Tomorrow’s world for
Irish charities – what
does research tell us?
Joe Saxton
Tel: 004420 7426 8888
Email: ICEM@nfpsynergy.net
Web: www.nfpsynergy.net
Five big issues
•
•
•
•
•
Economics, politics and recession
Ways of giving are changing
Donors want to be re-assured
Is trust the house built on sand
Charities can be their own worst enemy
Five big issues
•
•
•
•
•
Economics, politics and recession
Ways of giving are changing
Donors want to be re-assured
Is trust the house built on sand
Charities can be their own worst enemy
Key issues…
•
Domestic economy is still very weak: The near term GDP
growth is expected to be driven entirely by net trade,
reflecting subdued imports rather than strong exports.
Consumer spending and investment are expected to fall
though most of 2013
•
A fragile labour market: unemployment beginning to
stabalise at 14.1% but pre-crisis norm was 4.5%
•
Damp consumer spending: expected fall by 1.6% in 2013
followed by no growth in 2014
•
The depressed housing market: prices fell for the fourth
consecutive month in March, taking the price level to more
than 50% below pre-crisis peaks. one in eight mortgages are
in arrears and a new state insolvency service has been set up
to try to broker deals between debtors and lenders. This
increases the risk of repossessions rising
•
Tight credit conditions: will restricting business investment
– by 3.4% this year, before starting to rise in 2014
Source: Oxford Economics/nVision, nfpSynergy 2013
The gap between worshippers and nonworshippers has stabilised recently
100%
88%
83%
80%
74%
70%
60%
Regular worshipper
40%
Non- worshipper
20%
Apr/May-13
Nov-12
May-12
Nov-11
May-11
Nov-10
Mar-10
Nov-09
Aug-09
Mar-09
Nov-08
Mar-08
0%
“Within the past three months, have you given any money to charities?” Those who answered ‘Yes’
Base: All respondents (1,408), 16+, Republic of Ireland
Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
5
The public remain highly pessimistic about giving
30%
Last 12 months
Next 12 months
20%
10%
7%
7%
0%
Nov-08
Aug-09
Mar-10
Nov-10
May-11
-6%
-10%
-10%
-20%
-21%
-8%
-21%
Nov-11
-6%
Apr-12
-7%
Nov-12
Apr/May-13
-7%
-8%
-19%
-23%
-27%
-30%
-29%
“Looking back over the last year or so, how has the amount that you gave to charity changed with respect to previous years?”
“Looking forward to the year ahead, how do you expect the amount of money that you give to charity to change? “
Base: All respondents (1,408), 16+, Republic of Ireland
Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
7
A quarter of respondents had volunteered
their time in the last three months
26%
Yes
No
74%
Have you given time as a volunteer to an organisation in the last 3 months?
Base: All respondents (1,408), 16+, Republic of Ireland
Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
8
The last two years have seen a shift
towards localism
46%
41%
A charity working in my local area
34%
24%
A charity working wherever there
is the greatest need
33%
37%
21%
A charity working in the whole of
Ireland
Apr/May-13
18%
22%
Apr-12
Apr/May-11
3%
A charity working overseas
3%
3%
“If you had € 10 to donate to charity, which of the following would you be most likely to give it to?”
Base: All respondents (1,408), 16+, Republic of Ireland
Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
Localism is strongest in Munster
100%
A charity working in my local area - Apr-12
A charity working in my local area - Apr/May-13
80%
60%
55%
48%
46%
40%
43%
41%
38%
41%
51%
44%
31%
20%
0%
Total
Dublin
Rest of Leinster
Munster
Connacht/ Ulster
“Looking forward to the year ahead, how do you expect the amount of money that you give to charity to change?”
Base: All respondents (1,408), 16+, Republic of Ireland
Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
Commercial manifestations
“Given the choice, our customers tell us
they prefer to buy Irish, as they like the
guaranteed quality that comes with buying
Irish and want to support the local
economy. We wanted to emphasise to our
customers that our grocery offering features
authentic Irish products, supplied by local
Irish farmers and producers”
Charity activity
12
Five big issues
•
•
•
•
•
Economics, politics and recession
Ways of giving are changing
Donors want to be re-assured
Is trust the house built on sand
Charities can be their own worst enemy
Visibility of face to face operations increases
69%
Face-to-face on the street
60%
63%
66%
Via a cash collection on the street
Through a television advert with a telephone number to
call to donate
50%
57%
38%
42%
Via an appeal mailing/ letter
38%
34%
On your doorstep
37%
42%
Adverts/leaflets in newspapers/magazines
34%
40%
Through the radio
25%
24%
Online advertising
17%
16%
Via email
13%
14%
On the telephone
Via text message through mobile phone
Apr/May-13
May-11
7%
5%
“In the last three months, have you been asked for money by a charity in any of the following ways? Please select all
that apply.”
