely to be more dynamic in terms of growth. China may continue to be the driving force in the growth of millionaire wealth, followed by Brazil and Russia.
  • Capgemini and Merril Lynch World Wealth Report 2011
    ƒHNWI wealth grew 9.7% in 2010 to US$42.7 trillion, surpassing 2007 pre-crisis peak.
    Global population of HNWI grew 8.3% to 10.9 million.
    Asia-Pacific: 3.3million HNWIs – now second-largest behind North America. Ahead of Europe for first time. Combined wealth of Asia-Pacific HNWIs exceeds Europe’s
    North America: HNWI wealth up 9.1% to US$11.6trillion
    Latin America: HNWI population up 6.2% in 2010. Wealth rose 9.2%. This segment proving relatively resilient and stable in recent years
    ƒIndia’s HNWI population entered the Top 12 for first time and Australia edged up another notch to No. 9.
    53.0% of the world’s HNWIs were still concentrated in the U.S., Japan, and Germany.
    ƒThe global population of Ultra-HNWIs grew by 10.2% in 2010 and its wealth by 11.5%.
  • The wealthy are mostly men – but increasingly women
  • The wealthy are getting younger…
  • Old money versus new money
    15 years ago, 75% of the Sunday Times Rich List had inherited their wealth and 25% were self-made. Today that ratio is reversed
    Engaged philanthropy (venture, catalytic)
    Investment approach/business models
    Philanthropy advisers/ organisations (NPC, Philanthropy UK, Coutts etc)
  • Social…
    Growth in Volunteerism
    • In UK 40 % of adults volunteered
    formally at least once in 2009/10
    • Recession direct impact on volunteering in Europe
    Implications for Fundraising…
    • Services in Kind and pro bono agreements with companies
    • Employee engagement needs to be part of corporate package
    • People want higher levels of involvement with the charities they support
    • Supporter visits and Events
    • Engaged philanthropy… Want to give advice as well as money
  • Social…
    Increase in cause-related Marketing
    ‘Embedded generosity’ makes giving painless
    • Pampers & Unicef
    • WaterAid and H&M
    • G-Star Democratic and ActionAid
    Implications for Fundraising…
    • Visibility and brand awareness as well as funds
    • Win-win!
    • Expect lots of innovative corporate giving schemes that involve customers co-donating and/or co-deciding.
  • NB: Companies want visibility
    Co-branding and sponsorship
    Emergencies or issues with media coverage
    Their employees – your volunteers
    Pro-bono opportunities – easier to give time/services than money
  • Social…
    Worldwide trend of celebrity endorsement to raise awareness and funds…
    • Particularly used for emergency or specific appeals – celebrity in televised film or appeal to draw attention to a cause
    • Celebrity sponsored events to raise money for a specific cause
    e.g. Haile Gebrselassie and Ethiopia Marathon
    Implications for Fundraising…
    • How can we get celebrities on board? Who will appeal to our specific audiences? How can they help us?

  • Social…
    Diaspora – Jargon or Opportunity?
    ‘Diaspora giving’ is the broad term used to describe people giving to their country of origin or culture.
    • May become a more formally established part of giving portfolios
    • Known as ‘heritage fundraising’ in the US or‘philanthropatriotism’
    Implications for Fundraising…
    • How can we connect people in a meaningful way?
  • Technological…
    Connecting with Others
    Profound shift in the way that we interact and connect with people
    • People are calling less and using other ways of direct communication
    • Old conventions are changing; moving towards a culture of ‘lightweight, constant contact
    Implications for Fundraising…
    • How do we communicate with our donors in ways that are convenient to them but retain the meaningful 1to1 interaction?
    • Can we find new ways to connect donors and beneficiaries?
    • Sometimes we are better to stay traditional – face to face is best! Relationships are not built on SMS
  • Technological…
    Viral Marketing
    Word-of-mouth is the most successful kind of marketing ….Viral marketing also links directly into the recent shift in the way we communicate with people…
    Implications for Fundraising…
    • Importance of contact networking, volunteer fundraising boards and Donor get Donor programmes
    • Events play a role…
  • What is the same across our markets/countries?
  • The 7 steps…a high value courtship
    Identify (start with who you know)
    Research and qualify
    Cultivate (the dating game)
    Ask (no-one gets married without a proposal)
    Stewardship (it’s about staying married)
  • You need to make the High Value approach work for you…
    Entry level needs to work for you. What size gifts are in YOUR top 5-20%?
    Prospecting – start with who you know – networking is key
    Need a strong case for support!
    Relationship fundraising approach – 1 to 1
    Build TRUST!
    Recruiting (and developing) the right fundraiser is key
    Senior Management Team and Board involvement
    FOCUS and prioritise
  • 40
    80% of our income from <20% of our donors…
  • 41
  • What is differentacross our markets/countries?
  • Taxation versus charitable giving
    Do not believe in taxation. Do not trust Govt to redistribute wealth. Believe in philanthropy and being able to choose where money goes
    Believe in taxation. Govt then redistributes wealth
  • The Spectrum of Philanthropy: Peter Maple from London Southbank University
  • Crucial differences in emerging economies…
    Shock tactics don’t work: they embarrass
    Donor may know more than you…
    The challenge of visibility
    The challenge of geographical proximity
    Importance of govt link – Middle East and China
    Importance of corporate or royal connections – SE Asia
    ‘Monkeys play by sizes!’
    Distinction between private and corporate wealth/giving is less clear
    The politics of poverty can get tricky
  • Private Social Responsibility
    “I once attended an evening party organized by a wealthy family in a South American country, devoted to philanthropy. Guests, similarly ultra-wealthy families, gathered to talk about their giving, share experiences and possibly form alliances….
    As I listened to the other guests talking, I began to realize that giving is seen as just an accessory to a wealthy lifestyle rather an act that implies a complete moral worldview, such giving, new or old, will make no great changes in the world. That perhaps it is time to embrace the idea of ‘private social responsibility’.
    I heard one impeccably dressed lady share with a friend her frustration over peasants in the northern part of the country who did not want to move from their land despite ‘generous’ offers from the company she owned. Her friend nodded sympathetically and replied with a similar story of poor workers demanding some right or other ...”
    Olga Alexeeva, CAF Global Trustees and Philanthropy Bridge Foundation.
  • Any questions?