What Canadian Donors Want 2013 Survey: Final Report

What Canadian Donors Want2013 Survey: Final Report Association of Fundraising Professionals December 9, 2013

Table of Contents Research Objectives 3 Methodology 4 Executive Summary 5 Detailed Findings 8 a) Confidence in, importance of and attitudes toward charities and non-profit organizations9 b) Views toward charitable organization management and investment areas14 c)Level of knowledge of supported charities and impact of knowledge on decision to donate 21 d) Charitable donation experience, motivations, and contact preferences31 e) Drivers of past donation and likelihood to donate in the future 52 f) Donor relationship management 62 g) Government funding to charities and non-profit organizations 67

Research Objectives • The Association of Fundraising Professionals (AFP) represents more than 30,000 members in 232 chapters throughout the world. • AFP works to advance philanthropy through advocacy, research, education and certification programs. • The association fosters development and growth of fundraising professionals and promotes high ethical standards in the fundraising profession. • Ipsos Reid has conducted research for AFP through both syndicated research (What do Donors Want) and custom methods. • The main objectives of the 2013 research are as follows: • Measure confidence in, importance of and attitudes toward charitable/non-profit organizations • Gauge level of knowledge of supported charities and its impact on decision to donate • Understand the charitable donation experience, motivations and preferred ways to be contacted for donations • Understand the drivers of donation. • Understand donor relationship management • Measure support for government funding of charitable/non-profit organizations

Methodology • The methodology for this study involved an online survey using the Ipsos Reid Online Panel. • The survey was conducted among a nationally representative sample of Canadians 18 years and older. • Slight weighting was applied by region, age, and gender to ensure a nationally representative sample according to 2011 census targets. • A total of 1,003 surveys were completed from October 17 – 21, 2013. • While not a random probability sample, a sample of this size has a theoretical margin of error of ± 3.1, 19 times out of 20. • Tracking data from the 2011 survey and Ipsos Reid’s Canadian Donors & You syndicated study are included where possible. • Significant changes from 2011 (and in some cases 2009) are represented as follows: • Significant increase • Significant decrease

Executive Summary • Canadians express a high level of confidence in the charitable sector. Confidence is higher for the charitable sector than for the private and public sector. • Charities are increasingly seen as being important. They are increasingly seen as filling a gap in society to address the needs not being met by the public and private sectors. • Canadians continue to have positive images of charities. Most Canadians see them as being responsible with donations, trustworthy, well-managed and having the plans and resources to carry out their mandates. • Canadians continue to have high standards for how charities operate (particularly with respect to having a strategic plan and performance standards). Most believe that the charities they support follow a code of ethics. • There is acceptance that charities have administrative costs and need to invest in areas to meet their mandate. There is an overwhelming belief that, like the public and private sector, the charitable sector has administrative costs to run their operations. Also, there is support for charities investing in fundraising campaigns, staff training and development, regulatory compliance, infrastructure and organizational development to carry out their mandates. • However, there is a growing sense that charities overstate how much they spend on the cause. Although, it is important to note that most continue to indicate that they trust charities at least for the most part on what they say they spend on overhead costs versus the amount they spend on the cause/program they support.

Executive Summary • Significant number of Canadians proactively seek out information before selecting a charity, but most say they are approached by the charity. • Increase in donors self-reported awareness and knowledge of supported charities, and most of this has come among those who say they have “a lot of awareness” and are “very knowledgeable”. This is not surprising as an increasing number are doing research before they donate, and particularly important to them is knowing that a charitable organization is fulfilling its purpose. In fact, an increasing number say they are aware that supported charitable organizations are achieving their objectives. • Awareness of the way a charity operates positively influences donations. • An organization’s website and word of mouth are the main sources of information. • Most Canadians perceive being approached for donations too much, particularly by phone. There is a preference to be approached for donations via traditional means of a letter in the mail. Moreover, being approached by mail, as well as at stores, gives a charity more credibility than other approaches, particularly being approached by phone. • Decline in the number who are being contacted for donations. Despite this, self-reported donation behaviour over the past 12 months remains steady. Moreover, there have been increases in donations exceeding $500 or over $1,000, and declines in donating $50 or less. • Most donors donate to charities benefiting their local community, but less so than in 2009. Also, donors less likely than in 2009 to donate to charities supporting children/youth issues, a food bank, hospital/medical centre or animals/wildlife, but more likely to donate to disaster relief.