Base: Those who have been asked for money by a charity in the past 3 months (919) among 1,408 adults, 16+, Republic of Ireland
14
Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
Recessionary trends continue to dominate
100%
Donating
clothing/products to a
charity shop, 77%
On-street cash
collections, 77%
80%
Sponsoring someone to
take part in an event,
65%
Buying
clothing/products in
charity shops, 56%
60%
40%
Taking part in an event,
33%
By standing order or
direct debit, 23%
20%
0%
Apr-09
Jul-09
Nov-09
Nov-10
Apr/
May-11
Nov-11
Apr-12
Nov-12
Apr/May13
“Through which methods did you give?”
Base: Those who have given to charity in the past 3 months (1,032) among 1,408 adults, 16+, Republic of Ireland
Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
15
Emerging ways of giving…
21%
Online
Buying an alternative Charity
Gift - eg 'Give a Goat'
18%
17%
By text message
By sending in a
cheque/cash/postal order
16%
13%
At a charity auction
12%
By post
Buying or selling products
through e-bay
9%
By phone
9%
Payroll giving
7%
At a bank/building
society/ATM machine
7%
Apr/May-13
Apr-12
“Through which methods did you give?”
Base: Those who have given to charity in the past 3 months (1,032) among 1,408 adults, 16+, Republic of Ireland
Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
16
In Britain, there is a smaller gap between cash and direct
debit giving
70%
Envelope/tin
Direct debit
60%
50%
39%
40%
37%
30%
34%
26%
20%
10%
Nov-12
Jul-12
Mar-12
Nov-11
Jul-11
Mar-11
Nov-10
Jul-10
Mar-10
Nov-09
Jul-09
Mar-09
Nov-08
Jul-08
Mar-08
Nov-07
Jul-07
Mar-07
Nov-06
Jul-06
Mar-06
Nov-05
Jul-05
Mar-05
Nov-04
Jul-04
Mar-04
Nov-03
Jul-03
Mar-03
0%
“If yes, have you given to a collection tin/envelope through the door or by standing order/direct debit or via a membership
subscription?”
Base: 1,000 adults 16+, Britain.
Source: Charity Awareness Monitor, Jan 13, nfpSynergy
17
Unintrusive methods of contact are still most
popular among donors
Through a television advert with a telephone number to call to
donate
-8%
Via a cash collection on the street
27%
-16%
27%
Through the radio
-8%
Adverts/leaflets in newspapers/magazines
-9%
Online advertising
-11%
Via an appeal mailing/ letter
23%
20%
18%
-20%
15%
I am happy to be
asked to donate in
this way
`
Face-to-face on the street
Via email
-19%
Via text message through mobile phone
-40%
On the telephone
8%
7%
-36%
-40% -30%
-20%
I find it very annoying
10%
-26%
On your doorstep
-50%
14%
-28%
5%
-10%
0%
10%
20%
“Which of the following best sum up your feelings towards each of the following types of charity fundraising?”
Ranked by ‘I am happy to be asked to donate in this way’
Base: All respondents (1,408), 16+, Republic of Ireland
Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
30%
40%
50%
Five big issues
•
•
•
•
•
Economics, politics and recession
Ways of giving are changing
Donors want to be re-assured
Is trust the house built on sand
Charities can be their own worst enemy
Donors are least satisfied with understanding
impact and seeing finances
Not important to me
Very dissatisfied
Slightly dissatisfied
Neither satisfied nor dissatisfied
Moderately satisfied
42%
The experience overall
31%
33%
Feeling reassured that the charity is a good one to support
Being able to support a specific project or campaign the charity runs that interests
you
41%
34%
Knowing that the charity spends its money effectively
31%
Being appropriately thanked for your donation
26%
33%
33%
30%
34%
Understanding what difference your contribution makes
21%
Receiving feedback on how your donation was used and what this achieved
28%
19%
20% 14%
Getting information on the charity's finances
-100% -80%
Very satisfied
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
“Thinking about the last time you made a donation to charity that was significant to you, how satisfied were you with the
different aspects of the experience”
Base: Recent charity donors who answered each statement (approx 700 Jun 06, 768 Apr/May 13, 919 Apr/May 13) adults 16+, Britain.
