global philanthropy soni 2012 · •recruiting staff •recruiting donors •fundraising trends...

Global Philanthropy SONI 2012The state of the non-profit industry and expectations for 2013

Martin CampbellDirector of Strategy and InnovationBlackbaud Europe

Neelam MakhijaniChief Executive OfficerResource Alliance

Thursday, 18 October 12

Welcome to the sessionIntroductions- Martin, Baigent Digital, Convio, Blackbaud- Neelam ...

Purpose of this session:- Introduction to the research- Highlight key findings- Discuss these findings with this international group


SONI Annual researchThis year a collaboration between the organisations shown hereshort period over the summer: 1516 organisations surveyed9 countries included in results

We will look at the overall picture and we’ll also spot some differences.

NEW Donor Attitudes SurveyOnline survey distributed across US, UK and AustraliaDesigned to compare results with SONI 2012Respondents US (1321), UK (1426), Australia (1576)Published in full in November, but I have some sneak previews today as we compare to SONI.

Agenda

• Recruiting staff

• Recruiting donors

• Fundraising trends

• Online giving

• Mobile technologies


We will look at the key findings of the report in these areasDetail in the report itself

Research leadInteractive as possibleDiscussion at various points- if we are short on discussion, finish early!

Highlights from Donor Attitudes Survey in each area.

619

107

USACanada

301

135

93

6158

UKItalyFranceNetherlandsGermany

94

48

AustraliaNew Zealand

Respondents


First a sense of the organisations we sampled

Total respondents in North America 726Total in Europe 648 Total Australia and New Zealand 142USA Largest with 619 respondentsNZ Smallest in the survey with 48 respondents - still enough for good conclusions

87%

13%

Optimistic Pessimistic

77%

23%

87%

13%

89%

11%

80%

2067%

33%

83%

17%

66%

34%

78%

22%

Optimism

USA

Canada

France

UK Netherlands

Germany

Italy

New Zealand

Australia


Last year: high levels of optimism 83% overall expecting increases in funding. Downside more visible this year and it’s clear that there’s a lot of variation.

In general, optimistic about ability to deliver services within expected budget

Those most optimistic had fundings from individual and corporate donations, fees and earned income

Less optimistic were sourced from government and foundations.

Suggestion that institutional funding is seen as risky.

Not consistent though, Germany had highest level of pessimism but high individual donation income.

Donor Attitude Survey reported:25% from each country (US, UK, Australia - Not Germany) reported amount they donated to charities increased in last 12 monthsMajority reported no changeWhere donations decreased, this was largely due to own financial circumstances

So donations holding up, institutional funding is seen as at risk.

Staff Recruitment


Our first theme then: Staff Recruitment

Factors here: Charities struggling with budget:But also higher than usual unemployment in many countries.

55%45%

Easy Difficult

67%

33%

45%55%

60%40%

27%

73

49%51%

44%56%

54%46%

52%48%

Staff Recruitment

USA

Canada

France

UK Netherlands

Germany

Italy

New Zealand

Australia


Organisations reporting that recruitment easy: 60% in Canada - 27% in Italy.North america, Australia and New zealand were very similar, but big differences across europe.

Difficulties: locating employees with the right skills sets / funding

Key factors in ease: strong reputation and a mission where there is a passion in the community.

Those reporting recruitment to be easy around twice as likely to recruit additional headcount. (Funding reason)

Most difficult areas to recruit: finance, marketing, programme deliveryNot much difficulty in fundraising?General skills might be sought after in general economy?

Key reason for difficulty was locating employees with the right skill sets.Most Frequent issue except in Canada and Italy, where it was the second most frequently reported issue with recruiting new staff.

Second issue was funding for positions, affected at least half of the nonprofits in all countries except the United Kingdom and the Netherlands.This was the most frequently issue in Canada and Italy and the second most frequently reported issue in all other countries.

Donor Recruitment


Moving on to Donor Recruitment.

