External Trends Impacting the NFP Sector in 2017

Wednesday, February 22, 2017

The year 2017 has begun in an environment of perplexed global sentiment. From Brexit to the election of President Trump, the last 9 months have been far from a smooth ride on the world stage, showing a trend towards growing isolationism and increasing uncertainty.

At the national level, for most advanced economies, this uncertainty has bred an increase in nationalism, and a move away from globalisation. In Australia, our response – in part fuelled by our strong work ethic and historic undercurrent – makes us all just want to ‘get on with it’ and get the job done.

For the not for profit sector, this means working hard at strategic initiatives, managing external risk, and taking bold initiatives to engage donors. Our conversations with the NFP sector at this time of year often involves developing strategic brand tracking to measure public engagement, or testing specific brand assets to develop powerful advertising campaigns.

Yet, before delving into the tools of marketing and communications, it is critical that NFPs grasp the trends and undercurrents taking place in the external environment, particularly those that impact donor giving. Here are three trends we feel are critical for the NFP sector to grapple with in 2017:

1. Charity saturation and the need for brand differentiation

According to JBWere’s Cause Report (2016), Australia has 56,894 NFP organisation, one NFP for every 422 individuals. The number of not for profit organisations has doubled every 20 years over the last 60 years – and despite cancelling and closure of some charities by the ACNC, there are still around 10 new charities established every business day.

2. Overall decline in public giving necessitating new fundraising initiatives

Charitable giving has been lower in Australia in 2016 than in years prior. The NAB Charitable Giving Index indicates that national giving is down, by a decrease of 0.3% growth in the 12 months leading up to Aug 2016. This compares to 5.1% growth a year earlier. While there has been resilience in the Australian economy during this time, consumers are more cautious than before, reflected by these figures.

3. Younger generations giving less and seeking experiential engagement

60% of Australian donors agree that charities will face a more difficult future as younger generations don’t seem to volunteer in an ongoing way or give as much as the generations before them (McCrindle Australian Communities Trends Report, 2016). NAB data shows that those aged 15 to 24 give just $135 on average, annually, to charities, compared to those over 65 who give $452 on average.

BEHIND THE TRENDS

A number of these trends are explained by a rise in the cost of living across Australia. Take Sydney housing as a case example of the growing cost of living pressures. In 1975, Sydney house prices were just 5x average annual earnings. By 1995 they had risen to 6x average annual earnings, but today – when taking the average annual salary of $80,000 per year and the median house price of well over $1 million – the average house price is 13x the cost of an average annual full-time salary.

Australian donors are finding it more difficult to give, and to give regularly. As the traditional, dependable, regular donor shrinks as a proportion of all donors, new types of donors are emerging –brand responders and opportunity givers.

ENGAGING AD-HOC DONORS


Brand responders and opportunity givers donate sporadically, in an ad-hoc way. These types of donors are still more likely to give to a single charity or cause than to multiple causes, and have a strong preference for a particularly cause or charity.

Through speaking with more than a dozen NFP experts, 54 donors face to face, and surveying 1,500 Australians, we have identified four key next steps for the charitable sector to take into account in 2017:

1. Develop Multi-Tiered Levels of Engagement

Donors want to be involved with charities, but on their own terms. Rather than fixed contracts, they desire flexible giving and varied involvement. The demand for personalisation is growing as donors expect charity engagement suited to their age and life stage.

2. Build Communities for Social Impact

Australian donors desire to be part of a community of activists that bring about social change. They want to be involved in something bigger than themselves, knowing that together they can make a difference. This is not just ‘clicktivism’, which is seen merely as a form of virtue signalling through web-based activist organisations. Globally, networks like Avaaz.org and Change.org have created opportunities for real-life engagement of social issues, facilitated first through online platforms.

3. Communicate Results in Real-Time

Donors want real-time results and transparent reporting of admin costs. Platforms such as GiveDirectly.org now enable donors to give directly to an individual living in extreme poverty via mobile giving. KIVA, a lending platform facilitating crowd-sourced micro loans across the globe, displays the giving of loans in real-time via an interactive world map. When donors have this type of visibility, trust and engagement follow.