Source: Charity Awareness Monitor, Apr/May 2013, nfpSynergy
Donors feel more could be done on impact
79%
Knowing that the charity spends its
money effectively
64%
78%
Feeling reassured that the charity is
a good one to support
74%
Being able to support a specific
project or campaign the charity
runs that interests you
62%
67%
Importance
60%
Understanding what difference your
contribution makes
62%
Receiving feedback on how your
donation was used and what this
achieved
Satisfaction
43%
40%
41%
Getting information on the charity's
finances
34%
35%
Being appropriately thanked for
your donation
56%
0%
20%
40%
60%
80%
100%
“Thinking about the last time you made a donation to charity that was significant to you, how satisfied were you with the
different aspects of the experience”
“When you make a significant donation to charity, how important are the following to you?”
Base: All respondents (1,408), 16+, Republic of Ireland
Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
Five big issues
•
•
•
•
•
Economics, politics and recession
Ways of giving are changing
Donors want to be re-assured
Is trust the house built on sand
Charities can be their own worst enemy
Schools, the Gardaí and Charities are the
most trusted national institutions
Not at all
Not very much
Not sure
Schools
Up to a point
-2% -8%
The Gardai
-6%
Charities
50%
-13%
-14%
Civil Service
-10%
The media
-19%
Trade Unions
-16%
The EU
The Church
-25%
City and County councils
28%
-25%
8%
3%
-21%
-22%
The Government
-42%
-26%
Banks
-43%
-27%
20%
23%
-34%
-20%
“To what extent do you trust you trust each of the following institutions?”
Base: All respondents (1,408), 16+, Republic of Ireland
Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
4%
25%
-33%
-40%
6%
25%
Insurance companies
-60%
12%
28%
-25%
-18%
-80%
31%
-23%
-37%
25%
53%
-31%
-21%
23%
42%
-4% -10%
Legal system
-100%
A great deal
20%
4%
8%
3%
2%
15% 3%
14% 3%
0%
20%
40%
60%
80%
100%
UK trust in institutions
Haven't heard of
Very little
Not sure
Quite a lot
A great deal
-5%
-11%
47%
32%
-9% -19%
53%
17%
-5%-15%
51%
18%
-9% -22%
54%
10%
-10% -22%
48%
16%
-7% -25%
53%
10%
-10% -25%
49%
13%
-6% -24%
56%
5%
-14% -20%
42%
19%
-16%
-28%
46%
6%
-8%
-38%
44%
5%
-13%
-39%
41%
4%
-19%
-33%
37%
5%
-27%
-26%
29%
9%
-21%
-39%
28%
3%
-22%
-42%
29%
2%
-29%
-34%
23%
4%
-35%
-38%
21% 3%
-9% -19%
19% 2%
-36%
-41%
17% 2%
-29%
-39%
18% 1%
-35%
-41%
17% 1%
-45%
-34%
15% 2%
-53%
-32%
6% 1%
The Armed Forces
The NHS
Scouts and Guides
Charities
The BBC
Schools
The Police
Small businesses
The Royal Family
The Royal Mail
TV and radio stations
Supermarkets
Legal system
The Church
Civil Service
Local Authorities
Trade Unions
Banks
The Fundraising Standards Board (FRSB)
Newspapers
Multinational companies
Insurance companies
Government
Political parties
-100%
Not much
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
‘Below is a list of public bodies and institutions. Please indicate, by ticking in the appropriate column, how much trust you
have in each of the bodies’
Base: 1,000 adults 16+, Britain.