Executive Summary • Volunteering has a more positive than negative impact on donation behaviour. • Overwhelming majorities agree with a variety of factors related to the charity to which they last donated, but strong agreement is highest for “has a clear purpose and mandate,”“has a strong reputation,”“helps those in need” and “being well known.” • However, the strongest drivers of future donations are: “charity is a charity for you,”“is successful at fulfilling its mandate,” and “helps those in need.” • Focus should be on “is successful at fulfilling its mandate,”as it drives the more general driver of “charity is a charity for you.” • Increasing tax breaks for charitable donations would have some positive impact on the amount of donation. • Most donors think charities are doing an excellent/good job providing thanks (excellent scores up since 2011). Maximizing the donor relationship will continue to involve letting donors know how their donation has made a difference (preferably via letter in the mail) and thanking them for their donations (just under half indicate that in the absence of thanks/acknowledgement of their donation they are less likely to donate to that charity again). • Most prefer the status quo on government funding of non-profit/charitable organizations, but overwhelming support for providing more funding to hospitals and schools, so they are less reliant on donations.

Detailed Findings

Confidence in, importance of and attitudes toward charities and non-profit organizations

Confidence in various sectors When asked their level of confidence in the public, private and charitable sectors, confidence is highest for the charitable sector, with 3 in 4 respondents expressing at least some confidence in this sector. Just over 6 in 10 express confidence in the private sector, while confidence is lowest for the public sector, with half of Canadians expressing confidence. % Confident • Quebecers express less confidence than average in the charitable sector. Those with the highest level of education express more confidence. Q3. Generally speaking, how confident are you in each of the following in Canada?. Base: All Respondents (n=1,003)

Importance of charities and non-profit organizations Eight in 10 respondents indicate that charities play an important role in society to address needs not being met by the government or public/private sectors. Since 2011, this proportion is up significantly by 6 points, and all of the increase has come among those who strongly agree with the statement. Moreover, the overall number is at the highest level ever. Very few (about 1 in 10) continue to indicate that charities do not make much difference. % Agree * Prior to 2013, the question wording was “I think that charities play an important role in society as a change agent to address needs not being met by government or private/public sector.” Q1. People have different attitudes towards charities and non-profit organizations. How much do you agree or disagree with each of the following statements as it relates to you personally? Base: All Respondents (n=1,003); 2011 (n=1027); 2009 (n=1108); 2008 (n=1823); 2007 (n=1420)

Reasons for thinking “charities do not make much difference” The money going towards administration or other expenses is the most common reason for thinking “charities do not make much difference.” About 2 in 10 mention the money not getting into the hands of the people who need it. *Mentions of higher than 1% shown. Q1b. Please explain why you agree that ‘Charities do not make much difference’? Base: Respondents who gave a score of 6 or higher to the above statement (n=142)

Attitudes toward charities and non-profit organizations Public perceptions of charities and non-profit organizations remain mainly positive. About six in ten indicate that charities and non-profits act responsibly with donated funds, are trustworthy, and are well-managed. Half indicate that most Canadian charities are well-placed, with respect to plans and resources to carry out their mandates. These figures are consistent with the 2011 results. % Agree Q1. People have different attitudes towards charities and non-profit organizations. How much do you agree or disagree with each of the following statements as it relates to you personally? Base: All Respondents (n=1003); 2011 (n=1027)

