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FUNDRAISING IN EUROPE 2015 ! National Fundraising Environments ! Charitable Giving Trends ! Tax Incentives ! Influencing Factors and Concerns NOVEMBER 2015

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Page 1: Charitable Giving Trends Tax Incentives Influencing ... › wp-content › uploads › 2018 › 10 › efa... · recognises the considerable work of fundraising organisations in achieving

FUNDRAISINGINEUROPE2015! NationalFundraisingEnvironments! CharitableGivingTrends! TaxIncentives! InfluencingFactorsandConcerns

NOVEMBER2015

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2 ©EuropeanFundraisingAssociation,November2015

FOREWORD

Thisreporthighlightstheimmensescaleofcharitablegivingacross16Europeannationsandrecognisestheconsiderableworkoffundraisingorganisationsinachievingthis,lookingbackondevelopmentsduring2014andaheadtothelikelyoutcomesofthiscurrentyear,2015

Thefundraisingcommunityreportsthatcharitablegivingcontinuestogrowandthereisaclearsenseofoptimismforthefuture.ThesectorhasembraceddigitalfundraisingtechniquesandmobileSMS,diversifyingintonewerincomestreamsandengagingmoreofthepublicincharitablegiving.

Thereportalsotouchesontheconsolidationofcitizensatatimeofneed,mostrecentlyhighlightedwiththeimmensenumberofrefugeesarrivingatEurope’scitiesandports,makingtheplightofthoseinneedmorevisiblethaneverbefore.Assuch,thenonprofitsector’srolebothinprovidingreliefandenablingthepublictodonateconfidentlyisfrontofmindand-insomenations-thisvisibilityhasgalvanisedthegivingpublic.

Atthesametime,thereisalsowidespreadrecognitionthatthesectorcannottakeitstreasuredpositionofpublictrustforgranted.Whilethemajorityofnationsreportthattrustremainedstableduring2014,itisthehighestrankedconcernforthefundraisingcommunityandsomenationsindicatethattheyhaverecentlysufferedalossofconfidence.

Witheconomicexpertswarningofanotherglobalfinancialcollapse,risingdemandforcharitableservicesandcontinuedfundingcuts,itisbynomeansaneasyclimateforfundraising.Andyet,thesectorhascontinuedtodeliver,withacommittedemphasistowardshighstandards.

HereatEFA,wecontinuetoworkwithournationalmemberassociationstoidentifytrendsandchallengesforfundraising,seekingtofosteraclimateofdonortrust,basedonprofessional,ethicalandaccountablefundraising.Ourmembersrepresentonequarter(€10billion)ofallvoluntaryincomeraisedintheseEuropeannationsandtheirinfluenceonfundraisingstandardsnationallyisvital.Finally,wethankallsurveyparticipantsfortheirsignificantcontributiontothisproject.

GüntherLutschinger,President BeckyGilbert,CFRE,VicePresident

GüntherLutschingerisChiefExecutiveofFundraisingVerbandAustria(FVA)andBeckyGilbertisaNationalDelegateandpreviousBoardDirectorforDeutscherFundraisingVerband(DFRV),Germany.

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EXECUTIVESUMMARY–KEYFINDINGS

ThisreportprovidesasnapshotofthefundraisingenvironmentandviewsoffundraisingassociationsinsixteenEuropeannations.Keyfindingsinclude:

FundraisersoptimisticaboutgrowthofvoluntaryincomeinEurope

Thesectorremainslargelyoptimisticaboutcontinuedgrowthofvoluntaryincome,withthemajority(14)nationalfundraisingassociationssurveyedindicatingthatvoluntaryincomehasrisenorremainedstablefrom2013to2014andninenationsanticipatingfurthergrowththroughout2015.Technologicaldevelopmentsandtheuseofsocialmediaarethefactorscitedashavingthemostpositiveinfluenceoncharityfundraising.ThirteenofthesixteenEuropeannationscoveredbythisreporttrackvoluntaryincomelevelsinsomeform,accountingforanestimatedtotalofaround€40billionraisedbynonprofitsinthosenations.

Publictrustandconfidencestable,butremainsthetopconcernforcharities

Mostnationsindicatethatpublictrustandconfidenceisstable,(whichmaybesufficient),butfournationsreportafallandonlyonereportsarecentimprovementtopublictrust,incomparisontoeightnationswhosaidthatvoluntaryincomehadincreasedfrom2013to2014.Publictrustincharitieswascitedasthetopareaofconcernfornonprofitsin2015.

