Pennies into Pounds Masterclass
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Transcript of Pennies into Pounds Masterclass
Donations
Benefit levels:
Donation Amount Maximum Value of Benefits
£1 - £100 25% of donation
£100 - £1,000 £25
£1,000 - £10,000 5% of donation
£10,000 + £500
Tax Efficient Giving
• Gift Aid
• Payroll Giving
• Gift of Shares
Gift Aid
The opportunity to reclaim the basic
income tax already paid on a
donation
• The money must be given by an individual
• The money must be given as a donation
• Donation can be of any size
• The donor has to be a UK tax payer
• A Gift Aid declaration has to be made (written or
oral)
• The donor can reclaim any higher rate tax paid
Gift Aid
Gift Aid
AmountDonation= X
Basic Rate of Tax
-------------------------
100 - Basic Rate
100 - Basic Rate
Basic Rate of Tax
Donation
Gift Aid - Charity
£60=20
-------------------------
100 – 20 (=80)
Gift Aid
Amount= X -------------------------£15.00
Changes made in the Basic rate of
tax…
So the Government introduced…
Transitional Relief
You apply for Gift Aid using the usual
calculation and they will then add an
additional 3.2% to any donation made
during the next 3 years.
You can talk about Gift Aid with or
without Transitional Relief.
Gift Aid Declaration
• Full name and address
• Charity‟s legal name and number
• Nature of the gift (single or on-
going)
• Permission to use gift aid
• Note stating that the Donor must
have paid sufficient income tax to
cover gift aid
Gift Aid – Higher Rate Tax Payer
Gift Aid
AmountDonation= X
Higher Rate of Tax –
Lower rate tax
-------------------------
100 - Basic Rate
Gift Aid - Charity
£15.00 £60= X20
-------------------------
100 – 20 (=80)
Gift Aid – Higher Rate Tax Payer
£15.00 = £60 X40-20 (=20)
-------------------------
100 – 20 (=80)
So….
a £60 donation
is worth
£76.92 to the charity
And costs a higher rate
tax payer
£45.00
11
Corporate Gift Aid
Sales
Costs
Income
Tax (28%)
Profit
Normal
£ ‘000
1,000
-600
400
-112
288
Sponsorship
£ ‘000
1,000
-600
Sponsorship -100
300
-84
216
Effective Cost 72
Donation
£ ‘000
1,000
-600
400
-112
Donation -100
188
Gift Aid +28
216
Tax Efficient Giving
• Gift Aid
• Payroll Giving
• Gift of Shares
Payroll Giving
Regular donations made from pay
before PAYE is deducted.
• The money must be given by an individual
• The money must be given as a donation
• Donation can be of any size
• The donor has to be a UK tax payer
• The Government added a further 10% to the
donation (stopped April 04)
Payroll Giving
Payroll Giving Agency (PGA)
• Collect and distribute donations.
• Approved and monitored by the Inland Revenue
• Can help to promote Payroll Giving in the
workplace
Payroll Giving Agencies• Charities Aid Foundation
• Charities Trust
• The Charity Service Ltd
• The Embassy of Man Payroll Giving Agency
• KKL Payroll Giving Agency - (JNF Charitable Trust)
• Northern Ireland Council for Voluntary Action
• Scottish Council for Voluntary Organisations
• South West Charitable Giving - (Federation of Master Builders (South West Region) Charity Fund Ltd)
• Sovereign Payroll Giving - (Stewardship)
• United Way Payroll Giving Service
• Working for good
Approved Payroll Giving Agencies for particular business sectors:
• BEN - Motor and Allied Trades Benevolent Fund
• Achisomoch Aid Company
Payroll Giving
Professional Fundraising
Organisations (PFO)
• Promote and recruit new donors for various
charities
• A commercial organisation, in some cases owned
by charities
• Paid a fee by the charities if support is generated.
• Can work with the charity on developing a
campaign.
• Most PFOs belong to the Association of
Professional Fundraising Organisations
(APGPFO) that regulates their conduct.
