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1. Charity Awareness Monitor Executive Overview (CAMEO)Donation TrendsPlease credit any usage and only for personal or presentation use without prior permission January 2010 Tel: 020 7426 8888 Email: CAM@nfpsynergy.net Web: www.nfpsynergy.net

2. About this CAMEO • CAMEOs are themed reports which cover data from recent waves of the Charity Awareness Monitor, nfpSynergy’s syndicated awareness tracking service among the general public. They aim to delve deeper into key trends and demographics and explore the implications for charities. • Using data from the January 2010 Member Intelligence wave 1 of 6, and previous waves of CAM research, this CAMEO looks at recent trends in the number of donors, the ways in which they give and the size of their donations. • In the light of recovering consumer confidence after the 2008 credit crunch, it also looks at how donors are expecting the amount of money they give to charity to change in the year ahead and which groups are most likely to drive expectations of increasing charitable donations.

3. Contents • Key findings Slide 4 • Who gives to charity, and how do they give? Slides 7-11 • How much has the public donated, and to how many charities? Slides 12-18 • How do changes in charitable giving fit within the wider context of consumer confidence and changes in other areas of spending? Slides 19-27 • How much are the public expecting to donate next year? Slides 28-31 • Key implications Slide 32

4. Key findings 74% of the public reported donating to charity between Nov-09 and Jan-10, overall with very little change compared to previous months despite the recent Haiti Appeal. However, for the first time since the beginning of the recession, the number of people who report having donated less to charity dropped, from 30% to 24%, while the number of those who report having donated more increased, from 15% to 20%. The reported average size of donations is higher for men, older generations (65+) and higher social grades (AB). As consumer confidence increases, the public expects fewer and fewer cutbacks in several areas of spending for the year ahead, including charitable giving- the proportion of the public expecting to give less dropped from 26% in Sep-09 to 22% while the proportion expecting to give more rose from 6% in Sep-09 to 10%. Improving expectations about future charitable giving are led by younger generations- the likelihood of expecting to increase charitable giving in the year ahead is almost double than average among the 16-24 and the 25-34 year olds.

5. Methodology Dates 25th January – 3rd February 2010 Sample A nationally representative sample of 1,000 adults, 16+ in Britain Methodology Online survey Fieldwork Fieldwork carried out for nfpSynergy by Research Now

6. Basic demographics of respondents • The socio-economic classification system we use consists of six social grades which classify the household social status based on the occupation of the Chief Income Earner (so if a casual worker lives with a parent or spouse who is a doctor they'll be an A rather than an E); • AB - higher (A) or intermediate (B) managerial, administrative or professional • C1 - supervisory or clerical, and junior managerial, administrative or professional • C2 - skilled manual workers • DE - semi-skilled and unskilled workers (D) & state pensioners, casual or lowest grade workers (E) Base: 1,003 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10,nfpSynergy

7. Who gives to charity, and how do they give?

8. Stability in the proportion of the public donating to charity in the last 3 months, despite Haiti appeal “Have you donated to charity in the last three months?” Yes Base: 1,013 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy

9. Women, AB social grades and over 45s most likely to give money to charity “Have you donated to charity in the last three months?” Yes Base: 1,013 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy

10. On street cash collections are the most popular way to give, followed by supporting charity shops “In which of the following ways did you give to charity in the last 3 months?” Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy

11. Convergence of committed and ad hoc giving disrupted by recession Expected point of convergence between the two methods of giving (2007 forecast) But since the recession started, figures have diverged from long term trends “If yes, have you given to a collection tin/envelope through the door or by standing order/direct debit or via a membership subscription?” 2007 based forecast Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, nfpSynergy

12. How much has the public donated, and to how many charities?

13. On average, donors have given just under £60 to charity in the three months prior to Jan-10 Mean amount donated over 3 months: Jan-10: £59.99 “In total, approximately how much money have you donated to any charities in the last 3 months?” Base: All donors (756) among 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy

14. On average, men, older age groups and higher social groups have donated larger amounts to charity “In total, approximately how much money have you donated to any charities in the last 3 months?” 14 Base: All donors (756) among 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy

15. More people feel they have increased their charitable giving over the last year “Looking back over the last year or so, would you say that you have given to charity more or less than in previous years?” Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy

16. Younger generations are driving this change in perceptions of recent giving “Looking back over the last year or so, would you say that you have given to charity more or less than in previous years? Given more Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy

17. ..and so are higher social grades “Looking back over the last year or so, would you say that you have given to charity more or less than in previous years? Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy

18. Little change in number of charities donated to in the last 3 months “Approximately how many different charities have you donated to in the last 3 months?” Base: All donors (756) among 1,013 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy

19. How do changes in charitable giving fit within the wider context of consumer confidence and changes in other areas of spending? 19

20. After collapsing in 2008, consumer confidence is on the rise in 2009 Monthly consumer confidence index – latest data for December 2009 Base: UK Source: Experian, Martin Hamblin Gfk/nVision 20

21. …as is optimism about household finances, though not yet back to normal Latest data for December 2009 21 Base: UK Source: Experian, Martin Hamblin Gfk/nVision

22. The public still plan to cut back on spending in many areas, including charitable giving “Do you expect to cut back on your spending in any of the following areas in the next 12 months?” Ranked on ‘yes definitely’ responses Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan-10, nfpSynergy 22

23. But rising confidence is reflected in fewer cutbacks expected than in previous months “Do you expect to cut back on your spending in any of the following areas in the next 12 months?” Yes definitely Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy 23

24. Women more cautious about spending, but no gender gap for charitable giving plans Cutbacks by gender “Do you expect to cut back on your spending in any of the following areas in the next 12 months?” Yes definitely/ Yes probably Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy 24

25. Middle ages cut back on luxury, while younger people focus on food Cutbacks by age “Do you expect to cut back on your spending in any of the following areas in the next 12 months?” Yes definitely/ Yes probably Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy 25

26. Higher social grades less likely to cut back on anything Cutbacks by social grade “Do you expect to cut back on your spending in any of the following areas in the next 12 months?” Yes definitely/ Yes probably 26 Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy

27. Similarly, higher income groups less concerned about cutting back on expenditure Cutbacks by household income “Do you expect to cut back on your spending in any of the following areas in the next 12 months?” Yes definitely/ Yes probably 27 Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy

28. How much are the public expecting to donate next year?

29. Improving expectations about giving in the coming year “Looking forward to the year ahead, do you expect you will increase or cut down on the amount you give to charity?” Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy

30. Under 35s are most likely to drive these improved expectations “Looking forward to the year ahead, do you expect you will increase or cut down on the amount you give to charity?” Give more Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy 30

31. …as are higher social grades “Looking forward to the year ahead, do you expect you will increase or cut down on the amount you give to charity?” Give more Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy

32. Key implications Charities should capitalise on the public’s increased optimism about the future economic outlook and their improved confidence in spending, as expectations of future charitable donations show signs of improvement for the first time after the recession. However, they should be mindful that the rise recently seen in consumer confidence may slow down in the next few months as the full effect of the recession is felt through increasing unemployment levels. Although middle aged and older generations have traditionally constituted the core donor base – being more likely to give and being responsible for the largest donations – it seems the scope for charities to increase donations from these groups could be limited – they are also among the groups indicating the most cut backs in spending. Younger generations, on the other hand, seem to hold the largest potential, being more open to increase their donations in the future. However, currently this potential looks far from being realised – the likelihood of this group to donate has actually decreased slightly in recent years. As well as looking to tap into donors’ improved expectations of future charitable donations, charities may also need look at ways of restoring levels of committed giving, which have shown signs of deterioration in the hardest months of the recession.

33. Are these responses ‘statistically significant’? When looking at any survey sample, unless the whole population is questioned, it is impossible to say that the responses are exactly representative of the wider population – there will be a “margin of error” of a few percent. This margin of error changes according to the size of sample, the size of the population and to the observed percentage in question (the margin of error is at its lowest for scores of 1% or 99%, and gets higher the closer a score is to 50%.) The CAM sample of 1,000 is robust enough for us to be 95% sure that results are representative of the wider British public aged 16+ (about 48,516,000) within a 0.5% to 3% margin of error. For example if 14% of respondents are aware of Charity X this means the awareness figure for the whole population lies between 12-16%. 33

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