Growthofmobile,SMSandonlinefundraising

Whiletraditionaldirectmail,publiccollectionsandmembershipincomeremainthetopfundraisingmethodsintermsofvoluntaryincome,mobile,SMS,onlineandemailfundraisingtechniqueshavebecomemuchmoreimportanttothesectorandaregainingpopularitywithdonors.Fournationsnowindicatethatmobile/SMSfundraisingisoneoftheirtopthreefundraisingmethods.

SEPAadoptioncitedasthemostnegativefactorforfundraisingin2014

AlthoughtheconceptofastandardisedDirectDebitprocessacrossEuropeannationsisundoubtedlyapositivestepinthelongterm,sixEuropeannationsreportproblemsinimplementingandadaptingtothenewSingleEuroPaymentsArea(SEPA)systemin2014.

Allnationsreportincreaseddemandforcharitableservices

Everyassociationreportedthatcharitiesintheirnationarefacingincreasingdemandforcharitableservicessincetherecession.Manynationsalsoreportareductiontosomeoftheirfundingchannels(withparticularreferencetocorporatecuts),makingfundraisinganincreasinglycompetitiveandchallengingenvironment.

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METHODOLOGY

Thisreportsummarisesthekeyfindingsofdesk-basedresearch,inadditiontoasurveyconductedofEFA’smembers(representativesofnationalfundraisingassociations)fromJulytoSeptember2015.

Arepresentativefromeachof16nationalfundraisingassociationscompletedEFA’smembershipsurveyreferencingnationaldatasourcesandcompletingadditionalinterviewquestionsonrequest.Theseassociationscollectivelyrepresentmorethan1,400fundraisingorganisationsraisingover€10billioninvoluntaryincomeandaround9,000individualfundraisers.

Thereportaddressesfundraisinginthefollowingnations:

AustriaCzechRepublicFinlandFranceGermanyIreland

ItalyNetherlandsNorwaySlovakiaSloveniaSpain

SwedenSwitzerlandUkraineUnitedKingdom

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NATIONALFUNDRAISINGENVIRONMENT

AnnualVoluntaryIncome

Whiledataisnotavailableforvoluntaryincomeinallofthenationssurveyedandsomenationsdonotcapturethefullextentofvoluntaryincomechannelsorcauses, aconservativecalculationindicatesthatanestimatedtotalofaround€40billionisraisedannuallythroughindividualdonationsforgoodcausesinthirteenofthesixteenEuropeanstatescoveredbythisreport.ThebiggestcontributoristheUK,raising€17billioninvoluntaryincomeannually,followedbyestimatesof€8billioninGermany,€4billioninItalyand€2.3billioninFrance.

Thesourceandmethodologyfortrackingvoluntaryincome1nationallyacrossEuropevariesconsiderably,rangingfromsurveysofarepresentativesamplepopulationtodatacollatedbythenationaltaxoffice.NocomprehensivedatawasavailableforannualvoluntaryincomeinIreland,SlovakiaorSlovenia,andthoseorganisationsareexcludedfromthechartbelow,howeveritisknownthatassociationsinSloveniarecordatotal€46millioninvoluntaryincomenationally.

Datasource:NCVOAlmanac2015(UK),StatistischesBundesamt2015,Urselmann&Loos(Germany),Baromètredelagénérosité2014(France),ZEWO(Switzerland),SwedishFundraisingControl(Sweden),VFIAnnualResearch(Netherlands),FVAAnnualDonationReport(Austria),Vala/TaloustutkimusOyFundraisingReport(Finland),Innsamlingskontrollen.no(Norway),MinistryofFinanceoftheCzechRepublic/CzechFundraisingCenter(CzechRepublic).Annualdatasourcesvaryfrom2012to2014.*Estimateprovided.**DatagivenforthevoluntaryincomeofmembercharitiesoftheSpanishFundraisingAssociation.

1Voluntaryincomeincludesalldonatedincomefromindividualsandcorporates,aswellasmembershipfees,butexcludesgovernmentfunding,salesrevenueandinterestoninvestments.

