1. PROFILE OF NON-PROFITS IN CANADA 2. PLANNING FUNDRAISING CAMPAIGNS 3. OVERCOMING FUNDRAISING CHALLENGES

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2 Table of Contents 1. PROFILE OF NON-PROFITS IN CANADA a) Executive summary 3 b) Non-profits defined 4 c) Evolving part of the Canadian economy 5 d) Revenue, number and relative size 6 e) Funding sources 7 f) Revenue in registered versus non-registered charities 9 g) Paid employment... 9 h) Donor profile and Super Donors PLANNING FUNDRAISING CAMPAIGNS a) What are the most effective donor channels?.10 b) Understanding donor motivations and psychology 11 c) Common barriers to giving. 11 d) Volunteering e) British Columbia s non-profit landscape OVERCOMING FUNDRAISING CHALLENGES a) Common challenges...18 b) More transparency about funding use needed...19 c) Tracking performance could result in more donations d) How to improve individual donation campaigns...20 e) The most effective channels for soliciting donations...21 f) Planning corporate fundraising campaigns...21 g) Improving volunteer recruitment

3 a) Executive summary Non-profit organizations play a substantial role in the Canadian economy. In 2005, the 161,000 organizations in this sector accounted for 6.7% of Canada s GDP, or $87 billion. In BC alone there are some 20,270 non-profit organizations, which generate about $11 billion in revenues each year. Non-profits operate in many sectors of society, providing education, services and goods to help build stronger and more vital communities. The first part of this report gives a detailed profile of non-profits operating in Canada, including the number and size of the organizations, the sectors in which they operate, their sources of funding, and their role as employers. The second section outlines the role Canadians play in the success of non-profits, either by donating money and/or volunteering time. Detailed research has been undertaken about the behaviour and attitudes Canadians have to volunteering and donating, information which gives insight into how organizations can improve their ability to raise funds and attract volunteers. Market research has shown that individuals and corporations would donate more to non-profits if they had more information on how donations were used. The third section focuses specifically on non-profit organizations in British Columbia. The fourth section focuses on the challenges that non-profits face, and the opportunities these challenges present for innovative non-profit organizations. Research indicates that key challenges for non-profits include raising funds from individuals, corporations and governments, planning for the future, and recruiting and retaining volunteers. In addition, market research has shown that individuals and corporations would donate more to nonprofits if they had more information on how donations were used. The final section of the report offers strategic insight into how to increase fundraising effectiveness and donor retention via the development of performance scorecards, and fundraising strategies and tactics (individual and corporate). A note on statistics: Most of the figures in this report are from Statistics Canada studies completed between 1997 and The most recent available figures are always used, however national surveys and research are not conducted annually and not all figures are as current as one would wish. For more strategic insights on planning and executing awareness and fundraising campaigns, please visit our blog ( 3

4 1. PROFILE OF NON-PROFITS IN CANADA b) Non-profits defined The non-profit sector is an important part of Canadian society, providing valuable services, education and products to Canadians. This sector includes a wide variety of organizations that touch on virtually all aspects of Canadian life. Many of these organizations serve the general public, but many also target their services to specific populations such as children, youth, seniors, new immigrants, persons with disabilities, or workers. Statistics Canada estimated about 161,000 non-profit organizations operated in Canada in These include day-care centres, sports clubs, arts organizations, social clubs, private schools, hospitals, food banks, environmental groups, trade associations, places of worship, advocates for social justice, and groups that raise funds to cure, prevent, and inform the public about diseases and health issues. For the purposes of this report, non-profits have been classified according to the widely used International Classification of Non Profit Organizations (ICNPO), developed by Salamon and Anheier see Appendix B. The breakdown of non-profits operating in each primary area in Canada is detailed in the chart below. c) Evolving part of the Canadian economy The non-profit sector plays a large and growing role in the Canadian economy. In 2005, the sector accounted for 6.7% of Canada s total GDP, or $87 billion. To provide an 4

