Bucking the trendPresentation to FICO Conference 2008Cathy PharoahProfessor of Charity FundingCo-Director, ESRC Research Centre for Charitable Giving and PhilanthropyCass Business School
Current trends – comfort or challenge for Christian organisations? • Economic definition of a luxury good(…$$$$s) • a good for which your demand increases more than proportionally as income rises • as people become more wealthy, they will buy more and more of the luxury good • but if there is a decline in income, its demand will drop • how far is charity a luxury good?..............
Religious/faith-based charities- a special case? • Commitment and strong values • v ‘giving is the new taking’ • Tradition of giving as fixed %. or fixed outgoing, from income • v luxury spending after everything else • Non-materialistic values, recession - proofing • v materialism • Institutionalised regular giving • v ad hoc, spontaneous
Religious and faith-based causes - the evidence • What is the position of these causes in relation to others? • Using data from the new Charity Market Monitor 2008*… • amount of top charity income? • comparative share of top charity fundraising income? • comparative trends in fundraising income? • trends within religious and faith-based causes? • positioning within various fundraising income streams? • trends in legacy income? * Source: Pharoah, C. Charity Market Monitor 2008. CaritasData. To order: 020 7549 8672 www.caritasdata.co.uk/charity/charity-market-monitor.html
Assess strengths and weaknesses in factors influencing giving • Regular/ tax-effective giving • Awareness of need and provision information • Distance of donor and cause • Clarity about charity costs – review costs • Perceptions of affordability • Demonstration of efficacy • Re-inforcement of social norms around giving • ‘Joy-of- giving’ effects • Attitudes around ‘deservingness’, ‘social approval’ US studies show higher giving in states/times of poverty