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

education sector ipswich surnames Northern Beaches engagement Real Estate Institute of Victoria insight high school contiki water Valentine’s Day who is generation z list office opening Sydney Hills Business Chamber in depth interviews DIY men Do It Yourself overcast education future report educated vegemite brand teacher social media local communities McCrindle Speakers workplace average Australian etiquette culturally diverse commuting mccrinlde hobart GPO mentor grandparents Canberra showreel meals residents rising house prices cloudy days train buildings NBRS Architecture wellbeing Retail TEDx Speaker know the times global ageing population Australian Families social shifts states coffee lovers property market woolworths capital city poor resilience research services speaker easy rider darwin environmental scanning food insecurity winter blues 2014 student christmas mortgage hello fresh participants royal family Financial Planning Week gender cartodb Australian schools hornsby state Australian Census Andrew Duffin younger generations deloitte financial dreams cars sector wide study investment generation Z salary mother's day urban taskforce housing affordability renting Sydney keynote speaker forum sydney speaker learner paying to work jobs of the future renter of the future baby leadership visual couple families demographics money poker master logan population map community report keynote speaker James Ward demographic trends australian community trends report lalor park suburb unemployment #censusfail volunteering Australian community trends infographics infographic shopping centre Channel 7 SMART Christmas Stats house facts business index challenge greatness sydneysiders care support ashley fell donate Kirsten Brewer emerging trends education thought leadership names ethnography baby boomers future media suburban living internship perth eliane ACF2017 households future proof global retail Maxim Accounting FPA omnibus financial house price rise budget daily commute trades national private wealth Royals training JOMO research pack office Cobbitty-Leppington leadersip work from home Jura Australia Aussie brand experience neutral bay cost of living faith dreams crows nest weekly earnings workplace culture moreton bay Northern Beaches Christian School wolloomooloo royal faux-cilising middle class church village relational Australia Day 2017 spend Christmas in Australia dreaming easter demography social analysis focus groups financial future Research Executive year 7 business urban living Skilling mythbusting What is food insecurity? speakers pack sustainable mccrindle research pharmacies 1968 System's Architect generations social impact social commentary trend PSI giving retirement learn Territory engage alpha community event not-for-profit rental stress visualisation spirituality marketing population growth conference speaker friendship South Australia micro blaxland mateship 2012 collaboration resource sector intern australians staying home more demographic transformations slideshare New South Wales schools students youth unemployment award winner research on coffee teaching rich media release social research research visualisation hopes domestic responsive society office space happiness TAS screenage commuters focus group tv education research REIV Conference environment children baby names report Education Future Forum offenders moderators guide victoria religion mccrindle tea qualitative research Wodonga Sydney Lifestyle Study financial planning The Daily Edition small business social issues staying in volunteering data non profit new office Sydney consumer newspaper weather transport school Christmas season Tuesday Trends aged care events Social Trend impact 2020 home ashley mckenzie future of shopping politics communications generation capital cities Duchess of Cambridge speajer aussie culture NFP event Christmas presents wealth and income distribution cancel plans shifts 24 million thrive panel Financial Planning Association of Australia 2016 social change housing trends high density apartments February 16 school students Christmas research christianity nativity scene equip shopper's pick car hunger Love bondi case study Assistant Store Manager year 12 property development selfie waverton potts point maiden names urban living index cold VIC growth baby name conference workshop World Water Day australian communities trends report earn communicate apartments debate faux-cilise personal growth EFF FOMO tableau conferences Mount Annan-Currant Hill pyrmont teleworking Geoff Brailey 24,000,000 repayments schools christmas trees public speaker the hills apartment google aged care puzzle trends analyst identity professional presenters Christchurch mccrindle in the media Gen Y Hunter Valley twentyseventeen social researchers presentation storytelling award housing market donation shopping Lower Hunter social commentator Hornsby Shire Council Wagga Wagga new york times census 2016 narcissism 1980 royal baby careers norwest publication quote national wealth motivate teach Jura Coffee earning census results housing growth sydney hills priorities CPI high density living TEDx social going out affordability survey Black Friday in Australia in the media Christmas data summer group session employers Tasmania eliane miles Willowdale leadership workshop cost skills Western Australia screenagers bus online shopping