Tomorrow’s world for Irish charities – what does research tell us? Joe Saxton Tel: 004420 7426 8888 Email:
[email protected] Web: www.nfpsynergy.net
Five big issues • • • • •
Economics, politics and recession Ways of giving are changing Donors want to be re-assured Is trust the house built on sand Charities can be their own worst enemy
Five big issues • • • • •
Economics, politics and recession Ways of giving are changing Donors want to be re-assured Is trust the house built on sand Charities can be their own worst enemy
Key issues… •
Domestic economy is still very weak: The near term GDP growth is expected to be driven entirely by net trade, reflecting subdued imports rather than strong exports. Consumer spending and investment are expected to fall though most of 2013
•
A fragile labour market: unemployment beginning to stabalise at 14.1% but pre-crisis norm was 4.5%
•
Damp consumer spending: expected fall by 1.6% in 2013 followed by no growth in 2014
•
The depressed housing market: prices fell for the fourth consecutive month in March, taking the price level to more than 50% below pre-crisis peaks. one in eight mortgages are in arrears and a new state insolvency service has been set up to try to broker deals between debtors and lenders. This increases the risk of repossessions rising
•
Tight credit conditions: will restricting business investment – by 3.4% this year, before starting to rise in 2014
Source: Oxford Economics/nVision, nfpSynergy 2013
The gap between worshippers and nonworshippers has stabilised recently 100% 88% 83%
80% 74%
70%
60%
Regular worshipper 40%
Non- worshipper
20%
Apr/May-13
Nov-12
May-12
Nov-11
May-11
Nov-10
Mar-10
Nov-09
Aug-09
Mar-09
Nov-08
Mar-08
0%
“Within the past three months, have you given any money to charities?” Those who answered ‘Yes’ Base: All respondents (1,408), 16+, Republic of Ireland Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
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The public remain highly pessimistic about giving 30%
Last 12 months
Next 12 months
20%
10% 7%
7%
0% Nov-08
Aug-09
Mar-10
Nov-10
May-11
-6% -10%
-10%
-20%
-21%
-8%
-21%
Nov-11 -6%
Apr-12 -7%
Nov-12
Apr/May-13
-7%
-8%
-19% -23% -27%
-30%
-29%
“Looking back over the last year or so, how has the amount that you gave to charity changed with respect to previous years?” “Looking forward to the year ahead, how do you expect the amount of money that you give to charity to change? “ Base: All respondents (1,408), 16+, Republic of Ireland Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
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A quarter of respondents had volunteered their time in the last three months
26%
Yes
No
74%
Have you given time as a volunteer to an organisation in the last 3 months? Base: All respondents (1,408), 16+, Republic of Ireland Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
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The last two years have seen a shift towards localism 46% 41%
A charity working in my local area
34% 24% A charity working wherever there is the greatest need
33% 37% 21%
A charity working in the whole of Ireland
Apr/May-13
18% 22%
Apr-12 Apr/May-11
3% A charity working overseas
3% 3%
“If you had € 10 to donate to charity, which of the following would you be most likely to give it to?” Base: All respondents (1,408), 16+, Republic of Ireland Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
Localism is strongest in Munster 100% A charity working in my local area - Apr-12 A charity working in my local area - Apr/May-13 80%
60%
55% 48%
46%
40%
43%
41%
38%
41%
51%
44%
31%
20%
0% Total
Dublin
Rest of Leinster
Munster
Connacht/ Ulster
“Looking forward to the year ahead, how do you expect the amount of money that you give to charity to change?” Base: All respondents (1,408), 16+, Republic of Ireland Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
Commercial manifestations
“Given the choice, our customers tell us they prefer to buy Irish, as they like the guaranteed quality that comes with buying Irish and want to support the local economy. We wanted to emphasise to our customers that our grocery offering features authentic Irish products, supplied by local Irish farmers and producers”
Charity activity
