Reading tea leaves #17: strategy can be heartfelt
The clarion call to donors from just about every quarter is to ‘give strategically’, particularly in the current climate. In that way donations can be more effective and have a greater impact on good causes. Indeed, centres, conferences and reports devoted to strategic giving abound.
While using one’s head when making a donation is important, a heartfelt response can be pretty powerful too. CAF’s latest Disaster Monitor reveals that despite the continuing recession, donations to the most recent disaster appeal in the Asia-Pacific region remain buoyant. Of the 1000 members of the public surveyed, 23% say they gave to the emergency appeals for both the Burma Cyclone Appeal in May 2008 and the Asia-Pacific appeal in October 2009, which raised funds for the recent humanitarian crises in Indonesia, the Philippines and Vietnam. However, both appeals remain overshadowed by the Asian Tsunami appeal in 2004/05 when 81% of the representative sample made a donation; the unparalleled level of support in response to the 'Boxing Day tsunami' is widely attributed to it occurring just after Christmas, and to the fact that many British donors had visited, or knew people who lived in or had visited, the affected areas.
The 2009 Poppy Appeal is another case in point that emotions drive many donations. In 2008 the appeal experienced a record year raising around £30m. Anecdotally, collectors have reported an overwhelming public response this year, despite the recession. Our soldiers are very much on the minds and in the hearts of the public at the moment and they have responded generously to date raising more than £4m in the first few weeks, though the final figure will not be available until next year when all the funds are in.
This begs the question: 'Is every donor a philanthropist?' Using the strictest definition of ‘philanthropy’, ‘a love of mankind’, the answer must be ‘yes’ for all those individuals who feel the need to donate on some level. However, if it is defined by the amount donated, then individuals giving the odd pound are clearly not 'philanthropists' in the generally accepted sense. But, how about the collective impact of Joe and Joanna Public? When donors come together around one cause, the amounts raised can be pretty eye-watering. For example, Comic Relief and Children in Need both raise enormous amounts, even during the recession, as a result of marshalling a very wide public response.
Returning to philanthropy as it is commonly understood - individuals donating relatively high value sums and gifts directly or though foundations - the 2009 edition of the Coutts Million Pound Donors Report reveals a desire of donors to fulfil their pledges and sustain their giving in the face of the current economic crisis.
The headline news is a 13% decline in the value of donations worth £1m or more compared to 2006/07, and any decline in giving is bad news. However, the report notes that falls in giving are not as steep as falls in wealth – estimated at 37% by the Sunday Times Rich List 2009 - which demonstrates that donors are striving to sustain their giving in these difficult times.
Furthermore, the research finds that more ‘million pound donations’ are being given directly to charities to spend on activities - a reversal from 2006/07. As a consequence, the amount of money that ‘million pound donors’ have made available for spending directly on charitable recipients has actually increased by over £100m, from £705m in 2006/07 to £808m in 2007/08.
Which perhaps goes to show donors of all levels respond powerfully to contemporary need - and whether that’s as a result of a calculating strategic decision or an emotional response on the donor’s behalf, the result is that funds are going where they are needed today, not 'despite the recession' as is so often said, but in response to it. A good thing.
