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From our Autumn Insights event 2010
Citation preview
Joe SaxtonOctober 2010
Tel: 020 7426 8888Email: [email protected]: www.nfpsynergy.net
J
How can we increase the size of the fundraising cake for individual charities and the sector as a whole?
Three perspectives on increasing the size of the fundraising cake
• What each charity must do
• What the sector must do
• What the government must do
Three perspectives on increasing the size of the fundraising cake
• What each charity must do
• What the sector must do
• What the government must do
1. Creating multiple dance partners between audience and motivation
• Traditional ‘one size fits all’ fundraising offer and segmentation on demographics alone are no longer sufficient
• More sophisticated segmentation is required in order to satisfy the modern, demanding consumer/supporter
• The relationship between audience and motivation will need to become more tightly bound
1. Creating multiple dance partners between audience and motivation
• The best fundraisers will:
• See the world through their donors’ eyes and allow the donor to make decisions for themselves
• Create a mix and match of offers/products for different audience groups
• Provide a smorgasbord of choice and motivation
Do just one thing
Agree with your colleagues which
are the most important audiences
for you.
One for service delivery and one
for income generation
2. Intertwining giving and living
• Donating money to charity often feels separate from everyday life
• Future success will make supporting a charity a greater part of everyday life
• Cancer Research UK’s Race for Life = 800,000
• Flora London Marathon = 35,000
• Part of these successes lies in making the gap between giving and living wafer thin… they tap into peoples’ desires for new experiences
• Events, social activities etc. are critical in capturing the hearts of modern supporters, particularly young people
• Giving and volunteering: part of the portfolio of activities that should be offered to supporters at different life stages
Do just one thing
What event or activity could you
hold that is part of the social fabric
of your target audience’s lives
3. Demonstrating impact
• More demanding donors but potentially bigger gifts on offer
• To help overcome learned helplessness and to encourage donors to support your organisation demonstrating impact is a critical challenge…
• But do donors already have too much say?
• It’s a trend that’s here to stay and it’s up to charities to educate and persuade donors of the merits of their approaches
Do just one thing
Come up with three pub facts
that demonstrate what a great
job your organisation does
4. Bite-size fundraising niches
• A product takes the choices, the variability, the price and the content and bundles them together in one easy formulation e.g. McDonald’s happy meal, package holiday, set menu
• Strong fundraising products can have the same appeal e.g. child sponsorship, Macmillan World’s Biggest Coffee Morning, Christian Aid Week, RSPB and National Trust membership
• £2/month appeals are often decried – but donors understand them and they offer a low-cost entry to this market
• Great products and a distinct brand are key ingredients through which donors can engage with their favourite causes
• The best fundraisers will make sure that their organisation has both
Do just one thing
Puzzle out how you can make
The best of your work into a
fundraising package
Do just one thing back
at the ranch
Complete the following sentence in
less than 12 words.
What makes my organisation
special is…………
Three perspectives on increasing the size of the fundraising cake
• What each charity must do
• What the sector must do
• What the government must do
What can the sector do?
• Work out where collective research would make the biggest difference
• Focus on the new demographics
Financial flows and lifestage
£0
£500
£1,000
£1,500
£2,000
£2,500
£3,000
£3,500
£4,000
16-19 20-23 24-26 27-30 30-32 33-35 36-42 43-37 48-52 53-56 57-60 61-65 66-75 75+
Net household income
All expenditure
Essential expenditure
Source: BHPS / The Future Foundation
age 16-19 with parents, no job
age 20-23 first job, living with parents
age 24-26 working, living alone
age 27-30 living with partner, first mortgage
age 30-32 first child, women exits work
age 33-35 second child
age 36-42 woman in p/t work, moves to larger house
age 43-47 woman in full time work
age 48-52 children reach adulthood
age 53-56 children leave home
age 57-60 early retirement for many, home owned outright
age 61-65 all women retired, most men retired
age 66-75 both partners retired
age 75+ widowed, single person household
Social structure of the wealthiest and least wealthy households
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
2+ Unrelated adults
Other Households
Lone par: dep childr
Lone par: non-dep ch
Single Non-Elderly
Couple: non-dep chil
Single Elderly
Couple: dep children
Couple No Children
Top 20%
Bottom 20%
What can the sector do?