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Five big issues • • • • •
Economics, politics and recession Ways of giving are changing Donors want to be re-assured Is trust the house built on sand Charities can be their own worst enemy
Visibility of face to face operations increases 69%
Face-to-face on the street
60% 63% 66%
Via a cash collection on the street Through a television advert with a telephone number to call to donate
50% 57% 38% 42%
Via an appeal mailing/ letter
38% 34%
On your doorstep
37% 42%
Adverts/leaflets in newspapers/magazines
34% 40%
Through the radio 25% 24%
Online advertising
17% 16%
Via email
13% 14%
On the telephone Via text message through mobile phone
Apr/May-13 May-11
7% 5%
“In the last three months, have you been asked for money by a charity in any of the following ways? Please select all that apply.” Base: Those who have been asked for money by a charity in the past 3 months (919) among 1,408 adults, 16+, Republic of Ireland 14 Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
Recessionary trends continue to dominate 100%
Donating clothing/products to a charity shop, 77% On-street cash collections, 77%
80%
Sponsoring someone to take part in an event, 65% Buying clothing/products in charity shops, 56%
60%
40% Taking part in an event, 33% By standing order or direct debit, 23%
20%
0% Apr-09
Jul-09
Nov-09
Nov-10
Apr/ May-11
Nov-11
Apr-12
Nov-12
Apr/May13
“Through which methods did you give?” Base: Those who have given to charity in the past 3 months (1,032) among 1,408 adults, 16+, Republic of Ireland Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
15
Emerging ways of giving… 21%
Online Buying an alternative Charity Gift - eg 'Give a Goat'
18% 17%
By text message By sending in a cheque/cash/postal order
16% 13%
At a charity auction
12%
By post Buying or selling products through e-bay
9%
By phone
9%
Payroll giving
7%
At a bank/building society/ATM machine
7%
Apr/May-13 Apr-12
“Through which methods did you give?” Base: Those who have given to charity in the past 3 months (1,032) among 1,408 adults, 16+, Republic of Ireland Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
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In Britain, there is a smaller gap between cash and direct debit giving 70%
Envelope/tin Direct debit
60% 50%
39%
40%
37%
30%
34%
26%
20% 10%
Nov-12
Jul-12
Mar-12
Nov-11
Jul-11
Mar-11
Nov-10
Jul-10
Mar-10
Nov-09
Jul-09
Mar-09
Nov-08
Jul-08
Mar-08
Nov-07
Jul-07
Mar-07
Nov-06
Jul-06
Mar-06
Nov-05
Jul-05
Mar-05
Nov-04
Jul-04
Mar-04
Nov-03
Jul-03
Mar-03
0%
“If yes, have you given to a collection tin/envelope through the door or by standing order/direct debit or via a membership subscription?” Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 13, nfpSynergy
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Unintrusive methods of contact are still most popular among donors Through a television advert with a telephone number to call to donate
-8%
Via a cash collection on the street
27%
-16%
27%
Through the radio
-8%
Adverts/leaflets in newspapers/magazines
-9%
Online advertising
-11%
Via an appeal mailing/ letter
23% 20% 18%
-20%
15% I am happy to be asked to donate in this way
`
Face-to-face on the street Via email
-19%
Via text message through mobile phone
-40%
On the telephone
8% 7%
-36% -40% -30%
-20%
I find it very annoying
10%
-26%
On your doorstep
-50%
14%
-28%
5% -10%
0%
10%
20%
“Which of the following best sum up your feelings towards each of the following types of charity fundraising?” Ranked by ‘I am happy to be asked to donate in this way’ Base: All respondents (1,408), 16+, Republic of Ireland Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
30%
40%
50%
Five big issues • • • • •
Economics, politics and recession Ways of giving are changing Donors want to be re-assured Is trust the house built on sand Charities can be their own worst enemy
Donors are least satisfied with understanding impact and seeing finances Not important to me
Very dissatisfied
Slightly dissatisfied
Neither satisfied nor dissatisfied
Moderately satisfied 42%
The experience overall
31%
33%
Feeling reassured that the charity is a good one to support Being able to support a specific project or campaign the charity runs that interests you
