Philanthropy and Fundraising

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Philanthropy and Fundraising
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Outline

• Philanthropy facts
• Fundraising practices

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Individuals Give the Bulk of Donations
Ref. Oster 1985
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Religion Gets the Biggest Part of Donations
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Per Capita Donations 1995,Excluding Religion
Ref. Salamon, et al 1999
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Private Contributions, Corrected for Income
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Gifts of Time
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What Is Associated with Charitable Giving?
Gender Effect depends on income
Ref. PBF 2002
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The Role of Religion
Ref. 2000 SCCBS
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The Link BetweenReligion and Volunteering

• Correcting for country and demos, religious 18
  points over secular

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Giving CurveIndustrialized Nations
Ref. CEX data, first quarter 1999
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Transition Economies
Ref. RLMS data, 1993
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New Philanthropy

• New philanthropists appear different from their
  predecessors
• Younger wealthy give less than older wealthy, on
  average
• New wealth comes from new sources
• New philanthropy tends to be more hands-on and
  entrepreneurial
• Relatively little geographical bounding

Ref. Brown 2000
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The Future with New Philanthropy

• Future for old-money charities is uncertain
• Fundraising should focus on industries and
  interests, not geography
• Will new philanthropy gravitate to religion as it
  ages?

Ref. Brown 2000
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Outline

• Philanthropy facts
• Fundraising practices

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How to Spend Fundraising Dollars?

• Three strategies
• Win (acquire new donors)
• Keep (retain donors)
• Lift (escalate giving by old donors)
• Strategies represent fiscal tradeoffs

Ref. Domain Group
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Not All Donors Are Alike

• Core donors Gave a gift in each of the previous
  2 years
• Transition donors Gave a gift last year
• New donors Never given (yet)
• Lapsed donors Gave sometime in the past, but not
  last year

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Likelihood of Giving in the Second Year
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Donor Characteristics
Social welfare and intl aid orgns Source The
Domain Group
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Why Do Donors Defect?Survey of British Donors
that Stopped Giving

• Other NPOs more deserving 27
• Cant afford 22
• Dont remember supporting 11
• Didnt like fundraising 7
• Not re-asked to give 3
• Bad service 2
• Not enough information on uses 2
• No thank-you 2
• Felt not needed 1

Ref. Sargeant 2001
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Negative Information

• Example humanitarian relief charities in Western
  Europe

Ref. Brooks
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Using Negative Responses
Ref. Brooks
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Important Lessons

• Organizations leave money on the table
• if they dont track donors
• if they treat all donors as the same
• Focus on the core
• but dont neglect the othersthey are the future
  core