Institute of Fundraising Consultants Group
Peter Maple
Lecturing at LSBU since 2006
Professional fundraiser since 1991
Fundraiser since 1958
maplep@lsbu.ac.uk
IoF Consultants Group
24th Februray 2010
Afternoon discussion
Look very briefly at individual giving in the UK
How academics think about charitable behavior
How fundraisers look at and after “major donors”
Make some observations, conclusions and practical
recommendations.
IoF Consultants Group
24th Februray 2010
CAF/NCVO - UK Giving 2008/9
CAF estimates £9.9bn was given by individuals (down 11%)
In the top 500 fundraising charities, vol. inc was 37% of total
For the rest it is estimated at around 64% of total income
Only 7% of donations were over £100
But that nearly half of the total received
54% of the adult population gave in the preceding 4 weeks
Which equates to 27 million people
More baby boomers (born 1945-53) gave – nearly 60%
Baby boomers already own 70% of UK wealth – set to rise to
85% by 2020
IoF Consultants Group
24th Februray 2010
Why do people give?
Religion
Thanksgiving
Insurance
Guilt
Human nature*
Because I was asked!
IoF Consultants Group
24th Februray 2010
The Fundraising Process
The Case for Support
– What DO you do?
– Why do YOU do it?
– And why should I support you?
IoF Consultants Group
24th Februray 2010
The Spectrum of Philanthropy
UNDERSTANDING GIVING MOTIVATIONS
Charity fundraisers are usually desperate to increase
donations – and so change the world
So very interested in examining philanthropic motivations
to predict the behaviour of supporters giving money
A number of existing academic and practical models
aiming to describe the motivations and the behaviour of
people who give………………
Or, perhaps as importantly, don’t give, to charity.
IoF Consultants Group
24th Februray 2010
The Spectrum of Philanthropy
SEVEN FACES OF PHILANTHROPY
One of the best known is Prince and File’s model (1994)
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The Altruist
The Repayer
The Dynast
The Devout
The Communitarian
The Socialite
The Investor
IoF Consultants Group
24th Februray 2010
The Spectrum of Philanthropy
FIVE CHARACTERISTICS OF PHILANTHROPISTS
Another established approach is described in Theresa
Lloyd’s “Why the rich give” (2005)
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Belief in the cause
A catalyst for change
Self-actualisation
The moral dimension
Relationships
IoF Consultants Group
24th Februray 2010
The Spectrum of Philanthropy
TOWARDS AN UNDERSTANDING OF GIFT GIVING
Adrian Sargeant and Lucy Woodliffe (2007) did an
extensive interdisciplinary review and developed a
giving behaviour model:
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Altruism vs Egoism
Self esteem vs Self interest
Guilt vs Pity
Social justice vs Tax
Empathy vs Sympathy
Prestige vs Making a difference
IoF Consultants Group
24th Februray 2010
The Spectrum of Philanthropy
THE NEW PHILANTHROPISTS
Kay Sprinkel Grace (1997) in “Beyond Fundraising”
characterises five elements for success. Those most
obviously aimed at the donors are:
– shared values
– investor attitude
Charles Handy (2006), in “The New Philanthropists” portrays
23 wealthy individuals who seek themselves, he says, as
social investors.
Philip Beresford (2008 Sunday Times Rich List) refers to
85% of the individuals now listed have made their money.
IoF Consultants Group
24th Februray 2010
The Spectrum of Philanthropy
ISSUES WITH THE MODELS
People change and often respond rather more to
the situation than to previously held beliefs.
More than any other single trigger, people give
to people
IoF Consultants Group
24th Februray 2010
The Spectrum of Philanthropy
A visual representation of the spectrum of philanthropy
Altruism
Reciprocity
Enlightened self-interest
IoF Consultants Group
24th Februray 2010
The Spectrum of Philanthropy
ALTRUISM - At the one end of the spectrum there are
the deeds that seek no reward or acknowledgement
RECIPROSITY - Moving along the spectrum to where
people get something in return
ELIGHTENED SELF INTEREST - At some point the
return to the donor starts to become as valuable to the
donor as to the charity.
BUT - is it a straight line continuum?
IoF Consultants Group
24th Februray 2010
The Spectrum of Philanthropy
Altruism
Enlightened
Reciprocity
Self-interest
IoF Consultants Group
24th Februray 2010
The Spectrum of Philanthropy
MODELS OF PRACTICE IN THE UK
The researcher has been in discussion with 30 well
established UK charities to observe and understand what
charities do to provide triggers for people to give.
Funding through LSBU’s Research Opportunities Fund.
Detailed analysis of a semi-structured questionnaire has
been completed with participants receiving major gifts
Charities with a vol. income from £350k to £150m.
IoF Consultants Group
24th Februray 2010
The Spectrum of Philanthropy
Total voluntary income covered £540m
Total major gift income £14.2m (2.6%)
Income per employed MG fundraiser £240k
Average number of major donors 150
Average number of prospects 200
Modal definition of a major gift £1000 (in one yr)
Average donors on database 140k
Generally largest gifts were solicited
IoF Consultants Group
24th Februray 2010
The Spectrum of Philanthropy
All bar two charities had clear processes for
identification, development and stewardship
Mostly an informal four step cycle of: Research,
introduction/cultivation, solicitation and stewardship*
Generally good understanding of demographic features
All bar two had a clear understanding of donor behavior
Only one makes use of a conceptual model to
understand their donors
IoF Consultants Group
24th Februray 2010
The Spectrum of Philanthropy
Generally some (but limited) volunteer
involvement
Interviews examined revenue (annual)
programmes
In all bar two cases the fundraisers or senior
staff make the “ask”
This flies in the face of all the accepted best
practice
IoF Consultants Group
24th Februray 2010
Spectrum of Philanthropy
Revenue vs Capital programmes
The gift pyramid
The proportionate impact of major gifts
The vital importance of voluntary leadership
IoF Consultants Group
24th Februray 2010
Spectrum of Philanthropy
Adoption of a conceptual model
A review of current practice and effectiveness
Mapping the value of gifts
Investing in the volunteers
Increasing the returns on investment
IoF Consultants Group
24th Februray 2010
Spectrum of Philanthropy
Other observations
Other conclusions
Other recommendations
Final thoughts about further research
Questions please!
IoF Consultants Group
24th Februray 2010