61%

39%

Optimistic Pessimistic

50%50%

63%37%

60%40%

51%4952%48%

45%55%

46%54%

61%39%

Donor Recruitment

USA

Canada

France

UK Netherlands

Germany

Italy

New Zealand

Australia


Those with Revenue from individual and corporate donations reported high levels of optimism

Vast majority of nonprofits in every country were either “optimistic” or “reserving judgment” about their new-donor prospects. Optimism levels were highest in New Zealand (63%) and lowest in the Netherlands (45%). French nonprofits had the highest levels of pessimism (12%), while those in Canada had the lowest (0%).

Larger organisations were more optimistic than smaller.

Optimism also varied according to channels / methods to discover and recruit new donors.Those with more channels integrated were more optimistic than those with only a few.

Traditional methods such as using personal contacts from staff, volunteers, or board members and prospecting special event attendees were the most frequently reported methods used for discovering new potential donors.

Prospecting special events attendees was also rated as one of the most effective methods for recruiting new donors in all countries.

Using referrals from existing donors was reported to be an important source for discovering new donors

But in many countries this less popular than finding donors among social networking followers and website visitors suggesting incorporating more interactive strategies for recruitment

Constant, ongoing communication with donors was reportedly the most effective strategy used by nonprofits that were successful in retaining existing donors.

There was a positive relationship between prompt acknowledgement of a donation and donor retention rates among participating nonprofits.

Donor Survey – seems to support these findings

In UK most popular reason to make last one-off donation is through sponsoring someone in an event (34%). 15.9% in US, 19% in Australia

In Australia a quarter of respondents most likely to respond to an in-person solicitation (shopping centre/street/supermarket) or door-to-door solicitation

Personal circumstances the other big driver (e.g. them or a loved one being personally affected by an issue or illness)

Fundraising


Moving on to Overall Fundraising Trends

36%

51%

13%

Most Effective Effective Not Used

31%

40%

29%

32%

41%

27%

34%

47%

19%

49%14

37%23%

44%

33%

24%

55%

21%

23%

48%

29%

22%

56%

22%

Event Fundraising

USA

Canada

France

UK Netherlands

Germany

Italy

New Zealand

Australia


Special events were rated the most effective in the United States, the United Kingdom, Italy, Germany and New Zealand.

Direct mail was considered the most effective method in Canada, Australia, and France.

Together, special events and direct mail were considered the most effective methods in all countries, with the exception of Netherlands where peer-to-peer fundraising was considered to be the most effective fundraising method and in the UK where slightly more nonprofits thought scheduled meetings with prospective major donors was more effective than direct mail.

Special events were the most widely reported method to drive individual donations, and respondents reported they will continue to be among the top two methods in most countries over the next year.

Respondent reported that scheduled meetings with prospective major donors will increase in importance in the next year and, if plans to implement these strategies hold true, may become more most widely used than special events as a fundraising method in Canada, Germany, the Netherlands and the United States.

Social networking and peer-to-peer fundraising were the fastest growing methods of fundraising.

Organisations that reported using several solicitation methods to drive donations reported higher levels of optimism with regards to their ability to increase individual contributions in the next year.

One thought provoking finding was that the popularity of donor recruitment methods did not always align with the perceived effectiveness of that method. For example, in many countries social networking is widely used, but very few organizations rated it as being an effective method. It may be that Internet-based donor recruitment methods are relatively low-cost, which means that nonprofits will use them even if they are not very effective. On the other hand direct mail is generally considered to be effective, but it is not among the most popular methods in most countries.

Donor SurveyDonor Survey Findings

25% from each country reported amount they donated to charities increased in last 12 monthsMajority reported no change.Overall some optimism has therefore been justified

Where donations decreased, this was largely due to own financial circumstances

More reported responding to a direct mail piece than an appeal on social media or receiving an email newsletter

So whilst social is on the rise, the combination of this with the observation that multiple channels are more effective, integration is required as direct mail still an essential part of the mix

Those who stopped giving to a charity: Personal financial situation was reason for 40%

2nd reason was feeling charity was not using their money effectively enough: Proving impact/providing information on how money is spent is important (this is where ongoing comms can support)

Majority of respondents didn’t have a particular time frame for when they expected a thank you.