5 indication of the scale of the sector, it s useful to compare it to other industries. A 1997 Statistics Canada study indicated that the nonprofit sector s GDP was almost 10 times that of the motor vehicle manufacturing industry, over four times larger than agriculture, and almost twice the value of the mining, oil and gas extraction industry. According to Statistics Canada, between 1997 and 2005, the core non-profit sector grew faster than the Canadian economy as a whole. The most recent available data shows that between 2003 and 2005, economic activity in the core non-profit sector increased at an annual average of 7%, compared to 5.8% for the Canadian economy as a whole. d) Revenue, number and relative size Statistics Canada data estimates 161,000 non-profit organizations operated in Canada in 2003, and that these generated revenues of $112 billion (note: revenues are a different measure than the percent of GDP in section above). Registered charities represent 56% of non-profit organizations (about 80,000), but they account for 63% of all revenues reported and typically have larger average total revenues than do organizations that are not registered as charities. This is generally attributed to the tax exemptions that registered charities receive and their ability to offer donors the opportunity to claim tax credits for donations. Non-profit organizations are very diverse with regard to the size and sources of their revenues. Revenue is highly skewed by organization size, with a small percentage of organizations commanding the lion s share of the resources. The chart below gives a graphic illustration of the revenue distribution by size of non-profit. The largest 7% of all organizations (those with revenues over $1 million) generate over 77% of total sector revenues. The smallest 63% of the organizations (those with revenues less than $100,000) generate only 4% of total revenues. 5

6 The chart below illustrates the difference in economic size of non-profits operating in different primary areas of activity: Hospitals generate $24.5 billion of annual revenue, whereas the environmental sector generates less than 5% of that only $1.1 billion per year. 6

7 Examination of revenues on a per organization basis shows an even more skewed revenue distribution. Almost one-third of the $112 billion is attributable to a relatively small number of hospitals, universities and colleges, which have average revenues of over $20 million per organization per year, whereas other sector organizations have significantly lower average revenues, most well below $1 million. 7

8 e) Funding sources Governments provide 49% of the funds that non-profit organizations receive. Thirty five percent of funding is earned income from non-government sources, generated by memberships and sales of goods and services. Thirteen percent is received in the form of gifts and donations from individuals, corporations and other organizations, and 3% is from other sources. Of the funding coming from government, the vast majority - 82% - is from provincial governments, 14% from the federal government, and 4% from municipal governments. Almost two-thirds of government funding is in the form of grants and contributions. The remaining third of government funding is received as payment for goods and services that non-profit organizations have delivered. Larger organizations depend more on government funding than do smaller organizations. Government sources account for approximately 58% of total revenues for organizations with annual revenues of $10 million or more, but only 12% of total revenues for organizations with annual revenues of less than $30,000. Reliance on municipal government funding is quite similar among all organizations, regardless of size of revenues. Organizations with the greatest reliance on municipal funding are those working in the areas of Environment (9% of total revenues), Social Services (6%), Arts and Culture (6%) and Development and Housing (6%). The 35% of earned income from non-government sources is broken down as follows: 20% in fees paid for goods or services provided by the organization, 11% from membership fees, and the remaining 4% from investment income and charitable gaming. 8