4. Create Fun and Engaging Experiences

The donor of the future is looking for participation and memories created through experiences. Nearly half (46%) of 18-29 year-old Australian donors have volunteered for a charity (compared to 31% of 30+ donors), and they are looking to do so in new, fresh ways. This is not just contained to events and a physical presence at sporting events or music festivals. Many young donors (1 in 4 of those aged 18-29, compared to just 11% of 30+ year-old donors) prefer the creative challenge of conducting their own fundraising events, providing them with the opportunity to harness their unique gifts and talents for a great cause.

-Eliane Miles

FOR MORE INFORMATION

For more information on Australian Donors, see the Australian Communities Trends Report Infographic.

Connect with us if you would like more information on environmental scanning for strategic forecasting.

ABOUT ELIANE MILES

Eliane Miles is a social researcher, trends analyst and Director of Research at the internationally recognised McCrindle. As a data analyst she understands the power of big data to inform strategic direction. Managing research across multiple sectors and locations, she is well positioned to understand the mega trends transforming the workplace, household and consumer landscapes. Her expertise is in telling the story embedded in the data and communicating the insights in visual and practical ways. Download Eliane's professional speaking pack here.

To inquire about Eliane presenting at your next event, please feel free to get in touch.

Welcome to our blog...

We have a passion for research that tells a story, that can be presented visually, that brings about change and improves organisations. And we hope these resources help you know the times.

Our Social Media Sites

Facebook | McCrindle Research Social Media YouTube | McCrindle Research Social Media Twitter | McCrindle Research Social Media Flickr | McCrindle Research Social Media Pinterest | McCrindle Research Social Media Google Plus | McCrindle Research Social Media LinkedIn | McCrindle Research Social Media Mark McCrindle Slideshare