Views toward charitable organization management and investment areas

Views on what charities say about spending on overhead More than half of Canadians continue to indicate that they trust charities at least for the most part on what they say they spend on overhead costs such as fundraising supplies, and administration versus the amount they spend on the cause/programs they support. However, since 2009, there has been a significant increase in the proportion who say charities overstate how much they spend on the cause/programs (up 4 points). Q2. When it comes to what charities say about how much they spend on overhead costs such as fundraising, supplies, and administration versus the amount they spend on the cause/programs they support, which of the following statements comes closest to your own point of view? Base: All Respondents (n=1003); 2009 (n=1108)

Charities addressing similar issues should work together Three in 4 respondents think charities that address similar issues should work together and share plans and resources. % Agree Q1. People have different attitudes towards charities and non-profit organizations. How much do you agree or disagree with each of the following statements as it relates to you personally? Base: All Respondents (n=1,003)

Views toward how charitable organizations operate Canadians have high standards for how charities operate. Large majorities feel that charities should have a strategic plan for how they intend to achieve their objectives and that they should strive to maintain a certain level of standards by measuring their performance. However, these figures are down significantly since 2011 (both statements down 4 points) because of increases in don’t know responses. Similar to 2011, most think charities should invest in tools that show their impact on the community they serve/cause they support. % Agree Q34. Please indicate how much you agree or disagree with each of the following statements. Base: All Respondents (n=1003); 2011 (n=1027)

Views toward fundraising staff/administrative costs Six in 10 past 12 month donors think that charities have enough staff dedicated to fundraising to achieve their objectives; this figure is up significantly by four points since 2011. However, there is an overwhelming acknowledgement that similar to private and public sector organizations, charitable sector organizations have administrative costs to run their operations, with more than 8 in 10 past 12 month donors agreeing with this view. % Agree Q34. Please indicate how much you agree or disagree with each of the following statements. Base: Those who made a financial donation in the past 12 months (n=713); 2011 (n=713) Q32. Please indicate how much you agree or disagree with each of the following statements. Base: Those who made a financial donation in the past 12 months (n=713)

Most important investments for charities to carry out their mandates Fundraising campaigns are seen as the most important investment for charities to carry out their mandate. About 3 in 10 also think it is important for charities to invest in staff training & development, regulatory compliance, infrastructure or organizational development. Respondents are less inclined to place importance on salaries or cash reserves. *Mentions of higher than 1% shown. Q33. Which of the following are most important for charities to invest in to carry out their mandates? Base: All respondents (n=1003)

Attitudes toward and awareness of charities following ethical codes Two in 3 past 12 month donors indicate that the charities they support follow a code of ethics of which they have been made aware. This figure has not changed significantly from 2011. % Agree Q32. Please indicate how much you agree or disagree with each of the following statement. Base: Those who made a financial donation in the past 12 months (n=713); 2011 (n=713)

Level of knowledge of supported charities and impact of knowledge on decision to donate

Approach to selecting a charity When asked what best describes their approach for selecting a charity, about 6 in 10 respondents indicate that the charity approaches them and they donate on the information they receive, while more than 4 in 10 proactively seek out information on the cause/charity and contact them to make a donation. Q38 Which of the following best describes how you approach selecting a charity? Base: All respondents (n=1003)

Typical way of finding information on charities supported The charity’s website or from other people such as friends/family/co-workers are the most common ways respondents find information on the charities they support. Three in 10 typically find this information through a general online Google search, • Women, those aged 18 to 34 and those with higher levels of education are more inclined to find information on charities from the organization’s website. • Those 18 to 34 are also more likely to mention a general online search. *Mentions of higher than 1% shown. Q39 How do you typically find information on the charities that you support? Base: All respondents (n=1003)

