Summary Report. Simplified Understanding

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1 Charitable Giving Insights Summary Report Simplified Understanding J a n u a r y 2013

2 Introduction & Methodology Insights West conducted a syndicated study designed to help charitable and non-profit organizations address their unique marketing challenges in today s highly competitive climate. The specific objectives of the study were to: Measure awareness of specific charitable organizations; Assess past donation behaviour and propensity to donate in the future; Examine attitudes towards charitable giving; and Determine the motivators and barriers to giving. We measured 68 Branded Charities in this initiative, which were selected based on size, past awareness research, and impact on the community at large. An online survey was conducted with 1,777 BC adults over three waves. July 27 th to October 8 th, 2012; October 9 th to 15 th, 2012; and, December 1 st to 5 th, A sample of this size is considered accurate within +/-2.32%, 19 times out of 20. 2

3 Executive Summary British Columbians are generous in their donations to charitable organizations. In 2011, nearly all (95%) BC adults made a donation of some kind, whether they were small donations totalling less than $100 (31%) or larger donations totalling $1,000 or more (12%). The average British Columbian s donation to charities last year was $732 driven upwards by 4% who donated $5,000 or more. When these large donators are excluded, the average donation size decreases to $445. Donation size increases significantly with age. British Columbians aged aged 55+ are more likely to have donated more than $1,000 in 2011 compared to their younger counterparts. Although average 2011 donations are consistent between men and women, women are more likely to have donated to most charities. This suggests that women spread their donations over a larger number of charities, while men are more likely to donate larger amounts to a smaller number of charities. The top charitable brands in BC are BC Cancer Foundation, BC Children s Hospital Foundation and the Canadian Cancer Society. Among 68 individually branded charities operating in BC, these 3 charities emerge as the top brands, based on Insights West s brand health index comprised of awareness, past donation behaviour, and propensity to give in the future. Many local charities have been effective in promoting their causes in the province. 38 different organizations are recognized by at least three-quarters of British Columbians. 3

4 Executive Summary Strong opportunity for 10 charities for which propensity to donate in the future is significantly higher than past donations. Family Services of Greater Vancouver, BC Firefighters Burn Fund, Children s Wish Foundation of Canada, Union Gospel Mission, British Columbia s Knowledge Network, Make-A-Wish Foundation, Doctors Without Borders (MSF), the Alzheimer s Society of BC, Canuck Place, and Habitat for Humanity have a large positive gap between likelihood to donate in the future and past donations. This suggests that lack of donations is not related to negative attitudes or perceptions of the charities; it is mainly a marketing issue. British Columbians would consider donating to these charities but haven't been motivated enough to do so. In contrast, UNICEF and United Way have the opposite problem future consideration is significantly lower than past donations. Despite high brand awareness and brand equity, BC adults are less likely to donate to these charities in the future. Transparency in how charitable funds are used is important to BC residents. Although the previous negative publicity about UNICEF and United Way s poor use of funding dollars occurred several years ago, it still appears to be impacting British Columbians propensity to donate in the future. It is important for BC charities to be transparent in how their funds are used and continuously demonstrate the outcomes of their funding dollars. The three most important factors when deciding whether to support a particular charity or not are demonstrates positive outcomes from funding dollars, personal belief in the cause, and charity is transparent in how its funds are used. Despite British Columbians generous and active giving habits, charitable fatigue, limited personal finances, and concern about how charities use their funds, prevent many from donating. Charities face the same branding issues that commercial businesses face when marketing their brand to consumers a crowded marketplace, with multiple brands fighting for consumers dollars. The challenge is for charities to break through awareness levels and short attention spans of consumers, and provide potential donors with a compelling reason to choose them over other charities. Charities need to find creative ways to get their message out to the donating public. 4

