VIDEO: State of the DoNation 2019
13 March 2019 at 5:12 pm
Pareto Fundraising presents its State of the DoNation, in this video which brings together key fundraising trends in a quick five-minute snapshot.
Fundraising is about people. Those who give. And those who receive. And Australians are some of the most giving people in the world.
Almost four in five Australians regularly give money to charities and not for profits. That’s almost 80 per cent of us.
And Aussies who are happy to give money, support in other ways too:
- donating goods;
- volunteering; and
- doing their own fundraising for their favourite cause.
There are fewer people giving – but those who give are giving more
But when it comes to just giving money, the percentage of people donating has dropped in recent years – but those who are still giving are giving more.
According to Pareto Fundraising Benchmarking, in 2017, 40 per cent of cash income came from donors giving a single gift of $1,000 or more (middle and major donors).
So, who’s making all those donations?
It’s the Baby Boomers – the 5.5 million people born between 1946 and 1965. The youngest is 54 years old and the oldest 73. And they’re in the prime of their charitable giving years.
Boomers make up less than a quarter of Australia’s population but they have the highest net worth of any generation.
They also:
- give more time, talent and money than any other generation; and
- make over half of all donations to charity and make the highest average donation.
And which generation is the one to watch?
It’s Generation X – those born between 1966 and 1980.
They’ve quietly reached a milestone: the first of them have turned 50 years old. Which puts them at the beginning of their journey to becoming some of our most valuable donors.
With their numbers totalling 4.8 million in Australia, they will be a force to be reckoned with in the future.
When it comes to how Australians give, the “tried and true” still wins
Regular giving still leads the way, with face-to-face still the most effective way to recruit high-volume, regular giving donors. It’s grown an incredible 172 per cent in the last decade.
Between 2014 and 2017, more than 1.25 million Australians agreed to support a not for profit following a conversation with a F2F fundraiser – with each organisation securing an average of 21,220 new donors as a result.
In 2017 alone, not for profits secured 343,389 new donors through F2F campaigns.
Not to be outdone… bequests also ranks strongly
Bequests have also risen by an outstanding 126 per cent over the past 10 years.
Bequests are now worth over $350 million to Pareto Benchmarking participants each year. And the average bequest is about $52,000.
The financial return to charities from bequest programs is usually the highest of all forms of fundraising – partly due to the large number received “out of the blue”. Which according to Pareto in 2018 was about 35 per cent of all bequest gifts.
With our ageing population and the “baby boomer bulge”, it all points to strong gains in bequest values in the next two decades.
What channel continues to be the backbone of most cash fundraising?
It’s direct mail that still leads the way. And it’s not going away – because it works.
Even though donating via direct mail has declined – down 14 per cent over the past 10 years, it still drives all channels.
And delivers a lot of online giving.
According to Pareto Fundraising Benchmarking:
- Next to F2F, direct mail is the second most valuable stream for generating donor income, delivering 53 per cent of overall cash income.
- Direct mail still delivers the largest volume of new donors (48 per cent in 2017).
- Direct mail is still the number one method used to target middle donors (those giving $1,000 to $5,000).
- Direct mail delivers the largest pool of bequest prospects.
Hold the smartphone! Asking for money over the phone still wins
Even though most Australians say they dislike being asked for money over the phone – 25 per cent still give when asked.
And telephone remains a key channel for two-step acquisition, re-activation and donor upgrade.
Research also shows that a simple phone call to say welcome and thank you can reduce attrition for face-to-face, door-to-door, and cold telemarketing by between 30 to 40 per cent.
Meanwhile, we need to get set for a digital fundraising future
Australian social media users are some of the most active in the world. And it’s Facebook that dominates.
Did you know that of the donors that choose to give via social media, Facebook inspires 62 per cent of donors to give by this channel. That’s compared to 15 per cent for Twitter, 10 per cent for Instagram and just 5 per cent for YouTube.
The trend is clear. Online giving is rising. And it’s on track to help you reach more people and raise more money for your cause.
The charitable sector is going from strength to strength
And the staff numbers are also growing to handle the boom.
Just over 1.2 million staff currently work in charities nationwide – making us the second largest employer after retail.
Our sector also employs almost six times more people than the mining industry.
And while the charity sector has a significant number of employees, it also has an army of volunteers that is double that of paid staff.
The Australian volunteer gives up 2.5 hours per week on average. And donates almost twice as many dollars as a non-volunteer.
That’s undeniable generosity right there.
So, we know Australians are a giving bunch…
… however, we’ve saved the greatest statistic until the end.
Australians are so giving that in 2018, we were rated the number two in the world for donating money, volunteering time and helping a stranger.
So, more than just the big country… More than just the lucky country… Australia is the generous country.
This video was presented at the FIA Conference last month.
