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X AXIS LOWER LIMIT UPPER LIMIT CHART TOP Y AXIS LIMIT v WHY DO WE GIVE?: DONOR MOTIVATIONS Sally...
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Transcript of X AXIS LOWER LIMIT UPPER LIMIT CHART TOP Y AXIS LIMIT v WHY DO WE GIVE?: DONOR MOTIVATIONS Sally...
vWHY DO WE GIVE?: DONOR MOTIVATIONSSally Bagwell, Senior Consultant, New Philanthropy Capital
London, October 2014
NPC: TRANSFORMING THE SOCIAL SECTOR
2
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
3
NPC: THE FOUNDING STORY
Helping charities & funders do good, better
Transforming the charity sector
4
NON-PROFITS: RAISE FUNDS, DELIVER WORKSocial impact requires both aspects to work well
Raise resources
Deliver interventions
Create social impact
Funding
Activity
Impact
+
=
5
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
+
=
6
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
+
=
8
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”
9
SEGMENTS (HIGH-INCOME DONORS)
Thoughtful philanthropist
Benefactor
Engaged champion
Faith-based donor
Loyal supporter
Ad hoc giver
Good citizen
20
31
10
4
17
9
8
10
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%
11
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
12
POTENTIAL TO GIVE MORE
£1,739m switchable donations
£171m high-income
£665m additional donations
£1,569m mainstream
£596m mainstream £68m
h-i
14
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”
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
19
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
20
vTHANK YOUNew Philanthropy Capital – Transforming the charity sector
Sally Bagwell, [email protected]