Charity Awareness Monitor Executive Overview (CAMEO) Donation Trends Please credit any usage and only for personal or presentation use without prior permission January 2010 Tel: Web:

About this CAMEO CAMEOs are themed reports which cover data from recent waves of the Charity Awareness Monitor, nfpSynergy’s syndicated awareness tracking service among the general public. They aim to delve deeper into key trends and demographics and explore the implications for charities. Using data from the January 2010 Member Intelligence wave 1 of 6, and previous waves of CAM research, this CAMEO looks at recent trends in the number of donors, the ways in which they give and the size of their donations. In the light of recovering consumer confidence after the 2008 credit crunch, it also looks at how donors are expecting the amount of money they give to charity to change in the year ahead and which groups are most likely to drive expectations of increasing charitable donations.

Contents 1.Key findings Slide 4 2.Who gives to charity, and how do they give? Slides How much has the public donated, and to how many charities? Slides How do changes in charitable giving fit within the wider context of consumer confidence and changes in other areas of spending? Slides How much are the public expecting to donate next year? Slides Key implications Slide 32

Key findings 74% of the public reported donating to charity between Nov-09 and Jan-10, overall with very little change compared to previous months despite the recent Haiti Appeal. However, for the first time since the beginning of the recession, the number of people who report having donated less to charity dropped, from 30% to 24%, while the number of those who report having donated more increased, from 15% to 20%. The reported average size of donations is higher for men, older generations (65+) and higher social grades (AB). As consumer confidence increases, the public expects fewer and fewer cutbacks in several areas of spending for the year ahead, including charitable giving- the proportion of the public expecting to give less dropped from 26% in Sep-09 to 22% while the proportion expecting to give more rose from 6% in Sep-09 to 10%. Improving expectations about future charitable giving are led by younger generations- the likelihood of expecting to increase charitable giving in the year ahead is almost double than average among the and the year olds.

Methodology 5 A nationally representative sample of 1,000 adults, 16+ in Britain Online survey Dates Sample Methodology Fieldwork Fieldwork carried out for nfpSynergy by Research Now 25 th January – 3 rd February 2010

6 Basic demographics of respondents The socio-economic classification system we use consists of six social grades which classify the household social status based on the occupation of the Chief Income Earner (so if a casual worker lives with a parent or spouse who is a doctor they'll be an A rather than an E); -AB - higher (A) or intermediate (B) managerial, administrative or professional -C1 - supervisory or clerical, and junior managerial, administrative or professional -C2 - skilled manual workers -DE - semi-skilled and unskilled workers (D) & state pensioners, casual or lowest grade workers (E) Base: 1,003 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy

Who gives to charity, and how do they give? 7

8 Stability in the proportion of the public donating to charity in the last 3 months, despite Haiti appeal Base: 1,013 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy “Have you donated to charity in the last three months?” Yes

9 Women, AB social grades and over 45s most likely to give money to charity Base: 1,013 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy “Have you donated to charity in the last three months?” Yes

On street cash collections are the most popular way to give, followed by supporting charity shops 10 Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy “In which of the following ways did you give to charity in the last 3 months?”

Convergence of committed and ad hoc giving disrupted by recession Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, nfpSynergy “If yes, have you given to a collection tin/envelope through the door or by standing order/direct debit or via a membership subscription?” 2007 based forecast 11 Expected point of convergence between the two methods of giving (2007 forecast) But since the recession started, figures have diverged from long term trends

How much has the public donated, and to how many charities? 12

13 On average, donors have given just under £60 to charity in the three months prior to Jan-10 Base: All donors (756) among 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy “In total, approximately how much money have you donated to any charities in the last 3 months?” Mean amount donated over 3 months: Jan-10: £59.99

14 On average, men, older age groups and higher social groups have donated larger amounts to charity Base: All donors (756) among 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy “In total, approximately how much money have you donated to any charities in the last 3 months?”

More people feel they have increased their charitable giving over the last year 15 Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy “Looking back over the last year or so, would you say that you have given to charity more or less than in previous years?”