Typical Information looked for in determining whether you will make a donation Respondents look for a variety of information when researching a charity to determine whether they will make a donation. The most commonly mentioned are their cause/mission/mandate, distribution of funds, the percentage spent on administrative and other costs, the percentage spent on funds actually used towards the cause, and results/past achievements. *Mentions of higher than 2% shown. Q40 What information do you typically look for when researching a charity to determine whether or not you will donate? Base: All respondents (n=1003)

Awareness and knowledge of the purpose of supported charitable organizations Since 2011, there have been significant increases in awareness and knowledge of supported charitable organizations. Three out of 4 past 12 month donors indicate that they have seen, read, or heard a lot or something about the purpose of the charities to which they donate. This figure is up significantly by five points from 2011, and the proportion who say they have a lot of awareness is up 13 points. Nearly 9 in 10 past 12 month donors consider themselves very/somewhat knowledgeable about the charitable causes they support. This figure is up nine points from 2011, and the proportion who say they are very knowledgeable is up 15 points. Q35. In general, how much have you seen, read, or heard about the purpose of the charities to which you donate? Base: Those who made a financial donation in the past 12 months (n=713); 2011 (n=713) Q36. In general, how would you rate your knowledge of the charitable causes that you support? Base: Those who made a financial donation in the past 12 months (n=713); 2011 (n=713)

Importance of knowing an organization is fulfilling its purpose before donating Consistent with 2011, a wide majority of past 12 month donors indicate that they need to know an organization is fulfilling its purpose before donating to them. Seven in 10 past 12 month donors indicate that they typically do some research on a charity before they donate. This figure has increased significantly by six points since 2011, moreover, most of this increase has come among those who strongly agree (up 5 points). % Agree Q32/Q34. Please indicate how much you agree or disagree with each of the following statement. Base: Those who made a financial donation in the past 12 months (n=713); 2011 (n=713)

Awareness that supported charitable organizations have achieved their objectives Half of past 12 month donors are aware of whether or not the charitable organizations they gave to in the past 12 months have achieved or gotten closer to achieving their objectives. This figure is up significantly by 14 points since 2011. Q41. Thinking of the charitable organizations you gave to in the past 12 months, do you know if they have achieved or gotten closer to achieving their objectives? Base: Have made a financial donation to a charity or non-profit organization in the past 12 months (n=713); 2011 (n=713)

Impact knowledge of how the charity operates has on decision to donate Similar to 2011, 6 in 10 respondents indicate that awareness of the way a charity operates positively influenced their decision to donate to it in the past. % Yes Q37. Has awareness of the way a charity operates positively influenced your decision to donate to it in the past? Base: All Respondents (n=1003); 2011 (n=1027)

Impact knowledge of how the charity operates has on decision to donate Those in Quebec are less likely than average to indicate that how a charity operates has positively influenced their decision to donate to it in the past, but this proportion is up significantly from 41% in 2011 to 54% in 2013. %Yes Q37. Has awareness of the way a charity operates positively influenced your decision to donate to it in the past? Base: All Respondents (n=1003); 2011 (n=1027)

Impact knowledge of how the charity operates has on decision to donate (continued) Women and older respondents are significantly more likely to have been positively influenced to donate to a charity by awareness of how the charity operates. %Yes Q37. Has awareness of the way a charity operates positively influenced your decision to donate to it in the past? Base: All Respondents (n=1003); 2011 (n=1027)

Charitable donation experience, motivations, and contact preferences

Contacted for donations in the past year Six in 10 respondents have been contacted in the past year by telephone, in person or through the mail by fundraising or development staff of charities, educational institutions, or other kinds of non-profit organizations for a donation. This figure is down significantly by nine points from 2011. % Yes Q15. In the past year, have you been contacted by telephone, in person or through the mail by fundraising or development staff of charities, educational institutions, or other kinds of non-profit organizations to ask you to donate money? Base: All Respondents (n=1003); 2011 (n=1027)

