Donor Perceptions, Young and Old, In The New Media Era

1. Donor Perceptions, Young and Old, In The New Media Era Focus Group Research Summary Presentation June 13, 2013 Phoenix, AZ GRIECO RESEARCH GROUP

2. INTRODUCTION About GRG and Focus Group Research • GRG has conducted over 8,000 focus groups • Grieco Research Group founded in 1984. • Serving marketers and management as a premium qualitative resource • -- For-Profit... and NFP • A PARTIAL • CLIENT ROSTER: The Salvation Army Boy Scouts Of America Boys & Girls Clubs Loyola Marymount University GRIECO RESEARCH GROUP 2

3. The research study was undertaken using the Focus Group Method of Inquiry: • Discussion format... opinions shared openly with variety of viewpoints expressed. • Qualitative in nature... seeks deeper understanding into Donor and Volunteer mindset • Session characteristics... Each about 2 hours, audio and video recorded, and observed through a one-way mirror, or closed-circuit TV. GRIECO RESEARCH GROUP 3

4. INTRODUCTION 2012 Mission Focus Groups... Bay Area Rescue Mission 2 Groups: San Francisco and Concord, CA Faith Mission in Elkhart, IN Long Beach Rescue Mission in Long Beach, CA Wheeler Mission 2 Groups: Older Donors and Youngers in Indianapolis, IN San Diego Rescue Mission in San Diego, CA HiWay 80 Rescue Mission in Longview, TX 8 Focus Group Sessions 83 Respondents GRIECO RESEARCH GROUP 4

5. INTRODUCTION Method & Sample • These findings were drawn from focus groups conducted for Brewer Direct and participating Rescue Missions in 2012 in seven cities in the United States... enhanced by dozens of charitable giving focus groups GRG has conducted over three decades. • Most participants in these Mission studies were: • Recent Donors who had mailed at least two monetary gifts to their local Rescue Mission totaling a minimum of $25 within 12 months…but less than $500. • Mix of males and females. • By incidence: mostly older (> 55 years old)... • A special session among Youngers in Indianapolis was a mix of Donors/Volunteers/Past Participants of Wheeler Mission’s Drumstick Dash, and were between the ages of 24-36 years old. GRIECO RESEARCH GROUP 5

6. Focus group discussions are a rich source of qualitative material, valuable in clarifying existing theories, redirecting efforts away from previous expectations, and generating new information and ideas for future research. Although participants were drawn from the population from whom we seek insights and to whom we wish to appeal, they were not chosen to represent the population statistically. No statistical inferences should be drawn from the findings in this report. PROJECTABILITY OF FINDINGS 6

7. II. Target Insights: Older Donors vs. Younger Donors/Volunteers

8. TARGET INSIGHTS Older Donors Vs. Younger Donors • Youngers were just beginning a career or settling into their first job. • Older Donors were mostly retired/ semi-retired; Empty Nesters/“soon-to-be.” • Youngers claimed less discretionary income, feeling they had less overall money to give. • Older Donors were comfortable with their current income. • Motivations seemed unformed and difficult for Youngers to articulate. • Theyhad not yet made the full commitment to give at this point. • Older Donors were able to discuss motivations clearly. • Older Donors tended to draw on their belief system when explaining giving motivations. • Youngers tended to draw on their rational criteria and skepticism. GRIECO RESEARCH GROUP 7

9. TARGET INSIGHTS • Tracking eight social motives... • Curiosity Spirituality • Creativity Kindness • Courage Humility • Humor Leadership • Across all sessions, two motives spiked consistently: Spirituality 1st Kindness 2nd and • However, among Youngers, the priority was reversed: Kindness over Spirituality • Interestingly, across all, the least impactful motive was: Humility (Least) -- Underscoring the importance of the recognition, saying “Thank You.” GRIECO RESEARCH GROUP 8

10. III. Donor Attitudes & Behaviors Towards Giving

11. GIVING ATTITUDES & BEHAVIORS Younger & Older Giving Motivations • When Older Donors discussed motivations to give money to a charity/cause, three overall themesemerged: • Recognition Of Need... And Being In A Position To Help • There are people less fortunate than I am/“I have been blessed”… and therefore “I want to give back.” • Spiritual/Moral Responsibility • “It’s the right thing to do”... “God commands that we give...” • Personal Feeling of Fulfillment • Giving makes me “feel good”... “I love to give.” GRIECO RESEARCH GROUP 9

