Transcript Profiles and Trends of Canadian Philanthropic

Profiles and Trends of
Canadian
Philanthropic,
Environmental and
Land Donors
A Presentation to the Land Trust Alliance of B.C.
Susan Anderson, E-Cocreate Solutions, www.e-cocreate.com
on behalf of Environment Canada’s Ecological Gifts Program
Today’s Menu
 A Profile of Canadian Donors
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How many Canadians donate and how much?
What influences Canadians to donate?
What organizations do they donate to?
How do Canadians donate?
How do BC Donors donate?
Factors that influence donations
Planned Gifts, Legacies, and High Value donations
What’s the Future for Canadian donors?
 Canadian Environmental Donors
 Canadian donations to environmental causes
 Canadian Land Donors
 Intergenerational Transfer of Land Assets
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How Many Canadians
Donate and How Much?
 Trend to increasing
donations
 11% since 1997; 85%
from 1991 to 2002
 $6.5B in 2003
 Trend to decreasing
number of donations
 Fewer people but making
higher value gifts
 74 million donations in
1997; 70 million in 2000;
 Who donates:
 Individuals 75%
 Corporations 13%
 Foundations 12%
Source: Statistics Canada
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What Influences
Canadians to Donate?
1. Tax policy changes
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Split receipting
2. Financial capacity to give
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Economic conditions which effect discretionary
income
3. Values and attitudes about giving
4. Opportunities to give

Land trusts can effect this through fundraising and
promotion efforts
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What Motivates Donors to
Give?
 94% - compassion for those in need
 91% - support causes in which they personally
believe
 69% - they or someone close personally
affected
 58% - believe they owe to the community
 31% - fulfill religious beliefs or obligations
 13% - motivated by tax credit
 More motivating for those giving more generous
donations
Source: 2000 National Survey of Giving, Volunteering and Participating,
Statistics Canada, Aug 2001
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What Organizations do
Canadians Donate to?
 1984 total donations of $3B made to 49,000
charities
 Today 80,000 charities receiving $5.5B
 Religious organizations receive most
 $2.4B or 49% of total donations in 2000
 Decrease of $98M or 2% since 1997
 Health related: 41%
 Social services: 20%
 Environmental organizations: Receive 2% or
$100M of all donations
Source: 2000 National Survey of Giving, Volunteering and
Participating, Statistics Canada, Aug 2001
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How Do Canadians
Donate?
 Trends
 Less interest in door-to-door canvassing
 In 2000, 20% fewer gifts were made in response
to door-to-door canvassing
 Deciding in advance
 25% now decide in advance amounts they will
give and organizations they will support
 Represents 39% value of all donations
 More interest in how donations used
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Who Donates the Most?
Percent
 Cdns aged 35-44 have
the largest number of
donors (86%) and
comprise the largest
segment of total
population (21%). They
give 22% of total value
donations
 Cdns aged 45-44 though
slightly fewer, give
higher value donations,
and 25% of the total
value of all donations
Donation Rates and Percent of Population
100
90
80
70
60
50
40
30
20
10
0
15-25
25-34
35-44
45-54
55-64
65+
Age Groups
Donation Rates
Percent of Population
% Total Value of Donations
Source: The Philanthropic Spirit in Canada,
Barriers and Motivations, David Lasby, 2004
Cdn Centre for Philanthrophy
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What Stands Out?
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4 factors related to giving (disposable income, tax
treatment, values and attitudes, opportunities to give)
We can affect 3:
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1.
2.
3.