Contacted for donations in the past year (cont’d) Those with lower levels of educational attainment are significantly less likely to report having been approached. %Yes Q15. In the past year, have you been contacted by telephone, in person or through the mail by fundraising or development staff of charities, educational institutions, or other kinds of non-profit organizations to ask you to donate money? Base: All Respondents (n=1003)

Contacted for donations in past year (cont’d) Women, older respondents and those with higher levels of income are more likely to indicate having been contacted for a charitable donation in the past year. %Yes Q15. In the past year, have you been contacted by telephone, in person or through the mail by fundraising or development staff of charities, educational institutions, or other kinds of non-profit organizations to ask you to donate money? Base: All Respondents (n=1003)

Views toward and impact of fundraising efforts Of those who had been asked to donate, the majority indicate that the fundraisers were often/sometimes accurate in portraying the organizations they represented and provided useful information about what the organizations were doing. About half indicate that these fundraising efforts helped them to find out about organizations to which they might want to donate, and 4 in 10 say these fundraising efforts were considered important in terms of where they decided to donate their money. These figures are similar to those in 2011. % Often/ Sometimes Q16. Did you find that these fundraising efforts…: Base: Have been contacted to donate money (n=639); 2011 (n=715)

Made a financial donation in the past 12 months Consistent with previous surveys, 7 in 10 respondents have made a financial donation in the past 12 months. % Yes • 71% of those who donated in the past 12 months were contacted for a donation. Q6. Have you made a financial donation to a charity or non-profit organization in the past 12 months? Base: All Respondents (n=1003); 2011 (n=1027); 2009 n=(1108); 2008 (n=1823; 2007 (n=1420)

Financial donation in the past 12 months (cont’d) Those in Quebec are less likely than average to have made a financial donation in the past 12 months. As the level of educational attainment increases so does the incidence of having given. Have Made a Financial Donation in the Past 12 Months %Yes Q6. Have you made a financial donation to a charity or non-profit organization in the past 12 months? Base: All Respondents (n=1003)

Financial donation in the past 12 months (cont’d) Women, older respondents and those with higher incomes are more likely to have made a financial donation in the past 12 months. Have Made a Financial Donation in the Past 12 Months %Yes Q6. Have you made a financial donation to a charity or non-profit organization in the past 12 months? Base: All Respondents (n=1003)

Reasons for not donating in the past 12 months Not being able to afford it continues to be, by far, the main reason provided for not making a financial donation in the past 12 months, but mention of this reason is down significantly by nine points since 2011. For the first time, respondents are explicitly saying they do not donate to charities. Q10. Why haven’t you made a financial donation to a charity or non-profit organization in the past 12 months? Base: Have not made a financial donation to a charity or non-profit organization in the past 12 months (n=290); 2011 (n=314)

Asked vs. donated in the past 12 months The incidence of having been asked to donate is significantly lower than the proportion that has actually given. Overall, those in Ontario and Quebec have given significantly more than they have been asked. Alberta residents report the highest incidence of being asked to donate and are the only residents where the proportion asked outweighs the proportion who actually donated. Q15. In the past year, have you been contacted by telephone, in person or through the mail by fundraising or development staff of charities, educational institutions, or other kinds of non-profit organizations to ask you to donate money? Base: All Respondents (n=1003) Q6. Have you made a financial donation to a charity or non-profit organization in the past 12 months? Base: All Respondents (n=1003)

Charities and non-profit organizations donated to mostly benefited… About 5 In 10 past 12 month donors indicate that the charities and non-profit organizations they donated to mostly benefited their local community, but this figure is down significantly by seven points since 2009. There has been a directional increase in the proportion (about 1 in 3) who say their donation mostly benefited Canada as a whole. Q9. Thinking about the charities and non-profit organizations that you donated to in the past year, would you say they mostly benefited… Base: Have made a financial donation to a charity or non-profit organization in the past 12 months (n=713); 2009 (n=819)