5 Detailed Findings Simplified Understanding

6 BC Cancer Foundation, BC Children s Hospital & Canadian Cancer Society Top Charitable Brands in BC Insights West conducted a brand health index comprised of awareness, past donation behaviour, and propensity to donate in the future. A total of 68 individually branded charities that operate in BC were evaluated. Based on the index, the top charitable brand in BC is the BC Cancer Foundation, followed closely by BC Children s Hospital and the Canadian Cancer Society. All three score high on awareness, past donations, and propensity to donate in the future. A further 9 brands (Salvation Army, UNICEF, United Way, Canadian Red Cross, Heart & Stroke Foundation, Canadian Breast Cancer Foundation, Big Brothers and Sisters, Canadian Diabetes Association, Terry Fox Foundation,) achieve overall awareness levels of 89%+, but past and future donations range from 20% 39%. The smaller brands with the lowest awareness levels include Power to Change Ministries, Compassion Canada, Harvest Project, Aga Khan Foundation of Canada, Crossroads Christian Communications, and Vancouver Foundation. These brands need to work hard to continuously get their names and causes out to the general public. Valuable insights can also be gained when looking at the gap between past donation behaviour and future intentions. For a number of charities Family Services of Greater Vancouver, BC Firefighters Burn Fund, Children s Wish Foundation of Canada, Union Gospel Mission, British Columbia s Knowledge Network, Make-A-Wish Foundation, Doctors Without Borders (MSF), the Alzheimer s Society of BC, Canuck Place, and Habitat for Humanity propensity to donate in the future is significantly higher than past donations. This is a positive finding for these 10 charities, as it suggests that lack of donations is related to marketing, not negative perceptions of the charitable organizations. BC adults would consider donating to these charities but haven't been given the opportunity to. Perhaps they haven t been asked to donate or they simply forgot to. 6

7 Women More Likely to Spread their Donations Over a Larger Number of Charities On the other hand, UNICEF and United Way have the reverse issue, where future consideration is significantly lower than past donations. Although these charities are well established brands with high awareness levels, donations have stalled. Transparency is important for BC residents, and the previous negative publicity about UNICEF and United Way s poor use of funding dollars although dated is likely having a negative impact on British Columbians propensity to donate in the future. In addition to branded charities, Insights West also examined unbranded causes. More than half of British Columbians express a willingness to donate to local food banks, which is double the number of other unbranded causes, such as the homeless and churches or other religious institutions. Compared to men, women are more likely to donate to most charities, including all cancer-related charities, most children s charities, UNICEF, BC Firefighter s Burn Fund, Heart & Stroke Foundation, SPCA, Canadian Diabetes Association, MADD, Alzheimer Society of BC, MS Society of Canada, BC Lung Association, Canadian Wildlife Federation, Habitat for Humanity, and Covenant House. Interestingly, 2011 average donation amounts are consistent between men and women, which suggests that women spread their donations over a greater number of charities, whereas men tend to donate larger amounts to a smaller number of charities. Overall, older BC adults aged 35+ are more likely to donate to most charities compared to their younger counterparts. 7

8 BC Charity Brand Index 8

9 Awareness Levels, Past Donations & Future Consideration Have Heard Of Donated in the Past Would Consider Donating To Base: All respondents n=919 Q5. Which of the following charities have you heard of before today? Q5A. Which of the following charities have you ever made a personal financial donation to? Q5B. Which of the following charities would you consider making a financial donation towards in the future?

10 Awareness Levels, Past Donations & Future Consideration Continued Have Heard Of Donated in the Past Would Consider Donating To Base: All respondents (n=919) Q5. Which of the following charities have you heard of before today? Q5A. Which of the following charities have you ever made a personal financial donation to? Q5B. Which of the following charities would you consider making a financial donation towards in the future?

11 British Columbians Donated an Average of $732 to Charities in 2011 Nearly all respondents made a charitable donation in 2011, whether it was small amounts totalling less than $100 or larger donations of $1,000 or more. On average, respondents donated $732 in 2011, driven upwards by a small proportion (4%) of donators who contributed $5,000 or more throughout the year. When these large donors are excluded, the average donation amount decreases to $445. Donation size increases significantly with age. One-in-five BC residents aged 55+ donated more than $1,000 in 2011, compared to 12% of 35 to 54 and 3% of 18 to 34 year olds. $100 or less 31% Average: $732 Median: $200 $101 - $500 $501-$1,000 10% 42% Donated in 2011: 95% $1, % Base: Previous donors (n=874) None 5% Q6 Thinking of all the charities and not-for-profit organizations you donated to last year, approximately how much did you donate in 2011? 11