12. GIVING ATTITUDES & BEHAVIORS Younger & Older Giving Motivations • When Youngerstried to discuss their motivations to donate, they resorted to their criteria and revealed their skepticism: • I’m selective/wary of scams/I do lots of research prior to giving • I only choose organizations that are personally meaningful and trusted • I only choose local organizations that improve the community “in a real way”: this includes animals, environmental causes as well as homelessness. GRIECO RESEARCH GROUP 11

13. GIVING ATTITUDES & BEHAVIORS • Youngers speculated about volunteering vs. giving monetary donations: • -- “Broke student syndrome”... I volunteer/give my time instead of money • “A lot of it has to do with your situation in life; right now I have • a lot of time to give but I don’t have a lot of money to give.” Younger Volunteering The tangibility of volunteering is appealing: doing and helping without financial risk. Added bonus: socializing with peers, and “fun.” GRIECO RESEARCH GROUP 13

14. GIVING ATTITUDES & BEHAVIORS The Effect Of The Recession In light of the recent recession, three giving patterns were fairly evenly represented. I give less money/I give less frequently 1 No change in the total amount I give 2 I give more money/I give more frequently... because the need is so great 3 But almost all Donors said they had altered their behavior to reflect more focus in their givingdue to the economic decline. GRIECO RESEARCH GROUP 14

15. GIVING ATTITUDES & BEHAVIORS Constant Sum: “Let’s say you have $100...” • The Rescue Missions topped the list among Olders in every market... • -- The local Mission won an average of $26 out of every $100 • - But dropped to a low of $16 out of every $100 among Youngers (in Indianapolis, Animal Shelters outpulled the Mission) • The closest competitors for The Rescue Missions’ Share of Wallet in each market showed consistent patterns: • -- HiWay80 Rescue Mission... The Salvation Army, House of Hope, Gospel Charities • -- Wheeler Mission... Gleaner’s Food Bank, Red Cross • -- Faith Mission... The Salvation Army, Northern Indiana Food Bank • -- Bay Area Rescue Mission... Local Food Banks • -- Long Beach Rescue Mission... The Salvation Army, World Vision, Red Cross • -- San Diego Rescue Mission... Local Food Banks • Also: Teen/Child Welfare, Veterans Assistance, and Medical/Disease Research 5 GRIECO RESEARCH GROUP 15

16. Click icon to add picture IV. Perceptions of The Rescue Missions

17. PERCEPTIONS OF THE RESCUE MISSIONS The Missions Personified Compassionate, Caring, Concerned For Others Supportive, Loving, Kind, Warm Giving, Generous, Selfless Goal-oriented Spiritual, Moral, Ethical Honest Non-Judgmental A Good Listener Hardworking, Dedicated Down-to-earth Inspiring and Empowering GRIECO RESEARCH GROUP 16

18. PERCEPTIONS OF THE RESCUE MISSIONS • Known most for providing basic immediate needs of food and shelter • Local visible presence and longstanding service to the community • Positively viewed as “proactive” and “competent” at handling issues of homelessness in the community • Tolerant and patient... “no time limit on duration of care,” “does not force a Christian decision” (among non-faith Donors) • Especially high regard for the Rescue Mission among volunteers who had participated in toy drives, kitchen duty, donation drop-offs, and events linked to local churches • Lower/inconsistent awareness of longterm services: drug rehabilitation, job preparation, live-in arrangements, and spiritual counseling • Often vague knowledge of programs for women, children and families... “For men only?” GRIECO RESEARCH GROUP 17

19. PERCEPTIONS OF THE RESCUE MISSIONS Priorities • Donors felt that feeding, housing and clothing impoverished men was • the most vital and important Rescue Mission priority: • -- Physical needs first, other needs later. • “If you’re not getting enough to eat, you can’t concentrate on learning a trade, you can’t concentrate on anything.” • “First is feeding the hungry; I’m not going to want to go into an alcohol program if I’m hungry.” • Secondly... the Rescue Mission should help save, sustain, and solve problems of homelessness over the long haul. • “It provides hope, meaning and an outlook where they can go and increase their self worth... The thought that you can be a better person. When [a client] walks out the door and their self worth is increased you realize there is more to life.” GRIECO RESEARCH GROUP 19

