the power of data to change philanthropy · 6/23/2013 · data may broadly catalog charitable...
TRANSCRIPT
The Power of Data to Change Philanthropy
Una Osili, Ph.D.
Professor of Economics
February 2016
Philanthropy Now and in the Future
Today’s Presentation
• What does philanthropy look like today? • How are the values, motivations, and expectations
of donors changing? • How will this impact giving? • How will trends shape the future?
Giving USA
Sources
• 117 million U.S. households • 12.4 million businesses/
corporations • 100,000 estates • 76,000 foundations
Uses
• 1.1 million IRS-registered charities
• 300,000+ U.S. religious organizations
Uses
SOURCE: Giving USA Foundation | GIVING USA 2015
5
Individuals donate majority of contributions
2014 contributions: $358.38 billion by source (in billions of dollars – all figures rounded)
SOURCE: Giving USA Foundation | GIVING USA 2015
6
Religion receives majority of contributions
2014 contributions: $358.38 billion by type of recipient organization (in billions of dollars – all figures are rounded)
SOURCE: Giving USA Foundation | GIVING USA 2015
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$84,16
$114,90 53,3%
32,1%
0%
10%
20%
30%
40%
50%
60%
$0
$20
$40
$60
$80
$100
$120
$140
1974
19
75
1976
19
77
1978
19
79
1980
19
81
1982
19
83
1984
19
85
1986
19
87
1988
19
89
1990
19
91
1992
19
93
1994
19
95
1996
19
97
1998
19
99
2000
20
01
2002
20
03
2004
20
05
2006
20
07
2008
20
09
2010
20
11
2012
20
13
2014
Giving to Religion Giving to Religion as Share of Total Giving
Religious giving has been declining as share of total donations since the 1980s
SOURCE: Giving USA Foundation | GIVING USA 2015
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Large gifts help growth of education subsector outpace rate of inflation
DATA REVEAL IMPACT OF NATIONAL AND GLOBAL ECONOMIC FORCES
SOURCE: Giving USA Foundation | GIVING USA 2015
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Giving is influenced by economic conditions
Total giving, 1974-2014 (in billions of dollars)
SOURCE: Giving USA Foundation | GIVING USA 2015
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Total giving increased to 2.1% of GDP
Total giving as a percentage of Gross Domestic Product, 1974-2014 (in inflation-adjusted dollars, 2014 = $100)
SOURCE: Giving USA Foundation | GIVING USA 2015
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Individual giving remains constant at about 2% of disposable personal income
Individual giving as a percentage of disposable personal income, 1974-2014 (in current dollars)
SOURCE: Giving USA Foundation | GIVING USA 2015
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Overall giving fluctuates with S&P 500
Total charitable giving graphed with the Standard & Poor's 500 Index, 1974-2014 (in billions of inflation-adjusted dollars, 2014 = $100)
Modern million-dollar-plus donors
§ Most donors are over the age of 50. Inspired by initiatives like the Giving Pledge, notable young donors are joining their ranks.
Source: Million Dollar List 2012
DATA REVEAL CHANGING DONOR MOTIVATIONS, EXPECTATIONS
Philanthropy Panel Study (PPS) Bank of America Studies of High Net Worth Philanthropy
Longitudinal individual giving data
Donor incidence over time, 2000-2008
66,8 68,5 66,9 65,3 65,4
46,5 46,5 46,3 43,1 42,3
55,9 57,5 56,3 55,7 56,5
2000 2002 2004 2006 2008
Total Religious Secular
Source: Philanthropy Panel Study
$557 $1 488 $2 613 $2 540
33
59
69 77
Millennial Gen X Boomer Silent & Great
Average total giving by donors
Percentage who give
Oldest generations more likely to give and give more, on average
Data may broadly catalog charitable motivations
Source: 2014 U.S. Trust Study of High Net Worth Philanthropy
10,2
28,5
33,2
34,4
39,7
40,1
43,9
44,6
49,7
61,8
62,7
66,0
73,1
73,5
0 10 20 30 40 50 60 70 80
Other (e.g., Social Norms, Businesss Interests)
When You Are Asked
Because of Your Desire to Set an Example for Future Generations
To Receive a Tax Benefit
To Honor Another (e.g., Memorial Gifts, Celebratory Gifts)
Because of Your Religious Beliefs
Spontaneously in Response to a Need
To Remedy Issues That Have Affected You or Those Close to You (e.g., Cancer, Drug Addiction)
Because of Your Political or Philosophical Beliefs
When You Are on the Board or Volunteer for the Organization
In Order to Give Back to Your Community
To Support the Same Causes/Organizations Year After Year
For Personal Satisfaction
When You Believe That Your Gift Can Make a Difference
GENDER IN PHILANTHROPY
Women’s Philanthropy Institute Indiana University Lilly Family School of Philanthropy
WPIinsights
Engagingmenasdonors
Engagingwomenasdonors
Gender Matters in Philanthropy
SUCC
ESS
Motivations for giving: men and women
Gift can make a difference
Personal satisfaction, enjoyment, or fulfillment
Giving back to the community
Empathy
Women tend to score higher on measures of empathy and altruism, and are more likely to want to help others.
