Diversity in giving examining the changing landscape of philanthropy pre 10 21 15 bbcon 2015

The Changing Landscape of American PhilanthropyPRESENTED BY DENNIS MCCARTHY, BLACKBAUD

PAM LOEB, EDGE RESEARCH

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Why These Studies…Why These Questions

As people of color become majorities in communities across America, successful nonprofit organizations will need to have a diverse donor base to sustain and grow their operations.

-Dr. Emmett Carson

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Next Generation of American Giving, May 2013

Online survey of 1,014 US Donors

Adults 18+ who report donating to a charitable cause in the last 12 months (beyond school, place of worship, union)

Looking at the giving habits of Gen Y, Gen X, Boomers and Matures

Data is self-reported, not transactional

Diversity in Giving, October 2014

Online Survey of 1,096 U.S. Donors

Utilized the web-enabled KnowledgePanel®, the nation’s only probability-based panel, recruited to be representative of the U.S. population

Oversamples of African-American, Asian, and Hispanic respondents. Used Census definitions

Survey offered in English and Spanish

Two Studies

Generosity Across the Ages

% Giving

Tota

l ann

ual g

ivin

g

40% 50% 60% 70% 80% 90% 100%$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

60% Give32.8M donors$481 yr/avg3.3 charities$15.8 B/yr




MaturesBoomers

Gen Y

Gen X

4

Gen Y11%

Gen X20%

Boomers43%

Matures26%

6

Generations Contribution to

Total Giving(% of total dollars)

The Significance of Boomers

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Checkout Donation 51%

Purchase for Proceeds 42%

Online Donation 40%

Pledge 39%

Street Canvassing 29%

Retail giving 27%

Responded to mailing 22%


Online Donation 47%Purchase for Proceeds 39%

Retail giving 29%

Street Canvassing 25%

Pledge 22%Responded to mailing 10%


Online Donation 42%

Honor/Tribute Gift 42%

Purchase for Proceeds 41%Responded to mailing 40%

Pledge 39%

Street canvassing 26%

Responded to mailing 52%


Honor/Tribute Gift 42%

Pledge 38%

Purchase for Proceeds 36%

Online Donation 27%

Gen Y

*Arrows indicate statistical significance between 2010 and 2013.

Gen X

Boomers

Matures

Which of the following charitable giving methods have you used in the past two years?

Multi-channel As the New Normal

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Mail from a charity is very or somewhat

acceptable

Mail is important way for charity to

stay in touch

Gave a donation in response to a mail appeal in the last 2

years

66%

53%

10%

64%

58%

22%

61%

61%

40%

56%

64%

52%

Matures Boomers Gen X Gen Y

What’s the Deal with Direct Mail?

Does Money Matter Most?

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How do you feel you can make the biggest difference?

Donate money25%

Donate money36%

Donate money45%

Donate money48%

Other=fundraising, advocacy, donating goods

Word-of-mouth 18%

Volunteer30%

WOM 11%

Volunteer31%

WOM 13%

Volunteer20%

Other 14%

Volunteer24%

Other 23%

Other 19%

Other 16%

WOM 8%M

B

X

Y

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Comfort-level Sharing Info about Charities Support

Spreading the Word

Gen Y65% very comfortable telling

others

Gen X56% very comfortable telling

others

Boomers45% very comfortable

Matures47% very comfortable

How Social Are Donors?

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43% Y and XThink OK to post on social networking site and ask for donation

20% Boomers

6% Matures

Social Media Activities Doing with Charities Today

Follow on social media

Share about charity on FB

Follow charity’s Twitter feed

Made a donation through FB, Twitter, etc

55%

50%

30%

8%

47%

38%

22%

10%

27%

19%

5%

5%

12%

9%

2%

1%

Gen Y Gen X Boomers Matures

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71%78% 78%

70%


Supported Someone Else Raising Money on Behalf of a Charity

Fundraised on Behalf of an Organization or Participated in a Run or Event to Raise Money

Gen Y MaturesBoomersGen X

Peer-to-Peer Fundraising

46% 34% 29%

43%

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Retail giving, last 12 months

53%49%

36%

20%


Retail Giving

72% are first-time donors

33% plan to donate directly in future

Retail Philanthropy

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Have given in the workplace

59%53%

46%

22%

Workplace Giving


(filtered among those employed or student)

1x Workplace donation!

