Future Trends in Fundraising

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Future Trends in Fundraising

• Bruce Tait
• Managing Director
• Bruce Tait Associates

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Guess Who?
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Guess Who?
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Guess Who?
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Guess Who?
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What does this tell us about the future?

• It doesnt change quickly!

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10 Future Trends

• Proposition
• Evidence
• Forecast

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The Ten Trends

• Grief Giving will take millions from the giving
  pool
• Charities will start to fight with each other in
  public
• Charities will ask donors to sign contracts for
  committed giving
• Some charities will raise more money because of
  economic migration, some will raise less.
• DRTV will emerge as a force as strong as DM or
  F2F
• Charities will stop targetting communities and
  start targetting tribes
• The Fundraising sector will have a huge
  recruitment crisis
• Polarisation of charity will cause more mergers
  for economic reasons
• Charities will regret adopting US-style major
  gift tactics
• Celebrities will get fed up with real charities
  and set up their own

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Future Trend 1

• Grief Giving
• Proposition Tragic world events, that should
  not necessarily have attracted donations, have
  drawn billions from the giving pool. This trend
  will continue and expand considerably.

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Future Trend 1

• Evidence
• Virginia Tech
• 90,000 donations

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Future Trend 1

• Evidence Dunblane 5.2m

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Future Trend 1

• Evidence 9/11 - 1billion

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Future Trend 1

• Evidence Diana Memorial Fund 20m in
  donations, 80m in commercial sales

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Forecast

• From now on, whenever there is a major and tragic
  event, anywhere in the world, the public will be
  primed to give big, quick and without any concern
  for need.
• The public will consider these funds as donations
  and give less to other causes as a result.

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Future Trend 2

• Knocking copy
• Proposition - Charities will fight with each
  other in public.

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Future Trend2

• Evidence Commerce

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Future Trend2

• Evidence Commerce

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Future Trend2

• Evidence Politics

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Future Trend2

• Evidence SSPCA

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Future Trend2

• Evidence ENABLE

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Future Trend2

• Evidence Erskine

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Future Trend 2

• Forecast now that the convention has been
  broken, charities will increasingly use knocking
  campaigns to fight their corner.

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Future Trend 3

• Proposition Charities will ask donors to sign
  contracts for committed giving

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Future Trend 3

• Evidence Louisiana University
• Charitable Gift Annuity. The University
  will establish and promote gift annuity contracts
  with donors in accordance with applicable federal
  law, IRS regulations and the laws and regulations
  of the State of Louisiana. Additionally, the
  Universitys gift annuity program will adhere to
  the following
• The minimum size contributions to fund either an
  immediate gift annuity contract or a deferred
  payment gift annuity contract will be set by the
  Gift Acceptance Committee and may be periodically
  adjusted at its discretion.
• All gift annuity contracts must first be approved
  by Foundation UniversityCounsel.
• The payout rates will conform to the applicable
  published rates of the American Council of Gift
  Annuities (ACGA). Any deviation from the ACGA
  rates must be approved by the Gift Acceptance
  Committee. (http//www.acga-web.org).
• The University Foundation may engage one or more
  third party entities to provide gift
  administration, custodial and investment services
  for its gift annuity contracts.
• All assets given to fund a gift annuity will be
  invested and income and principal will be used to
  pay any annuity obligations of the contract until
  all income beneficiaries under the contract are
  deceased or no longer entitled to receive income.
• Gift annuity contracts will be booked at face
  value for development and recognition purposes,
  but only at remainder value for general
  accounting purposes.

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Future Trend 3

• Evidence
• Charity Financial Products is a major
  opportunity for the voluntary sector, for
  financial services distributors, and for product
  providers.
• This will give donors a structure for
  charitable giving, encouraging regular planned
  giving.
• Lord Joel Joffe, Chair The Giving Campaign

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Future Trend 3

• Forecast Charities will set up packaged
  giving schemes that will include contracts to
  give for a minimum period.
• This will revolutionise Donor Acquisition in
  the UK.

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Future Trend 4

• Proposal - Some charities will raise more
  money because of net immigration, some will raise
  less.

