vWHY DO WE GIVE?: DONOR MOTIVATIONSSally Bagwell, Senior Consultant, New Philanthropy Capital

London, October 2014

NPC: TRANSFORMING THE SOCIAL SECTOR

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NPC works at the nexus between non-profits and

funders

Non-profit

SectorFunder

Increasing the impact of

non-profits

eg, impact-focused theories of change

Strengthening the partnership

eg, collaboration towards shared

goals

Increasing the impact of funders

eg, framing issue & mapping needs

ConsultancyThink tank

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NPC: THE FOUNDING STORY

Helping charities & funders do good, better

Transforming the charity sector

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NON-PROFITS: RAISE FUNDS, DELIVER WORKSocial impact requires both aspects to work well

Raise resources

Deliver interventions

Create social impact

Funding

Activity

Impact

+

=

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WHO IS THE BENEFICIARY?There’s a danger it’s not who we think

Funders' demands take

priority to raise resources

Organizational survival takes

priority over mission

Benefit to funders, boards, staff and

volunteers

Non-strategic funding

Non-strategic Activity

Lack of lasting impact

+

=

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TO MAXIMIZE IMPACT, NEED TO RESHAPE BOTH ASPECTS OF SOCIAL SECTOR

Resources seek

maximum impact

Effective interventions delivered by effective

organizations

Maximum social impact

achieved

$ seek impact

Activities effective

Towards impact

+

=

MONEY FOR GOOD UK

What are the different reasons people give to charity

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SEGMENT PROFILES

Ad hoc giver

“I give because I’m asked”

Engaged champion

“I give time and get my friends

involved”

Thoughtful philanthropist

“I give to make an impact”

Benefactor

“I give to lead by example”

Faith-based donor

“I give for my community”

Loyal supporter

“I give because I care about the

cause”

Good citizen

“I give because it’s the right thing

to do”

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SEGMENTS (HIGH-INCOME DONORS)

Thoughtful philanthropist

Benefactor

Engaged champion

Faith-based donor

Loyal supporter

Ad hoc giver

Good citizen

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31

10

4

17

9

8

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SEGMENT GIVING LEVELS

Mainstream

 Segment % population % donations

Ad hoc giver 18% 9%

Faith-based donor 11% 32%

Thoughtful philanthropist 7% 7%

Benefactor 4% 7%

High-

income

 Segment % population % donations

Ad hoc giver 31% 14%

Faith-based donor 4% 12%

Thoughtful philanthropist 8% 17%

Benefactor 9% 15%

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GIVING MORE AND SWITCHING

Mainstream High-income0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

63%

46%

10%

13%

17%

19%

10%21%

Give more to same charities and shift to those doing a better job

Same total but shift to charities that do a bet-ter job

Give more to same charities

No change

£155 £603

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POTENTIAL TO GIVE MORE

£1,739m switchable donations

£171m high-income

£665m additional donations

£1,569m mainstream

£596m mainstream £68m

h-i

DONOR ATTENTION AND SATISFACTION WITH PERFORMANCE (HIGH-INCOME)

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SEGMENTS INTERESTED IN IMPACT

Engaged champion

“I give time and get my friends

involved”

Thoughtful philanthropist

“I give to make an impact”

Loyal supporter

“I give because I care about the

cause”

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DONOR ATTENTION TO IMPACT

OBLIGATION TO DONATE

People should not feel obliged

to donate money to char-

ity

People should donate money

to charity if they have the

means

I do not agree with either statement Chart Title

47

9

44

PUTTING THE RESEARCH INTO PRACTICE

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KNOW YOUR DONOR TOOL

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FUNDRAISING PERSPECTIVES

Uses for Money for Good:

• Understand existing supporters better to communicate with them effectively

• Spot gaps in current donor acquisition techniques

• Use in conversations with major donors

PLEASE TAKE A LOOK!

Money for Good UK

Know your donors: the Money for Good UK donor segmentation tool

Fundraising perspectives: donor segmentation & Money for Good UK

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vTHANK YOUNew Philanthropy Capital – Transforming the charity sector

Sally Bagwell, sally.bagwell@thinkNPC.org