13%

Volunteer!

12%

Employer-

matches!

9%

Payroll deductio

n!18%

Walk/Run

Challenge!9%

Workplace

fundraiser!

15%

Workplace Giving

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% Agree Gen Y Gen X Boomers MaturesI am concerned about what portion of the dollars I give to a non-profit/charity goes to overhead versus the cause.

69% 79% 82% 90%I have an idea of which non-profits/charities I will give to each year. 73% 72% 82% 91%I have an idea of how much I will budget for non-profits/charities each year. 44% 53% 62% 64%I am more likely to support a non-profit/charity when my friends and family ask me to, than if the request comes directly from the organization itself. 52% 49% 39% 42%

Most of the charitable giving I do is spontaneous, and based on who asks me and/or what pulls at my heartstrings. 41% 40% 32% 30%

I like supporting non-profits/charities by participating in social events (i.e. parties, dinners, walks, runs, etc.). 49% 37% 26% 19%

I like when non-profits/charities offer their supporters promotional giveaways (i.e. T-shirts, coffee mugs, etc.).

40% 31% 25% 17%

I feel it is my responsibility to support non-profits/charities by signing petitions or engaging in other forms of advocacy on their behalf. 34% 31% 23% 22%

Differences in Mindset

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<35 (Millenials)35-49 (Gen X)

50-69 (Boomers)69+ (Matures)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Caucasians

African Americans

Asians

Hispanics

Age Distribution by Race/Ethnicity

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Generations and Race/Ethnicity

The Donor Gap

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Donors Share Core Values

Religion and faith are both drivers and indicators of giving.

The impulse to help those in need is universal.

Wealthier individuals donate more in absolute terms than those with mid-level or

lower incomes.

The African American Donor Community

African American Donors: At A Glance

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Religion and faith are a more important part of philanthropy than among any other group

More than any other group, interested in supporting their unique heritage and community

Giving is more personal and spontaneous

Not as likely to give through direct response channels, but also not being asked

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?

African American Donors: Demographics

Gender Generation Income Religion

Significantly more likely to be lower or middle

income

More likely to be engaged with religion; significantly more likely to self-describe as evangelical Christian

Female: 54%Male 46%

Matures: 13%Boomers: 45%Generation X: 22%Millennials: 20%

48%report household incomes below $50,000/year

64%

49%

48%

Religion very important

Attend services at least once a week

Born-again/ evangelical

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Place of worship

Local social service

Children’s charities

Health charities

Military/veterans

Youth development

Anti-hate/equality

50%

40%

37%

37%

23%

21%

12%

Top Charities Supported 75% say is important to support their place of

worship, far surpassing any other group

On average, say give 13% of income

to place of worship, more than any other

group(among those who give to place of

worship)

↑

↑ Significantly higher than donors overall

↑

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African American Donors: Giving Priorities

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Tend to give in small ways (toy/food drives, checkout donations, etc.)

Responsibility to support orgs positively impacting AA community

Like when orgs offer promotional giveaways

Like supporting by participating in social events

66%

57%

46%

45%

58%

43%

28%

32%

Giving Habits/Attitudes: More Likely To Agree

All Donors

African -American Donors

↑


↑

↑

↑

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African American Donors: Giving Habits/Attitudes

African American Donors: Giving Habits/Attitudes

Have an idea of which orgs to give to

Concerned about overhead vs the cause

Have idea of how much I will budget for donating

65%

60%

47%

79%

80%

56%

Giving Habits/Attitudes: Less Likely to Agree

All Donors African American Donors

↓

↓ Significantly lower than donors overall

↓

↓

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Have made donations at checkout

Have given to canvassers on street/at home

Have given online via org's website

Have become monthly donors to a cause

Have made a tribute/ memorial donation

49%

28%

19%

11%

18%

43%

18%

31%

19%

24%

Donation Channels: More and Less Likely to Use

All Donors

African -Amer-ican Donors

↑ Significantly higher than donors overall↓ Significantly lower than donors overall

↑

↑

↓

↓

↓

20%One out of five

African Americans says he or she would

support more organizations if

asked more often

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African American Donors: Outreach

The Asian Donor Community

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Giving priorities are different—more likely to support emergency relief efforts and education; religion not as important as driver of philanthropy

More likely to plan and research their philanthropy

Generous U.S. donors, even though this group is more likely to have been born outside the U.S.

