The Power of Data to Change Philanthropy · 6/23/2013 · Data may broadly catalog charitable...

The Power of Data to Change Philanthropy

Una Osili, Ph.D.

Professor of Economics

February 2016

Philanthropy Now and in the Future

Today’s Presentation

•  What does philanthropy look like today? •  How are the values, motivations, and expectations

of donors changing? •  How will this impact giving? •  How will trends shape the future?

Giving USA

Sources

•  117 million U.S. households •  12.4 million businesses/

corporations •  100,000 estates •  76,000 foundations

Uses

•  1.1 million IRS-registered charities

•  300,000+ U.S. religious organizations

Uses

SOURCE: Giving USA Foundation | GIVING USA 2015

5

Individuals donate majority of contributions

2014 contributions: $358.38 billion by source (in billions of dollars – all figures rounded)


6

Religion receives majority of contributions

2014 contributions: $358.38 billion by type of recipient organization (in billions of dollars – all figures are rounded)


7

$84,16

$114,90 53,3%

32,1%

0%

10%

20%

30%

40%

50%

60%

$0

$20

$40

$60

$80

$100

$120

$140

1974

19

75

1976

19

77

1978

19

79

1980

19

81

1982

19

83

1984

19

85

1986

19

87

1988

19

89

1990

19

91

1992

19

93

1994

19

95

1996

19

97

1998

19

99

2000

20

01

2002

20

03

2004

20

05

2006

20

07

2008

20

09

2010

20

11

2012

20

13

2014

Giving to Religion Giving to Religion as Share of Total Giving

Religious giving has been declining as share of total donations since the 1980s


8

Large gifts help growth of education subsector outpace rate of inflation

DATA REVEAL IMPACT OF NATIONAL AND GLOBAL ECONOMIC FORCES


10

Giving is influenced by economic conditions

Total giving, 1974-2014 (in billions of dollars)


11

Total giving increased to 2.1% of GDP

Total giving as a percentage of Gross Domestic Product, 1974-2014 (in inflation-adjusted dollars, 2014 = $100)


12

Individual giving remains constant at about 2% of disposable personal income

Individual giving as a percentage of disposable personal income, 1974-2014 (in current dollars)


13

Overall giving fluctuates with S&P 500

Total charitable giving graphed with the Standard & Poor's 500 Index, 1974-2014 (in billions of inflation-adjusted dollars, 2014 = $100)

Modern million-dollar-plus donors

§  Most donors are over the age of 50. Inspired by initiatives like the Giving Pledge, notable young donors are joining their ranks.

Source: Million Dollar List 2012

DATA REVEAL CHANGING DONOR MOTIVATIONS, EXPECTATIONS

Philanthropy Panel Study (PPS) Bank of America Studies of High Net Worth Philanthropy

Longitudinal individual giving data

Donor incidence over time, 2000-2008

66,8 68,5 66,9 65,3 65,4

46,5 46,5 46,3 43,1 42,3

55,9 57,5 56,3 55,7 56,5

2000 2002 2004 2006 2008

Total Religious Secular

Source: Philanthropy Panel Study

$557 $1 488 $2 613 $2 540

33

59

69 77

Millennial Gen X Boomer Silent & Great

Average total giving by donors

Percentage who give

Oldest generations more likely to give and give more, on average

Data may broadly catalog charitable motivations

Source: 2014 U.S. Trust Study of High Net Worth Philanthropy

10,2

28,5

33,2

34,4

39,7

40,1

43,9

44,6

49,7

61,8

62,7

66,0

73,1

73,5

0 10 20 30 40 50 60 70 80

Other (e.g., Social Norms, Businesss Interests)

When You Are Asked

Because of Your Desire to Set an Example for Future Generations

To Receive a Tax Benefit

To Honor Another (e.g., Memorial Gifts, Celebratory Gifts)

Because of Your Religious Beliefs

Spontaneously in Response to a Need

To Remedy Issues That Have Affected You or Those Close to You (e.g., Cancer, Drug Addiction)