• Work out where collective research would make the biggest difference
• Focus on the new demographics
• Work out where collective action would increase fundraising incomeLegacies Text donations Financial services Community challenge events
Financial services and income generation
• People struggle to choose between financial services
• So imagine a pension/mortgage/ISA/life assurance policy that gives money to their favourite charity
• Or imagine a product where the growth in income or capital could be split between individual or charity
• So almost every payment by an individual could involve a donation to a charity
Depends on interest in category
Brands as choice
managers
Relax search criteria
Independent advisors
Profit-making Not-for-profit
PriceValues/ ethical
concerns
Source: 'Citizen Brands', Michael Willmott/nVision
Faced with too much choiceWhat strategies do consumers adopt?
Community challenge events
• Challenge events match lifestyle developments e.g. MAMILS
• Challenge events allow one event to raise money for many organisations
• Challenge events are scalable and replicable e.g. Race for Life
• The challenge can be tailored to geography, the audience, etc.
• But one set of energy, capital and development can increase the size of the cake for many organisations
Three perspectives on increasing the size of the fundraising cake
• What each charity must do
• What the sector must do
• What the government must do
What should the government do?
• Remove regulatory barriers The regulation on raffles are absurd: dual registration,
limits on size, unfair levies, limits on prize money and so on
• Sort out Gift Aid Clunky, bureaucratic, and particularly onerous for small
charities and we have had 5 years of hot air about change
• Agree whose job it is to promote innovation in giving: the sector or government
But beware of the revenge of the changing socio-economic climate
We’re getting older…and we’re living longer
Number of people in each one year age band
0
100
200
300
400
500
600
700
800
900
1,000
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85
2007
2027
Age
Thousands
Source: Government Actuary’s Department/nVisionBase: UK
Age structure of the UK population
1. Rise of the baby boomer – not just a spike in the population
• Born between 1947 and 1960 after WW2 hardship and austerity
• Baby boomers are more independent, more liberal
• But also more demanding and have higher expectations (and perhaps less of an ingrained sense of duty compared to their parents)
• As baby boomers creep towards retirement they will have more disposable income, be healthier and want to engage with charities in a way that impacts their lives
We’re getting richer
Total increase from 1980 in real terms - nVision forecast
Source: ONS/nVisionBase: UK
Household disposable income growth
0%
5%
10%
15%
20%
25%
30%
35%
A B C1 C2 D E
1975 2004
Source: National Readership Survey/nVisionBase: GB, 3799: Demographic Change
Social grades as a proportion of the total population aged 15+
Household types as a percent of all households - forecast
0%
10%
20%
30%
40%
50%
60%
70%
80%
Married couple Cohabitingcouple
Lone parent Othermultiperson
One person
1971 1981 1991 2001 2011 2021
Type of household in England
0%
10%
20%
30%
40%
50%
60%
70%
16-24 25-44 45-64 65-74 75+
Men Women
Source: Social Trends, National Statistics/nVisionBase: Great Britain, 2005
Percent of single-person households by age within gender
Choice is mushrooming
6138: Key Consumer Trends for Retailers
Number of different tariffs available at the Carphone Warehouse
0
20
40
60
80
100
120
140
1992 1993 1996 1999 2001 2004 2007
Source: Carphone Warehouse/nVisionBase: UK
Mobile phone tariffs
4397: Graphics from nVision for joe saxton
0
100
200
300
400
500
600
700
800
900
1000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
No. of channels
Sky multichannel package
CH 5 Digital TV
Source: nVisionBase: UK
Number of television channels available
Number of different kinds of products in the homeBase: All aged 18+
0%
5%
10%
15%
20%
25%
30%
35%
0 1 2 3 4 5 6 7 8 9 10 11+
Breakfast cereals
Shampoos
Household cleaning products
Source: Complicated Lives /The Future Foundation 2000
© the f u t u r e foundation
Number of products at two top multiple retailers
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
