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Charitable Giving to Fight Cardiovascular Diseases: Is It Any Different During A Recession?. Rene Bekkers Philanthropic Studies, VU University Amsterdam r.bekkers@fsw.vu.nl 2009 European Heart Network Workshop May 14, 2009. Today’s Questions.

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charitable giving to fight cardiovascular diseases is it any different during a recession

Charitable Giving to Fight Cardiovascular Diseases: Is It Any Different During A Recession?

Rene Bekkers

Philanthropic Studies,

VU University Amsterdam

r.bekkers@fsw.vu.nl

2009 European Heart Network Workshop

May 14, 2009

today s questions
Today’s Questions
  • How much will fundraising income for charities fighting cardiovascular diseases decline as a result of the economic recession?
    • What effects have recessions had in the past?
    • Who gives to cardiovascular diseases?
    • How strongly are donors affected today?
  • How will the mix of sources of income change?
    • What are sources of fundraising income?
    • How strongly are these sources affected?
recession effects
Recession effects
  • Direct: economic value of your organization’s own wealth and the value of bequests declines
  • Indirect:
    • Willingness to donate may decline
    • Mix of sources of income may change
    • Fundraising effectiveness may decline
evidence from giving usa
Evidence from Giving USA
  • Little decline in recession years
  • US donors perceive needs to be higher in recession years
downturn effects in europe
Downturn Effects in Europe
  • European situation is different: taxes fund basic needs, charity funds extras
  • Economic downturn is likely to reduce psychological sense of economic security
  • How are donors to Heart Organizations doing in today’s recession?
  • How have economic downturns affected donations in Europe?
annual donations received by all charities in the netherlands
Annual donations received by all charities in the Netherlands

Million Euro

Source: ‘Fondsenwerving in tijden van crises’

fundraising income in of gdp
Fundraising income in % of GDP

Source: ‘Fondsenwerving in tijden van crises’

correlates of income
Correlates of income
  • Housing prices: strongly positive, lag 1 year
  • Stock market: positive, lag 2-3 years
  • Unemployment growth: negative, lag 1-3 years
  • Consumer confidence: positive, lead 0.5 year
income hartstichting 1994 2006
Income Hartstichting, 1994-2006

Million Euro

Source: own calculations based on CBF database

bequests up donations down in downturn
Bequests up, donations down in downturn

Million Euro

Source: own calculations based on CBF database

sources of income hartstichting
Sources of income, Hartstichting

Source: own calculations based on CBF database

costs relative to income
Costs relative to income

Source: own calculations based on CBF database

who gives
Who Gives?
  • Patients and their social circles
  • Connections with family members, friends
  • Empathy and identification are key to understanding donor behavior
  • In conjunction with social responsibility and own health
social status and donations
Social Status and Donations

Source: Giving in the Netherlands Panel Survey, 2007

detailed profile
Detailed profile
  • Know heart patients:
    • Average income, education
    • Older, below average health
    • Larger networks, especially family and acquaintances
  • Donors to Dutch Heart Organization (vs other health charities):
    • Average income, below average education, rent homes,
    • Above average empathy/responsibility, know heart patients

Source: ‘Straight from the Heart’

detailed profile1
Detailed profile
  • More generous donors:
    • Older, above average income, below average education, home owners,
    • Larger networks, know heart patients
    • Church attendees, higher empathy/responsibility
    • If heart patient is known: higher empathy/responsibility and worse own health

Source: ‘Straight from the Heart’

conclusions and discussion
Conclusions and Discussion
  • Donors to charities fighting cardiovascular diseases are likely to suffer stronger effects of the economic downturn
  • No effects on fundraising costs?
  • Decreasing proportion of income from bequests
  • Benchmarking is needed: Giving Europe
references
References
  • Rene Bekkers, Philanthropic Studies, VU University Amsterdam, r.bekkers@vu.nl
  • http://renebekkers.wordpress.com
  • ‘Straight From the Heart’. Pp. 197-221 in: Advances in Medical Sociology, Volume 10: Patients, Consumers and Civil Society: US and International Perspectives, edited by Susan Chambré and Melinda Goldner. Emerald Group Publishing.
  • ‘Fondsenwerving in tijden van crises’. In: Geven in Nederland 2009: Giften, Sponsoring, Legaten en Vrijwilligerswerk, edited by Theo Schuyt, Barbara Gouwenberg and Rene Bekkers. Amsterdam: Reed Business.