The Changing Landscape of American Philanthropy PRESENTED BY DENNIS MCCARTHY, BLACKBAUD PAM LOEB, EDGE RESEARCH
Feb 15, 2017
The Changing Landscape of American PhilanthropyPRESENTED BY DENNIS MCCARTHY, BLACKBAUD
PAM LOEB, EDGE RESEARCH
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Why These Studies…Why These Questions
As people of color become majorities in communities across America, successful nonprofit organizations will need to have a diverse donor base to sustain and grow their operations.
-Dr. Emmett Carson
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Next Generation of American Giving, May 2013
Online survey of 1,014 US Donors
Adults 18+ who report donating to a charitable cause in the last 12 months (beyond school, place of worship, union)
Looking at the giving habits of Gen Y, Gen X, Boomers and Matures
Data is self-reported, not transactional
Diversity in Giving, October 2014
Online Survey of 1,096 U.S. Donors
Utilized the web-enabled KnowledgePanel®, the nation’s only probability-based panel, recruited to be representative of the U.S. population
Oversamples of African-American, Asian, and Hispanic respondents. Used Census definitions
Survey offered in English and Spanish
Two Studies
Generosity Across the Ages
% Giving
Tota
l ann
ual g
ivin
g
40% 50% 60% 70% 80% 90% 100%$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
60% Give32.8M donors$481 yr/avg3.3 charities$15.8 B/yr
88% Give27.1M donors$1367 yr/avg6.2 charities$37.0 B/yr
72% Give51.0M donors$1212 yr/avg4.5 charities$61.9 B/yr
59% Give39.5M donors$732 yr/avg3.9 charities$28.9 B/yr
MaturesBoomers
Gen Y
Gen X
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Gen Y11%
Gen X20%
Boomers43%
Matures26%
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Generations Contribution to
Total Giving(% of total dollars)
The Significance of Boomers
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Checkout Donation 51%
Purchase for Proceeds 42%
Online Donation 40%
Pledge 39%
Street Canvassing 29%
Retail giving 27%
Responded to mailing 22%
Checkout Donation 52%
Online Donation 47%Purchase for Proceeds 39%
Retail giving 29%
Street Canvassing 25%
Pledge 22%Responded to mailing 10%
Checkout Donation 53%
Online Donation 42%
Honor/Tribute Gift 42%
Purchase for Proceeds 41%Responded to mailing 40%
Pledge 39%
Street canvassing 26%
Responded to mailing 52%
Checkout Donation 44%
Honor/Tribute Gift 42%
Pledge 38%
Purchase for Proceeds 36%
Online Donation 27%
Gen Y
*Arrows indicate statistical significance between 2010 and 2013.
Gen X
Boomers
Matures
Which of the following charitable giving methods have you used in the past two years?
Multi-channel As the New Normal
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Mail from a charity is very or somewhat
acceptable
Mail is important way for charity to
stay in touch
Gave a donation in response to a mail appeal in the last 2
years
66%
53%
10%
64%
58%
22%
61%
61%
40%
56%
64%
52%
Matures Boomers Gen X Gen Y
What’s the Deal with Direct Mail?
Does Money Matter Most?
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How do you feel you can make the biggest difference?
Donate money25%
Donate money36%
Donate money45%
Donate money48%
Other=fundraising, advocacy, donating goods
Word-of-mouth 18%
Volunteer30%
WOM 11%
Volunteer31%
WOM 13%
Volunteer20%
Other 14%
Volunteer24%
Other 23%
Other 19%
Other 16%
WOM 8%M
B
X
Y
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Comfort-level Sharing Info about Charities Support
Spreading the Word
Gen Y65% very comfortable telling
others
Gen X56% very comfortable telling
others
Boomers45% very comfortable
Matures47% very comfortable
How Social Are Donors?
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43% Y and XThink OK to post on social networking site and ask for donation
20% Boomers
6% Matures
Social Media Activities Doing with Charities Today
Follow on social media
Share about charity on FB
Follow charity’s Twitter feed
Made a donation through FB, Twitter, etc
55%
50%
30%
8%
47%
38%
22%
10%
27%
19%
5%
5%
12%
9%
2%
1%
Gen Y Gen X Boomers Matures
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71%78% 78%
70%
Gen Y Gen X Boomers Matures
Supported Someone Else Raising Money on Behalf of a Charity
Fundraised on Behalf of an Organization or Participated in a Run or Event to Raise Money
Gen Y MaturesBoomersGen X
Peer-to-Peer Fundraising
46% 34% 29%
43%
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Retail giving, last 12 months
53%49%
36%
20%
Gen Y Gen X Boomers Matures
Retail Giving
72% are first-time donors
33% plan to donate directly in future
Retail Philanthropy
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Have given in the workplace
59%53%
46%
22%
Workplace Giving
Gen Y Gen X Boomers Matures
(filtered among those employed or student)
1x Workplace donation!
