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Future World Giving - Recognising the potential of middle class giving

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Apresentação realizada por Adam Pickering, International Policy Manager da Charities Aid Foundation (CAF), por ocasião da realização da primeira edição de 2014 dos módulos nacionais da CAF Foundation School, iniciativa no Brasil desenvolvida pelo IDIS.

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Future World Giving - Recognising the potential of middle class giving

  1. 1. Future World Giving Recognising the potential of middle class giving 27 May 2014 Adam Pickering, International Policy Manager
  2. 2.  Demonstrate the potential growth of middle class giving  Highlight the importance of mass engagement in giving  Highlight some of the barriers for future growth Aims
  3. 3. MIDDLE CLASS GROWTH OPPORTUNITY
  4. 4. The polarity of wealth is changing
  5. 5. Explosion of wealth
  6. 6. The rise of the global middle classes
  7. 7. US$55 trillion US$223 billion 0.4%
  8. 8. US$1.2 trillion US$4.9 billion 0.4%
  9. 9. And Brazil? Mass market  By 2030 spending of middle class Brazilians, adjusted for purchasing power parity, will have almost doubled to $1.2 trillion.  If middle class Brazilians were to give at the same rate as seen in the UK (0.4%) this could generate $4.9 billion in charitable donations annually.  Brazil is becoming a more equal society with a broad tax revenue base. 27% of government revenue comes from individuals suggesting that incentives could be effective (World Bank). High Net Worth  In 2013 Brazil had 222,000 $millionaires. By 2018 this number will have grown by 84% to 407,000 according to Credit Suisse Research
  10. 10.  Civil society about more than services to beneficiaries  Combats “the tyranny of the majority”  Can act as a pressure gauge  Crucial for governance  Concerns about leeching of sovereignty assume power is finite Without an appropriate means to voice their dissent, disenfranchised citizens will eventually make their grievances known, and it may be in radical and destructive ways" Jimmy Carter Why middle class giving?
  11. 11. BARRIERS
  12. 12. World Giving Index: 5 year trends
  13. 13. 5.20 -0.03 7.50 2.70 3.00 23 25 26 24 23 15 15 14 12 13 51 49 48 44 42 -1.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 0 10 20 30 40 50 60 1 2 3 4 5 GDP growth Donating money Volunteering time Helping a stranger Brazil: 5 year trend
  14. 14. Year Overall rank Donating money Volunteering time Helping a stranger Rank % Rank % Rank % 2008 68 63 23 83 15 40 51 2009 54 52 25 64 15 46 49 2010 69 59 26 80 14 50 48 2011 83 68 24 93 12 71 44 2012 91 72 23 90 13 90 42 Brazil: 5 year trend
  15. 15. Creating an enabling environment for giving • Global giving climate is complex • National context key to understanding • But there are global trends -40 -30 -20 -10 0 10 20 30 Changes in giving money] (%) from 2008 to 2012
  16. 16. Country 2012 data % 2008 data % Change in percentage points from 2008-12 Uruguay 40 17 23 Cambodia 45 23 22 Indonesia 63 43 20 Latvia 31 15 16 Paraguay 49 34 15 India 28 14 14 Uganda 25 11 14 Norway 56 43 13 Portugal 27 15 12 Chile 54 42 12 Country 2012 data % 2008 data % Change in percentage points from 2008-12 Benin 8 19 -11 Malta 72 83 -11 France 24 36 -12 Denmark 54 67 -13 Laos 47 64 -17 Austria 52 69 -17 Guatemala 29 46 -17 Nepal 25 46 -21 Honduras 23 46 -23 Vietnam 13 43 -30 Changes in giving money since 2008 10 largest increases 10 largest decreases
  17. 17.  30 countries have tax incentives for corporate giving but not for individuals  Others have very limited incentives for individuals  Still more follow the US model of tax credits ruling out those who do not file tax returns  In many developing countries such a framework is understandable seems logical but is short sighted Favouring corporations and HNWIs in tax incentive regimes
  18. 18. 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 No incentives Incentives No incentives Incentives No incentives Incentives No incentives Incentives Low income countries Lower middleincoem countries Upper middle income High Income countries WGIGivingmoney(%) The power of incentives
  19. 19. Recent restrictions on advocacy & foreign funding • Recent/proposed laws restricting advocacy • Recent/proposed laws restricting foreign funding • Lack of clarity or implementation of laws causing friction
  20. 20. Globalisation of values challenging state sovereignty
  21. 21. 85 83 78 73 71 70 67 86 83 78 70 69 67 63 0 10 20 30 40 50 60 70 80 90 100 Delivering social services Working with companies to solve issues Communicating activities/commitments Publicaly criticising governments/companies Raising money to support activities Publicaly protesting Influencing government policies *Includes: Australia, Brazil, Canada, China, Germany, India, Indonesia, Kenya, Mexico, Nigeria, Pakistan, Spain, Turkey, UK and USA Data from GlobeScan RADAR 2012 Wave 2: Issues and Reputation Support for Environmental and Social Groups’ Actions 2008-2012 *Support (strongly + somewhat), * average of 15 countries 2008 2012
  22. 22. Publically criticizing governments/companies Influencing government policies Delivering social services Working with companies Using public protests to raise awareness Support for Environmental and Social Groups’ Actions in Brazil Data from GlobeScan RADAR 2012 Wave 2: Issues and Reputation 75 66 91 89 75 18 26 6 7 19 0 10 20 30 40 50 60 70 80 90 100 Oppose Support
  23. 23. Global Trust in NGOs
  24. 24. Brazilian trust in NGOs
  25. 25. Giving grows Benefits are felt Expectations rise Market develops to meet expectations Market tends towards complexity The need for continuous policy development
  26. 26. Big year for CSR  Privatization has placed greater expectations on corporations to address public problems  Companies Act in India seen as an experiment Corporate leaders increasingly see philanthropy and CSR programmes as opportunities for differentiation:  In the market for customers. 88% of Indian and 86% of Chinese consumers say they buy products with a social or environmental benefit (67 per cent globally).  In the market to attract and retain talent – An Ipsos MORI survey of 18,150 Indian people found that 51% considered social impact to be important in their career choice with 58% looking to work for a company with “values like my own”. Payroll giving becoming attractive to employers
  27. 27. • Media references to individual philanthropists in emerging markets are rapidly increasing, with 385 references over the last year in India alone • Warren Buffet’s “Giving Pledge” is signed by billionaires in 10 countries, including Russia, Ukraine, Taiwan, India & South Africa • Some concern that there is too much focus on individuals • Recent media stories naming and shaming those who don’t give publicly UHNWI and “celebrity philanthropy” culture spreading
  28. 28. HNW philanthropy part of the solution • Globally, income inequality continues to increase • Attitudes to wealth are worsening in many nations • Warnings from IMF and World bank • Should focus on inclusion in civil society Impact investment Improve perceptions of wealth Risk capital philanthropy Potentially transformative Support social justice causes Combat sense of reciprocity
  29. 29. About Future World Giving  Concept paper  3 thematic reports:  Building Trust in Charitable Giving  Enabling an independent Not-for- profit Sector  Encouraging people to give  Recommendations framework  Future World Giving Framework  Website
  30. 30. www.futureworldgiving .org
  31. 31. QUESTIONS? apickering@cafonline.org @A_L_Pickering www.futureworldgiving .org

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