Presentation to Association of NHS Charities' members' interest group on fundraising

1. Giving and
fundraising
in a changing
environment
Cathy Pharoah
Professor of Charity Funding
Co-Director, CGAP

2. Factors potentially influencing donors to NHS
Ongoing process of provider re-configuration
Changing patterns of population access to services
(Visible) efficiency savings
Re-balancing of private and public service provision
Increased competition for major/ local support
www.shaw-trust.org.uk

3. Source of Direct recipient Main services Direct beneficiary
A funding
NHS Specialized • mental health Patients –
complex service-providing
charities
•
•
HIV/AIDS
joint social/ health
particularly in
community
map •
•
elderly
acute
• drugs/alcohol
charity- • community nursing
statutory and hospice care
health sector Direct private NHS hospitals and • research NHS hospitals and
funding donations from: other facilities • buildings/equipment research institutions
relationships • staff/patient welfare
Charitable trusts • other institutional
General charities- • user support
eg CRUK
Individual donors
Hospital charities
Direct private Fundraising health • patient health NHS hospitals and
donations, from charities: information other facilities
• NHS research
Individuals CRUK • care services (often Users and patients
Companies BHF through the NHS)
Arthritis Research Other charities
Macmillan
Diabetes UK
Alzheimer’s Society
Local hospices

4. Distribution of
private* giving –
Benevolent Elderly Youth/ leisure
what gets the
Community devt/ Service/ ex-service
biggest slice? regeneration
Educ/ professional
International
Health Info/ Research
Cancer Chest and Heart
Arts and culture
Social welfare
Envt/ Conservation
Children
Religious (welfare)
Disability, deaf,
Animal welfare blind, mental health
Religious
(International) Hospices/ hospitals Religious (mission)
*Includes individual, corporate, private trust and legacy giving
www.shaw-trust.org.uk
Source: Pharoah, Charity Market Monitor 2011, CaritasData (July 2011)

5. Distribution of
statutory Chest and Heart Elderly Benevolent
Religious (welfare)
Cancer
funding – Community
development/
where might regeneration Health Info /Research
Social welfare
funding cuts Service/ Religious (Internat)
create new ex-service Hospices/hospitals
Env't/ Conservation
competition? Arts and culture
Education/
professional
Children/ youth/ Disability, deaf, blind,
leisure International mental health
Animal welfare and religious missionary causes disappear from this chart
Source: Pharoah, Charity Market Monitor 2011, CaritasData (July 2011) www.shaw-trust.org.uk

6. Comparative (Indexed) trends in household
spending and donating 2001-2010
200
180
160
Average donation (popn)
140
Average donation (donors)
120
100
Average spending
80
1 2 3 4 5 6 7 8 9 10
Year from 2001 onwards www.shaw-trust.org.uk

7. Trends in % of income given, by age
%
3.5
3 1978-1982
2.5 2003-2008
2
1.5
1
0.5
0
26-30 41-45 46-50 61-65 66-70 71-75 >75
Age band www.shaw-trust.org.uk

8. Trends in proportion (%) giving, by age
%
45 1978-1982
40
2003-2008
35
30
25
20
15
10
5
0
26-30 41-45 46-50 61-65 66-70 71-75 >75
Age band
www.shaw-trust.org.uk

9. £1.6 billion donations to top health charities –
where does it go?
Mental health Hospitals
£43m £98m
Health info &
research
£193m
Cancer
£747m
Chest and
heart £208m
£1 6b f h lth
Hospices
www.shaw-trust.org.uk
£255m

10. Giving White Paper initiatives
Norms Major campaign payroll giving /10% legacy incentive
Social Action Fund/ £10m for giving innovation/ ideas - priority
Innovation
Information and local
£700k for Philanthropy UK/ £30m local infrastructure
capacity
£80m investment through Community First
Seamless integration with daily activities -
Nudging/ behavioural
economics ATM, online, round pound
Tax Reducing inheritance tax, consultation tax reductions
for gifts of art
New honours committee/ £400k from NESTA for
Celebration
‘Spice
Trial charity promotions, public service website
www.shaw-trust.org.uk
Government estate Directgov, 4.5 million hits per wk/ use of estate

11. Stealth missile –understanding the donor market
Policy and Rhetoric Realities of donor market
wider donor group narrowing donor group
young/ less wealthy older/ more wealthy
innovation, new technology/ media limited access
familiar old chestnuts eg GAYE weak track records
transactional approach to growth substitution effects
welfare ‘big society’ role individualistic donor preferences
high net worths/ business models women
legacies competing priorities
economic contraction/cuts links between wealth, growth, giving
www.shaw-trust.org.uk

12. Potential competitive advantages
major donors like major capital investments and R&D
preferences towards health and bio-medical sciences
less ‘crowding out’ effect on donations to health
NHS charity fundraising – relatively embryonic in some areas
undeveloped legacy market
changing demography – age and wealth
changing demography – age and health
new localism
www.shaw-trust.org.uk