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

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

Archive