9 Smaller organizations depend more on earned income from non-government sources than do larger organizations. Among those with annual revenues of less than $30,000 earned income accounts for 51% of total revenues. In contrast, organizations with annual revenues of $10 million or more receive only 31% of their revenues from earned income from non-government sources. Membership fees appear to be a more important source of revenues for smaller organizations. The 13% gift and donation revenue comes from donations made directly by individuals (8%) or from corporate sponsorships, donations and grants (3%). The remaining 2% is received as disbursements from other nonprofit and voluntary organizations and from fundraising organizations or private, family or community foundations. In April 2010, the BC government announced $36 million in cuts to the non-profit sector. The impact of these cuts on individual organizations varies according to the extent to which they depend on provincial government funding. While these cuts still leave over $120 million for distribution by provincial governments, a decrease of this magnitude (almost 25%) will lead many non-profits to increase their fundraising efforts to attract more individual and corporate donations, or risk having to reduce their services or perhaps even shut down. f) Revenue in registered versus non-registered charities A key distinction exists between those organizations that are registered charities and those that are not. Registered charities are able to provide receipts for donations that donors can use to claim tax credits. This gives registered charities an advantage over other nonprofit and organizations in their ability to attract donations from individual Canadians as well as from corporations. Registered charities rely more on government revenues (54% of their total revenues) than do non-charitable organizations (39%), and also depend more on gifts and donations 18%, compared with 4% for non-charities. In contrast, non-charitable organizations rely more on earned income from non-government sources (53% of revenues versus 25% for charities). g) Paid employment Employment among nonprofit and voluntary organizations is concentrated among a small number of the largest organizations, primarily hospitals, universities, and colleges. Less than half (46%) of non-profits employ any staff, but these organizations provide over 2 million jobs, 65% of which are permanent positions. Eighty-eight percent of organizations with revenues under $30,000 have no paid staff, as do 52% of organizations with revenues between $30,000 and $99,999. These organizations rely entirely on volunteers to deliver their core programs, to plan for the future, and to raise funds. In contrast, the 2% of organizations that employ 100 or more people account for 71% of all employees, and 69% of organizations with revenues of $10 million or more have a staff of 100 or more. It is these larger organizations that have paid professionals in place 9

10 to undertake strategic planning, deliver core programs, hire external consultants for special projects, craft and execute communication plans, and implement fundraising initiatives. h) Donor profile and Super Donors Canadians donated a total of $10 billion to non-profit organizations in 2007, which represents an increase of 12% over the $8.9 billion donated in Religious organizations were the biggest beneficiaries, receiving 46% of all donated dollars, followed by health organizations (15%) and social services organizations (10%). The average annual donation increased by 9% (from $400 in 2004 to $437 in 2007), however the average number of donations per year decreased from 4.3 in 2004 to 3.8 in The top 25% of donors accounted for 82% of the value of donations. While almost 84% of Canadians made donations in 2007, the top 25% of donors accounted for 82% of the value of donations. These super donors are more likely than others to be older, to have higher household incomes and more formal education, to be married or widowed, and to be religiously active. Although donors with higher household incomes tend to donate larger amounts in absolute terms, those with lower incomes give more when their donations are expressed as a percentage of total income. Four percent of Canadians reported making provisions for a donation through a bequest in their will or via another financial planning instrument. This research suggests that non-profits would be wise to focus their fundraising efforts on the small number of older people who make the largest donations; there is also great opportunity to increase the number of donations made through bequests. As the baby boomers age and require and number of older Canadians increases, the pool of potential super donors will increase. 2. PLANNING FUNDRAISING CAMPAIGNS a) What are the most effective donor channels? Canadians make donations most frequently in response to a request through the mail (16%), when asked by someone in a public place such as on the street or in a shopping centre (12%), or in response to door-to-door canvassing (12%). The most common methods of donating do not, however, produce the most dollars for charitable and nonprofit organizations. As shown in the chart below, the 11% of donations that were made through places of worship accounted for 42% of all donated dollars, whereas the 16% of donations made through the mail accounted for only 1% of the value of donations. This suggests that organizations would be wise to measure the yield of their various campaign channels, as the response rate is not as important as the total amount raised. The channel mix should be selected for greatest yield, or return on fundraising investment. 10