Because of Your Political or Philosophical Beliefs

When You Are on the Board or Volunteer for the Organization

In Order to Give Back to Your Community

To Support the Same Causes/Organizations Year After Year

For Personal Satisfaction

When You Believe That Your Gift Can Make a Difference

GENDER IN PHILANTHROPY

Women’s Philanthropy Institute Indiana University Lilly Family School of Philanthropy

WPIinsights

Engagingmenasdonors

Engagingwomenasdonors

Gender Matters in Philanthropy

SUCC

ESS

Motivations for giving: men and women

Gift can make a difference

Personal satisfaction, enjoyment, or fulfillment

Giving back to the community

Empathy

Women tend to score higher on measures of empathy and altruism, and are more likely to want to help others.

IMPACT OF TECHNOLOGY ON PHILANTHROPY


25

Source: Blackbaud, 2014 Charitable Giving Report

6,7%

93,3%

Online giving as a percentage of total giving

Online All Other Forms

Online giving a small but growing piece of the pie


26

THE FUTURE OF PHILANTHROPY


27

Women’s Philanthropy Institute Indiana University Lilly Family School of Philanthropy

WPIinsights


28

§  As nonprofit sector realizes 60-year high for total giving, the sector overall can at last focus on expanding giving rather than regaining lost ground.

§  Donors are returning to pre-recession giving priorities, as seen in increased support of the arts and education

§  New vehicles and institutional forms are emerging

Positive outlook

Lilly Family School of Philanthropy Resources Giving USA 2014: The Annual Report on Philanthropy for the Year 2013. Researched and written by Indiana University Lilly Family School of Philanthropy. Sponsored by Giving USA Foundation, a public service initiative of The Giving Institute. 2014 U.S. Trust Study of High Net Worth Philanthropy, October 2014, Researched and written by Indiana University Lilly Family School of Philanthropy, with support from U.S. Trust/Bank of America. Philanthropy Panel Study. Indiana University Lilly Family School of Philanthropy. Conducted in conjunction with the University of Michigan Institute for Social Research’s Panel Study of Income Dynamics (PSID). The Million Dollar List. Researched and written by the Indiana University Lilly Family School of Philanthropy. Available online at http://www.milliondollarlist.org/.

References Choney, S. (2010). Mobile giving to help Haiti exceeds $30 million. January 21, 2010, http://www.msnbc.msn.com/id/34850532/ns/technology_and_science-wireless/

Council on Foundations, “The Practices and Opportunities of Big Data in Philanthropy,” April 3, 2014, http://www.cof.org/content/practices-and-opportunities-big-data-philanthropy

Hrywna, M. & Sullivan, P. “Donations More than Doubled for #GivingTuesday.” December 4, 2013, The NonProfit Times, http://www.thenonprofittimes.com/news-articles/donations-more-than-doubled-for-giving-tuesday/

Indvik, L.“Forrester: U.S. Online Retail Sales to Hit $370 Billion by 2017. March 12, 2013, Mashable, http://mashable.com/2013/03/12/forrester-u-s-ecommerce-forecast-2017/

References

Lewis, N. “Nonprofits Aim to Build on Success from the First Giving Tuesday,” June 23, 2013, The Chronicle of Philanthropy, http://philanthropy.com/article/Nonprofits-Seek-to-Build-on/139939/ Mobile Commerce Deep Dive: The Products, Channels and Tactics Fueling Growth; eMarketer. Available at http://www.emarketer.com/Article/Despite-Time-Spent-Mobile-Sites-Grab-More-Moola-than-Apps/1011040 Pope, E. “Fundraising Via Mobile Apps Can Still Be a Challenge.” April 1, 2013,The NonProfit Times, http://www.thenonprofittimes.com/news-articles/fundraising-via-mobile-apps-can-still-be-a-challenge/ Talbot, D. “Data Discrimination Means the Poor May Experience a Different Internet,” October 9, 2013, MIT Technology Review, http://www.technologyreview.com/news/520131/data-discrimination-means-the-poor-may-experience-a-different-internet/

Thank you!

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