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IoF Consultants Group24th Februray 2010
Institute of Fundraising Consultants Group
Peter Maple
Lecturing at LSBU since 2006
Professional fundraiser since 1991
Fundraiser since 1958
IoF Consultants Group24th Februray 2010
Afternoon discussion
Look very briefly at individual giving in the UK
How academics think about charitable behavior
How fundraisers look at and after “major donors”
Make some observations, conclusions and practical recommendations.
IoF Consultants Group24th Februray 2010
CAF/NCVO - UK Giving 2008/9CAF estimates £9.9bn was given by individuals (down 11%)In the top 500 fundraising charities, vol. inc was 37% of totalFor the rest it is estimated at around 64% of total incomeOnly 7% of donations were over £100 But that nearly half of the total received54% of the adult population gave in the preceding 4 weeks Which equates to 27 million peopleMore baby boomers (born 1945-53) gave – nearly 60% Baby boomers already own 70% of UK wealth – set to rise to 85% by 2020
IoF Consultants Group24th Februray 2010
Why do people give?
Religion
Thanksgiving
Insurance
Guilt
Human nature*
Because I was asked!
IoF Consultants Group24th Februray 2010
The Fundraising Process
The Case for Support– What DO you do?
– Why do YOU do it?
– And why should I support you?
IoF Consultants Group24th Februray 2010
The Spectrum of Philanthropy
UNDERSTANDING GIVING MOTIVATIONSCharity fundraisers are usually desperate to increase donations – and so change the worldSo very interested in examining philanthropic motivations to predict the behaviour of supporters giving money A number of existing academic and practical models aiming to describe the motivations and the behaviour of people who give……………… Or, perhaps as importantly, don’t give, to charity.
IoF Consultants Group24th Februray 2010
The Spectrum of Philanthropy
SEVEN FACES OF PHILANTHROPY
One of the best known is Prince and File’s model (1994) – The Altruist – The Repayer– The Dynast– The Devout– The Communitarian– The Socialite– The Investor
IoF Consultants Group24th Februray 2010
The Spectrum of Philanthropy
FIVE CHARACTERISTICS OF PHILANTHROPISTS
Another established approach is described in Theresa Lloyd’s “Why the rich give” (2005)– Belief in the cause – A catalyst for change– Self-actualisation– The moral dimension– Relationships
IoF Consultants Group24th Februray 2010
The Spectrum of Philanthropy
TOWARDS AN UNDERSTANDING OF GIFT GIVING
Adrian Sargeant and Lucy Woodliffe (2007) did an extensive interdisciplinary review and developed a giving behaviour model: – Altruism vs Egoism – Self esteem vs Self interest– Guilt vs Pity– Social justice vs Tax– Empathy vs Sympathy– Prestige vs Making a difference
IoF Consultants Group24th Februray 2010
The Spectrum of Philanthropy
THE NEW PHILANTHROPISTSKay Sprinkel Grace (1997) in “Beyond Fundraising” characterises five elements for success. Those most obviously aimed at the donors are: – shared values– investor attitude
Charles Handy (2006), in “The New Philanthropists” portrays 23 wealthy individuals who seek themselves, he says, as social investors.Philip Beresford (2008 Sunday Times Rich List) refers to 85% of the individuals now listed have made their money.
IoF Consultants Group24th Februray 2010
The Spectrum of Philanthropy
ISSUES WITH THE MODELS
People change and often respond rather more to the situation than to previously held beliefs.
More than any other single trigger, people give to people
IoF Consultants Group24th Februray 2010
The Spectrum of Philanthropy
Altruism Reciprocity Enlightened self-interest
A visual representation of the spectrum of philanthropy
IoF Consultants Group24th Februray 2010
The Spectrum of Philanthropy
ALTRUISM - At the one end of the spectrum there are the deeds that seek no reward or acknowledgement
RECIPROSITY - Moving along the spectrum to where people get something in return
ELIGHTENED SELF INTEREST - At some point the return to the donor starts to become as valuable to the donor as to the charity.
BUT - is it a straight line continuum?
IoF Consultants Group24th Februray 2010
The Spectrum of Philanthropy
Altruism
Enlightened
Self-interestReciprocity
IoF Consultants Group24th Februray 2010
The Spectrum of Philanthropy
MODELS OF PRACTICE IN THE UK
The researcher has been in discussion with 30 well established UK charities to observe and understand what charities do to provide triggers for people to give. Funding through LSBU’s Research Opportunities Fund.Detailed analysis of a semi-structured questionnaire has been completed with participants receiving major gifts Charities with a vol. income from £350k to £150m.
IoF Consultants Group24th Februray 2010
The Spectrum of Philanthropy
Total voluntary income covered £540m
Total major gift income £14.2m (2.6%)
Income per employed MG fundraiser £240k
Average number of major donors 150
Average number of prospects 200
Modal definition of a major gift £1000 (in one yr)
Average donors on database 140k
Generally largest gifts were solicited
IoF Consultants Group24th Februray 2010
The Spectrum of Philanthropy
All bar two charities had clear processes for identification, development and stewardshipMostly an informal four step cycle of: Research, introduction/cultivation, solicitation and stewardship*Generally good understanding of demographic featuresAll bar two had a clear understanding of donor behaviorOnly one makes use of a conceptual model to understand their donors
IoF Consultants Group24th Februray 2010
The Spectrum of Philanthropy
Generally some (but limited) volunteer involvementInterviews examined revenue (annual) programmesIn all bar two cases the fundraisers or senior staff make the “ask”This flies in the face of all the accepted best practice
IoF Consultants Group24th Februray 2010
Spectrum of Philanthropy
Revenue vs Capital programmes
The gift pyramid
The proportionate impact of major gifts
The vital importance of voluntary leadership
IoF Consultants Group24th Februray 2010
Spectrum of Philanthropy
Adoption of a conceptual model
A review of current practice and effectiveness
Mapping the value of gifts
Investing in the volunteers
Increasing the returns on investment
IoF Consultants Group24th Februray 2010
Spectrum of Philanthropy
Other observations
Other conclusions
Other recommendations
Final thoughts about further research
Questions please!
