Report calls for revamp of philanthropic relations

The Times

24 September 2007

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Charities are offering their donors the same standard of customer service as a 1950s seaside boarding house, according to a study of modern philanthropy. In a sternly worded warning, it said charity fundraisers must overhaul the way they work if they are to get a slice of the new wealth.

However, The 21st-Century Donor, a report setting out the fundraising landscape for the next few decades, says that the good news is that philanthropists are far richer and far more willing to gave away their money than ever before.

The study, conducted by the charity consultants nfpSynergy, says that donors are now far more discerning and strategic about where they place their money. They want to know exactly how charitable projects work and how their progress is measured. They want a choice of projects to fund and their efforts to be recognised. They want their expertise as well as their cash to be tapped into.

Yet far from embracing this new consumerism, charities are still wedded to the past, issuing high-handed pleas for cash at odd times of the year that fail to discriminate between one-off small donors, trusted life-long sponsors and new-wave philanthropists looking to get involved for the first time.

“What does the average consumer experience when they become a donor? Not only have they entered a world which has the same level of customer service and flexibility as a 1950s B&B but, unbeknownst to them, they have entered into a whole set of unspoken assumptions,” the report says.

“The customer thinks they are making a one-off donation while the charity thinks they have entered into a life-long contract and will consider them ‘lapsed’ if they do not make another donation.”

Its findings have been reinforced by a study of donors by Barclays Wealth, the banking service, which said that the days are over when donors used to head to their nearest local good cause, or to the charity their grandfather always loved. “New or self-made wealth is driving an increase in philanthropic donations,” it said. “Giving decisions are less driven by personal or geographical proximity to a cause, as they approach philanthropy with the same drive and vision they apply to their business or job. This is bringing a new strategic dimension to giving, but in turn creating a new challenge for charities, which are increasingly required to adapt to meet the changing needs of UK givers.”

Its report was based on the input from 504 high-net-worth individuals holding more than £100,000 in available assets, and 15 ultra-high-net-worth individuals holding more than £3 million, and predicts the demands of new-wave donors will only increase.

The report from npfSynergy ends with a ten-point plan for fundraisers on the best way to woo modern donors.

Among the tips on sharpening up a brand and demonstrating value for money and impact, it tells charities to get into the mind-set of the donor.

“Make donors stakeholders, with a real say in how they give and how their money gets spent. While this does not mean they have the final say, it does mean that their views are valued,” it said.

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