Transcript Source: Inside Research

Perfecting our giving
Cathy Pharoah
Director of Research
Tuesday 29th November 2005
What are we working towards?
Our vision
A world in which giving in a committed and
effective way is a recognised part of everyday life
Our cause
effective giving
What do we do for individuals?
 for individuals, we have created a range of ways
to make giving to charity simple and tax-efficient

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
Charity Account
trusts
legacies
consulting and advice
Give As You Earn
 individuals give more than £250m through CAF’s
giving solutions each year
Estimated growth in individual giving and tax-efficient
giving (adjusted for inflation at 2002 prices)
£ bn
7.5
7.3
7.3
Total individual giving
5
2.5
2
2.4
1.13
Tax-efficient giving
0
year
Source:
1992
1994
1996
1998
2000
2002
2003
Individual giving as % of GDP 1972 – 2002
%GDP
2.5
1.9%
1.8%
1.5%
US
1.5
0.9%
UK
1.2%
0.5
yr
72 - 91
92
94
Sources: Giving USA (1995-2003; CAF's Individual Giving Surveys (1992-93);
NCVO NOP Individual Giving Surveys (1995-2002). US GDP figures provided by
US Department of Commerce Bureau of Economic Analysis – National Income and
Product Accounts (adjusted for inflation). UK GDP figures provided by the Office
of National Statistics – National Accounts
96
98
00
02
UK giving pyramid 2003
£0.5-0.7bn
£1bn
very wealthy
mass affluent
£6.3bn
general public
£1.5bn
legacies
individuals, legacies, corporate + private family foundations
% of value of donations given
by household income deciles 2003
Top inc decile
28%
bottom half
31%
5th top
7%
2nd top
13%
4th top
11%
Source: CAF Analysis of EFS Survey Data, ONS, 2003
3rd top
10%
Total given through Gift Aid
1998/99 – 2004/05
£ million
3,000
2,757
2,462
2,500
2,000
2,842
1,833
1,981
1,989
2,132
1,500
1,000
1998/99
2000/01
Sources: HMRC statistics with additional calculations by CAF.
2002/03
2004/05
% of donors using Gift Aid
1999 – 2003
25
20
15
10
5
0
21
16
11
0.6
1999
3
2000
2001
Sources: CAF/NCVO NOP Individual Giving Surveys (1995 – 2002)
2002
2003
Payroll giving in context
 2% of UK taxpayers use payroll giving
 only circa 10% of people with access to a scheme
use it
 £83m in individual donations
 promotional initiatives





millennium: Children’s Promise
April 2000: 10% government supplement on donations
April 2000: removal of £1,200 per year donation limit
July 2001: The Giving Campaign
April 2004: SME grant scheme
Source: Analysis of UK Payroll Giving, 2005
Children’s Promise scheme
800,000
One-off Children's Promise
donors
700,000
Long-term donors
600,000
500,000
400,000
300,000
200,000
100,000
0
1998/99
1999/00
Source: Analysis of UK Payroll Giving, 2005
2000/01
2001/02
2002/03
Long-term trend in % population giving
%
72
70
70.3
68
68.5
67.9
67.2
66
67.5
67.3
65.9
64
64.7
62
1995
1996
1997
1998
Source: Inside Research (CAF/NCVO, 2003)
1999
2000
2001
2002
Average individual gift size
£
14
12
12.93
11.82
11.59
12.29
12.39
10
10.07
9.8
9.61
8
6
1995
1996
1997
1998
Source: Inside Research (CAF/NCVO, 2003)
1999
2000
2001
2002
Tsunami giving/online giving
 81% donated money to the appeal
 50% had donated more to the tsunami appeal
than any other cause in the last year
 61% of online were first time
 40% of telephone were first time
 abolition of paper trail
Source: CAF telephone survey (NOP), January 2005
Potential market – conversion of donations to
tax-efficiency (£bn)
nonconvertible
m ethods,
2.8
taxefficient,
2.1
convertible
m ethods,
2.1
Source : Data from CAF/NCVO Individual Giving Survey 2003
What CAF Offers
Give As You Earn
 CAF runs Give As You Earn – the UK’s largest payroll
giving scheme
 employees make regular donations direct from gross
salary
 four options for giving
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

Charity Account
direct donation
staff charity fund
personal trust
 UK registered charities and charitable organisations
receive funds
 encourage companies to match and pay admin fee
 connectandgive – online tool, tailored pages
Corporate and individual trusts
 no need for Charity Commission or Inland Revenue
approval
 no need to appoint trustees or submit accounts to the
Charity Commission
 place capital sum in trust
 distribute interest on capital sum invested
 methods of payment
 chequebook
 standing order
 written instruction
 statements
Gift Aid Charity Vouchers
 how can you make donations?
 by posting direct to chosen causes
 by depositing vouchers in collecting boxes
 who can you give to?
 any charity registered in the UK
 local groups such as places of worship, scout groups
and schools
 fundraising events and appeals
 disaster funds such as the DEC
Gift Aid Charity Vouchers


new, innovative method of making small donations tax efficient
£100 buys a book of 20 vouchers worth £122.40
 each £5 voucher has Gift Aid added


relieve charities of the burden of tax recovery
higher-rate taxpayers can claim the difference between basic rate
and higher rate on the gross value of their gift
Charity involvement in National Giving Week
 charities use the campaign for fundraising
 Imperial War Museum, RNLI (SW), AYME (Assoc. of Young
People with ME), BIBIC (British Institute for Brain Injured
Children)
 campaign has been successful
 media coverage – Radio 4 Money Box, 10+ local radio stations,
It’s Your Money BBC1
 traffic to website – close to 3 times the level of last year
 market research – 16% awareness of NGW campaign with
13% saying they have given more to charity
 National Giving Week – repeat in 2006 – welcome
participation
National Giving Week (Second)
– October 2005
 National Giving Week – CAF awareness building
campaign to encourage committed, tax efficient
giving
 engaging individuals, companies and charities
with:
 media promotions/charity prize draws
 – Daily Mail, Community Channel
 participation by Give As You Earn – Prudential, Legal &
General, General Motors
 promotional events – financial advisers, Ideal Home
Exhibition
School Charity Accounts
 working with young people to encourage pupils to
fundraise and decide on which charities to support
 a national network of School Charity Accounts –
start-up balance of £500
 a ‘one – stop’ charity finance management system
for schools
 to be delivered by CAF and Giving Nation
 next stage is to carry out a feasibility study –
September 2006