17.04

8.00

4.002.30 1.72 1.55 1.50 1.04 0.55 0.50 0.50 0.40 0.20

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2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

VoluntaryIncome(B

illionEu

ros)

VoluntaryIncome(BillionEuros)

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TheDonorPopulation

TherecentlypublishedCAFWorldGivingIndex2015identifiesthattheproportionofpeoplegivingtocharity(38%)isontheriseacrossEuropeasawhole.CharitiesAidFoundation(CAF)reportsa5%increaseincharitydonorsasapercentageoftheEuropeanpopulationoverthelong-termaverage.(Thedatawascollatedthroughsurveysofasamplepopulationineachnation,repeatedannually).

Ofthesixteennationscoveredbythisreport,theUKandtheNetherlandsrecordthehighestproportionofcharitabledonors,withmorethansevenintenofthenationalpopulationhavingdonatedinamonth.

Whileitisbynomeanstopofthechart,thenumberofdonorsinUkrainehasquadrupledoverthepastyear,largelyattributabletothenationhavingralliedtogetherinatimeofcrisis.

“ThenationalcrisishasunitedthepublicandprovokedfargreaterinvolvementofUkrainiancitizenscomingtogethertochangethecountry.Ukrainiansareconsolidatedinthefaceofthedangertothenation.”

SvitlanaKuts,InstituteofProfessionalFundraising(Ukraine)

Nation

PopulationthatDonatedinthePastMonth(%)

UnitedKingdom 75%Netherlands 73%Ireland 60%Sweden 60%Austria 52%Germany 49%Norway 49%Switzerland 48%Slovenia 42%Finland 39%Ukraine 38%Spain 35%Italy 32%France 27%Slovakia 23%CzechRepublic 20%

Source:CAF'sWorldGivingIndex2015

Note:Thistableincludesonlythesixteennationscoveredbythisreport.SeeCAF’sWorldGivingIndexreportforthefulldataset.

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SURVEYFINDINGS

ThissectionofthereportsummarisestheviewsofsixteenrepresentativesfromthesamenumberofEFAmembernations,submittedonbehalfoftherespectivenationalfundraisingassociation.

CharitableGiving

ThefundraisingcommunityreportsapositivepictureoffundraisinginEuropefrom2013to2014,withthelargemajorityofassociationssurveyed(14)sayingthatvoluntaryincomehasrisenorremainedstableovertheyear.Ofthe16associationssurveyed,halfbelievethatvoluntaryincomehasrisenand6thatvoluntaryincomehasremainedstable.Noneoftherepresentativessurveyedreportedevidenceofafallinvoluntaryincome.

Respondentsidentifiedacombinationoffactorsthathavepromotedincomegrowthrangingfromgreaterevidenceofneed(asisthecaseinGermany,AustriaandUkraine),asolidorgrowingeconomy(FranceandSwitzerland)tomarketrecovery(Ireland).

“WiththeinfluxofrefugeesintoAustriancitycentresandmorevisibilityaroundpovertyinthecountry,citizensaregenerallymoreawareoftheneedsofothersandfeelagreatersenseofdutytohelpandvoluntaryincomeisrising.”

GüntherLutschinger,FundraisingVerbandAustriaandEFAPresident

ThemajorityofnationsalsoreportedthatdonornumbershaveeithergrownorremainedsteadyacrossmostEuropeannations,butbothFranceandItalyattesttoafall.

Howhasvoluntaryincomechangedfrom2013to2014?

Voluntaryincomelevelshaverisen

VoluntaryincomelevelshaveremainedthesameVoluntaryincomelevelshavefallen

Don'tknow

Austria Germany Ireland Norway Slovenia Sweden

Switzerland Ukraine

Czech Republic Finland France

Netherlands Spain

United Kingdom

Italy Slovakia

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Lookingahead,thelevelofoptimismforcharitablegivingremainshighwithmorethanhalfofthenationalrepresentativessurveyed(nine)predictingthatvoluntaryincomewillhaverisenbytheendof2015andonlyonenation(Ukraine)anticipatingafall.Thelargemajorityofassociationssurveyedpredictthatthenumberofdonorswillremainstableorriseduring2015,withonlyFranceandAustriaanticipatingadecline.

“Globally,wealthhasbecomemoreconcentrated,withfewindividualshavingabiggerproportionoftheworld’swealthandadecreaseintheincomeandspendingpowerofthemiddleclass.InFrance,charitieshaverespondedtothisbyinvestinginmajordonorstrategyandreducingtheirfocusonthemoretraditionalgivingmethods.Wenowhaveanarrowerconcentrationofdonors,relyingonfewersupportersthaninformeryears,buttheyaregivingmore.”

