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Charitable giving in Britain

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Information about Charitable giving in Britain

Published on October 15, 2013

Author: karlwilding

Source: slideshare.net

Description

Presentation to the Institute of Fundraising East of England regional conference in October 2013. A brief review of stats is followed by some thoughts about what long-term environmental factors might drive giving.
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Charitable giving in Britain Where now and what next? Karl Wilding | NCVO Public Policy Email: karl.wilding@ncvo.org.uk Twitter: @karlwilding

Contents • • • • The charitable sector Trends in charitable giving & philanthropy Changing attitudes and behaviours What are giving and philanthropy for?

The charitable sector

Income and expenditure

Counting the Cuts

Trends in giving behaviour

How much is given in total? Our survey of individuals produces an estimate of £9.3bn for the year 2011/12 Legacies £1.8bn A survey of philanthropists produces an estimate of £872m for the year 2008/09 Our survey of ‘general charities’ produces an estimate of £8.2b n for the year 2009/10

3. What proportion of the population give? • • The proportion of people donating to charitable causes in a typical month has decreased over the last year, from 58% to 55%. Giving this year seems to have decreased back to a more typical level; apart from the dip in 2008/09, the proportion giving was stable at 56% between 2006/07 and 2009/10.

4. How many people give in a typical month? We estimate it’s… 28.4 million people • • Over half of adults gave in a typical month in 2011/12, equivalent to 28.4 million donors. This year the decline in participation (from 55% to 58% in 2010/11) has outweighed the rate of increase in the adult population.

• • Mean: £27/ month Median: £10/ month 5. How much do donors typically give each month? The median monthly gift to charity in 2011/12 was £10 per donor. The mean is much higher, at £27/month per donor. That’s because a small number of donors give some large amounts.

Who gives?

6. Why are large donations important? = x £3.7bn 6% of donors give £100 or more, 40% of total giving x 94% of donors give less than £100, 60% of total giving = £5.6bn

What about major philanthropists? Gifts of £1m+ were worth £872m for the year 2009/10 • • Research by Beth Breeze of Kent University estimates that 80 major gifts from individual philanthropists worth an additional £872m in 2009/10 . This fell from 100 gifts worth a collective £1.0bn in 2008/09

The civic core

What causes do people give to? Proportion of donors giving and proportion of total amount donated by cause, 2010/11 Source: NCVO/CAF http://data.ncvo-vol.org.uk/a12q35

What will shape future giving? Trends in [donor] demographics, attitudes and behaviours

The Older Old • 1985 to 2010 number aged 85 & over doubled from 0.7 million to 1.4 million (from 1% to 2% of population) PROJECTION – By 2035: • Number 85 & over will be 2.5 times larger than in 2010, reaching 3.5 million (5% of population) • People 65 and over = 23% population (now 17%) Source: ONS 2012

Donor attitudes (BSAS 2003) • Investors: £10+/month • believe that there is quite a lot of poverty in Britain today, and they are • more likely than Bystanders or Contributors ascribe poverty to social injustice

Views on poverty (BSAS 2003) Bystanders 54 Contributors 58 Investors 61 An inevitable part of modern life (36) 34 38 35 Laziness or lack of will power (28) 31 28 13 Because of injustice in our society (19) 18 16 30 There is quite a lot of poverty in Britain (57)

Changing attitudes: donors, buyers or investors? • Some evidence of a marketisation of charitable giving • Shift from ‘altruistic’ giving to buying/shopping – Heightened by recession

Type of income, 2000/01 – 2009/10 (£ billions) Source: NCVO/TSRC, Charity Commission

Source: Co-op Ethical Consumerism Report 2010

Changing attitudes: donors, buyers or investors? • Giving as an investment (which requires a return) – Philanthrocapitalism – Impact investing – Blended Value • Habits/culture of equity analysis – Scaling, metrics • And financial tools – SIBs, loans (patient capital, microfinance)

Digital natives: children starting secondary school will be your core fundraisers in 5 years’ time

• Smartphone ownership: • Adults: 27% • Teenagers: 47%

Conflicting attitudes towards giving & fundraising • Professionalisation • Asking: fundraising methods

Negative attitudes towards giving • Resource allocation: where most needed? • Public benefit is not universally agreed • Deserving vs undeserving poor

Negative attitudes: giving by the rich

Changing attitudes: what are giving and philanthropy for in Squeezed Britain?

Changing attitudes: what are giving and philanthropy for in Squeezed Britain?

So... • Charitable impulse remains strong, stable • Supported by tax and (just) regulatory environment • No fatigue: but reliance on a civic core • What comes after the boomers? • Main attitudinal change in attitude is shift to investor mindset • Tech: innovators dilemma?

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