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Charities - UK

Published by: Mintel International Group Ltd.

Published: Jan. 1, 2006 - 73 Pages


Table of Contents


Introduction and Abbreviations

Definitions

Consumer research

ACORN

Advertising data

Abbreviations



Executive Summary

The incoming Charities Bill

Emergency appeals dominate the headlines

Market reaching saturation point

Wealth concentrated amongst the big players

Further mergers on the cards

Above-the-line investment on the rise

More consumers reach for their wallets

The future - innovation and consolidation



Market Background

New bill redefines ‘charity’

A curb on cash collections

Self-regulation - a new code of practice

Delivering public services and VAT reform



Market Drivers

International disasters galvanise donors into action

PDI - how much can or will consumers give?

Figure 1: PDI and consumer expenditure, at constant 2000 prices, 2000-09

The generation, gender and wealth gap

Figure 2: Trends and projections in UK adult population, by age within gender, 2000-09

Figure 3: Trends in UK adult population, by socio-economic group, 2000-09

Direct marketing bandwagon hits rocky ground

Too many cooks spoil the broth

The National Lottery

Figure 4: Breakdown of National Lottery revenue, 2003 and 2005

Figure 5: National Lottery turnover, 1994/95-2004/05

The issue of transparency

The impact of CRM



Market Size and Trends

Number of registered charities

Figure 6: Number of registered charities in England and Wales, 1996-2004

Consolidation vs. diversity

Mergers offer numerous benefits…

…but may result in loss of initiative

Average income steadily rising

Figure 7: Total combined income of registered charities in England and Wales, 2000-04

Voluntary income demonstrates slower growth

Figure 8: Charitable donations, 2000-04/05

Figure 9: Average monthly donation, 2000-04/05



Market Segmentation

Size of charity

Figure 10: Segmentation of main charities on the Charity Commission register, by income band, 2002-05

Type of charitable cause

Figure 11: The top 500 charities, by type, 1997-2004

Types of revenue

Figure 12: Sources of voluntary income received by the top 500 charities, 1999/2000-2003/04

Legacy income and planning for the future

Charity shops - profiting from professionalism

Tax-efficient giving

Covenants

Gift Aid

Figure 13: Gift aid and covenants to charity (gross amounts) plus tax repayments, 1990/91-2004/05

Payroll giving schemes

Figure 14: Development of payroll deduction schemes, 1990/91-2004/05



The Supply Structure

A fragmented market

The DEC

The major UK charities

Figure 15: Leading charities active in main sectors, by voluntary income, 2001/02 and 2003/04

Leading charities

Cancer Research UK (£306.4 million)

Raising breast cancer awareness

Engaging the population

The advantages of consolidation

The National Trust (£143.8 million)

Developing corporate partnerships

The National Trust MasterCard

Oxfam (£133.9 million)

Raising the profile of poverty

Maximising profits

British Heart Foundation (£119.4 million)

The London to Brighton Bike Ride

The Royal National Lifeboat Institution (£91.3 million)

The Salvation Army (£90.9 million)

RSPCA (£76 million)

Save the Children UK

People’s Dispensary for Sick Animals (£58.3 million)

RNIB

Major charity events



Advertising and Promotion

Figure 16: Main monitored media advertising expenditure by charities, 1999-2005*

Leading advertisers

Figure 17: Top ten advertising charities, 2003-05*

International aid on the agenda

High-profile campaigns prove effective

Direct mail saturation

Figure 18: Direct mail expenditure by charities, 1999-2005*

New postal charging scheme will hit direct mail



The Consumer

More donors giving larger amounts

Figure 19: Adults who have donated more than £5 to charity and amount denoted in the last 12 months, 2001-05

ABs, women and the retired are the most likely donors

Monies diverted to international relief

Figure 20: Types of charities donated to, 2001-05

Consumers look for ‘fashionable’ causes

Methods of giving to charity

Figure 21: Methods of giving to charity, August 2005

Emergency appeals and Christmas cards top the agenda

Street collections losing popularity

Charity merchandising proving effective

Engaging younger consumers

Targeting by media



The Consumer - Detailed Demographics

Figure 22: Adults who have donated more than £5 to charity in the last 12 months, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel’s Special Groups, 2005

Figure 23: Most popular methods of giving money to charity, by gender, age, socio-economic group, region, marital status, working status and presence of children, August 2005

Figure 24: Most popular methods of giving money to charity, by lifestage, Mintel’s Special Groups, media usage, household size, ACORN category, commercial TV viewing and supermarket usage, August 2005

Figure 25: Further methods of giving money to charity, by gender, age, socio-economic group, region, marital status, working status and presence of children, August 2005

Figure 26: Further methods of giving money to charity, by lifestage, Mintel’s Special Groups, media usage, household size, ACORN category, commercial TV viewing and supermarket usage, August 2005



The Future

The future of legislation

Public sector services offer a new revenue stream

Consolidation is inevitable

Engaging the target audience

Abstract

About the market:
Some may say that charity begins at home but overseas aid has been the byword in the sector since the Boxing Day Tsunami of 2004 hit and as the world has been rocked by earthquakes, hurricanes and man-made disasters such as war and terrorism. These events played out in the world’s media have served to increase the number of UK adults giving to charity in 2005. But for those outside the Disasters Emergency Committee membership not engaged in international relief efforts but promoting other good causes this generosity has eaten into their share of income. Despite the enormous efforts of voluntary organisations to foster loyalty, for many people giving to charity is a spontaneous gesture.

Charities are competing for a slice of disposable income in a crowded market place and like commercial organisations face the challenge of attracting supporters in a mass market swamped with marketing messages. New definitions on charity in law, regulations on fundraising practice, control of cash collections, a new system of postal charges and the continuing campaign over VAT reform present the sector with lots more challenges. The traditional core supporter base of charities i.e. women, ABs and those aged 65+ is growing numerically but failure to engage with younger people is storing up severe problems for the future.

Mintel believes that much of the innovation in evidence in the fundraising and retailing activities of the leading charities is in fact defensive, guarding against competitors, rather than gaining competitive advantage. The highly fragmented nature of the supply structure which has lead to high levels of duplication between individual charities is a barrier to real progress.

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