41%
34%
Knowing that the charity spends its money effectively
31%
Being appropriately thanked for your donation
26%
33% 33% 30%
34%
Understanding what difference your contribution makes
21%
Receiving feedback on how your donation was used and what this achieved
28% 19%
20% 14%
Getting information on the charity's finances -100% -80%
Very satisfied
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
“Thinking about the last time you made a donation to charity that was significant to you, how satisfied were you with the different aspects of the experience”
Base: Recent charity donors who answered each statement (approx 700 Jun 06, 768 Apr/May 13, 919 Apr/May 13) adults 16+, Britain. Source: Charity Awareness Monitor, Apr/May 2013, nfpSynergy
Donors feel more could be done on impact 79%
Knowing that the charity spends its money effectively
64%
78%
Feeling reassured that the charity is a good one to support
74%
Being able to support a specific project or campaign the charity runs that interests you
62% 67% Importance
60%
Understanding what difference your contribution makes
62%
Receiving feedback on how your donation was used and what this achieved
Satisfaction
43% 40%
41%
Getting information on the charity's finances
34%
35%
Being appropriately thanked for your donation
56% 0%
20%
40%
60%
80%
100%
“Thinking about the last time you made a donation to charity that was significant to you, how satisfied were you with the different aspects of the experience” “When you make a significant donation to charity, how important are the following to you?” Base: All respondents (1,408), 16+, Republic of Ireland Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
Five big issues • • • • •
Economics, politics and recession Ways of giving are changing Donors want to be re-assured Is trust the house built on sand Charities can be their own worst enemy
Schools, the Gardaí and Charities are the most trusted national institutions Not at all
Not very much
Not sure
Schools
Up to a point -2% -8%
The Gardai
-6%
Charities
50%
-13%
-14%
Civil Service
-10%
The media
-19%
Trade Unions
-16%
The EU The Church
-25%
City and County councils
28%
-25%
8% 3%
-21%
-22%
The Government
-42%
-26%
Banks
-43%
-27%
20% 23%
-34%
-20%
“To what extent do you trust you trust each of the following institutions?” Base: All respondents (1,408), 16+, Republic of Ireland Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
4%
25%
-33%
-40%
6%
25%
Insurance companies
-60%
12%
28%
-25%
-18%
-80%
31%
-23%
-37%
25% 53%
-31%
-21%
23%
42%
-4% -10%
Legal system
-100%
A great deal
20%
4%
8% 3% 2%
15% 3% 14% 3%
0%
20%
40%
60%
80%
100%
UK trust in institutions Haven't heard of
Very little
Not sure
Quite a lot
A great deal
-5% -11% 47% 32% -9% -19% 53% 17% -5%-15% 51% 18% -9% -22% 54% 10% -10% -22% 48% 16% -7% -25% 53% 10% -10% -25% 49% 13% -6% -24% 56% 5% -14% -20% 42% 19% -16% -28% 46% 6% -8% -38% 44% 5% -13% -39% 41% 4% -19% -33% 37% 5% -27% -26% 29% 9% -21% -39% 28% 3% -22% -42% 29% 2% -29% -34% 23% 4% -35% -38% 21% 3% -9% -19% 19% 2% -36% -41% 17% 2% -29% -39% 18% 1% -35% -41% 17% 1% -45% -34% 15% 2% -53% -32% 6% 1%
The Armed Forces The NHS Scouts and Guides Charities The BBC Schools The Police Small businesses The Royal Family The Royal Mail TV and radio stations Supermarkets Legal system The Church Civil Service Local Authorities Trade Unions Banks The Fundraising Standards Board (FRSB) Newspapers Multinational companies Insurance companies Government Political parties
-100%
Not much
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
‘Below is a list of public bodies and institutions. Please indicate, by ticking in the appropriate column, how much trust you have in each of the bodies’ Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, May 12, nfpSynergy
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Smaller charities have an advantage in trust UK data
47%
41% Large charities
Medium sized charities
55%
Small charities
“From the following statements, please indicate whether you think each applies to any of the following organisations: large charities (with an annual income of over £10 million), medium sized charities (with an annual income of between £1 million and £10 million), small charities (with an annual income of under £1 million).” They are generally trustworthy organisations Base: 1,000 adults 16+, Britain Source: Charity Awareness Monitor, Nov 09, nfpSynergy
