Perfecting our giving

Cathy Pharoah

Director of Research

Tuesday 29th November 2005

What are we working towards?

Our vision

A world in which giving in a committed and

effective way is a recognised part of everyday life

Our cause

effective giving

What do we do for individuals?

for individuals, we have created a range of ways to make giving to charity simple and tax-efficient

Charity Account trusts legacies consulting and advice Give As You Earn

individuals give more than £250m through CAF’s giving solutions each year

7.3 7.3

2

1.13

2.4

0

2.5

5

7.5

1992 1994 1996 1998 2000 2002

year

£ bn

2003

Total individual giving

Tax-efficient giving

Source:

Estimated growth in individual giving and tax-efficient giving (adjusted for inflation at 2002 prices)

Individual giving as % of GDP 1972 – 2002

Sources: Giving USA (1995-2003; CAF's Individual Giving Surveys (1992-93); NCVO NOP Individual Giving Surveys (1995-2002). US GDP figures provided by US Department of Commerce Bureau of Economic Analysis – National Income and Product Accounts (adjusted for inflation). UK GDP figures provided by the Office of National Statistics – National Accounts

0.5

1.5

2.5

72 - 91 92 94 96 98 00 02 yr

%GDP

1.5%1.8%

1.9%

US

1.2%0.9%

UK

UK giving pyramid 2003

£0.5-0.7bn

£1bn

£6.3bn

£1.5bn

very wealthy

mass affluent

general public

legacies

individuals, legacies, corporate + private family foundations

% of value of donations given by household income deciles 2003

2nd top13%

Top inc decile28%bottom half

31%

5th top7%

3rd top10%

4th top11%

Source: CAF Analysis of EFS Survey Data, ONS, 2003

Total given through Gift Aid 1998/99 – 2004/05

Sources: HMRC statistics with additional calculations by CAF.

1,833 1,981 1,989 2,1322,462

2,757 2,842

1,000

1,500

2,000

2,500

3,000

1998/99 2000/01 2002/03 2004/05

£ million

% of donors using Gift Aid1999 – 2003

0.63

1116

21

05

10

152025

1999 2000 2001 2002 2003

Sources: CAF/NCVO NOP Individual Giving Surveys (1995 – 2002)

Payroll giving in context

2% of UK taxpayers use payroll giving only circa 10% of people with access to a scheme use

it £83m in individual donations promotional initiatives

millennium: Children’s Promise April 2000: 10% government supplement on donations April 2000: removal of £1,200 per year donation limit July 2001: The Giving Campaign April 2004: SME grant scheme

Source: Analysis of UK Payroll Giving, 2005

Children’s Promise scheme

Source: Analysis of UK Payroll Giving, 2005

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1998/99 1999/00 2000/01 2001/02 2002/03

One-off Children's Promisedonors

Long-term donors

Long-term trend in % population giving

Source: Inside Research (CAF/NCVO, 2003)

64.7

67.9

70.3

65.9

67.267.5

68.5

67.3

62

64

66

68

70

72

1995 1996 1997 1998 1999 2000 2001 2002

%

Average individual gift size

Source: Inside Research (CAF/NCVO, 2003)

11.82

10.07 9.61 9.8

11.5912.29 12.39

12.93

6

8

10

12

14

1995 1996 1997 1998 1999 2000 2001 2002

£

Tsunami giving/online giving

81% donated money to the appeal 50% had donated more to the tsunami appeal

than any other cause in the last year 61% of online were first time 40% of telephone were first time abolition of paper trail

Source: CAF telephone survey (NOP), January 2005

Potential market – conversion of donations to tax-efficiency (£bn)

convertible methods,

2.1

tax-efficient,

2.1non-

convertible methods,

2.8

Source : Data from CAF/NCVO Individual Giving Survey 2003

What CAF Offers

Give As You Earn

CAF runs Give As You Earn – the UK’s largest payroll giving scheme

employees make regular donations direct from gross salary

four options for giving Charity Account direct donation staff charity fund personal trust

UK registered charities and charitable organisations receive funds

encourage companies to match and pay admin fee connectandgive – online tool, tailored pages

Corporate and individual trusts

no need for Charity Commission or Inland Revenue approval

no need to appoint trustees or submit accounts to the Charity Commission

place capital sum in trust distribute interest on capital sum invested methods of payment

chequebook standing order written instruction

statements

Gift Aid Charity Vouchers

how can you make donations? by posting direct to chosen causes by depositing vouchers in collecting boxes

who can you give to? any charity registered in the UK local groups such as places of worship, scout groups

and schools fundraising events and appeals disaster funds such as the DEC

Gift Aid Charity Vouchers

new, innovative method of making small donations tax efficient £100 buys a book of 20 vouchers worth £122.40

each £5 voucher has Gift Aid added relieve charities of the burden of tax recovery higher-rate taxpayers can claim the difference between basic rate

and higher rate on the gross value of their gift

Charity involvement in National Giving Week

charities use the campaign for fundraising Imperial War Museum, RNLI (SW), AYME (Assoc. of Young

People with ME), BIBIC (British Institute for Brain Injured Children)

campaign has been successful media coverage – Radio 4 Money Box, 10+ local radio stations,

It’s Your Money BBC1 traffic to website – close to 3 times the level of last year market research – 16% awareness of NGW campaign with

13% saying they have given more to charity National Giving Week – repeat in 2006 – welcome

participation

National Giving Week (Second) – October 2005

National Giving Week – CAF awareness building campaign to encourage committed, tax efficient giving

engaging individuals, companies and charities with:

media promotions/charity prize draws – Daily Mail, Community Channel participation by Give As You Earn – Prudential, Legal &

General, General Motors promotional events – financial advisers, Ideal Home

Exhibition

School Charity Accounts

working with young people to encourage pupils to fundraise and decide on which charities to support

a national network of School Charity Accounts – start-up balance of £500

a ‘one – stop’ charity finance management system for schools

to be delivered by CAF and Giving Nation next stage is to carry out a feasibility study –

September 2006