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Perfecting our giving

Perfecting our giving. Cathy Pharoah Director of Research Tuesday 29th November 2005. What are we working towards?. Our vision A world in which giving in a committed and effective way is a recognised part of everyday life Our cause effective giving. What do we do for individuals?.

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Perfecting our giving

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  1. Perfecting our giving Cathy Pharoah Director of Research Tuesday 29th November 2005

  2. What are we working towards? Our vision A world in which giving in a committed and effective way is a recognised part of everyday life Our cause effective giving

  3. What do we do for individuals? • for individuals, we have created a range of ways to make giving to charity simple and tax-efficient • Charity Account • trusts • legacies • consulting and advice • Give As You Earn • individuals give more than £250m through CAF’s giving solutions each year

  4. Estimated growth in individual giving and tax-efficient giving (adjusted for inflation at 2002 prices) Source:

  5. 1.9% 1.8% 1.5% US 0.9% UK 1.2% Individual giving as % of GDP 1972 – 2002 %GDP 2.5 1.5 0.5 yr 92 94 96 98 00 02 72 - 91 Sources: Giving USA (1995-2003; CAF's Individual Giving Surveys (1992-93); NCVO NOP Individual Giving Surveys (1995-2002). US GDP figures provided by US Department of Commerce Bureau of Economic Analysis – National Income and Product Accounts (adjusted for inflation). UK GDP figures provided by the Office of National Statistics – National Accounts

  6. UK giving pyramid 2003 individuals, legacies, corporate + private family foundations

  7. % of value of donations given by household income deciles 2003 Source: CAF Analysis of EFS Survey Data, ONS, 2003

  8. Total given through Gift Aid 1998/99 – 2004/05 Sources: HMRC statistics with additional calculations by CAF.

  9. % of donors using Gift Aid1999 – 2003 Sources: CAF/NCVO NOP Individual Giving Surveys (1995 – 2002)

  10. Payroll giving in context • 2% of UK taxpayers use payroll giving • only circa 10% of people with access to a scheme use it • £83m in individual donations • promotional initiatives • millennium: Children’s Promise • April 2000: 10% government supplement on donations • April 2000: removal of £1,200 per year donation limit • July 2001: The Giving Campaign • April 2004: SME grant scheme Source: Analysis of UK Payroll Giving, 2005

  11. Children’s Promise scheme Source: Analysis of UK Payroll Giving, 2005

  12. Long-term trend in % population giving % 72 70 70.3 68 68.5 67.9 67.5 67.3 67.2 66 65.9 64 64.7 62 1995 1996 1997 1998 1999 2000 2001 2002 Source: Inside Research (CAF/NCVO, 2003)

  13. Average individual gift size £ 14 12.93 11.82 12 12.39 12.29 11.59 10 10.07 9.8 9.61 8 6 1995 1996 1997 1998 1999 2000 2001 2002 Source: Inside Research (CAF/NCVO, 2003)

  14. Tsunami giving/online giving • 81% donated money to the appeal • 50% had donated more to the tsunami appeal than any other cause in the last year • 61% of online were first time • 40% of telephone were first time • abolition of paper trail Source: CAF telephone survey (NOP), January 2005

  15. Potential market – conversion of donations to tax-efficiency (£bn)

  16. What CAF Offers

  17. Give As You Earn • CAF runs Give As You Earn – the UK’s largest payroll giving scheme • employees make regular donations direct from gross salary • four options for giving • Charity Account • direct donation • staff charity fund • personal trust • UK registered charities and charitable organisations receive funds • encourage companies to match and pay admin fee • connectandgive – online tool, tailored pages

  18. Corporate and individual trusts • no need for Charity Commission or Inland Revenue approval • no need to appoint trustees or submit accounts to the Charity Commission • place capital sum in trust • distribute interest on capital sum invested • methods of payment • chequebook • standing order • written instruction • statements

  19. Gift Aid Charity Vouchers • how can you make donations? • by posting direct to chosen causes • by depositing vouchers in collecting boxes • who can you give to? • any charity registered in the UK • local groups such as places of worship, scout groups and schools • fundraising events and appeals • disaster funds such as the DEC

  20. Gift Aid Charity Vouchers • new, innovative method of making small donations tax efficient • £100 buys a book of 20 vouchers worth £122.40 • each £5 voucher has Gift Aid added • relieve charities of the burden of tax recovery • higher-rate taxpayers can claim the difference between basic rate and higher rate on the gross value of their gift

  21. Charity involvement in National Giving Week • charities use the campaign for fundraising • Imperial War Museum, RNLI (SW), AYME (Assoc. of Young People with ME), BIBIC (British Institute for Brain Injured Children) • campaign has been successful • media coverage – Radio 4 Money Box, 10+ local radio stations, It’s Your Money BBC1 • traffic to website – close to 3 times the level of last year • market research – 16% awareness of NGW campaign with 13% saying they have given more to charity • National Giving Week – repeat in 2006 – welcome participation

  22. National Giving Week (Second) – October 2005 • National Giving Week – CAF awareness building campaign to encourage committed, tax efficient giving • engaging individuals, companies and charities with: • media promotions/charity prize draws • – Daily Mail, Community Channel • participation by Give As You Earn – Prudential, Legal & General, General Motors • promotional events – financial advisers, Ideal Home Exhibition

  23. School Charity Accounts • working with young people to encourage pupils to fundraise and decide on which charities to support • a national network of School Charity Accounts – start-up balance of £500 • a ‘one – stop’ charity finance management system for schools • to be delivered by CAF and Giving Nation • next stage is to carry out a feasibility study – September 2006

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