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

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

Archive