Focusing On What Matters

BIG CHANGE TRENDSFocusing in on what

matterswww.markholmgren.com

July 2010

http://www.markholmgren.com/

ON

TAR

GET

www.markholmgren.com

How will your nonprofitsustain relevancein a dramaticallychanging society?

ON

TAR

GET


KEY TRENDS

What’s inside this presentation:DemographicsCommunityIncome & WorkNon-Profit SectorPhilanthropy

- Donations & Volunteerism

GenerationsTechnology

- Internet, Social Media

ON

TAR

GET


D E M O G R A P H I C S

ON

TAR

GET


POPULATION

Between 2006 and 2031

Seniors grow by 110% 0-24 decrease 15%Everyone else, up about 5%

...how about a bar graph or two?

ON

TAR

GET


A PICTURE IS WORTH…SENIORS POPULATION GROWTH 2006-2031IN CANADA

65-69

70-74

75-79

80-84

85-89

65-89

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

160.00%

FROM STATS CANADA PROJECTIONS

ON

TAR

GET


A PICTURE IS WORTH…

FROM STATS CANADA PROJECTIONS

CHILDREN/YOUTH POPULATION GROWTH 2006-2031 IN CANADA

0-4 5-9 10-14 15-19 20-24 0-24

-25.00%

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

ON

TAR

GET


IMMIGRATION

In Canada, visible minorities will grow as much as 113% (2001 to 2017).

The rest of the population will grow at a rate between .7% and 6.7%

In 2003, one in ten immigrants spoke English or French as their mother tongue, compared to almost one in three in 1980.

ON

TAR

GET


IMMIGRATION

One in seven Albertans and nearly one in six Edmontonians are a visible minority.

Chinese comprise one quarter of the sub-population.

In 2017, roughly one person in five (between 19% and 23%) will be a member of a visible minority in Canada.

ON

TAR

GET


IMMIGRATION

In 2006, a total of 187,775 immigrants lived Edmonton.

60% represent visible minorities.

Over the next 20 years, Stats Canada projections indicate Alberta will be the destination for 350,000 to 400,000 immigrants.

ON

TAR

GET


FAMILY STRUCTURE

54.6 % of Edmonton`s adult population is married or common law.

29.7% are single

11% are divorced or separated

5% are widowed

In 2001, nearly 60% of adults in their early twenties live in their parents’ home, up 16% from 20 years ago.

In Alberta for every 2.2 marriages there is one divorce.

ON

TAR

GET


SUMMARY - DEMOGRAPHICS

…Huge Growth in Seniors# of children/youth declining

…Seniors out number children/youth

…Immigration drives growthIncreased Visible Diversity

…Family Make-up

IMPLICATIONSHealth Spending Up

Social Services for Seniors Up

Will education spending go down?Impact on Tax base?

Increased Language ChallengesCulture a Government Priority?

Impact on Volunteerism & Donations?

ON

TAR

GET


C O M M U N I T Y

ON

TAR

GET


EDUCATION

In Edmonton, 29% of students do not graduate within three years of entering high school.

Four years after graduating three of five high school graduates have not enrolled in post secondary education; after six years, the rate is two of five.

ON

TAR

GET


COMMUNITY

People who do not complete high school are more likely to

• be unemployed or employed in low-paying positions

• commit crimes, receive social assistance, and to have poor health

• AND less likely to vote and participate in civic life.

ON

TAR

GET


COMMUNITY

Two of every five Edmonton residents feel unsafe in their community. Nearly one in three Albertans report having been a victim of a crime in the past year.

ON

TAR

GET


COMMUNITY CRIME RATE IN EDMONTON

ON

TAR

GET


COMMUNITY

According to the Alberta Government, unless better ways are developed to address homelessness, it’s estimated that the Alberta government will incur costs of $6.65 billion over 10 years.

In 2008, a total of 3079 individuals identified as homeless. Nearly 10% were under the age of 18 (Edmonton)

ON

TAR

GET


COMMUNITY ADDICTIONS IN EDMONTON

There is an increase in the use and abuse of drugs and alcohol. For example, there are an estimated 4,000 injection drug users in Edmonton.

AADAC sees more than 3200 adult Edmonton clients annually seeking counselling for cocaine addiction.

ON

TAR

GET


COMMUNITY PROSTITUTION IN EDMONTON

There are an estimated 1000 prostitutes in Edmonton, of which 500 are streetprostitutes.