PFOs• Charity Link
• Ease2Give
• Hands on Helping Charity
• Happy 2 Give
• Payroll Giving in Action
• Revenue Share UK
• Sharing the Caring
• Workplace Giving UK
Payroll Giving• Employer offers / Staff ask for payroll giving
Employer engages PGA
Promoted to staff (internally or by PFO)
Staff sign up
Employer deducts donations
Donations sent to the PGA
• PGA distributes donations to charities (- % for
PGA and PFO)
Tax Efficient Giving• Gift Aid
• Payroll Giving
• Gift of Shares
Gift of Shares
The most efficient way to give to a
charity
• Full income relief
• No Capital Gains Tax
Gift of Shares
Shares bought for £2,500
Today‟s worth £10,000
Income from selling
Sale £10,000
Less Capital Gains Tax (18% of £7,500) -£1,350
Cash gift to charity £8,650
Value to charity (inc Gift Aid) £11,089
Final cost to donor (inc Gift Aid) £7,837
Gift of Shares
Value to charity £10,000
Final cost to donor (tax relief 40% of £10k) £6,000
Propensity to Give
Extrinsic Factors
Age, Gender, Social Class
Intrinsic Factors
Self Esteem, Guilt, Empathy
Perceptual Reaction
Fit with self, portrayal
The Ask
Past experience, stimulus
Propensity to Give
Extrinsic Factors
Age, Gender, Social Class
Intrinsic Factors
Self Esteem, Guilt, Empathy
The Ask
Past experience, stimulus
Who they are
What they think about
The Ask
Perceptual Reaction
Fit with self, portrayalTheir links to the cause
Propensity to Give
Extrinsic Factors
Age, Gender, Social Class
Intrinsic Factors
Self Esteem, Guilt, Empathy
The Ask
Past experience, stimulus
Who they are
What they think about
The Ask
Perceptual Reaction
Fit with self, portrayalTheir links to the cause
Propensity to Give
Extrinsic Factors
Age, Gender, Social Class
Intrinsic Factors
Self Esteem, Guilt, Empathy
The Ask
Past experience, stimulus
Who they are
What they think about
The Ask
Perceptual Reaction
Fit with self, portrayalTheir links to the cause
• Age /
Gender
• Religion
• Social
• Income
Extrinsic Factors - Age
• Giving increases with age (people aged
55-70 make 65% of all charitable gifts)
Extrinsic Factors – Gender
• More women give than men. They give more overall, in more one-off donations supporting a wider range of organisations
• But men make larger individual donations
Extrinsic Factors – Gender
• Female fundraisers generate more
compliance than males
Extrinsic Factors – Social Class
• Responds more to requests for small donations to relieve pain and suffering
• Give for a long term change in the situation.
• Respond better to messages reflecting a need for long term solutions
32
Extrinsic Factors - Income
Cash in pocket Monthly Wages
Annual Wages Total Assets
Propensity to Give
Extrinsic Factors
Age, Gender, Social Class
Intrinsic Factors
Self Esteem, Guilt, Empathy
The Ask
Past experience, stimulus
Who they are
What they think about
The Ask
Perceptual Reaction
Fit with self, portrayalTheir links to the cause
• Self Esteem
• Social Justice
• Benefits
• Guilt
• Empathy
• Fear / Pity
Intrinsic Factors
Guilt
• I prefer to give to charities that do not get enough government support
• There is no point in supporting charities which enjoy strong Govt. support
• It does not really matter whether I give to charity or not, others will
• I only get pleasure from seeing the work done by charities if I have supported them
• I prefer to give to charities in a way that allows them to get more from the taxman
• I give to reduce my tax bill
• I feel that I should give as much to charity as other people I know
Disagree Agree
17 54
44 27
67 11
59 20
20 46
52 14
69 10
Propensity to Give
Extrinsic Factors
Age, Gender, Social Class
Intrinsic Factors
Self Esteem, Guilt, Empathy
The Ask
Past experience, stimulus
Who they are
What they think about
The Ask
Perceptual Reaction
Fit with self, portrayalTheir links to the cause
• Social
Groupings
• Fit with Self
Fit with Self
• It‟s rewarding to feel you‟ve helped in some way 84
• I give to charities because I like the feeling of being generous 20
• I help concerns where my family or friends are involved 76
• I give to charities because I or my family may personally benefit 40
• I give to charities because I want to support the good 80
causes for which they work
• I give to charities because they help to make a better society for everyone 60
Propensity to Give
Extrinsic Factors
Age, Gender, Social Class
Intrinsic Factors
Self Esteem, Guilt, Empathy
The Ask
Past experience, stimulus
Who they are
What they think about
The Ask
Perceptual Reaction
Fit with self, portrayalTheir links to the cause
• Charity
communications
• Strength of
message
• Processing
• Influences
Why people support the arts
To Develop
Social
Standing
To enjoy
the Benefits
To enable the
Arts to happen
To make a profit
The 7 Steps of Fundraising
• Prepare
• Identify
• Research
• Plan
• Involve
• Ask
• Conclude
• Reciprocate
The 8 Steps of Fundraising
PrepareFeasibility phase:
• Need for money?
• Value for money?
• When do you need money?
• Internal buy-in? A good board?
• Why is your organisation best?
• Staff skills?
• Potential support?
• Enough resources?
