Transcript Document

Seven Practical Ideas to Optimise
your Charity’s Fundraising
David Hopkins
We are Charities Aid Foundation
Our mission is to create a society
motivated to give ever more effectively,
helping to transform lives and
communities around the world.
Overview of Charities Aid Foundation
 Charities Aid Foundation (CAF) is comprised of CAF Bank, CAF Venturesome
and CAF Philanthropy Services
 CAF pioneers effective ways for donors and charities to achieve greater social
impact
 CAF Philanthropy Services works with individual, family and business donors
globally to optimise their impact through advisory and transactional services
 CAF Bank and CAF Venturesome offer deposit, lending and social investment
solutions to over 16,000 charities and social enterprises
 We are the UK market leader in managing philanthropic capital with +£1.1 billion
held in custody for donors
 Last year we distributed grants totaling £6.3m, reviewed over 1,800 charitable
organisations, supported 204 unregistered charities outside of the UK with a
further 67 within the UK. In addition through our donor-advised giving we
distributed over £400 million to charities in 2012.
 We are one of the UK’s largest charities with over 80 years of experience and
offices in 9 countries
Our USP
Companies
Local
Financial
services
Global
Consultancy Develop
services
the sector
Charities
Individuals
Income trends from 2006-2011
2010/11
2009/10
Total income
£38.3 billion
Voluntary income
2008/09
2007/08
2006/07
£38.3 billion £38.1 billion
£39.5 billion
£38.9 billion
£14.7 billion
£14.4 billion
£14.4 billion
£16.3 billion
£15.9 billion
Earned income
£21.4 billion
£21.5 billion
£20.5 billion
£19.6 billion
£19.9 billion
Investment income
£2.3 billion
£2.4 billion
£3.2 billion
£3.6 billion
£3.1 billion
Income from individuals
£16.5 billion
£16.3 billion
£15.5 billion
£16.1m billion £16.1 billion
Income from statutory
sources
£14.2 billion
£14.3 billion
£14 billion
£14 billion
£13.4 billion
Income from National
Lottery distributors
£0.5 billion
£0.5 billion
£0.5 billion
£0.6 billion
£0.6 billion
Income from other sources
£7.2 billion
£7.2 billion
£8.1 billion
£8.8 billion
£8.8 billion
Source
Individuals
(The general public, including
trading activities and excluding
charitable foundations set up by
individuals)
Earned
(from the sales of goods &
services, including the gross
income of trading subsidiaries)
Voluntary
(income freely given, usually
as a grant or donation, for
which little or no benefit is
received by the donor)
£8.07 billion
£8.40 billion
(fees for services provided;
(individual donations;
membership subscriptions with covenants; legacies;
membership subscriptions
significant benefits;
without significant benefits)
Investment
(proceeds generated
from investments &
cash balances)
Total
£16.47
billion
£11.23 billion
(public sector fees; payments
for contracted services)
£2.95 billion
(funding grants; grants to
charitable intermediaries)
£14.18
billion
£483.1
million
Voluntary sector
(such as trusts and grant-making
foundations)
£1.24 billion
(services provided under
contract)
Private sector
(excluding charitable foundations
set up by businesses)
Investment income
(Proceeds from investments,
excluding gains on value of
investments)
Total
£836 million
(sponsorship; research or
consultancy; patent royalties)
£483.1 million
(grants from National Lottery
distributors)
£1.99 billion
(grants from charitable trusts;
grants distributed by charitable
intermediaries)
£841.9 million
(corporate grants and gifts)
Statutory sources
(Government and its agencies in
the UK, EU and international
governments)
National Lottery distributors
£21.373 billion
£14.133 billion
£3.23 billion
£1.678
billion
£2.291
£2.291 billion
(dividends; interest
billion
payments; rent from
investment property)
£38.336
£2.291 billion
billion
Typology of voluntary organisations income type and sources 2010/11
Areas shown in green represent a greater than 5% rise in income between 2009/10 and 2010/11
Areas shown in red represent a greater than 5% fall in income between 2009/10 and 2010/11
Areas shown in grey have seen income remain relatively static over the period.
The rise of charity as service provider or “social business”

The sector as a whole earns more income through trading – selling goods and servicesthan it raises through giving – donations, legacies and grants. In 2010/11 earned
income accounted for £21.4 billion, while voluntary income – that given freely in
donations and grants accounted for £14.7 billion. This has been the case since 2003/04,
when earned income overtook voluntary income to become the largest source of
income.