It is also estimated that there are approximately 10,000 “johns” in Edmonton.

ON

TAR

GET


COMMUNITY PROSTITUTION IN EDMONTON

Prostitute demographics

61% Aboriginal33% Caucasian6% other ethnicity.3% under the age of 1849% between 18 and 3048% over the age of 30.Over 50% do not have stable housing.

ON

TAR

GET


COMMUNITY SUICIDE IN EDMONTON

Suicide rate in Edmonton is 14.2 per 100,000 population.

Approximately 142 per year (2009)

In 1997, there were 2,118 recorded suicide attempts--or 2.5 per 1,000 (Edmonton-area region).

That rate today: over 2,500

ON

TAR

GET


SUMMARY - COMMUNITY

Challenges include:…Highschool graduation…Prostitution (esp. Aborginal)…Addictions…Homelessness…Suicide…Feeling Safe

IMPLICATIONSConsidering demographictrends, will there be funding forhigh school education and for otherserious community issues?

ON

TAR

GET


INCOME & WORK

ON

TAR

GET


INCOME

28% of Alberta Men40% of Alberta Women

40% of Lone Parent Families

L I V E I N P O V E R T Y

ON

TAR

GET


INCOME EDMONTON

In 2006, the median income for Edmontonian was $29,195 an the low income rate was 10.6%

Just over 73,000 Edmontonians live in poverty.

In 2006, 34.1% of lone parent families were below the low income cut off, up from 27.1% in 2004

ON

TAR

GET


INCOME EDMONTON

One in six children in our community live in poverty.

One-third of immigrants since 2004 are considered to be low income.

Aboriginal unemployment in 2006 was 9.8% compared with 4.6% for the overall Edmonton population.

In Alberta...Lone-parent families are more likely to live in poverty than couples with children (40% compared with 9%).

ON

TAR

GET


DEBT IN CANADA

Canadian Debt is rising at double the rate of growth of personal disposable income (e.g. Take home pay)

$752 BILLION

32% over 10

years

ON

TAR

GET


DEBT IN CANADA

Six in ten young Canadians between the ages of 18 and 29 are in debt.

Of those in debt, 36% owe between $10,000 and $19,999 and 21% carry a debt of $20,000 and up.

ON

TAR

GET


WORK FORCE PARTICIPATION

LabourForce Up

ParticipationDown

In 20 years the participation rate in the Alberta workforce will fall from 72% to 63%.

ON

TAR

GET


2031 One SeniorTwoWorkers

SENIOR TO WORKER RATIO IN CANADA

1981 One SeniorFive Workers

2005 One SeniorFourWorkers

ON

TAR

GET


WORK CANADA

Past 50 years: Canada’s workforce grew by 200%

Next 50 years: 11 percent

ON

TAR

GET


WORK EDMONTON

Recent immigrants experience higher unemployment rates (7.6% in 2006 compared with 4.6% of the total Edmonton population).

Aboriginal unemployment in 2006 was 9.8% compared with 4.6% for the overall Edmonton population.

ON

TAR

GET


SUMMARY – INCOME AND WORK

Challenges include:…Increased Poverty?…Smaller workforce as tax base…Diverse workforce…High personal debt…Higher unemployment for visible minorities

IMPLICATIONSTax increases?

Competition for jobs/increased remuneration.

Impact on volunteerism and philanthropy?

ON

TAR

GET


NON-PROFIT SECTOR

ON

TAR

GET


NON PROFIT SECTOR - ALBERTA

INDUSTRY REVENUES (BILLIONS)

Energy Products $22.5Agri-foods $12.7

NonProfit Sector $10.0Industrial Machinery $ 9.1

ICT $ 8.3Forest Products $3.4

ON

TAR

GET



54% of Non Profit organizations

do not have paid staff

175,000 employees19,000 non profit organizations

175,000 employees19,000 non profit organizations8,740

ON

TAR

GET



NOW CONSIDER...

Hospitals, Universities and Colleges make up 1% of Alberta organizations but employ 40% of

all paid staff.

175,000 employees8,740 non profit organizations8,550

105,000

ON

TAR

GET



BUT ALSO...

64% of staff are employed by 5% of non-profits.

Excluding Hospitals, Universities, Colleges

ON

TAR

GET



67,200 staff are employed by 856

non profits.

77% of therevenue.

23,100 staff are employed by 7,000

non profits

23% of therevenue split

between those aboveand the 10,300 that

have no staff.