Sainsbury's (average lines per store)
Tesco (total lines across all stores)
Source: IGD Account Management Series/Future FoundationBase: UK
Expectation of choice and the need for instant gratification
• Choice driven by competition o More than 8,500 mortgages, 1,600 models of new car
• Choice driven by technology o 120 mobile phone tariffs in Carphone Warehouse alone o 900+ TV channels (up from 4 only 10 – 15 years ago)
• Choice driven by deregulation o 16 choices of electricity supplier o 22 choices of gas supplier… from a base of no choice of utility
supplier as recently as 1990
Even a bigger wardrobe can add complications
“In my wardrobe, I had (in the fifties)
my everyday clothes, skirts, sweaters and
blouses, and my Sunday clothes, one
coat, two pairs of shoes and a best
dress”
“I have so many clothes, I’ve got nowhere to put them …but I’ve still got nothing
to wear!” (Woman, AB, 70s)
(Woman AB, 20)
The importance of irrationality
• Charities deal with complex social issues and need a rational focus .… this can translate into the belief that appeals must be completely rational
• Facts in some studies have been shown to be a turn-off for donors
o Experiment: people asked to talk about babies (emotions) or to do math calculations (rational) – the latter donated less
o Experiment: where people in one group could donate to a fund for medical treatment to save the life of 1 child or the lives of 8 children – people donated twice as much money to help save that one child
Source: Nicholas Kristof, New York Times, “Save The Darfur Puppy”, 9th May 2007
The importance of irrationality
• Often an irrational world where brands, celebrities, fashions, emotions rule
• Disproportionate concern e.g whale in Thames
• The solution – a ‘Darfur Puppy’?
Source: Nicholas Kristof, New York Times, “Save The Darfur Puppy”, 9th May 2007
We’re all techies now – even the older generation are getting wired
Proportion who have internet access By age, gender and social grade
“Personally, do you have internet access…At home; At work; At school/college, none of these?”
Base: 1,200 respondents aged 15+, GBSource: nVision
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%T
ota
l
Ma
le
Fe
ma
le
15
-24
25
-34
35
-44
45
-54
55
-64
65
+
AB
C1
C2
DE
Spring 01 Spring 03 Spring 06 Spring 09
Proportion of adults who own a mobile phone - nVision forecast
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
16-24 actual 25-34 actual35-44 actual 45-54 actual55-64 actual 65+ actual16-24 25-3435-44 45-5455-64 65+
Source: ‘Changing Lives’, nVisionBase: 1000 adults 16+, UK
Mobile phone penetration by age
Continuous Partial Attention
• CPA is described as a new phenomenon of juggling tasks that require a reasonable amount of cognitive engagemento Listening to this talk, scanning your Blackberry for work
emails and emails from friends about social arrangements o More complex tasks than multi-tasking
• Linda Stone of Microsoft and Apple describes CPA as a behaviour we have learned to help us cope with an information rich environment:o “In this sleep-deprived, interruption-driven, always-on
world, our ability to focus is compromised. In trying to process a never-ending and ever-widening stream of incoming data, we can put off decisions indefinitely or even burn out.”
• How can you communicate with supporters in a way that doesn’t increase sensory overload?
Learned helplessness
• Perceived lack of control can result in feelings of paralysis or in conceding defeat
• People today have access to more information about the world than at any other point in history. News of disasters, wars and terrorist activities flood in everyday
• All of this can leave donors feeling that their actions are futile and that nothing they do will make a difference… o Feelings about climate change move from disbelief to
paralysis
In summary – five principles
1. Help fundraisers ask better, not foster a climate of giving
2. Give and forget, not give, give, give
3. Government gets out the way and reduces regulation
4. Sector steps up to the plate and co-ordinates more joint activity
5. All the time keeping up with the changing lives of consumers and how they want to give
Lewis Carroll
Through the Looking-Glass
It takes all the running you can do to keep in the same place. If
you want to get somewhere else, you must run at least
twice as fast