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What can we learn from charity sectors in other countries?
Joe Saxton
Presentation to Charityfair – May 2016
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Areas to be covered
• Tax and the economy
• Giving
• Volunteering
• What do we have to be proud of?
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Tax and the economy
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Charitable giving by individuals as percentage of GDP
Data: from mixtures of sources and needs to be treated with some caution Source: Gross Domestic Philanthropy – An international analysis of GDP, tax and giving, CAF 2016
0.03%
0.03%
0.04%
0.05%
0.09%
0.11%
0.11%
0.12%
0.13%
0.14%
0.16%
0.17%
0.22%
0.23%
0.30%
0.30%
0.34%
0.37%
0.39%
0.50%
0.54%
0.77%
0.79%
1.44%
ChinaMexico
Czech RepublicSpain
SwitzerlandNorwayFranceJapan
FinlandAustria
SwedenGermany
IrelandAustralia
NetherlandsItaly
Russian FederationIndia
SingaporeSouth Korea
United KingdomCanada
New ZealandUnited States
`
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Effect of taxation on giving
• Tax burden – no significant relationship
• Top income tax rate – no significant relationship
• Government expenditure – no significant relationship
• Corporation tax rate – no significant relationship
• Average rate of Employee social security charges – no significant
relationship
• Average income tax level – no significant relationship
• Employer social security charges – significant relationship
Data: from mixtures of sources and needs to be treated with some caution Source: Gross Domestic Philanthropy – An international analysis of GDP, tax and giving, CAF 2016
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Relationship between macro-economic factors and types of charity behaviour
Giving as % of GDP and the following factors:
• GDP per capita (Purchasing power parity) – no significant
relationship
• Unemployment rate – no significant relationship
• GDP overall – significant relationship
Giving as % of GDP and giving factors:
• Donating money – significant relationship
• Volunteering time – significant relationship
• Helped a stranger – significant relationship
Data: from mixtures of sources and needs to be treated with some caution Source: Gross Domestic Philanthropy – An international analysis of GDP, tax and giving, CAF 2016
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So globally what does influence giving behaviour
• Religion and religious practices are very important for the better
• Cultural and government practices within a country – eg Saturday subbotniks in Turkemenistan, 3 days of volunteering in the UK (if it happens) are important for better and worse
• Events continue to be important – eg floods, earthquakes, refugees, etc
• But the evidence on tax being important is much less clear
Data: from mixtures of sources and needs to be treated with some caution Source: CAF World Giving Index 2015 – a global view of giving trends, CAF 2015
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Giving behaviour
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The States has a lot to teach us about giving - individuals
• Americans are much more generous than we are, particularly very wealthy individuals, and give substantial donations.
• Often donations go to the Arts and Education as much as traditional charities
• Seats on a board are often much more clearly about getting donations (give, get or get off)
• Americans celebrate giving much more – recognise donors much more
• (what can you think of that was named after, or by a donor, in the UK)
• Who is responsible for changing our attitude to giving in the UK?
Source: Professor Adrian Sargeant, personal correspondence
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The States has a lot to teach us about giving - structural
• US foundations have to ‘payout’ at least 5% of their endowment each year. This prevents the build up of large reserves
• We don’t have any mechanisms which encourage people to give today but get some degree of assurance for the donor’s future income – many in the US testify to the importance of ‘planned giving products’
• There are numerous ‘philanthropy days’ where a community comes together to celebrate what it has done for Omaha, or Detroit, or Scranton or where-ever
• Boards are beginning to have a longer term (and more involved) view of fundraising. Not just focus on this year, and not just scrutinise to pick holes in what is being done.
• In short in the US boards take a bigger burden for raising funds
Source: Professor Adrian Sargeant, personal correspondence
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Lessons and best practice from other countries
• Mobile giving – Kenya
• Near field technology – Hong Kong
• Virtual reality – Unicef and refugee camps
• Choice – WWF and adoptions
• Trust – importance of understanding where money goes
Source: Daryl Upsall, personal correspondence and copies of presentations
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An example from Germany
Source: Daryl Upsall, personal correspondence and copies of presentations
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Volunteering
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Differences in volunteering
• New Zealand and US have bigger emphasis on community volunteering – more akin to being a good neighbour or citizen
• The UK tends to emphasise this less, and lump it all in as volunteering
• So we should see two types of volunteering: organised and formal (eg working in a charity shop), vs community and informal (eg helping a neighbour, etc)
• In Australia there is a lot of state-mandated volunteering: 15 hours a week to keep benefits as one of a number of choices. Much more accepted as part of the cultural landscape down under.
Source: Rob Jackson, personal correspondence. http://robjacksonconsulting.blogspot.co.uk/2014/09/mandated-volunteering-two-country.html
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What we have to be proud of
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The strong side of the UK’s charity sectors
• High levels of individual donations compared to the global norms
• (A system which combines high level of donations, and high levels of health & social security compared to many countries)
• High levels of volunteering at both community and charity levels
• Vibrant and growing numbers of charities and community organisations
• Over 80% of the population use charity services
• Charities and community organisations are an integral part of daily life for many people
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Thank you to:
• Professor Adrian Sargeant
• Rob Jackson
• Daryl Upsall
• For all their wisdom and insight
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Thank you please find over 100 free reports and data at nfpsynergy.net Follow on twitter @saxtonjoe @nfpsynergy
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