IMPACT OF TECHNOLOGY ON PHILANTHROPY
SOURCE: Giving USA Foundation | GIVING USA 2015
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Source: Blackbaud, 2014 Charitable Giving Report
6,7%
93,3%
Online giving as a percentage of total giving
Online All Other Forms
Online giving a small but growing piece of the pie
SOURCE: Giving USA Foundation | GIVING USA 2015
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THE FUTURE OF PHILANTHROPY
SOURCE: Giving USA Foundation | GIVING USA 2015
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Women’s Philanthropy Institute Indiana University Lilly Family School of Philanthropy
WPIinsights
SOURCE: Giving USA Foundation | GIVING USA 2015
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§ As nonprofit sector realizes 60-year high for total giving, the sector overall can at last focus on expanding giving rather than regaining lost ground.
§ Donors are returning to pre-recession giving priorities, as seen in increased support of the arts and education
§ New vehicles and institutional forms are emerging
Positive outlook
Lilly Family School of Philanthropy Resources Giving USA 2014: The Annual Report on Philanthropy for the Year 2013. Researched and written by Indiana University Lilly Family School of Philanthropy. Sponsored by Giving USA Foundation, a public service initiative of The Giving Institute. 2014 U.S. Trust Study of High Net Worth Philanthropy, October 2014, Researched and written by Indiana University Lilly Family School of Philanthropy, with support from U.S. Trust/Bank of America. Philanthropy Panel Study. Indiana University Lilly Family School of Philanthropy. Conducted in conjunction with the University of Michigan Institute for Social Research’s Panel Study of Income Dynamics (PSID). The Million Dollar List. Researched and written by the Indiana University Lilly Family School of Philanthropy. Available online at http://www.milliondollarlist.org/.
References Choney, S. (2010). Mobile giving to help Haiti exceeds $30 million. January 21, 2010, http://www.msnbc.msn.com/id/34850532/ns/technology_and_science-wireless/
Council on Foundations, “The Practices and Opportunities of Big Data in Philanthropy,” April 3, 2014, http://www.cof.org/content/practices-and-opportunities-big-data-philanthropy
Hrywna, M. & Sullivan, P. “Donations More than Doubled for #GivingTuesday.” December 4, 2013, The NonProfit Times, http://www.thenonprofittimes.com/news-articles/donations-more-than-doubled-for-giving-tuesday/
Indvik, L.“Forrester: U.S. Online Retail Sales to Hit $370 Billion by 2017. March 12, 2013, Mashable, http://mashable.com/2013/03/12/forrester-u-s-ecommerce-forecast-2017/
References
Lewis, N. “Nonprofits Aim to Build on Success from the First Giving Tuesday,” June 23, 2013, The Chronicle of Philanthropy, http://philanthropy.com/article/Nonprofits-Seek-to-Build-on/139939/ Mobile Commerce Deep Dive: The Products, Channels and Tactics Fueling Growth; eMarketer. Available at http://www.emarketer.com/Article/Despite-Time-Spent-Mobile-Sites-Grab-More-Moola-than-Apps/1011040 Pope, E. “Fundraising Via Mobile Apps Can Still Be a Challenge.” April 1, 2013,The NonProfit Times, http://www.thenonprofittimes.com/news-articles/fundraising-via-mobile-apps-can-still-be-a-challenge/ Talbot, D. “Data Discrimination Means the Poor May Experience a Different Internet,” October 9, 2013, MIT Technology Review, http://www.technologyreview.com/news/520131/data-discrimination-means-the-poor-may-experience-a-different-internet/
Thank you!