11 b) Understanding donor motivations and psychology The most frequently reported motivations for making donations were feeling compassion for those in need (90%), wanting to help a cause in which the donor personally believes (86%), and wanting to make a contribution to the community (80%). Donors also give when they have been personally affected by the cause of the organization (62%). Some donors reported that their giving was influenced by whether government would give them a credit on their income tax (23%). This research suggests that there are a number of effective approaches to take in developing messaging for fundraising campaigns. It also suggests that eligible non-profits should clearly note the beneficial income tax treatment of donations in all fundraising requests. The 2007 Canada Survey of Giving, Volunteering and Participating (CSGVP) shows that while most Canadians give in response to being asked, the minority that plans their giving in advance tend to give larger amounts. In 2007, 19% of donors reported that they decided in advance how much they intended to give to charitable organizations over the course of a year. These donors contributed an average of $797 annually, compared to $351 for those who did not decide how much to give in advance. These results highlight the importance of encouraging loyalty among existing donors by developing strong, longterm relationships between regular donors and the nonprofit organizations they support. c) Common barriers to giving Donors were most likely to report that they did not give more because they could not afford to do so (71%), or because they were happy with the amounts that they had already contributed (65%). Forty percent indicated that the reason they did not give more 11

12 was because they believed that they already gave enough directly to people, without involving an organization. About a third agreed that they did not give more because they did not think that the money would be used efficiently (33%), or because they gave voluntary time instead of money (32%). A comparatively small percentage (11%) identified difficulty finding a worthy cause as a barrier to increased giving. Of particular interest is that a number of barriers to increased giving are related to the ways in which organizations make their requests for donations. About a third of donors (34%) indicated that they did not give more because they did not like the ways in which requests for donations were made. About a quarter (24%) indicated that no one asked them to give more and 12% did not know where to make a contribution. The 34% of donors who reported that they did not give more because they did not like how requests for donations were made were asked to indicate what it was about the requests that they didn t like. The most frequent issue identified was the tone of the requests (reported by 43% of those who indicated that they did not like how requests were made). About a quarter (24%) indicated that they did not like the frequency or volume of requests from organizations and 15% did not like receiving multiple requests from the same organization. Just under half of donors (44%) said that they disliked some other aspect of the request. This suggests that non-profits would benefit from crafting the tone of their requests more carefully, and that an analysis of multiple-flight campaigns should be undertaken to weigh the cost-benefit of making multiple donation requests each year. d) Volunteering A third of donors (34%) indicated that they did not give more because they did not like the ways in which requests for donations were made. Virtually all non-profit organizations rely on volunteers to some degree to fulfill their missions, and more than half rely solely on volunteers. In 2007, just under half (46%) of Canadians, a total of 12.5 million, volunteered their time and skills with non-profits. This represents a 4.2% increase in hours and a 5.7% increase in the number of volunteers since Canadians volunteered almost 2.1 billion hours in 2007 the equivalent of close to 1.1million full-time jobs. From the perspective of an individual non-profit, this represents an average of 14,492 hours, or 7.5 full-time jobs per year. While organizations with annual revenues of more than $10 million make up only 1% of all organizations, they account for 20% of all volunteers and 13% of total volunteer hours. The smallest organizations (revenues under $30,000) make up 42% of all organizations, but account for only 12% of volunteers and 15% of total volunteer hours. Although nearly all organizations make use of volunteers, most volunteers are concentrated among a relatively small number of organizations: 73% are engaged by the 6% of organizations that have volunteer complements of 200 or more. Most people who volunteer for nonprofit organizations do so with registered charities. Although registered charities represent only 56% of organizations, they account for 71% 12