Source: Charity Awareness Monitor, May 12, nfpSynergy
24
Smaller charities have an advantage in trust
UK data
47%
41%
Large charities
Medium sized charities
55%
Small charities
“From the following statements, please indicate whether you think each applies to any of the following organisations: large
charities (with an annual income of over £10 million), medium sized charities (with an annual income of between £1 million
and £10 million), small charities (with an annual income of under £1 million).” They are generally trustworthy
organisations
Base: 1,000 adults 16+, Britain
Source: Charity Awareness Monitor, Nov 09, nfpSynergy
Most people trust charities to spend
their donations well
8%
18%
I trust charities a great deal to make
good use of a donation
I trust charities a fair amount to
make good use of a donation
28%
I'm not sure whether or not charities
can be trusted to make good use of
a donation
I don't trust charities to make good
use of a donation
46%
“When you think about charities in general how much do you trust them to spend a donation wisely? Please choose the one that
most represents your views.”
Base: All respondents (1,408), 16+, Republic of Ireland
Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
High standards in fundraising drive trust in
charities
I know the charity follows high standards in their
fundraising
A friend or family member has had contact with the
charity
58%
51%
I have had contact with the charity personally
48%
The charity is based in my local area
44%
The charity was established a long time ago
43%
I have heard of the name of the charity
29%
20%
The charity receives funding from the Government
The charity has a partnership with a well-known company
18%
The charity advertises on television
14%
7%
The charity is supported by a celebrity
Transparent accounts
1%
A/o answers
1%
Nothing would make me likely to trust a charity
Apr/May-13
3%
“To what extent would the following factors make you more or less likely to trust a particular charity? Please use a scale
of 1 to 5 where 5 means “much more likely” and 1 means “much less likely”
Base: All respondents (919), 16+, Republic of Ireland
Source: Irish Charity Engagement Monitor, Apr/May 2013, nfpSynergy
27
Demographic differences in driving trust
Location
The charity is based in my local area
65+
Awareness
I have heard of the name of the charity
The charity advertises on television
16-24
Established
The charity was founded a long time ago
55-64
Summary: key drivers of trust for charities
+ Contacted the charity or
know someone who has
+ Health, cancer
Type of cause
- International
External
events
- Negative media
stories
Personal
contact with
the
organisation
Length of
establishment
Trust
+ Long-established
- New organisation
Breadth of
public
awareness
+ Well-known
- Niche
Five big issues
•
•
•
•
•
Economics, politics and recession
Ways of giving are changing
Donors want to be re-assured
Is trust the house built on sand
Charities can be their own worst enemy
Charity Chief Executives - Background
•
Media Coverage Summer 2013
o Looked at the charities of the Disasters Emergency Committee
o Rising numbers of executives receiving six figure salaries over the past 3 years
(60% increase) and of staff receiving over £60,000 (16% increase)
o “In some cases the pay of senior staff increased despite falling revenues and
donations.”
o Link to public funds and being accountable to the public
slide 31
The image of Charity Chief Executives &
impact on charities in the UK...
The salary of Sir Nicholas Young, the British Red Cross chief
executive, rose to £184,000 despite a fall in donations and
revenues. Photograph: Frank Baron for the Guardian.
"He looks more like a CO [sic] of a hedge fund … Give to charity
NEVER."
slide 32
Reflections in the Irish media…
33
The importance of the 100,000 salary
boundary
CEO Salaries
300
2007 Top Earner Bracket
2012 Top Earner Bracket
CEO Salary, £'000
250
Less than £100,000 in 2007
2007 under £60k
2012 under £60k
200
150
100
50
-
slide 34
Conclusions
• There are some difficult times ahead
• Visible regulation is key
• As is transparency and constant communication –
‘honesty beyond necessity’
• Explain, explain, explain
o
o
o
Explain how you spend donations carefully
Explain how your 50,000 or 100,000 euros CEO is worth it
Explain how you change the lives of beneficiaries
• Work together to change attitudes and build trust
35
Finally
• Some of the slides are available – email me on
joe.saxton@nfpsynergy.net
• Follow me on twitter
o
o
@saxtonjoe (more pictures and more rudeness! )
or @nfpsynergy (more sensible and more information)
• If you would like information about tracking your
awareness in Ireland please let me know!
36
www.nfpsynergy.net
2-6 Tenter Ground
Spitalfields
London E1 7NH
020 7426 8888
insight@nfpsynergy.net
www.twitter.com/nfpsynergy
www.linkedin.com/company/nfpsynergy
Registered office: 2-6 Tenter Ground Spitalfields London E1 7NH. Registered in England No. 04387900. VAT Registration 839 8186 72