Institute of Fundraising Consultants Group

1. Institute of Fundraising Consultants Group • Peter Maple • Lecturing at LSBU since 2006 • Professional fundraiser since 1991 • Fundraiser since 1958 • maplep@lsbu.ac.uk

2. Afternoon discussion • Look very briefly at individual giving in the UK • How academics think about charitable behavior • How fundraisers look at and after “major donors” • Make some observations, conclusions and practical recommendations.

3. CAF/NCVO - UK Giving 2008/9 • CAF estimates £9.9bn was given by individuals (down 11%) • In the top 500 fundraising charities, vol. inc was 37% of total • For the rest it is estimated at around 64% of total income • Only 7% of donations were over £100 • But that nearly half of the total received • 54% of the adult population gave in the preceding 4 weeks Which equates to 27 million people • More baby boomers (born 1945-53) gave – nearly 60% • Baby boomers already own 70% of UK wealth – set to rise to 85% by 2020

4. Why do people give? • Religion • Thanksgiving • Insurance • Guilt • Human nature* • Because I was asked!

5. The Fundraising Process • The Case for Support • What DO you do? • Why do YOU do it? • And why should I support you?

6. The Spectrum of Philanthropy • UNDERSTANDING GIVING MOTIVATIONS • Charity fundraisers are usually desperate to increase donations – and so change the world • So very interested in examining philanthropic motivations to predict the behaviour of supporters giving money • A number of existing academic and practical models aiming to describe the motivations and the behaviour of people who give……………… • Or, perhaps as importantly, don’t give, to charity.

7. The Spectrum of Philanthropy • SEVEN FACES OF PHILANTHROPY • One of the best known is Prince and File’s model (1994) • The Altruist • The Repayer • The Dynast • The Devout • The Communitarian • The Socialite • The Investor

8. The Spectrum of Philanthropy • FIVE CHARACTERISTICS OF PHILANTHROPISTS • Another established approach is described in Theresa Lloyd’s “Why the rich give” (2005) • Belief in the cause • A catalyst for change • Self-actualisation • The moral dimension • Relationships

9. The Spectrum of Philanthropy • TOWARDS AN UNDERSTANDING OF GIFT GIVING • Adrian Sargeant and Lucy Woodliffe (2007) did an extensive interdisciplinary review and developed a giving behaviour model: • Altruism vs Egoism • Self esteem vs Self interest • Guilt vs Pity • Social justice vs Tax • Empathy vs Sympathy • Prestige vs Making a difference

10. The Spectrum of Philanthropy • THE NEW PHILANTHROPISTS • Kay Sprinkel Grace (1997) in “Beyond Fundraising” characterises five elements for success. Those most obviously aimed at the donors are: • shared values • investor attitude • Charles Handy (2006), in “The New Philanthropists” portrays 23 wealthy individuals who seek themselves, he says, as social investors. • Philip Beresford (2008 Sunday Times Rich List) refers to 85% of the individuals now listed have made their money.

11. The Spectrum of Philanthropy • ISSUES WITH THE MODELS • People change and often respond rather more to the situation than to previously held beliefs. • More than any other single trigger, people give to people

12. The Spectrum of Philanthropy A visual representation of the spectrum of philanthropy Altruism Reciprocity Enlightened self-interest

13. The Spectrum of Philanthropy • ALTRUISM - At the one end of the spectrum there are the deeds that seek no reward or acknowledgement • RECIPROSITY - Moving along the spectrum to where people get something in return • ELIGHTENED SELF INTEREST - At some point the return to the donor starts to become as valuable to the donor as to the charity. • BUT - is it a straight line continuum?

14. The Spectrum of Philanthropy Altruism Enlightened Self-interest Reciprocity

15. The Spectrum of Philanthropy • MODELS OF PRACTICE IN THE UK • The researcher has been in discussion with 30 well established UK charities to observe and understand what charities do to provide triggers for people to give. • Funding through LSBU’s Research Opportunities Fund. • Detailed analysis of a semi-structured questionnaire has been completed with participants receiving major gifts Charities with a vol. income from £350k to £150m.

16. The Spectrum of Philanthropy • Total voluntary income covered £540m • Total major gift income £14.2m (2.6%) • Income per employed MG fundraiser £240k • Average number of major donors 150 • Average number of prospects 200 • Modal definition of a major gift £1000 (in one yr) • Average donors on database 140k • Generally largest gifts were solicited

17. The Spectrum of Philanthropy • All bar two charities had clear processes for identification, development and stewardship • Mostly an informal four step cycle of: Research, introduction/cultivation, solicitation and stewardship* • Generally good understanding of demographic features • All bar two had a clear understanding of donor behavior • Only one makes use of a conceptual model to understand their donors

18. The Spectrum of Philanthropy • Generally some (but limited) volunteer involvement • Interviews examined revenue (annual) programmes • In all bar two cases the fundraisers or senior staff make the “ask” • This flies in the face of all the accepted best practice

19. Spectrum of Philanthropy • Revenue vs Capital programmes • The gift pyramid • The proportionate impact of major gifts • The vital importance of voluntary leadership

20. Spectrum of Philanthropy • Adoption of a conceptual model • A review of current practice and effectiveness • Mapping the value of gifts • Investing in the volunteers • Increasing the returns on investment

21. Spectrum of Philanthropy • Other observations • Other conclusions • Other recommendations • Final thoughts about further research • Questions please!