YaëleAfariat,AssociationFrançaisedesFundraisers(France)

PublicTrustandConfidence

Itisimportanttonotethat,althoughrepresentativesfromall16nationshavegiventheirviewsonpublictrustandconfidencelevels,theresultscanonlybetracedbacktodatasourcesinthreenations2andthereforetheinformationgivenisanestimateor‘gutfeel’basedonrespondents’experiencesandinformationfromtheirmembers.

Onthewhole,thesectorreportsafairlystablepictureofpublictrustandconfidence.Themajorityofrepresentativessurveyed(10nations)saythatpublictrustandconfidencewasstablefrom2013to2014,whileFrance,Ireland,ItalyandSwedenindicatethatithasfallen.OnlyUkrainereportedariseinpublictrust,withcivilsocietyprovidingamuch-neededandunitedfrontatatimeofnationalcrisis.(Thiscomparestoeightnationsreportingthatvoluntaryincomehasincreasedduringthesametimeframe.)

Publictrustcanbeaffectedbyfactorsbothwithinandoutsideofthesectorand,inSweden,norecognisedcausehasbeenidentifiedforthedrop.

"Publictrustandconfidenceisabsolutelyessentialforfundraisingorganisations.Ifthepublicdoesn’thavetrustinwhatNGOsdotheywilleventuallystopgiving.InSweden,we'veunfortunatelyseenaslightdropinpublictrustrecentlyandwearenowworkingtofindoutthereasonsbehindthis.”

MariaRosJernberg,FRII(Sweden)

Fortheyear2015,themajorityviewpoint(11nations)ismoreoptimistic,predictingthatpublictrustandconfidencewillremainstableduring2015,whilerepresentativesfromtheCzechRepublic,Germany,SpainandSwedenanticipategrowth.Onlyonenationpredictedafallinpublictrust(Italy).2Sources:STEMandViaFoundation:CzechElitesandPhilanthropy(CzechRepublic,2015),AnnualOpinionPoll,MarketLtd/PublicOpinionLtd(Austria,2014),EdelmanTrustBarometer(2015)

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InItaly,theMafiaCapitalescandalsawcriminalsyndicatesmisappropriatemoneythatwasdestinedforwelfareservicesinthecityofRome.Apoliceinvestigationfoundanetworkofcorruptrelationshipsbetweensomepoliticiansandcriminalsthatresultedinaseriesofhighprofilearrestsinlate2014.

“Althoughthewelfareorganisationstaskedwithdeliveringthesepubliccontractswerenotfundraisingpublicly,theyarestillconsideredtobepartofthethirdsector.Ascandalofthismagnitudehadahugeimpactnotonlyonthoseorganisationsbutonpublictrustinthewholesector.”

AndreaCaracciolodiFeroleto,ASSIF-ItalianFundraisingAssociation

Inthisyear’sEdelmanTrustBarometer,itisworthnotingageneraldeclineinpublictrustwasidentifiedgloballyduring2014,butNGOsremaininthemosttrustedpositionwhencomparedwithGovernment,businessandthemedia.

TopFundraisingMethods

Whiletraditionaldirectmail,publiccollectionsandmembershipincomeremainthetopfundraisingmethodsintermsofvoluntaryincome,online,mobileanddigitalfundraisingtechniqueshavebecomemuchmoreimportant.Fournations(Italy,Norway,SlovakiaandSlovenia)nowidentifymobile/SMSfundraisingasoneoftheirtopthreefundraisingtechniques.

Inlastyear’sEFAsurvey,corporatefundraisinghadbeenlistedasthethirdmostcommontopincomedriverfornonprofitsinEurope,butamidstreportsofincreasedcorporatecuts,onlythreeEuropeannationsnowconsiderthisformofgivingintheirtopthreefundingsource(downfromfiveinlastyear’ssurvey).

NBThisgraphonlyincludesthosemethodsthatwereselectedasatopthreefundraisingmethodinthreeormorenations.

024681012

Directmail Publiccollecions(directdebit)

Membershipincome

Mobile/SMSfundraising

Publiccollecions(cash)

Corporatefundraising

No.ofE

urop

eanNaa

ons

Whatarethetopfundraisingmethodsbyvoluntaryincome?

