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

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

Archive