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) – – – – – – – 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) – – – – – 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: – – – – – – 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