cash NBRS work-life Engineering Manager coffee SA ACT Report sydneycity forecasting the great screenage Hills Shire Council media commentary Sydney’s south west millennials fears real futurist entrepreneur graphs investing Queensland living Australian Dream generational trends the australian dream university social researcher NT economic mccrindle casual sydney metro TED talk Population Clock belief geomapping Myth Christmas lunch tuesday Generation Y stay home media activity house prices purpose professional speaker millionth baby name trends 2016 census food bank divorce organisational culture tattoos SRE baby name predictions holidays language relevant 1994 volunteers unaffordable TDE cultural diveristy personalities crime business performance acf15 researcher snapshot Christmas day ACT Christmas day weather CBD income VET sector Channel Seven 2013 future-proof socialites vegetarian Macquarie University Performance Sentiment Index manly technology research data cooking australian real estate long weekend social enquiry increasing densification dessert Mark McCrindle ease of travel happy holidays Tuesday Trend Northern beaches Event millenials career young people Vocational education digital economy winter kate middleton internet WA research clothing story survey design Australia street chairty townhouses public speaking tea forecast baby names debt McCrindle Speaker group lifestyle suburbs professional Australian Communities Trends Scouts students VET future proofing innovation choice workers market research surname census data baby names australia report communities social trends census wealth inequality criminal demographer mining boom shbc New Zealand house price TED recap local community gen alpha authenticity Gen Z Expert HSC outsourcing australian social research ABS entertainment australian Births toys entrepreneurs of today travel world youth day analysis Word Up New Zeland jobs customer Kiwi changing face of sydney megatrends wages cica plans employment Australian Home typical australian rent data visualisation global financial crisis hills digital the lucky country dream land of the middle class urban earnings Caregiver census fail wealth and income Australian Trends presentations do people still change their surname after marriage? tips brisbane financial fears IT Specialists marriage ultimo economy Adelaide Res Vis royal influence sydney property market national crime rates news supply and demand REIV National Conference 1975 sunburnt country McCrindle Keynote Speakers growth of sydney future of education educhat work culture tertiary education marrickville average sydneysider balance australian communities forum employmer city teachers meetings data prince george cultural diversity cancelling event safe young australians innovative goal family sun government google for education insights social lives menai Australian Bureau of Statistics collaborative life stats parenting friends Real Estate financial independence trends university degree property trends of 2016 research report sydney event ferry rain DESTEL live the dream annual income seasons greetings bureau monarchy learning styles child care medicine HR Financial Planning Association 40 million Black Friday Sales Australian communities fresh keynote cancelling plans ACF 2016 Australian Population Work place seasons 23 million ageing networking sentiments not for profit research sports results women housing Northern Territory product pharmacy public transport Charlotte optus my business awards population grave decision data analyst urban development property price high density English princess charlotte 2016 census results sunny days wage society trends staff US statistics breakfast trend tuesday wealth charities emerging technologies rule keeper goals gen z post rationalism parents school satisfaction "know the times" communication finance The ABC of XYZ investor litter Melbourne learning infographic wall program Australian demographics employmee leader entrepreneurial brands online Netflix Gen X daily telegraph energy socialising McCridle consumerism mobile divorce rate Sydney population gold coast Crime Rates not for profit marriages world the hills shire holiday SMSF curiosity work mates optus micro apartments emerging generations ACF volunteer mover and shaker food professional services generation alpha interactive Elderslie-Harrington park conference presentation youth the changing face of rise of local Generation X trends of 2017 low density affordable wealth distribution NSW follow ideas area home owner wedding celebration change population milestone education future community engagement mythbusters workforce Merry Christmas Australia Day future of work gig economy social life event commute global generations internships 2017 video healthy future Australians Aussies travelling father's day Research Director NEETs 2015 local anzac household Deaths growing population nfp Business analysis hills shire click builders christian the average aussie study experience Bathburst huffington post average aussie australia public holiday professional development Lower Hunter Region faux-ciliser optimistic define Black Friday sydney market 10 years organisations January 26th social analyst home ownership christmas 2017 dare to dream gig maiden speakers ACF17 baby boom owning a home sector wide Wellington Queensland: QLD sydneysider Mark McCrindle in the media charity demographic proactive

Archive