Younger, well educated (82% college degree+), more likely liberal and femaleMost technologically connected and willing to use alternate giving channels

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Asian Donors: At A Glance

Asian Donors: Demographics

Gender Generation Income & Education Religion

Less likely to feel it is their responsibility to support nonprofits

because of their faith

Female: 60%Male 40%


42%40%

42%

College degree

Post-graduate degree

Highly Educated

Asian Donors: Giving Priorities

Place of worship not top giving category

↑


↑

Health charities



Place of worship

Emergency relief

Formal education

Youth development

36%

35%

35%

34%

29%

24%

18%

Top Charities Supported

↑

30

Always visit a nonprofit's website before becoming a supporter

Like when orgs offer promotional giveaways

Prefer to give to orgs that change policies/laws

40%

36%

29%

27%

28%

24%


All Donors

Asian Donors


↑

↑

↑

49%

Asians are more likely to support a

cause if the request comes from a friend or

family.And this group is nearly twice as likely to give via crowdfunding.

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Asian Donors: Giving Habits/Attitudes

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Have given online via org's website

Have donated through a crowdfunding site

Have made a tribute/ memorial donation

Added a donation at checkout

39%

19%

19%

38%

31%

10%

24%

43%


All Donors

Asian Donors


↑

↑

↓

↓

23

Asian Donors: Outreach

The Hispanic Donor Community

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Give larger percentage of income to church than donors overall

Not asked for donations as frequently as others, and not as likely to give through traditional direct response channels; most interested in hearing more from nonprofits

Youngest of all groups and most likely to have children in their households

Much more likely to say they give spontaneously, when something pulls at their heartstrings

Strong commitment to children's causes

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Hispanic Donors: At A Glance

?

Hispanic Donors: Demographics

Gender Generation Income Religion

Cite their place of worship first among nonprofit categories

they support

Female: 43%Male 57%


45%More likely to be lower

or middle income

45%report household incomes below $50,000/year

Hispanic Donors: Giving Priorities

Place of worship


Health organizations


45%

40%

31%

30%

Top Charities Supported

Health and local social service organizations are popular, but

Hispanic donors are still less likely to give to either than donors as a

whole


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Most giving is spontaneous/pulls at hearstrings

Would support more nonprofits if asked more often

Would like to support more nonprofits but don't know how

52%

18%

21%

36%

9%

10%


All Donors

Hispanic Donors


↑

↑

↑ 55%More than

half of Hispanics say they

prefer appeals in

English

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Hispanic Donors: Giving Habits/Attitudes

Hispanic Donors: Giving Habits/Attitudes

Concerned about overhead vs. cause

Have an idea of which nonprofits will give to each

year

Have an idea of how much will budget for nonprofits

each year

63%

57%

39%

80%

79%

56%

Giving Habits/Attitudes: Less Likely to Identify With

All Donors

Hispanic Donors

↓

↓ Significantly lower than donors overall

↓

↓

38

Have given to canvassers on street/at home

Donated through a 3rd party vendor

Have donated in honor/memory of someone

Have donated through an organization's website

Have given in response to postal mail appeal

22%

23%

13%

23%

27%

18%

18%

24%

31%

32%


All Donors

Hispanic Donors


↑

↑

↓

↓

↓

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Hispanic Donors: Outreach

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1. Get serious.

2. Embrace the change from the inside out.

3. Stop obsessing about Millennials.

4. Don’t forget to listen.

5. The fundamentals are the fundamentals.

6. Think about the baton pass.

7. Moving from a linear/transactional relationship to “giving in the

flow of everyday life.”

Embracing the Changing Landscape

Dennis McCarthy, Ashley Thompson and Erin Duff at Blackbaud

Pam Loeb, Mariel Molina, Erin Wagner and Lisa Dropkin at Edge Research

Mark Rovner at SeaChange Strategies

And for inspiring us all: Dr Emmett Carson of the Silicon Valley Foundation

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Thank you to those who helped with this project

Thank you!Read the whitepaper here:

www.blackbaud.com/GivingDiversity

For additional information, please contact:Dennis McCarthy | [email protected]

Pam Loeb | [email protected]

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Government & Nonprofit

Diversity in giving examining the changing landscape of philanthropy pre 10 21 15 bbcon 2015