20. SOCIAL NETWORKS EMAIL MAIL SMARTPHONES V. Methods Of Solicitation And Giving

21. SOLICITATION & GIVING Donors In An Increasingly Digital World • Almost all Donors had a computer and an email account. • Most Donors had visited a charity Web site or researched a charity online, but only a few of the Olders had made an actual donation online, indicating that their Internet usage was primarily for informationpurposes. • About half of Older Donors owned a smartphone. • -- Just a few Donors had ever used “text-to-donate,” mainly for disaster relief. • Almost half of Older Donors said they had their own Facebook account, while all but one of the Youngers were on Facebook. • -- Olders were using Facebook mainly to “keep in touch with grandchildren” ... often reluctantly. • -- “Liking” organizations for Older Donors seemed to them a risk of potential tracking/invasion of privacy. • -- Twitter and Instagram were “up-and-coming” among Youngers. GRIECO RESEARCH GROUP 20

22. SOLICITATION & GIVING • In discussing digitization, we observed extreme mindsets at both ends of this study: Those staunchly resistant to a digitally-advancing world... ....And those who were technologically-savvy, digitally-active, and embraced a “smart” world. GRIECO RESEARCH GROUP 21

23. SOLICITATION & GIVING Those resistant to a digitally-advancing world... • Not donating online, not making purchases/shopping online, not using their credit card online • “An auto withdrawal from my account? [I would feel that] I have lost control of my money.” • Rationally, check writing provided a “paper trail”/ “receipt”... “easy to track.” • Emotionally, check writing provided a comfort zone of control... “a ritual.” • -- “Touch elements” delivered personal involvement • -- Mail felt safe and familiar. • Most Olders did not want to venture headfirst into social networks and mobile digital activities. GRIECO RESEARCH GROUP 23

24. SOLICITATION & GIVING ....Those who were technologically-savvy, digitally-active, and embraced a “smart” world. • Several (mainly under age 50) had made the jump to automatic monthly giving or bill pay for charitable donations. • Actually preferred the convenience of giving by credit card, debit card, or PayPal account. • Internet-savvy Youngers were using Facebook and other up-and-coming social networks (Twitter, Instagram) regularly as news formats, and to communicate within their network about important events. • “Twitter is a social thing but if you use it as a news outlook, it’s very effective, concentrated and directed. That’s how I get my news.” • Paperless transacting was viewed as the “least wasteful” and “least costly” • -- An “unpressured” way to give • -- “Without leaving my chair,” “less of a hassle” and therefore “I’m more likely to give.” • -- Little-to-no fear regarding online identity theft... GRIECO RESEARCH GROUP 24

25. SOLICITATION & GIVING • Older Donors recognized that Social Media was becoming an important part of New World – an important tool to reach Younger generations. • But Older Donors advised not to isolate their generation by getting rid of mail/letters. • “We still prefer mail, or something we can hold in our hand. We’re the generation that’s giving the bulk of the money.” • Expanded diversity of reaching out to people. • “You have to do it all... If they’re looking to recruit younger donors, you have to have a full range [of communication/solicitation].” GRIECO RESEARCH GROUP 25

26. SOLICITATION & GIVING • Conditionally, some Older Donors said they would maybe feel compelled to • give online, by credit card, in the future if: • 1) it’s for an immediate, urgent need • 2) it’s easy • 3) it’s secure (encrypted) • 4) it’s from a known and trusted organization • 5) it’s clear there is no charge to the Donor, and efficient for the organization • 6) it’s clear the Donor will not be bombarded with requests after donation. GRIECO RESEARCH GROUP 26

27. SOLICITATION & GIVING Solicitation Techniques & Trendspotting • Testimonials, stories and emotional involvement are triggers for Older Donors. • -- But Youngers said they did not need testimonials, and just wanted to know about the need and the facts. • For Youngers it was primarily about quick and to-the-point requests for what was needed... “keep it simple.” • -- Analytically, it’s not just about simplicity, but about productivity: • “what am I giving to?”... and “what’s being done with the money?” GRIECO RESEARCH GROUP 27

28. SOLICITATION & GIVING Solicitation Techniques & Trendspotting • QR is a good example of new technology but Youngers felt the scanning might be “too much work.” • Facebook and other social networks are good examples of passive interaction: • the organization does most of the work: sending out notifications, updates, and information. • Youngers also look within their social network(s) for peer-to-peer recommendations about important events and causes. • “That’s how I get my news... “ • “The last couple of things I gave to was because I saw stuff on Facebook, Twitter... It was a suggestion, or a friend would say, check this out. It comes up in your feed [from a friend or organization] not off on the side [like the ads].” • “I think it’s an effective way [to ask for a donation]... When friends are sharing it on your feed.” • “Yeah social media [is my preference for requests] but it does have to be a personal thing [and not an ad].” GRIECO RESEARCH GROUP 28