Those that did have an expectation it was somewhere between 6-15 days

Donor Survey Echoed that In UK most popular reason to make last one-off donation is through sponsoring someone in an event (34%). 15.9% in US, 19% in Australia

Online


16%

40%

44%

25% + Online Increasing Online No increase

13%

41%46%

17%

42%

41%

15%

41%44%

6%33

61%

8%

56%

36%

15%17%

68%8%

56%

35%

29%

30%

41%

Online

USA

Canada

France

UK Netherlands

Germany

Italy

New Zealand

Australia


We looked at those whose online was steady (including no income), those with increasing income, and those recieving more than a quarter of income online. In many countries this remained at a low level, but more than 10% in most countries, and in australia up to 29% - showing online really taking a strong hold there.

Italy at the other end of the spectrum though, with only 6% getting more than 25% online.

Overall, while the proportion of total donations received online is still relatively small, the majority of organizations that accept online donations report that, over the past 12 months, the proportion of online giving has increased.

Nonprofits that reported growth in online donations attributed the growth to factors such as: - the organization’s improved or increased accessibility to its website, - the organizations efforts to increase public awareness of online donation options, - a perceived cultural change towards acceptance of online transactions, - and the adoption of new software and technologies that make online donation options available and easy to use.

Online donations seem to be growing the fastest in France and Germany where over 60% of participating organizations reported that online donations have increased over the past 12 months. Online donations may be growing at a slower rate in the Netherlands and Italy where less than 40% of organizations reported increases over the past 12 months. Netherlands is of course ahead of france and Germany, so they have further to go to catch up, but the figures from Australia show that increasing online use doesn’t slow the rate of growth there.

Blackbaud Online Giving Index in UK produced with Institute of Fundraising – for sample group of orgs, online giving has increased for 13th month in a row as of Sep http://www.institute-of-fundraising.org.uk/research/uk-online-giving-trends/

Blackbaud Index of Online Giving - online giving increased by 2.4 percent for the 3 months ending August 2012 https://www.blackbaud.com/nonprofit-resources/online-giving-index.aspx

OnlineMobile


Mobile

Who gets mobile donations?

Current use:

Having the organization’s website enabled for mobile browsing was the most widely used mobile technology among respondents from New Zealand (37%), Australia (35%), France (33%) and Canada (30%).

Optimizing email messages for viewing on mobile devices was also frequently utilized by organization in the United States (29%), Australia (26%), Canada (24%), and Italy (20%).

The use of QR codes to highlight the organization’s mission or to enable donations was most frequently used by organizations in Germany (27%) and the United States (22%).

Planned use: More than 40% of Nonprofits in each country plan to enable their website for mobile browsing in the next 12 months.

Organizations in New Zealand (49%), Canada (43%) and Australia (42%) were the most likely to report they plan to use QR codes to bring attention to the organization’s mission or enable quick access to their donation page in the next 12 months.

With the exceptions of France and Germany, more than a third of Nonprofits in each country reported they plan to optimise their email messages for mobile devices in the next 12 months.

Some growth will be quite dramatic. While only 1% of Australian nonprofits reported they currently use SMS/text giving in fundraising efforts, 39% plan to do so over the next year.

Participating organisations worldwide reported that their use of mobile technologies in general operations and fundraising will increase dramatically in the next 12 months, in most countries more than doubling.

In the next 12 months, more than two-thirds of participating organisations in each country will be using at least one mobile technology such as - enabling their website for mobile browsing, - using QR codes to bring attention to their mission or enable quick access to their donation page, - or optimising emails for mobile devices in general operations.

Among nonprofits that engage in fundraising, more than one third of organisations in each country reported they will use at least one mobile technology such as using mobile devices to collect funds when outside the office, - enabling SMS/text giving, - or using mobile devices to access information contained in their donor database in their fundraising operations in 12 months.

We saw increased online adoption as a big factor in high in the previous section, and our Donor attit

Around 50% of respondents from US, UK and Aus reported using mobile to read emails and view websites

23.5% of UK respondents send text donations (highest of the 3 countries surveyed) and most popular age group for text donations was 18-24 (closely followed by 25-34)

15.6% of US respondents donate through the website (highest of the 3 countries surveyed)


That’s all folks

Available on the BB website later this week.

global philanthropy soni 2012 · •recruiting staff •recruiting donors •fundraising trends...

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