Philanthropic TrendsPresentation to VON Canada

June 21, 2014

Where are the Donors?Individual Giving

But… Where are the Dollars? Individual Giving

GOVERNMENT

PHILANTHROPY

STRATEGIC PHILANTHROP

Y

PARTNERSHIPS COMMERCIALACTIVITY

• Establishment of appropriate infrastructure• Encourage giving• Leverage support

• Core funding• Matching funding• Seed funding• Pilot funding • Etc.

• Altruism• Legacy• Philanthropic goals, social change• Charitable association

• Annual giving• Major giving• Planned giving• Direct mail• Etc.

• CSR• Community investment• Cause related marketing

• Corporate giving• Foundation giving• Special events• Etc.

• Branding• Marketing• Entrance to new markets

• Sponsorships• Vendor partnerships• Gifts-in-kind• Etc.

• Receive good or service of value in aid of a favoured cause

• Lotteries • Ticket sales• Membership sales• Product sales• Etc.

REVENUE GENERATION SPECTRUMREVENUE GENERATION SPECTRUM ©

FUNDERS’ MOTIVATION

ACTIVITIES

‘COLLECTIVE’ BENEFIT‘COLLECTIVE’ BENEFIT ‘INDIVIDUAL’ BENEFIT‘INDIVIDUAL’ BENEFITFUNDING FOCUSFUNDING FOCUS

…Diversifying…

Halifax

Saskatoon

Winnipeg

Montreal

Ottawa

Calgary

Vancouver

Toronto

Canada

0% 10% 20% 30% 40% 50% 60% 70%

2031 (Projected)

Source: Statistics Canada

The % of population that is a visible minority is expected to steadily increase across Canada.

…and Aging

Source: Globe and Mail

BUT IS IT GIVING?

[ sort of…]

Giving in Canada

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

-1.9%

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

$0

$250

$500

$750

$1,000

$1,250

$1,500

0%

5%

10%

15%

20%

25%

30%

35%

40%

Giving in Canada

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 201220%

22%

24%

26%

28%

30%

32%

Percent of Taxfilers Claiming Donations

Giving in Canada

-25.3%

11

Canada

Newfoundland and Labrador

Prince

Edward Isl

and

Nova Scotia

New Brunsw

ick

Quebec

Ontario

Manitoba

Saskatchewan

Alberta

British

ColumbiaYukon

Northwest

Territorie

s

Nunavut$0

$100

$200

$300

$400

$500

$600

0%

5%

10%

15%

20%

25%

30%

22.4%20.7%

24.3%21.7% 20.4% 20.7%

23.5%25.4% 24.3% 23.3%

21.0% 19.6%

15.4%

9.1%

Giving in Canada, by Province / Territory

Median Donation % Taxfilers Claiming Donations

Source: Statistics Canada

Individual Giving

REPAYER

“I give to my alma mater”“I support organizations

that have an impact on me or a loved one”

CASUAL GIVER

“I give to well known nonprofits because it isn’t

very complicated”

HIGH IMPACT

“I support causes that seem overlooked”

I give to nonprofits I feel are doing the most good”

FAITH BASED

“We give to our church”“We only give to

organizations that fit with our religious beliefs”

SEE THE DIFFERENCE“I think it’s important to support local charities”

“I give to small organizations where I feel I

can make a difference”

PERSONAL TIES

“I give when I am familiar with the people who run an

organization”

23% of donors 18% of donors 16% of donors

16% of donors 13% of donors 14% of donors

Source: Money for Good II, Hope Consulting

What Motivates Donors?

12

They want you to…HAVE A PLAN...

…AND WORK COLLABORATIVELY

Source: Ipsos Reid / AFP “What Donors’ Want’ Report, 2012; Percentage Strongly Agree / Agree

They want you to…SPEND LESS ON OVERHEAD...

…AND BE MORE INNOVATIVE FUNDRAISERS

Source: Ipsos Reid / AFP “What Donors’ Want’ Report, 2012; Percentage Strongly Agree / Agree

They want you to…UPDATE THEM ON PROGRESS...

…AND ASK FOR MONEY LESS OFTEN!

Source: Ipsos Reid / AFP “What Donors’ Want’ Report, 2012; Percentage Strongly Agree / Agree

[WOULD LIKE TO BE ASKED ONCE OR LESS PER YEAR]

Your Loyal Donors…

1. Your “reputation and trustworthiness” are impeccable

2. You are “achieving and communicating measurable results”

1. Their “priorities shifted to other causes”

2. They feel they have been “over-solicited”

STAY LOYAL WHEN...

…AND LOOK ELSEWHERE WHEN…

Source: The Cygnus Donor Survey, October 2011

Unparalleled DONOR

EXPERIENCE

Deep RESPECT

Stellar SERVICE

Thoughtful ENGAGEMENT

The Donor Experience

‘Nice to Have’ No Longer• Philanthropy is increasingly becoming a ‘core’

source of funding for charitable organizations.• The case that philanthropy is expected to fund is one

of ‘core’ functions rather than ‘value add’• Fund development must be viewed as a ‘core’

function within organizations, playing a leading role rather than simply slotting in as a revenue line on already developed plans

• Articulate preferred philanthropic future for the organization (3, 5, 10, years)

• Develop comprehensive plan for revenue growth across existing, potential new streams

• Explore– Philanthropic history and potential– Fund development priorities– Volunteer engagement– Donor markets– Family engagement– Organizational structure– Organizational culture

PRGPs becoming a must

1. Role of philanthropy in achieving mission is well understood

2. Unwavering support from leaders is evident

3. Accountability is deeply ingrained throughout the organization

4. Development is recognized as a core function

5. Donors, beneficiaries have opportunity to interact

6. Donors are valued for more than just financial support

7. Philanthropic success is celebrated

Culture of Philanthropy

Considerations for national charities

• Model of shared ownership– Balance national priorities with local relationships– Mutually beneficial relationship– Shared success

• Protocols– Revenue sharing agreements– Prospect clearance– Internal communications

• Fund development framework with clear responsibilities, goals