ActionAid International

1. Trends in High Value fundraising Worldwide Sharon Jackson Head of International Market Development ActionAid International

2. In this session we will… Highlight some of the key global trends impacting on High Value fundraising – and the opportunities and challenges they present Explore ways in which we can respond to both the challenges and opportunities Pin-point areas of similarity and difference across different markets/regions Share real life examples of activities, approaches and practices that are working across the world First of all…. We need some clarity…

3. What do I mean by ‘High Value’ fundraising? For ActionAid, High Value donors are: Individual major donors, charitable trusts and foundations, companies. Entry level gift? These areas are combined as require a similar approach account management proposal/reporting process relationships are key. Government donors…..Cross over??

4. Who is already doing High Value fundraising of any kind? Which kind? How long for? Which countries?

5. Who are our High Value Donors?

6. Why do major donors give? Investment Putting something back Religion (part of all religions...) Socially aware Feel-good factor Social obligation (Russia) Conditions of inheritance Recognition Concern for the next generation...(Warren Buffet and Emma Thompson!) Social acceptance They love people, Africa, Brazil, Water, Land Rights, etc Hearts and minds…..

7. Why do Grant-making Trusts and Foundations give? Socially aware and charitable founder/benefactor Formal obligation to donate funds – clearly stated guidelines Often in-undated with proposals Need to comply with stated objectives and demonstrate due diligence – less flexibility

8. Why do companies give? True philanthropic gifts are rare – but not unheard of Social investment agenda CSR agenda PR opportunities Employee retention Different motives = different offer needed = different budget line

10. USA

11. Italy

12. India

13. Greece

14. Denmark (new)

15. Australia (new)

16. Brazil (new)

17. Thailand (brand new!)

20. ‘Experts’ questioning the validity and impact of aid

21. Consumers are expecting more than ever before

23. Donors more demanding – SROI and impact measures

24. Interest in tangibles (build a school!)

25. Importance of building relationships – to build trust

26. Role of advisors and intermediaries11

29. Third sector role in lobbying and promoting?

30. Motivation for giving????

31. Influence on how and when people give

32. Giving while living versus legaciesIn 1984, Charles F. “Chuck” Feeney, co-founder of the Duty Free Shoppers Group, transferred his business interests, then conservatively valued in the hundreds of millions of dollars, into a foundation - Atlantic Philanthropies….

35. Foundations are being more selective and demanding – bigger grants to fewer

36. CSR budgets in Europe and USA affected – other budget lines?

37. Charities seen helping people in difficult times are the ones people give up luxuries to support

38. Keep your donors close even when they cannot afford to give 15

40. Latin America, the Middle East, and Africa in the 3 – 4% range.

42. Highlights: study by Deloitte Center for Financial Services May 2011 Total wealth of millionaire households in these 25 economies forecast to grow:$92 trillion 2011 to $202 trillion 2020. U.S. and Europe will remain the global centers of wealth over the next decade, in terms of both the amount of wealth and number of millionaire households. Emerging market economies likely to be more dynamic in terms of growth. China may continue to be the driving force in the growth of millionaire wealth, followed by Brazil and Russia.

44. Capgemini and Merril Lynch World Wealth Report 2011 ƒHNWI wealth grew 9.7% in 2010 to US$42.7 trillion, surpassing 2007 pre-crisis peak. Global population of HNWI grew 8.3% to 10.9 million. Asia-Pacific: 3.3million HNWIs – now second-largest behind North America. Ahead of Europe for first time. Combined wealth of Asia-Pacific HNWIs exceeds Europe’s North America: HNWI wealth up 9.1% to US$11.6trillion Latin America: HNWI population up 6.2% in 2010. Wealth rose 9.2%. This segment proving relatively resilient and stable in recent years ƒIndia’s HNWI population entered the Top 12 for first time and Australia edged up another notch to No. 9. 53.0% of the world’s HNWIs were still concentrated in the U.S., Japan, and Germany. ƒThe global population of Ultra-HNWIs grew by 10.2% in 2010 and its wealth by 11.5%.

45. The wealthy are mostly men – but increasingly women

48. The wealthy are getting younger…

49. Old money versus new money 15 years ago, 75% of the Sunday Times Rich List had inherited their wealth and 25% were self-made. Today that ratio is reversed Engaged philanthropy (venture, catalytic) Investment approach/business models Philanthropy advisers/ organisations (NPC, Philanthropy UK, Coutts etc)

51. Employee engagement needs to be part of corporate package

52. People want higher levels of involvement with the charities they support

53. Supporter visits and Events

54. Engaged philanthropy… Want to give advice as well as money26

56. WaterAid and H&M

58. Win-win!

59. Expect lots of innovative corporate giving schemes that involve customers co-donating and/or co-deciding.27

62. NB: Companies want visibility Co-branding and sponsorship Emergencies or issues with media coverage Their employees – your volunteers Pro-bono opportunities – easier to give time/services than money

69. Can we find new ways to connect donors and beneficiaries?

70. Sometimes we are better to stay traditional – face to face is best! Relationships are not built on SMS33

73. Events play a role…35

75. What is the same across our markets/countries?

76. The 7 steps…a high value courtship Identify (start with who you know) Research and qualify Cultivate (the dating game) Engagement Ask (no-one gets married without a proposal) Close Stewardship (it’s about staying married)

77. You need to make the High Value approach work for you… Entry level needs to work for you. What size gifts are in YOUR top 5-20%? Prospecting – start with who you know – networking is key Need a strong case for support! Relationship fundraising approach – 1 to 1 Build TRUST! Recruiting (and developing) the right fundraiser is key Senior Management Team and Board involvement FOCUS and prioritise

78. 40 80% of our income from <20% of our donors…

79. 41

80. What is differentacross our markets/countries?

81. Taxation versus charitable giving Do not believe in taxation. Do not trust Govt to redistribute wealth. Believe in philanthropy and being able to choose where money goes Denmark UK USA Believe in taxation. Govt then redistributes wealth

82. The Spectrum of Philanthropy: Peter Maple from London Southbank University Altruism Enlightened Self-interest Reciprocity

83. Crucial differences in emerging economies… Shock tactics don’t work: they embarrass Donor may know more than you… The challenge of visibility The challenge of geographical proximity Importance of govt link – Middle East and China Importance of corporate or royal connections – SE Asia ‘Monkeys play by sizes!’ Distinction between private and corporate wealth/giving is less clear The politics of poverty can get tricky

84. Private Social Responsibility “I once attended an evening party organized by a wealthy family in a South American country, devoted to philanthropy. Guests, similarly ultra-wealthy families, gathered to talk about their giving, share experiences and possibly form alliances…. As I listened to the other guests talking, I began to realize that giving is seen as just an accessory to a wealthy lifestyle rather an act that implies a complete moral worldview, such giving, new or old, will make no great changes in the world. That perhaps it is time to embrace the idea of ‘private social responsibility’. I heard one impeccably dressed lady share with a friend her frustration over peasants in the northern part of the country who did not want to move from their land despite ‘generous’ offers from the company she owned. Her friend nodded sympathetically and replied with a similar story of poor workers demanding some right or other ...” Olga Alexeeva, CAF Global Trustees and Philanthropy Bridge Foundation.

85. Any questions?