Charitable Giving to Fight Cardiovascular Diseases: Is It Any Different During A Recession? Rene Bekkers Philanthropic Studies, VU University Amsterdam 2009 European Heart Network Workshop May 14, 2009

Today’s Questions How much will fundraising income for charities fighting cardiovascular diseases decline as a result of the economic recession? –What effects have recessions had in the past? –Who gives to cardiovascular diseases? –How strongly are donors affected today? How will the mix of sources of income change? –What are sources of fundraising income? –How strongly are these sources affected?

Recession effects Direct: economic value of your organization’s own wealth and the value of bequests declines Indirect: –Willingness to donate may decline –Mix of sources of income may change –Fundraising effectiveness may decline

Evidence from Giving USA Little decline in recession years US donors perceive needs to be higher in recession years

Downturn Effects in Europe European situation is different: taxes fund basic needs, charity funds extras Economic downturn is likely to reduce psychological sense of economic security How are donors to Heart Organizations doing in today’s recession? How have economic downturns affected donations in Europe?

Annual donations received by all charities in the Netherlands Source: ‘Fondsenwerving in tijden van crises’ Million Euro

Fundraising income in % of GDP Source: ‘Fondsenwerving in tijden van crises’

Correlates of income Housing prices: strongly positive, lag 1 year Stock market: positive, lag 2-3 years Unemployment growth: negative, lag 1-3 years Consumer confidence: positive, lead 0.5 year

Income Hartstichting, Source: own calculations based on CBF database Million Euro

Bequests up, donations down in downturn Source: own calculations based on CBF database Million Euro

Sources of income, Hartstichting Source: own calculations based on CBF database

Costs relative to income Source: own calculations based on CBF database

Who Gives? Patients and their social circles Connections with family members, friends Empathy and identification are key to understanding donor behavior In conjunction with social responsibility and own health

Social Status and Donations Source: Giving in the Netherlands Panel Survey, 2007

Detailed profile Know heart patients: –Average income, education –Older, below average health –Larger networks, especially family and acquaintances Donors to Dutch Heart Organization (vs other health charities): –Average income, below average education, rent homes, –Above average empathy/responsibility, know heart patients Source: ‘Straight from the Heart’

Detailed profile More generous donors: –Older, above average income, below average education, home owners, –Larger networks, know heart patients –Church attendees, higher empathy/responsibility –If heart patient is known: higher empathy/responsibility and worse own health Source: ‘Straight from the Heart’

Conclusions and Discussion Donors to charities fighting cardiovascular diseases are likely to suffer stronger effects of the economic downturn No effects on fundraising costs? Decreasing proportion of income from bequests Benchmarking is needed: Giving Europe

References Rene Bekkers, Philanthropic Studies, VU University Amsterdam, ‘Straight From the Heart’. Pp in: Advances in Medical Sociology, Volume 10: Patients, Consumers and Civil Society: US and International Perspectives, edited by Susan Chambré and Melinda Goldner. Emerald Group Publishing. ‘Fondsenwerving in tijden van crises’. In: Geven in Nederland 2009: Giften, Sponsoring, Legaten en Vrijwilligerswerk, edited by Theo Schuyt, Barbara Gouwenberg and Rene Bekkers. Amsterdam: Reed Business.