Compared to 2000/01, earned income has increased by 92% in real terms, while
voluntary income is only 3% higher, and investment income has fallen by 23%.

This is reflective of the ever-increasing tendency for statutory agencies to commission
services, rather than provide them directly – income from statutory contracts more
than doubled between 2000/1 to 2010/11 – from £4.5 billion to £11.2 billion.

Charities have also been trading more with the public – while the increase was smaller
than that seen from the state, it was still an increase of more than 40% - or £2.3 billion
in real terms
Corporate Giving – Scale and Scope

Corporate giving continues to represent a small slice of overall charitable
giving in the UK, providing around 2% of charity income, against the 43%
provided by the general public.

Research by the Directory of Social Change published in June 2013
places for those companies analysed giving as a percentage of pre-tax
profits at 0.4% with cash giving at 0.3%, still well below the 1% standard
advocated by many as a benchmark.

The DSC estimates that the total giving by companies to UK charities is
worth between £700m and £800m a year – a 27% fall in giving levels from
last year.
Corporate Giving – Trends
 The top 3 causes supported are community and social welfare, education
and children and young people (with more than 50% of companies
supporting these causes). The most money given by companies goes to
educational projects.
“People used to be very suspicious if your activity was linked to core
business. Now they are suspicious if it is not.”
Andre Dunett, Director, Vodaphone Foundation
“Companies of the future may look to how community programmes can help
them to gain a foothold in a new market, reach out to people, apply their
skills, innovate and learn.”
Frank Krikhaar, Global Head of Corporate Responsibility, Aegis Group
Major Donor Giving – Scale and Scope

Estimates suggest there are almost 300,000 high net worth individuals
(HNWIs) in the UK, defined as those with more than £1m in assets
outside their primary residence.

Estimates suggest there are 5,000 individuals with more than £20m in
assets.

For the first time in 11 years of the Sunday Times Giving List’s history,
2012 saw 100 of the UK’s richest people donating at least 1% of their
residual wealth, and like-for-like giving among the top 100 philanthropists
showed a £305m increase, rising to £1,772m from £1,467m

The 2012 Million Pound Donors Report from Coutts, which shows a
similar trend – 2010/11 saw the highest number of £1m+ donors and
donations since the annual study was launched in 2008.
Major Donor Giving – Trends

15 years ago 75% of the Sunday Times Rich List had inherited their
wealth and 25% were self-made. Today that ratio is reversed and this is
impacting on the approach major donors are taking.

CAF research has found that Generation Y-Givers are far more
enthusiastic than previous generations of philanthropists to get personally
involved with the causes they support. They are embracing the “venture”
approach to philanthropy, offering support, providing advice and involving
their own networks.