Most people trust charities to spend their donations well 8%
18% I trust charities a great deal to make good use of a donation I trust charities a fair amount to make good use of a donation
28%
I'm not sure whether or not charities can be trusted to make good use of a donation I don't trust charities to make good use of a donation
46%
“When you think about charities in general how much do you trust them to spend a donation wisely? Please choose the one that most represents your views.” Base: All respondents (1,408), 16+, Republic of Ireland Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
High standards in fundraising drive trust in charities I know the charity follows high standards in their fundraising A friend or family member has had contact with the charity
58% 51%
I have had contact with the charity personally
48%
The charity is based in my local area
44%
The charity was established a long time ago
43%
I have heard of the name of the charity
29% 20%
The charity receives funding from the Government The charity has a partnership with a well-known company
18%
The charity advertises on television
14% 7%
The charity is supported by a celebrity Transparent accounts
1%
A/o answers
1%
Nothing would make me likely to trust a charity
Apr/May-13
3%
“To what extent would the following factors make you more or less likely to trust a particular charity? Please use a scale of 1 to 5 where 5 means “much more likely” and 1 means “much less likely” Base: All respondents (919), 16+, Republic of Ireland Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
27
Demographic differences in driving trust Location The charity is based in my local area
65+
Awareness I have heard of the name of the charity The charity advertises on television 16-24
Established The charity was founded a long time ago
55-64
Summary: key drivers of trust for charities + Contacted the charity or know someone who has
+ Health, cancer Type of cause - International
External events
- Negative media stories
Personal contact with the organisation Length of establishment
Trust
+ Long-established - New organisation
Breadth of public awareness
+ Well-known - Niche
Five big issues • • • • •
Economics, politics and recession Ways of giving are changing Donors want to be re-assured Is trust the house built on sand Charities can be their own worst enemy
Charity Chief Executives - Background •
Media Coverage Summer 2013
o Looked at the charities of the Disasters Emergency Committee o Rising numbers of executives receiving six figure salaries over the past 3 years (60% increase) and of staff receiving over £60,000 (16% increase) o “In some cases the pay of senior staff increased despite falling revenues and donations.” o Link to public funds and being accountable to the public
slide 31
The image of Charity Chief Executives & impact on charities in the UK...
The salary of Sir Nicholas Young, the British Red Cross chief executive, rose to £184,000 despite a fall in donations and revenues. Photograph: Frank Baron for the Guardian.
"He looks more like a CO [sic] of a hedge fund … Give to charity NEVER." slide 32
Reflections in the Irish media…
33
The importance of the 100,000 salary boundary CEO Salaries 300
2007 Top Earner Bracket 2012 Top Earner Bracket
CEO Salary, £'000
250
Less than £100,000 in 2007
2007 under £60k 2012 under £60k
200
150
100
50
-
slide 34
Conclusions • There are some difficult times ahead • Visible regulation is key • As is transparency and constant communication – ‘honesty beyond necessity’ • Explain, explain, explain o o o
Explain how you spend donations carefully Explain how your 50,000 or 100,000 euros CEO is worth it Explain how you change the lives of beneficiaries
• Work together to change attitudes and build trust
35
Finally • Some of the slides are available – email me on
[email protected] • Follow me on twitter o o
@saxtonjoe (more pictures and more rudeness! ) or @nfpsynergy (more sensible and more information)
• If you would like information about tracking your awareness in Ireland please let me know!
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