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Future Trend 4
Total International Migration (TIM) to/from the
UK 1997-2006
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Dorothy Donor
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Future Trend 4

• Forecast some charities will benefit from
  understanding the new communities forming in
  Britain. Others will see a decline in support
  for public appeals because of it.

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Future Trend 5

• Propostion Digital TV will give rise to
  charities increasingly using long-form DRTV

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Future Trend 5

• Evidence

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What is Long-Form DRTV

• 15-minutes long
• direct response infomercial.
• shown back-to-back
• in a 30-minute slot

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Future Trend 5

• Evidence Actionaid first charity infomercial
  broadcast in the UK in 2003.

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Future Trend 5
Evidence - American Society for the Prevention of
Cruelty to Animals (ASPCA).
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Future Trend 5

• Forecast Going Digital will present UK
  charities with a powerful new weapon in their
  donor recruitment arsenal. The best charities
  will use it early and integrate it into their
  other campaigns.

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Future Trend 6

• Tribes
• Proposition Charities will start fundraising
  from tribes rather than communities

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Future Trend 6
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Future Trend 6

• Evidence

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Future Trend 6

• Forecast The age of marketing our causes
  through traditional community groupings is ending
  - we are now in the age of the tribe.

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Future Trend 7

• Proposition The Fundraising sector will have
  a huge recruitment crisis

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Future Trend 7Evidence The average graduate
starting salary in the private sector is 20,300.
In the public sector it is 21,445. In the
voluntary sector it is 16,000
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Future Trend 7

• Evidence Organisations report skills deficits in
  a number of areas. A survey undertaken by the
  Charities Aid Foundation (CAF) for BOND (British
  Overseas NGOs for Development) identified the
  following three largest areas where skills were
  lacking in non-governmental organisations (NGOs)
• fund-raising
• marketing
• information technology (IT).
• (UK International Development NGOS A Profile of
  the Sector, Liz Goodey, CAF, 2004)

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Future Trend 7

• Evidence The UK Voluntary Sector Workforce
  Almanac 2007, published by the Workforce Hub,
  shows that the sector grew from 483,000 employees
  in 1996 to 611,000 by the end of 2005 - an
  increase of 26 per cent.
• The rise means that the voluntary sector accounts
  for 2 per cent of all UK employees.
• The growth outstrips expansion in the public and
  private sectors, which have increased their staff
  levels by 14 and 11 per cent respectively during
  the same period.
• "There appears to be no sign of this expansion
  slowing down, particularly in light of the
  sector's expanding role in public service
  delivery," the report says.

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Future Trend 7

• Forecast charities will suffer a major
  recruitment crisis, at all levels, in all
  geographical areas.
• Salaries will increase, as will training
  budgets, flexible working practices and other
  benefits.

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Future Trend 8

• Proposition - Polarisation of charities will
  cause charity mergers out of economic necessity

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Future Trend 8

• Evidence
• The figures from 2004/05 show that the
  sector's overall income grew by 2.8 per cent over
  the previous year to 27.7bn, but that prosperity
  was concentrated at the top. If the 317
  organisations with incomes above 10m are
  discounted, the sector's income actually dropped
  by 678m.
• The NCVO's UK Voluntary Sector Almanac 2007

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Future Trend 8

• Forecast many many more medium sized
  charities will merge out of financial necessity

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Future Trend 9

• Proposition Charities will regret adopting
  US-style major gift tactics

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Sir Tom Hunter
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Future Trend 9

• Evidence

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Future Trend 9

• Forecast - US style big gift tactics, will
  grow in the UK, but the charities that use it,
  may come to regret it as more and more major
  donors demand a say in the strategic running of
  the organisations.

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Future Trend 10

• Proposal Cause celeb
• Celebrities will get fed up with real
  charities and set up their own

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Future Trend 10Oprahs Angels
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Cause Celebre

• Andre Agassi charitable foundation 60m
• Kirk Douglas Foundation 25m
• The Britney Spears Foundation - 6m
• And the British ones
• The Sharon Osbourne Colon Cancer Program
• Jamie Oliver The Fifteen Foundation

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Future Trend 10

• Forecast Some people will start to give to
  charity like they vote on the X Factor.
• This is a bad thing.

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Future Trends

• bruce_at_brucetaitassociates.com