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"SMSandtextgivingisnowthesecondmosttrustedwayofgivingforindividualdonorsinSlovakia.Withgrowingmobilepenetration,thesefundraisingtechniquescontinuetogaingroundandhavebecomeveryimportantwhenraisingfundsfromindividuals."

“TheflipsideofthecoinisthatSMSinSlovakiadoesnotcurrentlyallowforbuildingrelationships,becausethegiftremainsanonymousandthisremainsachallengeifwearetofullyutilisemobiletechnologyinthefuture.”

EduardMarcek,SlovakFundraisingCenter(Slovakia)

TopCharitableCauses

Whennationalfundraisingrepresentativeswereaskedtoidentifythetopcharitablecausesbyvoluntaryincome,awidearrayofcauseswerehighlighted,andyetcharitiesworkingwithchildrenandyoungpeopleandhealthcare/medicalresearchfieldsdominatedthefindings.

02468

101214

No.ofE

urop

eanNaa

ons

Whatarethetopthreecharitablecausesbyvoluntaryincomeinyournaaon?

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STATEOFTHENATION

TheEconomyvsPre-RecessionYears

Onthewhole,Europereportsapositivepictureofeconomicgrowthonpre-recessionyears,withninenationsstatingthattheirnationaleconomyhasgrownbeyondpre-recessionlevels,butfiveindicatedthatthiswasnotthecase.

Mostnotably,respondentsineverynationsurveyedindicatedthattherewashigherdemandforcharitableservicesandthelargemajority(11nations)identifiedthatcorporateandstatutoryfundingcutshavecontinued.Onlyfournationsagreedwiththestatementthatfewerpeoplearegivingtocharity.

“Althoughvoluntaryincomeisontherise,thedemandforcharitableservicescontinuestoclimb,puttingimmensepressureonnonprofitorganisationstomeettheneedsoftheirbeneficiaries.”

GüntherLutschinger,FundraisingVerbandAustriaandEFAPresident

-0.40 0.00 0.40 0.80 1.20 1.60

Fewerpeoplearegivingtocharity

Peoplehavelessdisposableincome

Theavgindividualdonaionamounthasincreased

Thenaionaleconomyhasgrown

Corporateandstatutoryfundingcutsconinue

Thereisgreaterdemandforcharitableservices

Thinking about the state of the economy in your nation in 2014 compared to pre-recession years, do you agree / disagree with each

of the following statements?

Disagree(-)toAgree(+)Averageresponseonaraingofstronglydisagree(-2)tostronglyagree(+2)

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TaxIncentives

AlloftheEuropeannationssurveyedprovidesomeformoftaxbreakforcharitiesand/ortheirsupporters,butthenationalschemesvarywidely.Taxincentivesrangefromtaxrebatesforsupportersand/orcharitiestotaxcredits(wherethedonationisdeductedfromtaxdue)andtax-deductiblemodels(meaningthatthetotaltaxableincomeisreduced)andcombinationsoftheabove.

“TaxreliefsondonationsarehugelyimportantforcharitiesintheUK.OverabillionpoundsisraisedthroughGiftAideachyear,aswellasanotherbilliononbusinessratereliefs-vitalextraincomethatmeanstheycandelivermorefortheirbeneficiaries.

“Providingacomprehensivetaxreliefsystemdemonstratesgovernment’scommitmenttosupportthesector.TheaddedvalueforcharitiesintheUKisanimportantincentivefordonorswhocanseehowmuchfurthertheirgiftwillgowhengiventax-effectively.”

DanielFluskey,InstituteofFundraising(UK)

Thelargemajorityofnationsoffertaxbreaksforcompaniesthatdonategoodsormoneyandforindividuals.But,inAustria,Slovakia,SpainandSweden,taxincentivesareonlyavailablefordonationstocertaincharitiesorcausesandinFinlandtheschemeisparticularlyrestrictive(asbelow).InsomeCentralandEasternEuropeancountries,the1%taxdonationmodel,whichenablestaxpayerstodonate1%oftheirtaxduedirectlytorecognisednonprofits,isalsooffered.

“FinlandiscurrentlyleftfarbehindotherEuropeanstatesintermsofthetaxincentivesavailabletopromoteormaximisecharitablegiving.Thereisnotaxreliefforindividualsthatgivetocharity,althoughtherearesomebenefitsforcompaniesthatgivetocertaintypesofnonprofitsworkinginscience,universities,artsandculture.Whilewewelcomethosebenefits,weareurgingGovernmenttoextendtheschemesothatindividualscangettaxreliefontheirdonationsandthatthecorporatesystemisextendedtocoverallcauses.”