Last 150 Articles


Tags

Word Up HSC small business bondi ashley mckenzie Australian Bureau of Statistics generations January 26th cars communicate trends of 2017 leadership workshop population milestone Education Future Forum year 7 home owner generation cash research services engagement Western Australia sydneysiders litter keynote future of work house prices Charlotte residents work mates education sector marriages wealth distribution engage sports Christmas lunch easy rider nfp generational trends non profit group session survey average aussie analysis father's day research data deloitte emerging technologies government kate middleton rich teach Financial Planning Week balance summer consumer vegemite visual Caregiver urban Christmas presents Wodonga Australia Day 2017 the changing face of 10 years 2012 weekly earnings future proof huffington post australian social research monarchy twentyseventeen financial independence forecasting hopes acf15 world youth day daily telegraph participants aged care professional development gold coast environment personalities men learning wedding careers Canberra collaborative daily commute English middle class households office space mccrindle in the media ideas media commentary click goals baby boomers emerging trends research Myth population map tips ACF emerging generations Queensland: QLD sunny days global financial crisis networking stats Kirsten Brewer selfie workforce budget sentiments neutral bay economic lifestyle Financial Planning Association of Australia ageing communities omnibus SA anzac FOMO Northern Beaches Christian School TDE Duchess of Cambridge growth media release repayments Melbourne work cost debt ipswich storytelling challenge generation Z property market australia aussie culture plans educated recap employers brisbane public speaking ethnography mining boom office opening Financial Planning Association education research sector wide study 40 million shbc unaffordable students Aussie know the times ABS leadership slideshare language poor holidays area report prince george life motivate organisational culture social media parenting award financial dreams Channel 7 New Zeland education future report rain research pack clothing responsive trend tuesday wealth and income spend etiquette professional speaker greatness Generation X news vegetarian not for profit February 16 household socialites seasons Do It Yourself authenticity mateship charity focus groups royal System's Architect waverton sydneycity Territory 23 million Hornsby Shire Council 2016 population high density living demographic demographic transformations generation alpha professional urban living index collaboration Sydney keynote speaker christianity futurist domestic conference presentation business index home ownership sustainable earn google manly product earnings Kiwi infographic wall rent not-for-profit australian communities trends report stay home shopper's pick innovation home housing trends living panel young people Gen Y youth unemployment gen alpha leader baby name hornsby social enquiry 2013 Bathburst commute geomapping alpha REIV Conference Australian Trends mccrindle research Netflix conference logan Australian Home case study cloudy days identity economy housing market mccrindle staying in teacher schools students bureau forecast social shifts workplace culture future weather follow digital housing Sydney national private wealth low density long weekend Geoff Brailey interactive Engineering Manager goal ACF 2016 couple define Christchurch environmental scanning global quote Adelaide school healthy future property price social lives medicine outsourcing Gen X focus group baby boom DESTEL consumerism dream unemployment teaching debate relevant in depth interviews criminal fresh VIC new york times resilience christmas jobs darwin retirement New Zealand suburb millenials norwest sector wide school students dare to dream suburbs mobile house price rise optus my business awards innovative crows nest wealth social researcher states aged care puzzle insight forum moderators guide trend ultimo Crime Rates suburban living entrepreneurs of today university intern data visualisation researcher family the australian dream TAS increasing densification brands earning Australian schools mother's day friendship pyrmont equip GPO brand experience investment high density apartments capital city cancelling plans Australian Communities Trends wages child care church society Wellington demographics 2020 in the media 1980 mover and shaker coffee house schools work-life going out McCrindle Speakers PSI youth results post rationalism SMSF Australian Census holiday pharmacy 1975 REIV National Conference education future 2017 internships finance student career gender social life builders office learner safe curiosity educhat Births communication moreton bay data social research keynote speaker renter of the future Christmas season culture mortgage menai fears millennials skills population growth sydney speaker royal baby survey design wage new office learn workplace celebration The Daily Edition hobart faux-cilising market research online priorities research visualisation ashley fell Australian Families relational townhouses ageing population australians staying home more entrepreneurial wellbeing rental stress technology women investor cultural diversity statistics housing affordability tattoos Northern Beaches hello fresh happiness shifts transport marketing optus social researchers facts EFF Wagga Wagga lalor park marriage Australia Day Tuesday Trend education public holiday brand experience trends analyst JOMO communications divorce rate DIY demographer presentation community event teachers state eliane miles tuesday NT land of the middle class real social commentator optimistic university degree growing population thought leadership World Water Day sector royal influence mccrindle tea snapshot princess charlotte megatrends wolloomooloo insights data analyst house price online shopping Tasmania group visualisation friends social cost of living toys social commentary parents global generations divorce millionth conferences affordability high density future proofing hills shire mentor graphs future-proof Australian communities property socialising newspaper demographic trends NSW business renting google for education potts point 24,000,000 paying to work city learning styles Assistant Store Manager dreaming proactive national crime rates conference speaker royal family Scouts salary event typical australian woolworths politics Australian demographics owning a home financial future social impact jobs of the future australian communities forum publication Real Estate Institute of Victoria ACT change crime cartodb year 12 mythbusters sunburnt country FPA trends events sun infographic program tv Generation Y winter The ABC of XYZ internet urban living video Australian Dream high school grandparents world workshop rule keeper offenders shopping overcast Northern Territory school satisfaction internship rise of local gen z marrickville resource study cancelling event children young australians staff baby organisations 24 million tertiary education 1968 personal growth investing media Research Executive qualitative research community engagement Merry Christmas 2015 village capital cities CBD poker master Channel Seven faux-cilise winter blues buildings faux-ciliser sydney event annual income employment cancel plans food affordable housing growth census local social change Social Trend supply and demand "know the times" eliane baby name predictions entrepreneur social trends apartment wealth and income distribution Mark McCrindle dessert South Australia community urban taskforce media activity thrive national wealth entertainment perth baby name trends local communities Aussies Northern beaches Event cooking cold society trends Love social analysis religion speakers water presentations New South Wales 1994 blaxland Res Vis WA financial income Australians mythbusting future of education narcissism volunteers meals customer 2014 pharmacies trends of 2016 energy Royals names families tea tableau list Queensland teleworking IT Specialists rising house prices Tuesday Trends Deaths Valentine’s Day meetings baby names Real Estate ease of travel easter victoria NEETs Population Clock training

Archive