Seven Practical Ideas to Optimiseyour Charity’s Fundraising

David Hopkins and Chris Allwood

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

IndividualsCharities

Financial

services

Consultancy

services

Develop

the sector

Local Global

2010/11 2009/10 2008/09 2007/08 2006/07

Total income £38.3 billion £38.3 billion £38.1 billion £39.5 billion £38.9 billion

Voluntary income £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

Income trends from 2006-2011

Source 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)

Investment (proceeds generated from investments & cash balances)

Total

Individuals (The general public, including trading activities and excluding charitable foundations set up by individuals)

£8.07 billion(fees for services provided; membership subscriptions with significant benefits;

£8.40 billion(individual donations; covenants; legacies; membership subscriptions without significant benefits)

£16.47 billion

Statutory sources (Government and its agencies in the UK, EU and international governments)

£11.23 billion(public sector fees; payments for contracted services)

£2.95 billion (funding grants; grants to charitable intermediaries)

£14.18 billion

National Lottery distributors £483.1 million(grants from National Lottery distributors)

£483.1 million

Voluntary sector (such as trusts and grant-making foundations)

£1.24 billion(services provided under contract)

£1.99 billion(grants from charitable trusts; grants distributed by charitable intermediaries)

£3.23 billion

Private sector (excluding charitable foundations set up by businesses)

£836 million (sponsorship; research or consultancy; patent royalties)

£841.9 million(corporate grants and gifts)

£1.678 billion

Investment income (Proceeds from investments, excluding gains on value of investments)

£2.291 billion (dividends; interest payments; rent from investment property)

£2.291 billion

Total £21.373 billion £14.133 billion £2.291 billion £38.336 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 2010/11Areas 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 services-than 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

Charities Voluntary Income

45%

12%

20%

3%

14%

6%

Individuals

Legacies

Statutory Sources

National Lottery

Trusts

Companies

Source: NCVO 2013,

UK Civil Society Almanac

Micro Charities Voluntary Income

75%

1%

9%

0%

13%2%

Individuals

Legacies

Statutory Sources

National Lottery

Trusts

Companies

Source: NCVO 2013,

UK Civil Society Almanac

Small Charities Voluntary Income

54%

1%

20%

3%

18%

4%

Individuals

Legacies

Statutory Sources

National Lottery

Trusts

Companies

Source: NCVO 2013,

UK Civil Society Almanac

Medium Charities Voluntary Income

44%

4%

25%

6%

18%

3%

Individuals

Legacies

Statutory Sources

National Lottery

Trusts

Companies

Source: NCVO 2013,

UK Civil Society Almanac

Large Charities Voluntary Income

46%

9%

21%

5%

13%

6%

Individuals

Legacies

Statutory Sources

National Lottery

Trusts

Companies

Source: NCVO 2013,

UK Civil Society Almanac

Major Charities Voluntary Income

45%

17%

18%

1%

12%

7%

Individuals

Legacies

Statutory Sources

National Lottery

Trusts

Companies

Source: NCVO 2013,

UK Civil Society Almanac

Activity 1 – Human Doughnut Chart

Individuals

Companies and/or Trusts

Legacies

Fundraising Spending

Source: Institute of

Fundraising 2006 & 2011,

Fundratios

86%

5%9%

2011 Fundraising Spending

Individuals

Legacies

Companies & Trusts

86%

4%10%

2006 Fundraising Spending

Individuals

Legacies

Companies & Trusts

Fundraising Spending vs Income

Source: Institute of

Fundraising 2006 & 2011,

Fundratios

86%

5%9%

2011 Fundraising Spending

Individuals

Legacies

Companies & Trusts

58%

16%

26%

2011 Charity Income

Individuals

Legacies

Companies & Trusts

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

Many corporates are on a journey

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.

57

58

56 56

54

56

58

55

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

Proportion of adults in UK giving to charity in a typical month

Who gives?

£4

£8

£11 £10£10

£15£14 £15

Men Women

Median donation per month by age and gender

16-24 25-44 45-64 65+

Scottish Daily Mail readers

£4.63

92%

Direct Debit – still the Gold Standard

Up from 26%

in 2006

Source: CAF 2012,

UK Giving

Mobile

Use web on

phones 44%

(up 13%)

Smartphone

ownership up

to 45% (up

13%)

Mobile

ownership 92%

Pay monthly

58% Tablet

ownership

24% (up from

11%)

Source: OfCom 2013,

Communications Market

Report (August)

How many charities can add data from these sources to their database?

Source: Blackbaud 2014,

Data Driven Fundraising

How do you want to be asked to give?

Source: GMI 2013,

Marketing Week Study

What actually inspired you to give? – US

Source: YouGov 2013,

Giving Report

21% of US

donors

Campaign led giving

More cross selling – greater diversity of products

ACTIVITY 2

What changes have you noticed?

Groups of 2

Burning feedback

Practical

Ideas

Optimise

Online

Optimise Online

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

Obvious donate

button on every page

Help potential

donors to

touch, taste

and feel your

impact

140

The total number of people who attended our Welsh and

England Conservation workshop

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.

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.

900Potential hectarage gained from giving advice by email/phone to landowners outside of Bees for

Everyone regions

7The number of farm days delivered by conservation

Officers

376The number of farmers and landowners the

conservation team have engaged with in 2013

100%BBCT input into the National Pollinator Strategy

1Memorandum of Understanding signed with the

Ministry of Justice

830Hectares the Sub T reintroduction project has created, advised and assisted in the management of within the

release area of Dungeness and Romney Marsh

6Bombus Sub T workers recorded on Dungeness – the

first in 25 years

BUMBLEBEE CONSERVATION TRUST “BEES FOR EVERYONE” PROJECT

YEAR IN NUMBERS 2013

Key facts & achievements

Stories

Quotes

Photos

Harness the

power of fun

and social

giving

Harnessing the power of social

Get your

ducks in a

row!

The Fundraising Process

Map your proposition

Develop Case for Support

Prospect Research

Approach strategy

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

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

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

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

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

Your potential

hit list

Civil Society Charity Awards Guardian

Charity Awards

Charity Times

Awards

Third Sector

Excellence Awards

SCVO Scottish Charity Awards

National Lottery Awards

Third Sector

Business Charity Awards

Queens Award for Voluntary Service

GSK Impact Awards

2014 Scottish Charity Awards

Closing date for entries is Wednesday 26 March

Multi-channel

where ever

possible

Give directly on Facebook

Multi-channel – phone or post

Multi-channel – Online

Multi-channel – Mobile Optimised

ACTIVITY 3

Will you try a new fundraising channel for 2014? If so what’s your next step?

Discuss in pairs

ACTIVITY 4

Your top tips

Discuss in your rows

Best tips

Questions & Answers

Thank you

David Hopkins

@davidlhopkins

dhopkins@cafonline.org

Chris Allwood

callwood@cafonline.org

Charities Aid Foundation

@cafonline

Facebook.com/CharitiesAidFoundation