Younger generations are driving this change in perceptions of recent giving 16 Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy “Looking back over the last year or so, would you say that you have given to charity more or less than in previous years? Given more

..and so are higher social grades 17 Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy “Looking back over the last year or so, would you say that you have given to charity more or less than in previous years?

18 Little change in number of charities donated to in the last 3 months “Approximately how many different charities have you donated to in the last 3 months?” Base: All donors (756) among 1,013 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy

How do changes in charitable giving fit within the wider context of consumer confidence and changes in other areas of spending? 19

After collapsing in 2008, consumer confidence is on the rise in 2009 Monthly consumer confidence index – latest data for December Base: UK Source: Experian, Martin Hamblin Gfk/nVision

…as is optimism about household finances, though not yet back to normal Latest data for December Base: UK Source: Experian, Martin Hamblin Gfk/nVision

The public still plan to cut back on spending in many areas, including charitable giving Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan-10, nfpSynergy 22 “Do you expect to cut back on your spending in any of the following areas in the next 12 months?” Ranked on ‘yes definitely’ responses

But rising confidence is reflected in fewer cutbacks expected than in previous months Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy 23 “Do you expect to cut back on your spending in any of the following areas in the next 12 months?” Yes definitely

Women more cautious about spending, but no gender gap for charitable giving plans Cutbacks by gender Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy 24 “Do you expect to cut back on your spending in any of the following areas in the next 12 months?” Yes definitely/ Yes probably

Middle ages cut back on luxury, while younger people focus on food Cutbacks by age Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy 25 “Do you expect to cut back on your spending in any of the following areas in the next 12 months?” Yes definitely/ Yes probably

Higher social grades less likely to cut back on anything Cutbacks by social grade Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy 26 “Do you expect to cut back on your spending in any of the following areas in the next 12 months?” Yes definitely/ Yes probably

Similarly, higher income groups less concerned about cutting back on expenditure Cutbacks by household income Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy 27 “Do you expect to cut back on your spending in any of the following areas in the next 12 months?” Yes definitely/ Yes probably

How much are the public expecting to donate next year? 28

Improving expectations about giving in the coming year 29 Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy “Looking forward to the year ahead, do you expect you will increase or cut down on the amount you give to charity?”

Under 35s are most likely to drive these improved expectations 30 Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy “Looking forward to the year ahead, do you expect you will increase or cut down on the amount you give to charity?” Give more

…as are higher social grades 31 Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan 10, nfpSynergy “Looking forward to the year ahead, do you expect you will increase or cut down on the amount you give to charity?” Give more

Key implications Charities should capitalise on the public’s increased optimism about the future economic outlook and their improved confidence in spending, as expectations of future charitable donations show signs of improvement for the first time after the recession. However, they should be mindful that the rise recently seen in consumer confidence may slow down in the next few months as the full effect of the recession is felt through increasing unemployment levels. Although middle aged and older generations have traditionally constituted the core donor base – being more likely to give and being responsible for the largest donations – it seems the scope for charities to increase donations from these groups could be limited – they are also among the groups indicating the most cut backs in spending. Younger generations, on the other hand, seem to hold the largest potential, being more open to increase their donations in the future. However, currently this potential looks far from being realised – the likelihood of this group to donate has actually decreased slightly in recent years. As well as looking to tap into donors’ improved expectations of future charitable donations, charities may also need look at ways of restoring levels of committed giving, which have shown signs of deterioration in the hardest months of the recession.

Are these responses ‘statistically significant’? When looking at any survey sample, unless the whole population is questioned, it is impossible to say that the responses are exactly representative of the wider population – there will be a “margin of error” of a few percent. This margin of error changes according to the size of sample, the size of the population and to the observed percentage in question (the margin of error is at its lowest for scores of 1% or 99%, and gets higher the closer a score is to 50%.) The CAM sample of 1,000 is robust enough for us to be 95% sure that results are representative of the wider British public aged 16+ (about 48,516,000) within a 0.5% to 3% margin of error. For example if 14% of respondents are aware of Charity X this means the awareness figure for the whole population lies between 12-16%. 33

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