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