12 Transparency & Personal Belief in the Cause are Key Drivers of Donating The three most important factors when deciding whether to support a particular charity or not are: demonstrates positive outcomes from funding dollars, personal belief in the cause, and charity is transparent in how its funds are used. British Columbians are becoming increasingly critical about how use of charitable funds. It is important for BC charities to be clearly communicate the positive outcomes from their funding dollars. Large donors who gave $500 or more in 2011 place greater importance on personal belief in the cause, low administration costs, and offers a tax receipt. In contrast, small and medium donors (less than $500 in 2011) award significantly higher importance ratings for charity works on issues in their local community. Compared to their older counterparts, BC residents aged 18 to 34 place greater importance on the chance of winning a prize as part of the donation. Personal connections are more important to women than men, with women awarding higher important scores for knowing someone affected by the cause/disease and family/friends are involved in the charity. Demonstrates positive outcomes from funding dollars Personal belief in the cause Charity is transparent in how its funds are used Well known/well established Charity is known for having low administration costs Charity works on issues in my local community Knowing someone affected by the cause/disease Charity offers a tax receipt Friends/family are involved in the charity There s a chance of winning a prize as part of the donation The donation includes tickets to an event that you attend Base: All wave 2 respondents (n=513) 73% 80% 76% 51% 60% 37% 27% 37% 42% 46% 38% 31% 37% 67% 17% 27% 44% 7% 21% 28% Very important Q7. When you are deciding whether to support a particular charity or not, how important are each of the following factors? 13% 16% Somewhat important 24% 16% 20% 88% 87% 83% 80% 98% 96% 96% 12

13 Personal Connection to the Cause, High Admin Costs & Charitable Fatigue are Top Barriers to Donating Charitable giving is not top of mind for younger British Columbians year olds are more likely to say they just don't think of making donations enough, while those aged 35+ are more inclined to feel like they already give enough to charities and their small donations would not be enough to make a difference. In contrast, those aged 55 years+ are more likely to think administration costs of charities are too high and they don't like how charities are asking for money. Compared to women, men are more likely to indicate a lack of trust in charities to do the right thing and that they just don t think of making donations often enough. Small and medium donors (less than $500 in 2011) are more likely to agree that they really don t have any extra money to donate, often don t know what the money they donate is being used for, just don t think of making donations often enough and feel their small donation would not be enough to make a difference. In contrast, lack of belief in the cause the charity stands for is more of a barrier to large donors ($500+). 13

14 Personal Connection to the Cause, High Admin Costs & Charitable Fatigue are Top Barriers to Donating I am more likely to donate to or support a cause when asked by someone I know personally 47% 25% 72% Administration costs of charities are too high 43% 40% 83% There are too many charitable or non-profit organizations asking for money 38% 45% 83% I really don t have any extra money to donate 33% 46% 80% I often don t know what the money I donate is being used for 32% 47% 79% I don t know enough about the charities asking for my donation 26% 43% 69% I don t like how the charities are asking for my money 24% 45% 69% I don t believe in the cause the charity stands for 23% 33% 56% I feel like I already give enough to the charities I support 21% 45% 67% I don t trust charities to do the right thing with the money they receive 18% 45% 63% I prefer to focus my charitable giving on one organization or cause 14% 48% 62% I prefer to volunteer my time to a charity rather than making a financial donation 12% 37% 49% I just don t think of making donations often enough 7% 37% 44% My small donation would not be enough to make a difference 6 14% 20% Base: All wave 2 respondents (n=513) Strongly agree Q8. How much do you agree or disagree with each reason for not donating to charities as it applies to you personally. Somewhat agree 14

15 Demographic Profiling Simplified Understanding

16 Charitable Donation Size Increases with Age Total (n=919) Small Donors $100 or less (n=266) Medium Donors $101-$500 (n=378) Large Donors $500+ (n=197) GENDER: Male 48% 46% 48% 49% Female 52% 54% 52% 51% 18 to 34 years 27% 35% 25% 16% AGE: 35 to 54 years 37% 38% 36% 31% 55 years or more 37% 27% 39% 53% Lower Mainland 57% 53% 59% 60% Fraser Valley 6% 7% 6% 9% REGION: Northern BC 5% 5% 4% 5% Southern BC 14% 17% 12% 13% Vancouver Island 18% 18% 20% 14% 16

17 Insights West Insights West Marketing Research Inc. is a progressive, Western-based, full-service marketing research company founded by Steve Mossop, one of BC s most senior and most reputable market research leaders in Western Canada. Insights West serves the market with insights-driven marketing research solutions and interpretive analysis based on leading-edge tools, normative databases, and senior-level expertise across consumer research, public affairs, advertising, customer satisfaction, and marketing. For more information about Insights West or the Charitable Giving Insights report, please contact: Steve Mossop, President Phone: Jane Ha-Trapp, Vice President Phone:

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