Types of causes supported in the past 12 months Fewer past 12 month donors than in 2009 donated to charities supporting children/youth issues, a food bank, hospital/medical centre or animals/wildlife, but a higher proportion donated to charities supporting disaster relief. *Mentions of higher than 1% shown. Q8. Now, thinking about the charities that you gave a financial donation to in the past 12 months, what types of causes did they support? Base: Have made a financial donation to a charity or non-profit organization in the past 12 months (n=713); 2009 (n=819)

Number of causes donated to in the past 12 months Past 12 month donors continue to be most likely to indicate that they donated to 2-3 causes. Q11. How many different charitable causes did you donate money to in the past 12 months? Base: Have made a financial donation to a charity or non-profit organization in the past 12 months (n=713); 2011 (n=713); 2009 (n=819)

Amount of financial donation in the past 12 months Compared to 2011, fewer past 12 month donors indicate that they donated $50 or less in the past 12 months. while increasing proportions made donations exceeding $500, or $1,000. Moreover, the proportion who say they donated over $1,000 is at the highest level ever. Q12. Approximately how much in total did you donate to non-profit and charitable organizations in the past 12 months? Base: Have made a financial donation to a charity or non-profit organization in the past 12 months (excluding no response) (n=713); 2011 (n=713); (2009 n=819; 2008 n=1348; 2007 n=1022)

Important to donate to non-profits and charities because of work they do 7 in 10 respondents think giving to non-profits and charities is important because of the work they do. % Agree 72% Q1. People have different attitudes towards charities and non-profit organizations. How much do you agree or disagree with each of the following statements as it relates to you personally? Base: All Respondents (n=1,003)

Impact of volunteering for a non-profit/charitable organization on donation behaviour Respondents are more likely to say volunteering has a positive rather than a negative impact on donations. More than half indicate that volunteering for a non-profit/charitable organization makes them more likely to donate to that organization, while only about 2 in 10 say it makes them less likely to donate. 4 in 10 say volunteering has no impact on their likelihood to donate to a non-profit/charitable organization. • Respondents aged 18 to 34 are more likely to say volunteering for a non-profit/charitable organization makes them more likely to donate to that organization. Q13. In general, if you volunteer for a non-profit or charitable organization are you: Base: All Respondents (n=1003);

Preferred frequency of being approached for donations Past 12 month donors most prefer to be approached for donations once a year or less often, but this proportion is down significantly by seven points from 2011. There has been a directional increase in the proportion who say they prefer being approached 2-3 times a year. Q18. Thinking of the charitable organizations you support, how often do you prefer to be approached for financial donations? Base: Those who made a financial donation in the past 12 months (n=713); 2011 (n=713)

Perceived frequency of being approached for donations More than half of respondents think they are approached for donations too much, while fewer than 1 in 10 think they are approached not enough. 4 in 10 think they are approached for donations just the right amount. • Women, older respondents and those with higher education are more likely to perceive that they are being approached too much for donations. 55% Q.19. In general, do you feel that you are approached for donations: Base: All Respondents (n=1003)

Ways in which too frequently approached for donations Respondents who perceive they are approached for donations too much, most commonly mention phone, as the way in which they are too frequently approached for donations. About half say they are approached too frequently for donations at stores or by mail. Q20. In which of the following ways do you feel you are too frequently approached for donations: Base: Approached for donations a little too much or far too much (n=576)

Preferred approach for donations Traditional means, namely a letter in the mail, is overall the preferred approach for being asked for charitable donations, while receiving an e-mail or by a cashier are the preferred method for about 1 in 5 respondents. • Preference for approach by a letter in the mail is higher among those aged 35 and older; preference for social media is higher among those aged 18 to 34. • Those with a higher level of education and higher income are more likely to prefer being approached via e-mail. Q17. How do you prefer to be approached for charitable donations? Base: All Respondents (n=1003)

What Canadian Donors Want 2013 Survey: Final Report