13%
Volunteer!
12%
Employer-
matches!
9%
Payroll deductio
n!18%
Walk/Run
Challenge!9%
Workplace
fundraiser!
15%
Workplace Giving
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% Agree Gen Y Gen X Boomers MaturesI am concerned about what portion of the dollars I give to a non-profit/charity goes to overhead versus the cause.
69% 79% 82% 90%I have an idea of which non-profits/charities I will give to each year. 73% 72% 82% 91%I have an idea of how much I will budget for non-profits/charities each year. 44% 53% 62% 64%I am more likely to support a non-profit/charity when my friends and family ask me to, than if the request comes directly from the organization itself. 52% 49% 39% 42%
Most of the charitable giving I do is spontaneous, and based on who asks me and/or what pulls at my heartstrings. 41% 40% 32% 30%
I like supporting non-profits/charities by participating in social events (i.e. parties, dinners, walks, runs, etc.). 49% 37% 26% 19%
I like when non-profits/charities offer their supporters promotional giveaways (i.e. T-shirts, coffee mugs, etc.).
40% 31% 25% 17%
I feel it is my responsibility to support non-profits/charities by signing petitions or engaging in other forms of advocacy on their behalf. 34% 31% 23% 22%
Differences in Mindset
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<35 (Millenials)35-49 (Gen X)
50-69 (Boomers)69+ (Matures)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Caucasians
African Americans
Asians
Hispanics
Age Distribution by Race/Ethnicity
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Generations and Race/Ethnicity
The Donor Gap
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Donors Share Core Values
Religion and faith are both drivers and indicators of giving.
The impulse to help those in need is universal.
Wealthier individuals donate more in absolute terms than those with mid-level or
lower incomes.
The African American Donor Community
African American Donors: At A Glance
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Religion and faith are a more important part of philanthropy than among any other group
More than any other group, interested in supporting their unique heritage and community
Giving is more personal and spontaneous
Not as likely to give through direct response channels, but also not being asked
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?
African American Donors: Demographics
Gender Generation Income Religion
Significantly more likely to be lower or middle
income
More likely to be engaged with religion; significantly more likely to self-describe as evangelical Christian
Female: 54%Male 46%
Matures: 13%Boomers: 45%Generation X: 22%Millennials: 20%
48%report household incomes below $50,000/year
64%
49%
48%
Religion very important
Attend services at least once a week
Born-again/ evangelical
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Place of worship
Local social service
Children’s charities
Health charities
Military/veterans
Youth development
Anti-hate/equality
50%
40%
37%
37%
23%
21%
12%
Top Charities Supported 75% say is important to support their place of
worship, far surpassing any other group
On average, say give 13% of income
to place of worship, more than any other
group(among those who give to place of
worship)
↑
↑ Significantly higher than donors overall
↑
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African American Donors: Giving Priorities
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Tend to give in small ways (toy/food drives, checkout donations, etc.)
Responsibility to support orgs positively impacting AA community
Like when orgs offer promotional giveaways
Like supporting by participating in social events
66%
57%
46%
45%
58%
43%
28%
32%
Giving Habits/Attitudes: More Likely To Agree
All Donors
African -American Donors
↑
↑ Significantly higher than donors overall
↑
↑
↑
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African American Donors: Giving Habits/Attitudes
African American Donors: Giving Habits/Attitudes
Have an idea of which orgs to give to
Concerned about overhead vs the cause
Have idea of how much I will budget for donating
65%
60%
47%
79%
80%
56%
Giving Habits/Attitudes: Less Likely to Agree
All Donors African American Donors
↓
↓ Significantly lower than donors overall
↓
↓
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Have made donations at checkout
Have given to canvassers on street/at home
Have given online via org's website
Have become monthly donors to a cause
Have made a tribute/ memorial donation
49%
28%
19%
11%
18%
43%
18%
31%
19%
24%
Donation Channels: More and Less Likely to Use
All Donors
African -Amer-ican Donors
↑ Significantly higher than donors overall↓ Significantly lower than donors overall
↑
↑
↓
↓
↓
20%One out of five
African Americans says he or she would
support more organizations if
asked more often
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African American Donors: Outreach
The Asian Donor Community
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Giving priorities are different—more likely to support emergency relief efforts and education; religion not as important as driver of philanthropy
More likely to plan and research their philanthropy
Generous U.S. donors, even though this group is more likely to have been born outside the U.S.