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tax treatment (communicating split receipting)
values and attitudes (messaging)
opportunities to give (donations options – make it easy)
Donor rate of Cdns with incomes >$100K declined
from 91% in 1997 to 86% in 2000
Average annual donations also declined
Donors in lower income groups give larger proportion
of total income
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However, also subject to less taxes
Source: NSGVP 2000
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Canada’s Typical Donor
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Female
Married
Aged 35 to 54
Post-secondary education
Full-time job
Combined family income of >$60K
Attends religious services regularly
 Could reach her through church publications
Source: Understanding Canadian Donors, Using the National Survey of
Giving, Volunteering and Participating to Build Your Fundraising Program,
Norah McClintock, 2004 Canadian Centre for Philanthropy
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Planned Gifts, Legacies,
Higher Value Donations
 Higher value gifts are planned ahead of
time
 no spur of the moment
 86% of top 5% of donors giving >$1,088
a year used tax credits
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Profile of Most Generous
Donors
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Aged 60 and over
Adult children not at home
Homes and cottages paid off
Thinking about leaving a legacy
Source: Understanding Canadian Donors, Using the National Survey of Giving,
Volunteering and Participating to Build Your Fundraising Program, Norah McClintock,
2004 Canadian Centre for Philanthropy
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Profile of the Richest
Canadians
 57% are retired
 200,000 households have financial assets >
$1M
 87% (9/10) of these households will make a
financial contribution to a charity in the next
year
 Own home
 35% have a secondary residence, vacation
home or property
Source: Understanding Canadian Donors, Using the National Survey of Giving,
Volunteering and Participating to Build Your Fundraising Program, Norah
McClintock, 2004 Canadian Centre for Philanthropy
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Types of Properties Affluent Canadians Own
100K249K
250K
250K499K
500K999K
>1M
Vacation
Home
290
188
102
53
32
17
13%
12%
16%
15%
15%
19%
Secondary
Home
219
154
66
35
18
13
10%
10%
10%
10%
9%
14%
Other
property
255
177
78
41
23
13
11%
11%
12%
12%
11%
15%
Investment
Property
230
135
95
40
38
18
10%
8%
15%
11%
18%
19%
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The Future of Canadian
Donations
Trend toward planned giving
 Environics Research
 Philanthropic Foundations Canada
 Gap Gemini Ernst & Young
 Gallop Research
 Ketchum Canada
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Environics Research
 Socio-cultural change underway
 Pattern of donating is reflecting changing social
values
 Donor-directed giving means greater personal
control, effect real change in people’s lives,
understand and involved in causes
 Younger Cdns choosing not to support religious
institutions
 Choosing donations that are fun and personally
meaningful
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Have Donated Time or Money to Organization
in the Past Twelve Months
Charity related to a disease, illness or medical 60%
condition
Non-religious charity devoted to social issues
Church/mosque/temple
Charity with a religious affiliation
School or university (alumni donors)
41%
38%
26%
18%
Non-religious charity devoted to environmental 12%
issues
Non-religious charity devoted to human-rights
issues12%
Another charity
Source: 1999 Environics 3SC Survey
12%
45%
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Environics Research
 3 Segments of senior Canadians
 Rational Traditionalists (54% of 55+)
 Extroverted Traditionalists, (26% of population
55 and older)
 Cosmopolitan Modernists, (20% of population
55 and older)
 CosMods donate to environmental causes
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Environics Research
 Cosmopolitan Modernists
 20% of Cdns 55+; 6% of general population
 Concerned about mark they will leave on the planet
 Relatively prosperous and will leave legacies to
families and chosen causes
 Want to make a difference and be remembered for
something significant
 Global Consciousness that drives concern for
ecological and environmental issues
 Worried not about leaving too little to their children,
but too much – undermine values
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Environics Research
 Cosmopolitan Modernists (50+)
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Approximately 812,020 Cdns are CosMods
A slightly higher than average proportion of CosMods live in BC
Slightly more than 112,260 CosMods in BC
Attend church; travel; Internet
 Autonomous Rebels (age 30-49),
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25% of Canadian boomers or 2.4 million Canadians
slightly more than average live in Vancouver
take a global view of environmental issues
Like CosMods but with an edge
 New Aquarians (15-29)
 13% or 800,000 Canadians
 Ecologism; citizens of the global village
 Gave up organized religion; nature and earth-based practices
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Philanthropic Foundations
Canada
 “The trillion-dollar intergeneration transfer of
wealth has already started and is expected to
continue over the next 20 years.”
 “The baby boomers who are inheriting wealth
have a profoundly different attitude from past
generations – they don’t want to passively write
cheques, they want to be directly involved.
They want to change the world and make a
difference.”
Source: “World of Charity on the Cusp of Change”,
Philanthropic Foundations Canada, May 20, 2004 21
Philanthropic Foundations
Canada
 Babyboomer inheritors want to be directly
involved not passively write cheques
 Change the world and make a difference
 New type of entrepreneurial, activist
philanthropist
 Donate 6X more to charity as those who inherit
 Cdns give more when they plan donations
ahead of time
 32% planned
 64% did not
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Cap Gemini Ernst & Young
 Life expectancy growing; inheritors are
older (50s, 60s, 70s)
 People receiving sizeable inheritances
already successful in own right
 Already have a financial advisor
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Gallop Research
 Canadian baby boomers are expected to
inherit an estimated one trillion dollars in
bequests over the next 20 years
 Between 8 and 10 million bequests are
expected
 4 in 10 Canadians will inherit money
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Gallop Research
 25% of Cdn baby boomers aged 40-59 will
receive an inheritance
 What will they inherit?
