September 2015

1

Why donors do what they do Fundraising and Philanthropy

Forum

Impotent Overwhelmed Pensioners

4

Our Challenges

As a pensioner, I cannot contribute much financially and my

volunteering commitments are already sufficient for my age and

health. I appreciate UNHCR's work. I'm glad you don't send me 'free

gifts'!

As I am over 85 and donate to almost 30 worthy causes, I cannot donate very much but

am interested.

• Acquisition is becoming more expensive and less predictable

• Channels are becoming more diverse and complex

• 2nd gift rates are declining

• Competition is increasing… to the same lovely people

• Data is exploding and we can’t use it well enough

5

Our Challenges

6

The Answer

7

Methodology

Donor Type

Value

Longevity

Behaviour

A

B

C

8

Appeal Donors Regular Giving Face to face RG+Cash

5324 2365 1030 1224

High Value ($1,000+) Medium Value ($100 to $1000) Low Value (<$100)

Long (7 years+) Medium (3 to 7 years) New (Under 2 years)

2349 2630 188

2200 2588 1555

6,836 Donors have spoken

1. Are they who we think they are?

2. What are they like?

3. What do they think of us?

4. Are they satisfied?

5. Are they engaged?

6. What do they think of our communications?

7. Why will they do what we want them to?

9

The big questions

10

Demographic

©more strategic 2012 11

0%

4%

7%

0%

2%

5%

42%

53%

62%

33%

50%

51%

58%

43%

31%

67%

47%

44%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Younger Males

Mature Males

Older Males

Younger Females

Mature Females

Older Females

Life

stag

e Se

gmen

tati

on

Weak engagement Average engagement Strong engagement

Engagement by Lifestage

Younger respondents reveal a stronger engagement than older respondents.

12

Character

12%

24%

30%

26%

49%

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

Is widely connected on social media

Likes to be recognised for their success

Is active in their community

A religious person

Makes things happen

By Donor Type (average)

All F2F RG+Cash RG Cash

Common scores across optimism, liking to have the facts and having many friends. Few describe themselves as widely connected

on social media

13

Significant differences between causes with the same channels

Sample =

Values

62%

29%

34%

2%

72%

30%

49%

42%

92%

55%

33%

79%

27%

60%

I want a fair society

We should help people in Australia first

I prefer to give to specific projects

I prefer causes that might impact my familyor friends

I like to keep my support for causes private

I like to know the stories

Makes decisions with their head

A C

I want to stop individuals suffering

We should help people overseas first

I prefer to give to charities to use how they choose

I give to whoever is in greatest need

I like people to know which causes I support

I like to know the facts

Makes decisions with their heart

14

F2F are highest, new donors lower.

Net Promoter Score

26% 30%

19%

-20%

-10%

0%

10%

20%

30%

40%

50%

A B C

If a friend was looking to make a donation to a charity and asked for your advice, how likely would you be to recommend Charity X as an organisation

worthy of support?

Total

Cash

F2F

New

High Value

15

64%

70%

61%

21%

18%

43%

60%

35%

50%

63%

47%

42%

65%

59%

59%

76%

28%

62%

Informing me how my money is spent

Not asking for support too often

Offering me some choice in the communications I receive

Thanking me appropriately

Recognising the contribution I’ve made in the past

Communicating in a way that connects to my motivation for giving

Making it clear why my continued support is needed

Giving me the opportunity to support Australia for UNHCR in other…

Using an appropriate style/tone in its communications

Important and Satisfied

Satisfied (Very+Quite) Importance (Very+Quite)

Satisfaction

Are you satisfying the important needs? Mostly…but asking too often and too little control. This is also reflected in the open comments. The Fundraisers dilemma – how can you get credit for not asking.

16

Cash are most delegational, F2F most engaged

Sample =

Engagement Index

4.11

3.86

4.46 4.38

4.66 4.53

4.03 4.07 4.21

4.00 4.06

All Cash RG RG+Cash F2F Highvalue

Midvalue

LowValue

Long Mid New

Combined Engagement Index

17

Limited differentiation and indispensibility

Sample =

Engagement Elements

0%10%20%30%40%50%60%70%80%

I would like to be more involved inwhat they do

I would like to be more informedabout what they do

They are making a greater differencethan other charities

I am really passionate about theirwork

They are the most important cause Isupport

Giving to them is an important partof who I am

If asked, I would donate more

I would proudly wear their T-shirtwhen going out to be associated…

If I stopped giving people would bemuch worse off

I am very satisfied with how theytreat me

By Donor Type (average)

Cash RG RG+Cash F2F All

©more strategic 2015 19

71%

44%

20%

39%

16%

38%

54%

32%

Providing food and shelter in an emergency

Protecting the most vulnerable from danger

Assisting refugees to return home or resettle

Acting as a spokesperson for refugees and protecting…

Helping educate refugee children

Protecting women and childen from sexual violence

Providing medical and health care to refugees

Providing long term assistance to refugees

Which of the following roles that UNHCR might play is most important to you? Please select up to three.

Role

Your most valuable role is “at the bottom of the cliff”. Longer term solutions are less important to respondents. Emergency is less differentiating but still

most important.

171 confirmed bequestors 143 intending bequestors 499 considering a bequest 41 new major donors 203 prospective major donors 730 event fundraisers 206 community fundraising organisers 1087 potential alternative gift buyers 1,264 engaged donors making comments

©more strategic 2015 20

New Leads

$20m value $1,000,000

realisable now

• Understand why

• Delegators and doers

• Differentiate

• Be indispensable

• Engage in Dialogue

• Tailored communications to my motivations and expectations

21

Sample =

Why?

©more strategic 2012 22

Fundraising

enables

ordinary people

to change the

world