Research shows that when asked what type of givers they want to be,
those under 30 place significant weight on the importance of making a
“tangible difference” with their philanthropic activity, whilst those over 45
are notably more understated about their giving, more commonly wanting
to remain anonymous.
Who gives?
Proportion of adults in UK giving to charity in a typical month
58
58
57
56
56
56
55
54
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
Median donation per month by age and gender
£15
£14
£11
£10
£10
£8
£4
Men
Women
16-24
25-44
45-64
65+
£15
Direct Debit – still the Gold Standard
Up from 26%
in 2006
Source: CAF 2012,
UK Giving
Mobile
Use web on
phones 44%
(up 13%)
Mobile
ownership 92%
Pay monthly
58%
Smartphone
ownership up
to 45% (up
13%)
Tablet
ownership
24% (up from
11%)
Source: OfCom 2013,
Communications Market
Report (August)
ACTIVITY
What changes have you noticed and how have you
adapted?
Groups of 2 or 3
Burning feedback
Practical
Ideas
Optimise
Online
Optimise Online
Obvious donate
button on every page
Keep the donors
inside your site
Match the colours
and fonts
Show them what their
donation ‘buys’
Offer single or
regular giving
Immediate thanks
and receipt
Multi-channel – Online
Help potential
donors to
touch, taste
and feel your
impact
BUMBLEBEE CONSERVATION TRUST “BEES FOR EVERYONE” PROJECT
YEAR IN NUMBERS 2013
140
The total number of people who attended our Welsh and
England Conservation workshop
900
Potential hectarage gained from giving advice by
email/phone to landowners outside of Bees for
Everyone regions
100
100% of respondees at the England conservation
workshop said that they were more motivated to help Bees
as a result of attending the conference.
7
The number of farm days delivered by conservation
Officers
3,500
The potential hectarage that could be managed for
bumblebees through the Bees for Everyone 3 year project
2784
The number of hectares of land for which we have
provided habitat management advice for bumblebees in
total since January 2011.
152
The amount of hectares on north Kent sea walls being
managed for bumblebees in conjunction with the
Environment Agency
67
The number of enquiries received from landowners
outside of our Bees for Everyone regions who wanted to
manage their land for Bumblebees.
376
The number of farmers and landowners the
conservation team have engaged with in 2013
100%
BBCT input into the National Pollinator Strategy
1
Memorandum of Understanding signed with the
Ministry of Justice
830
Hectares the Sub T reintroduction project has created,
advised and assisted in the management of within the
release area of Dungeness and Romney Marsh
6
Bombus Sub T workers recorded on Dungeness – the
first in 25 years
Key facts &
achievements
Photos
Stories
Quotes
Harness the
power of fun
and social
giving
Harnessing the power of social
Get your
ducks in a
row!
The Fundraising Process
Develop
Case for
Support
Map your
proposition




Identifying key
“products” & the
impact they make
What’s our story that
will make donors want
to engage?
What are the wider
benefits of association
to new donors?
Developing the
funding hooks, impact
messages and likely
audiences
Prospect
Research
Answers the question,
“Why should you support
our cause?”







The problem we are
solving (or opportunity)
How we tackle this
Why charity is
perfectly (uniquely)
placed to do so
The resources
required (the ask)
The difference this will
make


Identification of
prospective partners,
donors and influencers
& areas of alignment
Peer research – who is
supporting work in this
space & what is the
relationship?
Which existing contacts
and relationships can
be leveraged?
Mapping warm & cold
leads
Approach
strategy




Developing targeted
pitches
Routes to engagement
i.e. the when, how and
who in making the ask
Donor cultivation and
partnership building
Mapping of resources
needed to underpin
fundraising
Develop a
legacy
proposition
Return on Investment: Average return per £ invested
Legacies £25.50
Trusts £7.00
Corporate £4.43
Committed Giving £3.54
Major Donors £3.17
Events £1.94
Implementing a Legacy Campaign
 Phone call followed by letter
 Warmest supporters only
 8.13% pledge rate
Become an
award-winning
charity
Why Awards Matter
“Given our services are in the somewhat controversial field of working with those who
commit the most horrendous of sexual offences, to be recognized so appreciatively
for what we do through winning a Charity Award was a wonderful affirmation.
“The added ‘credibility’ and respect the award has contributed to our necessarily low
profile work has gone a long way to reassure funders and policy-makers that the
service is thoroughly worthy of their attention. Being part of the Charity Awards
marked a key milestone in our progress.”
Stephen Hanvey, chief executive officer, Circles UK
"We were thrilled to win one of the most prestigious accolades in the UK charity sector.
Since winning the award, the profile of our organisation has been heightened locally,
regionally and nationally through the subsequent press and media attention and acts
as an additional motivator to all people involved in the project, helping us to help even
more young people.”
Karen Edwards, chief executive, Bolton Lads and Girls Club
GSK
Impact
Awards
Queens
Award for
Voluntary
Service
Third
Sector
Business
Charity
Awards
Civil
Society
Charity
Awards
Guardian
Charity
Awards
Your
potential
hit list
National
Lottery
Awards
SCVO
Scottish
Charity
Awards
Charity
Times
Awards
Third
Sector
Excellence
Awards
2014 Scottish Charity Awards
Closing date for entries is Wednesday 26 March
Your idea
here
ACTIVITY
What has been your most powerful fundraising idea
or tip?
Questions & Answers
Thank you
David Hopkins
@davidlhopkins
[email protected]
Charities Aid Foundation
@cafonline
Facebook.com/CharitiesAidFoundation