 Family home: 35.6%
 Second property: 18.5%
 Money:
 $25K to $100K: 33%
 $100K to $500K: 15%
 >$500K: 4%
 Insurance $: 35.6%
 Stocks and Bonds: 34.1%
 Personal effects (i.e. jewellery): 75%
Source: 1997 Gallop poll results
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Gallop Research
What will inheritors do with their money?
 Buy a business:
 5.8% nationally; 14.9% BC
 Fund children’s education:
 18.8 nationally; 7.5% BC
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Support own retirement: 11.1%
Invest it: 23.1%
Pay off debts: 12%
Trips: 8.9%
Major purchase of any kind: 5.9%
Source: 1997 Gallop poll results
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Ketchum Canada
 Trend towards individual giving as
cornerstones of successful development
programs
 Major gifts will lead the way
 Philanthropic advising becoming important
professionally
 Major banks now have Philanthropic Services
divisions to advise on:
 Strategic philanthropy
 Donor-directed counsel
 Tax advice for legacy or major donations
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Ketchum Canada
 Canadian charities enjoy high levels of public
trust (behind nurses and doctors)
 Public wants information about:
 The charities’ programs
 How donations will be used
 Specific impact of their work
 Canadians now want to make meaningful
contributions – tangible and lasting impact
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Canadian Environmental
Concerns
 Environment tops list of Cdns concerns (1997
Environics Poll)
 Greatest threat to Future Generations:
Pollution and Conservation (Vancouver Sun,
Sept. 20, 1999)
 Loss of natural areas and urban sprawl (July
2002 Environics Poll)
 90% of Cdns concerned about state of wildlife
and natural habitats (July 2002 Environics Poll)
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Protecting the
Environment: A Priority
Protecting the environment should be given priority,
even it causes slower economic growth and some loss of jobs:
Canada
US
Completely agree
42%
25%
Mostly agree
40%
44%
Mostly disagree
12%
18%
Completely disagree
4%
8%
Don’t know/refused
14%
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Source: 2002 44-Nation Global Attitude Survey
Protecting the
Environment: A Priority
 Canada ranks 4/142 countries in a survey on
environmental health
 90% Cdn shareholders believe analysts should
consider a company’s environmental
performance when valuing stock
 90% Cdns think Government should force
companies to report on environmental and
social performance
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Donations to
Environmental Causes
 Yet only 2% of all donations go to
environmental organizations
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Selected Characteristics of Donors to
Non-Profit Environment Organizations
Age of
Donors
Number of
Donors 1997
Number of
Donors 2000
% Change
15-24 years
97,300
143,300
32.%
25-34 years
328,000
274,000
-19.7%
35-44 years
364,200
312,600
-16.5%
45-54 years
281,600
325,900
13.6%
55-64 years
170,500
199,800
14.6%
65 years and
over
Total
211,100
188,000
-12.3%
1,452,700
1,443,600
-.63
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Source: 2000 National Survey of Giving, Volunteering and Participation
Affluent Cdns Intention to
Donate to Environmental
Causes
Asset Size
Environmental
Cause
$100KBase:
1,782 $249K
>$250K
$250K$499K
$500K$999K
$1M
Charities that
fund wildlife or
animal causes,
such as WWF,
Cdn Wildlife
Foundation,
SPCA, etc.
113
79
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16
10
8
7%
7%
6%
6%
6%
10%
Charities that
fund
environmental
and conservation
groups such as
Western Canada
Wilderness, etc.