29. SOLICITATION & GIVING -- LEXICON • Respondent Handout: The Lexicon... GRIECO RESEARCH GROUP 29

30. SOLICITATION & GIVING -- LEXICON A visual composite of the most impactful wording in the Lexicon: GRIECO RESEARCH GROUP 30

31. SOLICITATION & GIVING -- LEXICON • Fundamentally, lexicon choices were similar between Olders and Youngers. • Align the Mission and the Donor with active human values. • Help the Donor visualize the basic services, rather than using terms that neutralize. Not This... This... Provide meals Shelter Compassionate Caring Supply Meals Lodging Service The Needy Needy Person The Homeless Homeless men, women and children Homeless neighbors • Communicate the diversity of the humanity, rather than generalize as “The needy” or “The homeless.” Recipient Plight/Need Lost Addicted Disadvantaged • Portray the danger in terms of solvable “problems.” Hopeless Hungry GRIECO RESEARCH GROUP 31

32. SOLICITATION & GIVING -- PHOTO EXPLORATION Images were shown to respondents to gauge visual giving motives: e7 j4 v2 f4 b8 t3 s2 c1 t7 d4 p9 c4 a9 p5 h6 GRIECO RESEARCH GROUP 32

33. SOLICITATION & GIVING -- PHOTO EXPLORATION • Insights From The Photo Exploration: • Images of perceived “homeless men” were central to the • giving motive. • Elderly menwho were perceived as “down and out” but looked “hopeful,” effectively showed the impact of the Rescue Mission’s help, and “the face” of the Rescue Mission. • Images of women and children were considered atypical recipients of the Rescue Mission, but were emotionally captivating for all age groups. • -- Perception: possible battered women, “recently came upon hard times...” but “they’re happy and together” because of the Rescue Mission. • The young child, pictured alone with food, perceived as “helpless” and in need of protection/“he needs help more”... “we need to protect their innocence.” GRIECO RESEARCH GROUP 33

34. SOLICITATION & GIVING -- PHOTO EXPLORATION • Insights From The Photo Exploration: • Attention to the details and cues in the pictures — cues tell the story: • -- food (on plates) cued perceptions of hunger • -- long tables indicated capacity to serve • -- crowded tables indicated a need for more space • -- cots indicated shelter • Black and white photos stirred dramatic effects in the imagination... “[in color] it almost takes away from the person.” GRIECO RESEARCH GROUP 34

35. SOLICITATION & GIVING -- PHOTO EXPLORATION • Insights From The Photo Exploration: • Among photos not successful in gaining support were those perceived to be young enough, healthy enough, and “capable of work.” • The two men in this photo did not pull as powerfully as other photos, possibly because these men did not seem “so alone”… • The two young girls in this photo looked “like a yearbook picture: perceived as not lonely, not in need of protection, not hungry... • -- Therefore not effective in triggering the giving response. GRIECO RESEARCH GROUP 35

36. VII. What We Think We've Learned And Actionable Next Steps

37. WHAT WE THINK WE’VE LEARNED 1. Begin to cultivate Youngers where they live, and drive visits/volunteers to the Rescue Mission. -- Through “open houses”; short term visits for volunteers; organized community events and activities. -- Be more proactive in stratifying donation method/connection preference by asking on all communications... How would you like to hear from us? Include social networks and texting as options. 2. Where applicable, strengthen awareness and community involvement through Recue Mission thriftstore: Gen Yers are into vintage clothing, recycling and bargain hunting. -- And consider opportunities for Youngers that tap into animals/animal rescue... kindness. GRIECO RESEARCH GROUP 36

38. WHAT WE THINK WE’VE LEARNED Raise online visibility through social networking: Facebook, Twitter, Instagram, etc., or the next new communication magnet. 3. - Reach out to Youngers through social posting or emails, but not through “ads.” - Peer-to-peer electronic word-of-mouth: turn Younger prospects into Social Network Ambassadors. - Brief, specific, and direct social posts/e-appeals directly from the Rescue Mission (e.g. specific items needed, how donation will impact someone today, make it easy: one click, provide a PayPal option). But “don’t trade analog dollars for digital dimes”: build and diversify revenue streams, but protect the motherload of Older Donors who give by mail. 4. GRIECO RESEARCH GROUP 37

39. WHAT WE THINK WE’VE LEARNED 5. Keep your focus on those activities which people believe you do best: -- The basic human necessities of food, shelter, clothing. -- In marketing parlance, your direct competition is The Salvation Army and Local Food Banks 6. Compassion is the core emotional word in your lexicon. GRIECO RESEARCH GROUP 38