13 of all volunteers and 67% of total volunteer hours. The organizations that attract the most volunteers are: Sports and Recreation, Social Services, Education and Research, and Religious Organizations. Volunteers serve a variety of functions in nonprofit organizations. Ninety-three percent are engaged exclusively in activities such as delivering, or helping to deliver, programs and services and engaging in fundraising and campaigning activities. Collectively, these volunteers account for 91% of volunteer hours. While 31% of these volunteers give their time only once or twice a year, for example, to do campaigning or fundraising, 69% participate on a more frequent basis. The remaining 7% of volunteers are engaged in governance, serving on the organization s board of directors. For 20% of organizations, volunteers are involved solely in governance activities. Collectively, volunteers involved in governance account for 9% of all volunteer hours. Super volunteers are more likely to be seniors, to have higher levels of education, lower household incomes, and to be religiously active. Although just under half of Canadians volunteer, a small minority of volunteers account for the bulk of volunteer hours. In 2007, the top 25% of volunteers, who contributed 171 or more hours annually, accounted for over three-quarters (78%) of total volunteer hours. These super volunteers are more likely to be seniors, to have higher levels of education, lower household incomes, no children in the household, and to be religiously active. As the baby boomers age and retire, they will have more time for volunteering, such that the pool of available super volunteers will swell in the next ten to fifteen years. This suggests that organizations should focus on attracting volunteers that meet the super volunteer criteria, and that they should develop loyalty programs to build strong ties with these super volunteers. The highest rates of volunteering overall are found among young Canadians, those with higher levels of formal education and household income, those with school-aged children in the household, and the religiously active. This large group, which represents 75% of volunteers, provides 22% of volunteer hours. This group represents a very different volunteer segment than the super volunteers. They may be parents who volunteer for organizations that their children are involved in a group whose loyalty is to their children rather than to a specific organization. Or they may be high school students who may have to do mandatory volunteer work as part of their school curriculum. As such, attracting a constant supply of new volunteers is the ongoing challenge, and is more important than building loyalty and retention among existing volunteers. Communicating to this segment clearly requires a different strategy, tactics and messaging than communicating to the super volunteers. The reasons most frequently reported for volunteering were to make a contribution to the community, to use skills and experiences, and having been personally affected by the cause the organization supports. Other reasons, reported by close to half of volunteers, were to explore strengths, to network with or meet people, or because friends volunteered. Volunteers also identified a number of benefits that they received from their 13

14 activities. The most common benefits were the development of interpersonal skills, communications skills and organizational or managerial skills. In these hard economic times, a skilled volunteer position may allow an unemployed worker gain valuable new skills, or a recent graduate unable to find a paid job gain resume-worthy experience. This research suggests several effective themes to consider in the development of messaging around volunteer recruitment. What keeps Canadians from volunteering more? The majority of both volunteers and non- volunteers identified the lack of time as a barrier, and many individuals indicated that they did not volunteer more or volunteer at all because they were not asked. Other barriers included not knowing how to become involved and the financial costs associated with volunteering. This suggests that there may be an untapped pool of volunteers in many communities that non-profit organizations with the right approach to communications could tap into. There are a number of organizations that help potential volunteers link up with organizations that need help. Examples are even Work polis has a section for volunteer opportunities. Many non-profits, large and small, use these channels to cost-effectively recruit volunteers both for core program delivery, managerial functions, and board membership. Ensuring that the messaging and tone on all such postings are consistent with overall communications strategy of the organization is important. e) British Columbia s non-profit landscape There are 20,270 charitable organizations (13% of Canadian total) in British Columbia. This works out to 486 organizations per 100,000 population, a ratio slightly lower than for Canada as a whole (508 per 100,000 population.) Of these, 11,351 (56%) are registered charities. The breakdown in BC by type of organization is roughly parallel to Canada as a whole, as per the chart below. 14

15 Of the $112 billion in revenue generated by Canadian non-profit organizations in Canada in 2003, $11 billion came from British Columbia. While accounting for 12.6% of organizations, BC non-profits accounted for only 9.8% of the revenues. The chart below shows that revenue distribution among non-profits in BC follows the same pattern as for Canada as a whole, where a small number of sectors command a disproportionately large amount of total revenue. 15

16 And, like for Canada as a whole, the revenue distribution among core non-profit sector in BC is very uneven 66% of the organizations (those earning less than $100K per year) generate only 4% of the total revenues. The largest 6% of the organizations generate 77% of the revenues. 16

