Charitable Giving to Fight Cardiovascular Diseases: Is It Any Different During A Recession?

1. Charitable Giving to Fight Cardiovascular Diseases: Is It Any Different During A Recession? Rene Bekkers Philanthropic Studies, VU University Amsterdam r.bekkers@fsw.vu.nl 2009 European Heart Network Workshop May 14, 2009

2. Today’s Questions • How much will fundraising income for charities fighting cardiovascular diseases decline as a result of the economic recession? • What effects have recessions had in the past? • Who gives to cardiovascular diseases? • How strongly are donors affected today? • How will the mix of sources of income change? • What are sources of fundraising income? • How strongly are these sources affected?

3. Recession effects • Direct: economic value of your organization’s own wealth and the value of bequests declines • Indirect: • Willingness to donate may decline • Mix of sources of income may change • Fundraising effectiveness may decline

4. Evidence from Giving USA • Little decline in recession years • US donors perceive needs to be higher in recession years

5. Downturn Effects in Europe • European situation is different: taxes fund basic needs, charity funds extras • Economic downturn is likely to reduce psychological sense of economic security • How are donors to Heart Organizations doing in today’s recession? • How have economic downturns affected donations in Europe?

6. Annual donations received by all charities in the Netherlands Million Euro Source: ‘Fondsenwerving in tijden van crises’

7. Fundraising income in % of GDP Source: ‘Fondsenwerving in tijden van crises’

8. Correlates of income • Housing prices: strongly positive, lag 1 year • Stock market: positive, lag 2-3 years • Unemployment growth: negative, lag 1-3 years • Consumer confidence: positive, lead 0.5 year

9. Income Hartstichting, 1994-2006 Million Euro Source: own calculations based on CBF database

10. Bequests up, donations down in downturn Million Euro Source: own calculations based on CBF database

11. Sources of income, Hartstichting Source: own calculations based on CBF database

12. Costs relative to income Source: own calculations based on CBF database

13. Who Gives? • Patients and their social circles • Connections with family members, friends • Empathy and identification are key to understanding donor behavior • In conjunction with social responsibility and own health

14. Social Status and Donations Source: Giving in the Netherlands Panel Survey, 2007

15. Detailed profile • Know heart patients: • Average income, education • Older, below average health • Larger networks, especially family and acquaintances • Donors to Dutch Heart Organization (vs other health charities): • Average income, below average education, rent homes, • Above average empathy/responsibility, know heart patients Source: ‘Straight from the Heart’

16. Detailed profile • More generous donors: • Older, above average income, below average education, home owners, • Larger networks, know heart patients • Church attendees, higher empathy/responsibility • If heart patient is known: higher empathy/responsibility and worse own health Source: ‘Straight from the Heart’

17. Conclusions and Discussion • Donors to charities fighting cardiovascular diseases are likely to suffer stronger effects of the economic downturn • No effects on fundraising costs? • Decreasing proportion of income from bequests • Benchmarking is needed: Giving Europe

18. References • Rene Bekkers, Philanthropic Studies, VU University Amsterdam, r.bekkers@vu.nl • http://renebekkers.wordpress.com • ‘Straight From the Heart’. Pp. 197-221 in: Advances in Medical Sociology, Volume 10: Patients, Consumers and Civil Society: US and International Perspectives, edited by Susan Chambré and Melinda Goldner. Emerald Group Publishing. • ‘Fondsenwerving in tijden van crises’. In: Geven in Nederland 2009: Giften, Sponsoring, Legaten en Vrijwilligerswerk, edited by Theo Schuyt, Barbara Gouwenberg and Rene Bekkers. Amsterdam: Reed Business.