Younger, well educated (82% college degree+), more likely liberal and femaleMost technologically connected and willing to use alternate giving channels
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Asian Donors: At A Glance
Asian Donors: Demographics
Gender Generation Income & Education Religion
Less likely to feel it is their responsibility to support nonprofits
because of their faith
Female: 60%Male 40%
Matures: 13%Boomers: 33%Generation X: 29%Millennials: 25%
42%40%
42%
College degree
Post-graduate degree
Highly Educated
Asian Donors: Giving Priorities
Place of worship not top giving category
↑
↑ Significantly higher than donors overall
↑
Health charities
Children’s charities
Local social service
Place of worship
Emergency relief
Formal education
Youth development
36%
35%
35%
34%
29%
24%
18%
Top Charities Supported
↑
30
Always visit a nonprofit's website before becoming a supporter
Like when orgs offer promotional giveaways
Prefer to give to orgs that change policies/laws
40%
36%
29%
27%
28%
24%
Giving Habits/Attitudes: More Likely To Agree
All Donors
Asian Donors
↑ Significantly higher than donors overall
↑
↑
↑
49%
Asians are more likely to support a
cause if the request comes from a friend or
family.And this group is nearly twice as likely to give via crowdfunding.
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Asian Donors: Giving Habits/Attitudes
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Have given online via org's website
Have donated through a crowdfunding site
Have made a tribute/ memorial donation
Added a donation at checkout
39%
19%
19%
38%
31%
10%
24%
43%
Donation Channels: More and Less Likely to Use
All Donors
Asian Donors
↑ Significantly higher than donors overall↓ Significantly lower than donors overall
↑
↑
↓
↓
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Asian Donors: Outreach
The Hispanic Donor Community
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Give larger percentage of income to church than donors overall
Not asked for donations as frequently as others, and not as likely to give through traditional direct response channels; most interested in hearing more from nonprofits
Youngest of all groups and most likely to have children in their households
Much more likely to say they give spontaneously, when something pulls at their heartstrings
Strong commitment to children's causes
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Hispanic Donors: At A Glance
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Hispanic Donors: Demographics
Gender Generation Income Religion
Cite their place of worship first among nonprofit categories
they support
Female: 43%Male 57%
Matures: 7%Boomers: 30%Generation X: 33%Millennials: 30%
45%More likely to be lower
or middle income
45%report household incomes below $50,000/year
Hispanic Donors: Giving Priorities
Place of worship
Children’s charities
Health organizations
Local social service
45%
40%
31%
30%
Top Charities Supported
Health and local social service organizations are popular, but
Hispanic donors are still less likely to give to either than donors as a
whole
↑ Significantly higher than donors overall
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Most giving is spontaneous/pulls at hearstrings
Would support more nonprofits if asked more often
Would like to support more nonprofits but don't know how
52%
18%
21%
36%
9%
10%
Giving Habits/Attitudes: More Likely To Agree
All Donors
Hispanic Donors
↑ Significantly higher than donors overall
↑
↑
↑ 55%More than
half of Hispanics say they
prefer appeals in
English
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Hispanic Donors: Giving Habits/Attitudes
Hispanic Donors: Giving Habits/Attitudes
Concerned about overhead vs. cause
Have an idea of which nonprofits will give to each
year
Have an idea of how much will budget for nonprofits
each year
63%
57%
39%
80%
79%
56%
Giving Habits/Attitudes: Less Likely to Identify With
All Donors
Hispanic Donors
↓
↓ Significantly lower than donors overall
↓
↓
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Have given to canvassers on street/at home
Donated through a 3rd party vendor
Have donated in honor/memory of someone
Have donated through an organization's website
Have given in response to postal mail appeal
22%
23%
13%
23%
27%
18%
18%
24%
31%
32%
Donation Channels: More and Less Likely to Use
All Donors
Hispanic Donors
↑ Significantly higher than donors overall↓ Significantly lower than donors overall
↑
↑
↓
↓
↓
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Hispanic Donors: Outreach
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1. Get serious.
2. Embrace the change from the inside out.
3. Stop obsessing about Millennials.
4. Don’t forget to listen.
5. The fundamentals are the fundamentals.
6. Think about the baton pass.
7. Moving from a linear/transactional relationship to “giving in the
flow of everyday life.”
Embracing the Changing Landscape
Dennis McCarthy, Ashley Thompson and Erin Duff at Blackbaud
Pam Loeb, Mariel Molina, Erin Wagner and Lisa Dropkin at Edge Research
Mark Rovner at SeaChange Strategies
And for inspiring us all: Dr Emmett Carson of the Silicon Valley Foundation
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Thank you to those who helped with this project
Thank you!Read the whitepaper here:
www.blackbaud.com/GivingDiversity
For additional information, please contact:Dennis McCarthy | [email protected]
Pam Loeb | [email protected]
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