17 Eight non-profit segments receive the majority of funding: 1) Sports and Recreation, 2) Social Services, 3) Grant making, fundraising and volunteerism, 4) Education and Research, 5) Business and Professional Associations, 6) Health, 7) Universities and Colleges, and 8) Hospitals. The funding structure of BC non-profits operating in these sectors is graphically illustrated below. 17

18 Social Services, Universities, Colleges and Hospitals, Education and research, and Health receive the lion s share of their funding from government. Business, professional associations, unions, Sports and Recreation, and Grant Making, Fundraising and Volunteerism promotions receive the bulk of their funding from earned income. Membership fees and dues is the largest source of earned income for Business and Professional Associations & Unions, and for Sports and Recreation, with corporate sponsorships, donations and grants a key secondary source of funding. Gifts and Donations are a substantial source of revenue for Grant Making, Fundraising and Voluntarism promotion organizations. 3. OVERCOMING FUNDRAISING CHALLENGES a) Common challenges Stats Can s 2003 research included a survey to assess the areas of greatest concern to non-profits. Many organizations reported problems that keep them from fulfilling their missions and achieving their mandates, and a substantial percentage reported that these problems were serious. A majority report difficulty planning for the future, difficulty recruiting the types of volunteers the organization needs, and difficulty obtaining board members. Close to half report difficulty retaining volunteers, difficulty obtaining funding from organizations such as government, foundations or corporations, and difficulty obtaining funding from 18

19 individual donors. These problems are most frequently reported by the 46% of organizations with revenues of $30,000 to $499,999. b) More transparency about funding use needed A number of external surveys suggest that individual Canadians and corporations are not satisfied with the quality of information that non-profits provide with regards to the uses of funding: In a survey conducted by COMPAS in September 2003, two thirds of business leaders polled said they would be more likely to donate to charity if the charity were more accountable. A 2008 survey by the Muttart Foundation in 2008 reported 30% of Canadians that don t have a lot of trust in charities due to a lack of information about where their money is really going. The 2008 Donor Non-Profit Performance Report found that while almost all Canadians think it s important that charities provide information about their financial management (fundraising costs and uses of donations) as well as the delivery and impact of their services, less than 40% of those surveyed are happy with the information they actually receive from the charities they support. The 2007 Canada Survey of Giving, Volunteering and Participating (CSGVP) noted that significant numbers of potential donors did not donate because they did not think that the money would be used efficiently. c) Tracking performance could result in more donations Public opinion research converges to show that business leaders and the Canadian public are dissatisfied with the information they receive from non-profit organizations. It is possible to conclude that if non-profits were more accountable they would receive more and larger donations both from individuals and corporations. Non-profits need to develop ways to measure accountability and track performance in a format that is meaningful to non-profit stakeholders and potential donors. Such performance scorecards would include tracking fundraising costs and uses of donations, as well as the development of metrics around the organization s success in achieving their mission and goals. Ideally, at least some performance measures would be quantitative, though qualitative measures, such as personal stories or anecdotes would also be useful. Reference to the Donor report metrics may enable organizations track their performance relative to industry standards. This information could be rolled into a performance scorecard, elements of which could be used in marketing and communications for core programs, recruiting and retaining volunteers, as well as fundraising among three key segments: governments, corporations, and individuals. In addition, scorecards would be a critical element of planning for the future the setting of goals and the measurement of the extent to which 19