Case for Support1. A clearly defined need for support
2. The documentation outlining reason
• The selling document
• An information tool, not the “ask”
• Something visual to leave behind
Ensures:
• Clear rationale behind giving
• All staff are on message
• What‟s yours?
Identify Targets (internal)
Internal contacts:
• Audience/ event guests
• Members
• Previous donors/ sponsors
• Address Lists (Shop – Box Office)
• Board/ staff contacts
Identify Targets (external)External contacts:
• Existing supporters‟ peers
• Typical social/ work circles
• Profiles in magazines
• Keyword searches
• Media appearances
• Estate agents, LAs
• Wealthy areas in neighbourhood
Research• Individuals
• Groups
Researching Individuals
Information to find…
• Giving history
• Wealth / Ability to give
• Interests
• Family background
• Who they know
• Link with your organisation
By…
• Asking peers
• Friends / social circle
• Media
• Research agency
N.B. Use
a database
Researching Groups
Information to find…
• Social Circles
• Wealth / Ability to give
• Interests
By…
• Questionnaires
• Focus Groups
• Other memberships in area (the market place)
Data Protection
Refer to www.institute-of-
fundraising.org.uk for Code of Practice.
Key points:
• Do not use/ share data about individual if they
would not wish it
• If buy list or information, inform individuals that you
hold this
• Need consent for email communications to
individuals
• Sensitive personal data is very protected
• The individual has can request a copy
• Electronic information is easier to track!
PlanFundraising plan:
1. Internal input (from who?)
2. The need
3. Timing
4. Resources you need
5. Communications/ events
6. Budget
7. Benefits on offer (cost/ value)
8. Target income … triangle of gifts
9. Benchmarks
Plan
Encourage internal buy-in:• Show how all will benefit
• Shared targets
• Communicate successes
• Regular agenda at senior meetings
• Reassure them
Plan involve/ potential gift/ timetable
The 8 Steps of Fundraising• Prepare
• Identify
• Research
• Plan
• Involve
• Ask
• Conclude
• Reciprocate
Involve
Work out key worker, influencer,
manager
• 1st approach = to involve them
• Invite to event
• One-to-one meeting with influencer
• Phone call
• How/ what will they learn about your work?
• Intentional and unintentional
• Involve them further
• Active / Passive involvement
Involve• Displays (Info / Point of Donation)
• Print / Leaflets
• eg. case for support
• “Getting to know us” events
• more info about organisation
• Get them right!
• What makes for a good event?
Ask• How are they asked?
• Donations box/ event/ one-to-one meeting
• Who asks?
The ask needs to be:• Clear
• Specific
• Immediate
• Unambiguous
• Easy to follow through with gift
Ask – Direct Mail Letters1. Be clear and concise
2. Provide one paragraph on who you are, why you are writing, what you need and what you will do with it.
3. Keep to one side of A4
4. Add a hand written PS
5. Test the letter on friendly readers
6. Add an image
7. Have it signed by someone important
8. Tailor to the type of person to whom it is being sent
9. Think about the reader - Recognise that they will only give the letter a brief amount of time
10.Make sure the database details are accurate
Remember AIDA:
Get Attention - Arouse Interest - Stimulate Desire -Prompt Action
ConcludeLetters to individuals:
• Thanks for donation / pledge
• Reiterate agreement (dates / amounts)
• Tie in to upcoming events
• Link to outcomes
• Endorse reasons for giving
Beware of cognitive dissonance
Public thanks
• Print (own / external)
• Speech
• Events
Reciprocate• Make them part of the family
• Invite to lunch/ exclusive events
• Good news / Bad news
• Benefits
• Appropriate to commitment
Reciprocate - Benefits
Tangible:
• Tickets
• Programmes
• Special items
• Advanced booking
• Events
• Naming opportunities
• Access to artists
• Access to behind the scenes
• Position on Board
Intangible:
• Feelgood factor
• Association with Art
• Social standing
• Knowing you‟ve made a difference
• Supporting education & outreach work
• Being “in the know”
58
The 8 Steps of Fundraising
• Prepare
• Identify
• Research
• Plan
• Involve
• Ask
• Conclude
• Reciprocate
“I‟m sure I have been a „Friend‟ or a
„Patron‟ along the way and have
followed the usual steps in giving
more and getting more involved -
being brought closer in - but this
seemed a natural development and
I didn‟t feel imposed upon at any
point...
…Sometimes I think this was achieved
through professionalism - sometimes
exactly the opposite - sometimes the
staff seem quite amateur...
… but charming and well-meaning and passionate and that gets the same result”
Philip Spedding
Senior Manager, Individual Giving
020 7940 6419
www.ArtsandBusiness.org.uk