PiaTornikoski,VaLary–theFinnishFundraisingAssociation(Finland)

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all

Taxincenivesforpeoplewhogivestraightfromtheirsalaryorpayroll

Chariiescanclaimtaxrebatesondonaionsfrom

taxpayers

No.ofE

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Whattaxincenavesarecurrentlyavailableongidstochariaesinyournaaon?

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Tax-EffectiveGivingSchemes• Atax-effectivegivingschemehasexistedintheUKsincethe1920s• Swedenisthemostrecentnationtohaveintroducedasystemoftaxreliefs(in2012),

althoughGovernmenthasrecentlythreatenedtorescindthosetaxbreaks.• Austria’stax-effectivegivingframeworkwasfirstintroducedin2009,butthesystemisnot

opentoallcharities,(artsandanimalcausesarecurrentlyexcluded).

Attheendofthesurvey,participantswereaskedtoidentifyoneimprovementthatnationalGovernmentcouldmaketohelpnonprofitsandthemostcommonneed,(identifiedbysurveyparticipantsinfournations)wasforanenhancedorbettersystemoftaxbreaks.

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INFLUENCINGFACTORSANDCONCERNS

RespondentstoEFA’ssurveywereaskedtoindicatehownegativeorpositiveanimpactthefollowingfactorshadonfundraisingfrom2013to2014.

Theadvanceofmobile,SMSandonlinefundraisingtechnologyandgrowinguseofsocialmediawerecitedasthetwomostcommonpositiveinfluencingfactorsonfundraisingfrom2013to2014.Whiletraditionalfundraisingchannelscontinuetoraisethehighestlevelsoffunds,nonprofitshaveembracedthedigitalworldanditsfundraisingpotential.

"InSlovenia,itisonlyhumanitarianorganisationsthatareeligibletoregisteranSMSkeywordthatenablesfundstoberaisedthroughtextgiving,butithasbeenhugelyimportantforthoseorganisations.Particularlywhenitcomestonaturaldisasterappeals,SMShasbeenthemostefficientwaytorallysupportfromthepublicalmostimmediately."

LivijaRojcŠtremfelj,SlovenianFundraisingAssociation(ZRNO)

ThemostcommonlycitednegativefactorforfundraisingwastheswitchtoSEPA(theSingleEuroPaymentsArea)in2014.SixoftheEuropeannationsparticipatinginthesurveyidentifiedchallengesinadaptingtoSEPAregulations.Anecdotally,EFAmembersreportthatthenegativefactorsaroundSEPA’sintroductionrangefromchangestotheoperationalsystemsrequired,theonusfordonorstoadapttothenewrequirementsandontohighbankingcharges.

-0.50

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0.27

0.31

0.33

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1.06

1.13

Adoption of SEPA

The state of the national economy

Competition from charities, corporates, social enterprises and others

Changes to charity / fundraising regulation

Changes to tax incentives for charitable giving

Media coverage of charities

Higher standards of fundraising

Technological developments

Greater use of social media

Negaive(-)toPosiive(+)Averageresponseonascaleofverynegaive(-2)to

veryposiive(+2)

Whatimpactdidthefollowingfactorshaveonfundraisingfrom2013to2014?

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"WhileSEPAmaybeapositivestepinthelongterm,wearestillinanadjustmentperiodwheremanyorganisationsarehavingtochangetheiroperatingsystemsinordertocomply.Inthissense,ithashadanegativeimpactonnonprofitsandtheirabilitytoprocessdonations,alongwithotherpayments.”

AliciaLoboCasero,AsociaciónEspañoladeFundraising

Throughout2015,thesamefactors(technologicaldevelopmentsandgreateruseofsocialmedia)arealsopredictedtohavehadthemostpositiveimpactonfundraising,followedbyhigherstandardsoffundraising.Theonlyfactortoachieveanaveragenegativerating(scoringlessthanthreeonanegativetopositiveratingof1-5)wasthestateofthenationaleconomy.Sixnationspredictedthatthestateoftheirnationaleconomywouldhaveanegativeimpactonfundraising.