ON

TAR

GET


Primary Activity Alberta Canada

Sports and Recreation 26% 21%Religion 19% 19%

Grantmaking, Fundraising & Voluntarism Promotion 11% 10%

Arts and Culture 10% 9%Social Services 9% 12%Education and Research 8% 5%Development & Housing 5% 8%

Business, Professional Associations and Unions 3% 5%

Health 2% 3%Environment 2% 3%Law, Advocacy and Politics 2% 2%

Hospitals, Universities and Colleges 1% 1%

Other 2.4% 3%

NON PROFITSECTORALBERTA

TSN

ON

TAR

GET


189 Albertans per Nonprofit Group

728 Albertans per Sports Group

1,894 Albertans per Arts & Culture Group

2,105 Albertans per Social Service Group

2,380 Albertansper Gas Station

331 Albertans per Liquor Store

600 Albertansper VLT

498 Albertansper Lawyer


ON

TAR

GET


There about 2,300 charities in Edmonton.

200-230 are social service.

There are another 3700 to4200 non profits

NON PROFIT SECTOR – EDMONTON

ON

TAR

GET


SUMMARY – NON PROFIT SECTOR

Challenges include:…Funding a complex sector…Focusing on “priority” agencies…Perceptions of duplication…Lack of understanding about the subsectors.

IMPLICATIONSWill other trends result in fewer government and philanthropic dollars for charities?

ON

TAR

GET


P H I L A N T H R O P Y

ON

TAR

GET


PHILANTHROPY EDMONTON

25% of Edmontonians claim donations on their income tax return.

The average gift is increasing:$1950 in 2007.

ON

TAR

GET


PHILANTHROPY EDMONTON

ON

TAR

GET


PHILANTHROPY CANADA

The median value of charitable donations increased from $170 in 1997 to $250 in 2007.

Religious organizations receive 46% of donated dollars followed by health organizations (15%) and social services organizations (10%).

ON

TAR

GET


PHILANTHROPY CANADA

The top 25% of donors account for 82% of the total value of donations.

The top 10% (who contributed $1,002 or more annually) account for 62% of the total value.

ON

TAR

GET


PHILANTHROPY CANADA

Donors who give the most are:

…older,

…have higher household incomes,

…have more formal education,

…married or widowed

…and to be religiously active.

ON

TAR

GET


PHILANTHROPY CANADA

Planful donors tend to give repeatedly over time give significantly more than others

On average immigrants give more

ON

TAR

GET


PHILANTHROPY CANADA

3% of Canadian businesses claimed charitable donations totalling $1 billion in 2003.

Half came from two industries: Finance and Insurance (32.1%) and Manufacturing (19.4%).

ON

TAR

GET


PHILANTHROPY CANADA

Two-thirds of all corporate funding goes to four types of organizations:

…Social Services, …Health, …Universities and Colleges, …Arts and Culture Organizations.

66%

24%

84% of corporate giving goes to 7% non-profit organizations with annual revenues of more than $1 million.

ON

TAR

GET


PHILANTHROPYCANADA In Canada, corporations with revenue over $25 million per

year have the following philanthropic profile:

97% provided donations to charities73% donated goods68% donated services57% provided sponsorships26% undertook some sort of cause marketing21% bought products or services from non-profits83% raise donations from employees71% offer payroll deduction62% provide corporate matches for employee donations50% raise funds from customers/suppliers

While 97% of major corporations donated money at median value of $190,000, 76% of smaller businesses provided a median value donation of $2,000

ON

TAR

GET


PHILANTHROPY VOLUNTEERISM

Nearly 2.5 million Albertans volunteer a total of 449 million hours each year. About 46% of Edmontonians have volunteered in the past 12 months.

The average number of hours volunteered each year by Albertans is decreasing.

ON

TAR

GET


PHILANTHROPY VOLUNTEERISM IN EDMONTON

In 2007, this where people volunteered…Religious: 28% Health: 23%

Sports: 27% Cultural, Arts, Historical: 15%

Social Services: 26% Schools: 11%

ON

TAR

GET


SUMMARY – PHILANTHROPY

Challenges include:…Volunteerism as we know it is declining.…Impact of aging and diversity on philanthropy…Entering the corporate marketplace…Reaching affluent donors

IMPLICATIONSCharities may have to raise revenues in new ways (e.g. social entrepreneurship).

Formal volunteerism may no longer be enough.