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25
18
9
8
1
3%
2%
3%
3%
4%
2%
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Giving Increase Reported by
Charitable Organizations in
2003
Percent increase
Overall Increase 2003
5.74%
Education
12%
Environment
6.59%
Religious
6.25%
Healthcare
4.44%
Social Services
4.16%
Arts and Culture
.82%
Other (including Intl. Organizations)
.87%
Source: Association of Fundraising Professional’s Annual State of the Fundraising Survey 2003 35
Canadian Land Donors
 68% feel strongly that natural areas should be
permanently protected from development and
urban growth
 59% strongly agreed agricultural lands should
be protected as well
 80% support stewardship
 68% do not feel they have sufficient knowledge
about the environment to make informed
decisions about conservation
June 2002 and 2003 Environics Polls
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Transfer of Land Assets
 Nature Conservancy of Canada
 Over the next 10 years, 1 trillion dollars in land and other
private landowner assets will be transferred between
generations
 Philanthropic Foundations Canada
 The trillion-dollar intergeneration transfer of wealth has already
started and is expected to continue over the next 20 years
 US-based Social Welfare Research Institute
 Can accurately predict that $444 billion of that transfer will be
given to US charities
 Says much of that amount will be in the form of non-cash gifts
including increasingly gifts of real estate
 Reports gifts of real estate are more popular among lower and
intermediate level donors, deemed by the SWRI study as net
worth of less than $1 million
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Profile of EGP Land
Donors
 Age:
 53% beyond retirement age (65+) and 94% older than 45 years of
age. No donors under 25
 Income:
 Higher incomes than average. 20% incomes > $100K and 58%
between $50K - $100K
 Property donations:
 28% Residential; 28% Agricultural lands; 12% Vacation properties
 Occupation:
 Typically professionals employed in business/administration (22%),
agriculture (21%) or education (13%).
Source: 2002 Survey of Donors and Recipients, Eising 2003
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Profile of EGP Land
Donors (Cont’d)
 Memberships:
 Supporters or members of local, regional, or national nature
conservation groups
 Natural (Word-of-Mouth) Promoters of Land Donations:
 58% actively promote or encourage; 25% discussed with
potential donors; 17% did not promote or discuss land
donations
 Heirs:
 Most have heirs that support the land donation
 CosMods:
 Maps to CosMod segment; church goers
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Top 10 EGP Land Donor
Motivations
Donor Motivations
Motivating
Factor
1. Desire to preserve the natural value of their land for posterity
84%
2. Desire that their land be maintained in its natural state by recipients
30%
3. Financial considerations (EGP helped reduce capital gains tax; also,
easements reduce the value of land hence value of property tax owed)
30%
4. To stop future development of their property (e.g., cottage lot development;
logging; farming)
21%
5. Approached by recipient/ Desire to support conservation efforts of recipient
organization
18%
6. Desire to protect species at risk on their property
12%
7. No heirs
12%
8. Desire to leave a family legacy
9%
9. Desire to make a personal statement against the degradation of the world –
take meaningful action
8%
10. Unable to manage property due to limited mobility/ health reasons
6%
Source: 2002 Survey of Donors and Recipients, Eising 2003
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EGP Land Donor Types of
Province, 1995-2002
Province/Territory
(by rank order)
Individual
Corporate
Estate
Ontario
110
15
1
Saskatchewan
79
1
1
Alberta
42
10
1
BC
17
6
0
Quebec
12
3
0
New Brunswick
12
0
0
Nova Scotia
7
0
0
PEI
6
1
1
285
36
4
TOTAL
Source: Ecological Gifts Program
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How Do BC Donor’s
Donate?
To Download full report go to: http://www.giviingandvolunteering.ca/pdf/n-r5-bc.pdf
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Who Donates the Most in
BC?
 Those aged 55-64 were most likely to
donate
 Those aged 65+ donated more $
 Women donated more often and larger
donations
 Those making $100K+ annually were
most likely to donate and donate more
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Where does BC Donate?
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Methods of Making
Donations in BC
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BC Deciding in Advance
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QUESTIONS?
 Workshop: Finding your Donors, Sunday 10 a.m. to noon (Lorna
Visser and Susan Anderson)
 What this research means for you and your organization
 What you need to have in place in your organization to undertake an
effective planned giving program
 Where to find your planned giving donors
 How can you engage "allied professionals“ (financial planners, advisors,
etc.) in your community
 What tools you can use to support your outreach effort
 To download a copy of EGP’s Canadian Philanthropy and
Environmental Donors report: www.e-cocreate.com and click on
Links webpage.
 To download a copy of Giving and Volunteering in British Columbia:
http://www.givingandvolunteering.ca/pdf/n-r5-bc.pdf
 Our Thanks!
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