CurrentConcerns

Whenrespondentswereaskedtorankthefollowingconcerns,publictrustincharitiesremainedthetopareaofconcernfornonprofits(aswasthecaseinlastyear’sEFAsurvey)withtheaverage‘concernrating’climbingupto2.44(from2.41in2014and2.29in2013).TheVATburdenandrisingcostoffundraisingarethenextmostprominentareasofconcern,whichtogetherwiththeincreaseddemandforcharitableservicesarestretchingthecapacityofnonprofits.

Howconcernedarecharitiesinyournationaboutthesefactors?(Rankedonascaleof1-3where1isnotatallconcernedand3isveryconcerned)

RatingAverage

Publictrustincharities 2.44CostofVATforcharities 2.33Risingcostoffundraising 2.31Increaseddemandforcharitableservices 2.19Shrinkingdonorpool 2.13Shortageofskilledfundraisers 2.06Donordemandsforgreatertransparencyandaccountabilityfromcharities 2.00

ProposedchangestoEUdataprotectionlegislation 1.73

Whilefewcanpredictwhenascandalmayrearitshead,theimpactandsubsequentripplesfromthatscandalmaycontinueforaconsiderablelengthoftime,ashasbeenmostevidentintheUKatthetimeofwritingthisreport.

Sixmonthsago,thetragicstoryhitUKheadlinesofthesuicideofanelderlycharityvolunteeranddonor,claimingthatshehadbeen‘houndedtodeath’bycharityfundraisers.WhileMrsCooke’sfamilyhavesincesaidthatcharitieswerenottoblameforhersuicide,thenewssparkedalarge

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numberofcomplaintsonfundraisingandpoliticalcallsforfundamentalchangestofundraisingrulesaswellasthewholesystemofself-regulation.

MeanwhileintheNetherlands,nosuchcrisishastakenplace,buttheGovernmentandfundraisingsectorhavecometogetherproactivelytoestablishanewself-regulatoryregimethatwillrequireallcharitiestoadheretothescheme,withtheintentionofpreservingandprotectingpublictrustandconfidenceandsupportingcharitablegiving.

“We’restartingwithanewsetofrulesthatallcharitiescanand,withthehelpinghandofthegovernment,mustapply.Publictrustisnotguaranteed,itneveris,butwewillhavefarbetterconditionstogainit,dayinanddayout.”

GosseBosma,GoedeDoelenNederland(Netherlands)

Thanksgotoallsurveycontributors,includingrepresentativesfrom:

FundraisingVerbandAustria,CzechFundraisingCenter,VaLary(Finland),AssociationFrançaisedesFundraisers(France),DeutscherFundraisingVerband(Germany),FundraisingIreland,ASSIF(Italy),GoedeDoelenNederland(Netherlands),NorgesInnsamlingsråd(Norway),SlovakFundraisingCenter,SlovenianFundraisingAssociation(ZRNO),AsociaciónEspañoladeFundraising(Spain),FRII(Sweden),InstituteofProfessionalFundraising(Ukraine)andInstituteofFundraising(UK).

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ABOUTEFA

TheEuropeanFundraisingAssociation(EFA)isanetworkoffundraisingassociationsworkingtostrengthenanddevelopfundraisingacrossEurope.

Thenetworkofmembersspans20Europeancountries.EFAalsoworkswithobservernationsandotherinternationalpartnersincludingfundraisingassociationsintheUS,IsraelandJapan.

EFAisgovernedbyaGeneralAssemblymadeupofarepresentativefromeachcountryanditsprogrammeofworkisdirectedbyEFA’sBoard.

TheBoardisledbyPresident,GüntherLutschingeroftheAustrianFundraisingAssociation(FundraisingVerbandAustria)andVicePresidentandTreasurer,BeckyGilbertoftheGermanFundraisingAssociation(DFRV).BoarddirectorsalsoincludeAndreaCaracciolodiFeroleto(ASSIF,Italy),MariaRosJernberg(SwedishFundraisingCouncil,Sweden),SvitlanaKuts(InstituteofProfessionalFundraising,Ukraine)andDanielFluskey(InstituteofFundraising,UK).DeniseDawesservesasEFA’sExecutiveOfficer.

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CONTACTUS

EuropeanFundraisingAssociationJamesWattstraat100NL-1097DMAmsterdamNetherlandsPhone: +493040536845Fax: +493040536846E-mail: [email protected]: www.efa-net.euFacebook: EFAFanPageEFAisregisteredattheNetherlandsChamberofCommerce,reg.no.34212817