Philanthropic Trends Presentation to VON Canada June 21, 2014

Where are the Donors? Individual Giving

But… Where are the Dollars? Individual Giving

GOVERNMENT PHILANTHROPY STRATEGIC PHILANTHROPY PARTNERSHIPSCOMMERCIALACTIVITY Establishment of appropriate infrastructure Encourage giving Leverage support Core funding Matching funding Seed funding Pilot funding Etc. Altruism Legacy Philanthropic goals, social change Charitable association Annual giving Major giving Planned giving Direct mail Etc. CSR Community investment Cause related marketing Corporate giving Foundation giving Special events Etc. Branding Marketing Entrance to new markets Sponsorships Vendor partnerships Gifts-in-kind Etc. Receive good or service of value in aid of a favoured cause Lotteries Ticket sales Membership sales Product sales Etc. REVENUE GENERATION SPECTRUM © FUNDERS’ MOTIVATION ACTIVITIES ‘COLLECTIVE’ BENEFIT ‘INDIVIDUAL’ BENEFIT FUNDING FOCUS

…Diversifying… Source: Statistics Canada The % of population that is a visible minority is expected to steadily increase across Canada.

…and Aging Source: Globe and Mail

BUT IS IT GIVING? [ sort of…]

Giving in Canada -1.9%

Giving in Canada

-25.3%

11 Individual Giving

REPAYER “I give to my alma mater” “I support organizations that have an impact on me or a loved one” CASUAL GIVER “I give to well known nonprofits because it isn’t very complicated” HIGH IMPACT “I support causes that seem overlooked” I give to nonprofits I feel are doing the most good” FAITH BASED “We give to our church” “We only give to organizations that fit with our religious beliefs” SEE THE DIFFERENCE “I think it’s important to support local charities” “I give to small organizations where I feel I can make a difference” PERSONAL TIES “I give when I am familiar with the people who run an organization” 23% of donors18% of donors16% of donors 13% of donors 14% of donors Source: Money for Good II, Hope Consulting What Motivates Donors? 12

They want you to… HAVE A PLAN... …AND WORK COLLABORATIVELY Source: Ipsos Reid / AFP “What Donors’ Want’ Report, 2012; Percentage Strongly Agree / Agree

They want you to… SPEND LESS ON OVERHEAD... …AND BE MORE INNOVATIVE FUNDRAISERS Source: Ipsos Reid / AFP “What Donors’ Want’ Report, 2012; Percentage Strongly Agree / Agree

They want you to… UPDATE THEM ON PROGRESS... …AND ASK FOR MONEY LESS OFTEN! Source: Ipsos Reid / AFP “What Donors’ Want’ Report, 2012; Percentage Strongly Agree / Agree [WOULD LIKE TO BE ASKED ONCE OR LESS PER YEAR]

Your Loyal Donors… 1.Your “reputation and trustworthiness” are impeccable 2.You are “achieving and communicating measurable results” 1.Their “priorities shifted to other causes” 2.They feel they have been “over-solicited” STAY LOYAL WHEN... …AND LOOK ELSEWHERE WHEN… Source: The Cygnus Donor Survey, October 2011

Unparalleled DONOR EXPERIENCE Deep RESPECT Stellar SERVICE Thoughtful ENGAGEMENT The Donor Experience

‘Nice to Have’ No Longer Philanthropy is increasingly becoming a ‘core’ source of funding for charitable organizations. The case that philanthropy is expected to fund is one of ‘core’ functions rather than ‘value add’ Fund development must be viewed as a ‘core’ function within organizations, playing a leading role rather than simply slotting in as a revenue line on already developed plans

Articulate preferred philanthropic future for the organization (3, 5, 10, years) Develop comprehensive plan for revenue growth across existing, potential new streams Explore –Philanthropic history and potential –Fund development priorities –Volunteer engagement –Donor markets –Family engagement –Organizational structure –Organizational culture PRGPs becoming a must

1.Role of philanthropy in achieving mission is well understood 2.Unwavering support from leaders is evident 3.Accountability is deeply ingrained throughout the organization 4.Development is recognized as a core function 5.Donors, beneficiaries have opportunity to interact 6.Donors are valued for more than just financial support 7.Philanthropic success is celebrated Culture of Philanthropy

Considerations for national charities Model of shared ownership –Balance national priorities with local relationships –Mutually beneficial relationship –Shared success Protocols –Revenue sharing agreements –Prospect clearance –Internal communications Fund development framework with clear responsibilities, goals