20 they are achieved. In summary, well-thought out metrics will help organizations address the issues they have identified as critical: increasing individual and corporate donations, recruiting and retaining volunteers, and planning for the future. Performance metrics will be useful for all sizes and segments of the non-profit market, though they will be particularly beneficial to mid to large size organizations (revenues over $250K) with ambitious missions and strong leadership. Most organizations will have lots of information waiting to be turned into intelligence. The issue will be whether organizations will allocate the resources to fund this important initiative. While the medium and long term benefits of performance tracking are proven, it may be difficult for all but the most far-sighted (and well funded) organizations to implement them when government-funding cuts have put many core programs at risk. d) How to improve individual donation campaigns There is a large opportunity for organizations to improve the results of their individual donor campaigns. Overall, individual donations account for about 8% of total non-profit revenues, though this percentage varies according to organization size and area of activity. Most organizations are eager to increase individual donations to offset the cuts in non-profit funding recently announced by the BC government. Most organizations report difficulty obtaining funding from individuals. Research suggests that there are three reasons for this: 1) inadequate segmentation and targeting 2) lack of loyalty programs in the donor market, 2) poorly developed communications pieces, 3) suboptimal channel mix. It is useful for organizations to analyze their internal records to better understand the donation patterns within their particular organization. We know from research that fully 82% of the value of donations come from the top 25% of donors. We know that those who give the most are older, have high household incomes, more formal education, are married or widowed, and are religiously active. Demographically, we are also aware that as the large swell of Baby Boomers age, they will have resources to donate and eventually to bequeath. The logic behind focusing on the highest yielding donors is hard to resist reaching a smaller segment is less expensive, and research shows that this segment will donate larger amounts. While research reveals general patterns in giving, it is useful for organizations to analyze their internal records to better understand the donation patterns within their particular organization, particularly among regular donors. Does database mining reveal an obvious donor segmentation, and/or trends among donors? Are certain segments or individuals increasing their donations year over year? Are others giving less? Non-profits should analyze internal data and use results to hone donor segmentation and to tailor communications and fundraising efforts to the most promising segments. In addition, efforts should be made to cultivate loyalty among regular donors, to ensure that they keep donating year after year. 20

21 Research shows that the 19% of donors who decided in advance how much to give over the course of a year contributed an average of $797 annually, compared to $351 for those who made more ad hoc decisions. The lesson here is that large donations do not appear to be spontaneous donations, and that a focus on increasing loyalty among those who plan their donations in advance is likely to yield good results. Organizations should take a close look at the (usually small number of) individuals who donate the largest amounts year over year. Conversations with these individuals may yield insights as to why they are such staunch supporters, and this knowledge may be used to increase the donations size or loyalty of less committed donors. Non-profits should organize the research, and incorporate the insights into an effective donor retention/ loyalty campaign. Research shows that a key characteristic of large donors is that they are older, and that currently only 4% of wills contain charitable bequests. As the boomers age and draw up their wills, many will make provisions for charities. Non-profits should attempt to gracefully position themselves to be the recipient of as many bequests as possible. e) The most effective channels for soliciting donations Research shows that the most effective channels for soliciting donations, those with the highest value per donation, are TV or radio requests, charity events, memorial requests, at work, and telephone requests. The least successful channels, those yielding the lowest value per donation are direct mail requests, requests from on the street or at shopping centers, door to door canvassing, and sponsoring someone for an event. Organizations should analyze the effectiveness of their own recent donation campaigns and develop innovative fundraising initiatives centered on the highest yielding channels. The 2007 Canada Survey of Giving, Volunteering and Participating (CSGVP) found that 34% of donors indicated that they did not give more because they did not like how requests for donations were made. The most frequent issue given was dislike of the tone of the request, followed by the frequency or volume of requests most people did not like receiving multiple requests from the same organizations. Particular attention should be made to getting the tone right to increase the return on investment of fundraising campaigns. Finally, research has shown that over 40% of individuals are dissatisfied with the information their receive from non-profits on the uses of donated funds. Organizations need to incorporate persuasive scorecard metrics into individual fundraising efforts, and thereby overcome the reluctance of skeptical potential donors. f) Planning corporate fundraising campaigns Over 40% of individuals are dissatisfied with the information their receive from non-profits on the uses of donated funds. Accountability and transparency are large issues when approaching corporations and 21