Relationships with traditional funders more important than ever.

ON

TAR

GET


G E N E R A T I O N Y

ON

TAR

GET


GENERATION Y

Boomers tended to form affinities for charities later in life.

Generation Y`s access to information, knowledge and their networking behaviours exposed them to issues and causes at a much earlier age.

ON

TAR

GET


GENERATION Y

They tend to connect volunteerism with where they donate money, and are much more likely to want a say about how their monies are spent than Boomers.

They are family oriented, driven to achieve, highly amenable to teamwork, and more demanding of attention and recognition than other generations

ON

TAR

GET


GENERATION Y

Some say that if we want to market to Generation Y we do that by not marketing to them.

Instead we have to buy into them first, listen to them, and experience things with them and in the process change with them.

ON

TAR

GET


GENERATION Y

...how to earn Gen Y's respect in the marketplace:

AUTHENTICITY. The twenty-something consumer does not waste time on people or companies that are not being real with them. Authentic is cool. Authentic is a bit dorky. Authentic is hip. Authentic is truthful.

This generation has seen it all, and it takes them all of three seconds to pass judgment on you as to whether or not you are the real thing. -Bea Fields

ON

TAR

GET


SUMMARY – GENERATION Y

Challenges include:…Involving young people in formal charity work.…Competition for mind share.…Mentoring new leaders.…Being “there” for them.

IMPLICATIONSNeed to engage them in new ways.Find meaningful ways for them to contribute.Create win-wins.Promote younger people within.

ON

TAR

GET


TECHNOLOGY/INTERNET

ON

TAR

GET


400 millionmembers

China: 1.3 billionIndia: 1.1 billionUSA: 309 millionCanada: 34 million

TECHNOLOGY/INTERNET

ON

TAR

GET


Nearly 20% of married couples met online

These three sites: 55 million users

TECHNOLOGY/INTERNET

ON

TAR

GET


The Internet 32.7 hours/week

Television 16.4 hours

Reading newspapers andmagazines 3.9 hours

TECHNOLOGY/INTERNET

ON

TAR

GET


TECHNOLOGY/INTERNET

TOP SITES IN CANADA

GoogleFacebookYouTubeLive.comYahooMSNWikipedia

BloggerTwitterKijijiCraigslistEBAYSympaticoWordpressLinkedIn

ON

TAR

GET


TECHNOLOGY/INTERNET

ON

TAR

GET


TECHNOLOGY/INTERNET SOCIAL MEDIA

ON

TAR

GET


TECHNOLOGY/INTERNET

Wiki SitesMicro givingMash upsCrowdsourcingFolksonomy

ON

TAR

GET


TECHNOLOGY/INTERNET

12 Nonprofits and Causes to follow on Twitter:

Water.org, Twestival DonorsChoose Dosomething.org, joinred (over a million Twitter Followers), Case Foundation (300,000 + followers), Ashoka (over 300,000 followers).

http://www.socialbrite.org/2010/03/27/12-nonprofits-causes-to-follow-on-twitter/

http://www.socialbrite.org/2010/03/27/12-nonprofits-causes-to-follow-on-twitter/

http://water.org/

http://twestival.org/

http://www.donorschoose.org/

http://www.dosomething.org/

http://listorious.com/joinred

http://listorious.com/CaseFoundation

http://listorious.com/AshokaTweets

ON

TAR

GET


TECHNOLOGY/INTERNET

World Wildlife Fund 337,000 “friends”

joinred has over 500,000 friends.

Nonprofits are creating such a presence on Facebook that Facebook itself launched a page for non profits: it has 290,000 members

http://www.facebook.com/worldwildlifefund

http://www.facebook.com/joinred

http://www.facebook.com/joinred

ON

TAR

GET


SUMMARY – TECHNOLOGY/INTERNET

Challenges include…Understanding the paradigm shift and connecting it to your organisation.…Adopting new technologies in planful, doable ways.…Using technology to build relationships.…Affordability.

IMPLICATIONSOrganization assumptions and culture will have to change.

Skill sets of people must change.

Social networking needs to a part of fundraising strategy.

ON

TAR

GET


SOURCES

Statistics CanadaImagine CanadaUnited Way of the Alberta Capital RegionWorking.comGovernment of AlbertaSocialbrite.orgThe Edmonton 2008 GenuineProgress Indicator ReportListorious.com

Focusing On What Matters

Business

Transcript of Focusing On What Matters