22 foundations for support. In a survey conducted by COMPAS in September 2003, two thirds of business leaders polled said they would be more likely to donate to charity if the charity were more accountable. This is not surprising, as corporations and foundations need to account to their stakeholders (shareholders, board members, etc) for the use of company funds. Results oriented information facts and figures bundled into performance scorecards that demonstrate how donated funds help the organization achieve its mission - is critical to securing more and larger corporate donations. In addition, pitches have to be professional and persuasive they should involve a script, a PowerPoint presentation, and a leave behind. Perhaps most importantly, requests for funding have to be made to appropriate corporations/foundations, those whose interests or goals are aligned in critical ways with organization requesting funding. g) Improving volunteer recruitment The majority of nonprofits report difficulty recruiting and/or retaining the type of volunteers the organization needs. The recent BC government funding cuts to nonprofits may lead to staff cuts that will make volunteers even more critical. As such, an opportunity exists for organizations to develop communication strategies to recruit the right kind of volunteers and loyalty programs to increase the retention of existing volunteers. As the baby boomers get older and retire, they will swell the ranks of available volunteers. Although just under half of Canadians volunteer, the top 25% of volunteers, who contributed 171 or more hours annually, accounted for over three-quarters (78%) of total volunteer hours. It is these super-volunteers who are the workhorses that keep the non-profit sector ticking, and on whom recruitment and retention efforts should be focused. Organizations may benefit from taking the time to gain a better understanding or their super volunteers, to identify who they are, why they are committed to the organization, and what specifically keeps them onboard. It is also worth looking closely at the volunteers that do not work out to see if they share any common ground or reasons for leaving. This internal analysis will allow organizations to better understand just who their core volunteers are, so they can focus recruitment efforts on people that are most likely to become super volunteers, and to develop loyalty programs to build strong relationships with these super-volunteers. Organizations need to do the research to better understand their volunteers, and to translate that understanding into clear market segmentation, communications planning, effective messaging and the development of loyalty programs to ensure that organizations have the volunteer complements they need to achieve their goals. Conclusion In conclusion, we believe that performance scorecards and more focus on the tone and frequency of donation requests offers nonprofits the ability to overcome many of the challenges outlined in this research report. Nonprofits face many challenges, but solid market research into the barriers in donor s minds will help organizations cope with these challenges. 22

23 About Redbird Communications Redbird Communications is a marketing communications agency in Victoria, British Columbia that specializes in helping non-profits, social enterprises, government ministries and other private and public-sector organizations. Founded in 2001, we provide research, strategic planning, creative services, and public relations to clients in BC, Ontario, and beyond. For more strategic insights on planning and executing awareness and fundraising campaigns, please visit our blog ( Redbird has developed many province-wide awareness campaigns, including our most recent Signs of Stroke campaign for the Heart and Stroke Foundation of BC & Yukon. For that campaign, we raised $250,000 from pharmaceutical sponsors to fund the media buy, and created TV and radio spots, print collateral, and online advertising. Lise Murphy, a marketing strategist at Redbird, prepared this research report. Lise Murphy has 10 years experience in consumer and B2B marketing communications. She has worked on brands such as Loblaw Brands and the Royal Bank. She has a MBA from York University and completed the Executive MBA program at Harvard Business School. Bibliography Data for this report was gathered from a variety of sources. Most statistics are from Statistics Canada reports. Cornerstones of the Community: Highlights of the National Survey of Nonprofit and Voluntary Organizations (Statistics Canada Catalogue # XIE). Revised Non-Profit Performance Report - Donner Canadian Foundation Awards (program of the Fraser institute.) British Columbia Fact Sheet - National Survey of Nonprofit and Voluntary Organizations (NSNVO) British Columbia Regional Report- National Survey of Nonprofit and Voluntary Organizations (NSNVO) Satellite Account of Nonprofit Institutions and Volunteering (Catalogue no XIE) Statistics Canada Highlights from the 2007 Canada Survey of Giving, Participating and Volunteering Catalogue # XIE People to People Fundraising: Social Networking and Web 2.0 for Charities, Wiley,

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