Charities of Choice - US

Published by: Mintel International Group Ltd.

Published: Mar. 1, 2009

Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Data sources

Consumer survey data

Sales data

Abbreviations and terms

Abbreviations

EXECUTIVE SUMMARY

Market size and forecast

Segment performance

Macro-level drivers of charitable giving

Psychographic drivers of charitable giving

Incidence of charitable giving in U.S

Who Americans donate to

Average annual donations

How donors learn about charities

How donors research charities

Advertising and promotion

Race and ethnicity

MARKET SIZE AND FORECAST

Key points

Non-profit sector is resilient but suffering as a result of recession

Figure 1: Total charitable U.S. donations from all sources, in current dollars, 2003-13

Figure 2: Total charitable U.S. donations from all sources, in inflation-adjusted prices, 2003-13

COMPETITIVE CONTEXT

Key points

Skyrocketing gas prices in 2008 drove down disposable income and the ability to donate

Figure 3: Trended U.S. retail gas prices, average of all grades and formulations, 2001-08

SEGMENT PERFORMANCE

Key points

Contributions by individuals are by far the largest source of charity

Figure 4: Segment performance for U.S. charitable donations, in current dollars, 2003-13

Figure 5: U.S. charitable donations in current dollars, by segment, 2005 and 2007

SEGMENT PERFORMANCE—INDIVIDUALS

Figure 6: Charitable U.S. donations from individuals, in current dollars, 2003-13

SEGMENT PERFORMANCE—PRIVATE FOUNDATIONS

Figure 7: Charitable U.S. donations from foundations, in current dollars, 2003-13

SEGMENT PERFORMANCE—BEQUESTS

Figure 8: Charitable U.S. donations from bequests, in current prices, 2003-13

SEGMENT PERFORMANCE—CORPORATIONS

Figure 9: Charitable U.S. donations from corporations, in current prices, 2003-13

DRIVERS OF CHARITABLE GIVING: A MACRO PERSPECTIVE

Key points

Increases in the number of high-net-worth individuals help drive growth of charitable giving

Figure 10: Number of households with a net worth of $1 million or greater, 2003-07

Median household incomes growing fastest in Asian segment

Figure 11: Median household income, by race of householder, 1997-2007

Consumer confidence is key driver of decreased giving

Figure 12: Consumer sentiment index, 2001-08

Sharp drops in the Dow and real estate prices serve to drive down charitable giving

Figure 13: Dow Jones Industrial’s quarterly observations, 2001-08

DRIVERS OF CHARITABLE GIVING: A PSYCHOGRAPHIC PERSPECTIVE

Key points

Among individuals, lack of confidence in the economy likely to have an even greater impact than actual drop in earnings

Figure 14: Reasons for donating less than previous year, by gender, December 2008

Obama’s call to action driving increases in giving, especially among men

Figure 15: Reasons for donating more than previous year, by gender, December 2008

Compared to non-donors, donors are more likely to appreciate transparency, persistence and respect among peers

Figure 16: Psychographics—contributor vs. non contributor, April 2007-June 2008

Volunteering opportunities and family important to most donors

Figure 17: Attitudes about money, work and family—contributor vs. non contributor, April 2007-June 2008

Donors more likely to be green; seek eco-friendly packaging

Figure 18: Recycling attitudes—contributor vs. non contributor, April 2007-June 2008

Donors more likely to prefer high-quality goods

Figure 19: Attitudes about quality of goods—contributor vs. non contributor, April 2007-June 2008

Nature, music and exercise all have high appeal to donors

Figure 20: Attitudes toward nature, music and fitness—contributor vs. non contributor, April 2007-June 2008

Maintaining emotional connection with high-net-worth individuals can help charities in times of recession

Emotional benefit key driver of giving

Figure 21: Attitudinal drivers of charitable contributions, by contributor vs. non-contributor, December 2008

Figure 22: Secondary attitudes about charitable contributions campaigns, by contributor vs. non-contributor,December 2008

INCIDENCE OF CHARITABLE GIVING AMONG U.S. HOUSEHOLDS

Key points

Charitable giving has remained steady in recent years, despite the economy

Figure 23: Trended overall charitable contribution in the last 12 months, 2002-08

Baby Boomers and affluents more likely to report donations

Figure 24: Made a contribution in the last 12 months, by age, April 2007-June 2008

Figure 25: Made a contribution in the last 12 months, by income, April 2007-June 2008

Most respondents anticipate giving the same amount next year as they did in the previous year

Figure 26: Expected charitable donation compared to previous year, by age, December 2008

Figure 27:Expected charitable donation compared to previous year, by income, December 2008

WHO AMERICANS DONATE TO

Key points

Older Americans more likely to give locally; young adults more likely than others to think globally

Figure 28: Type of charity preferred to donate to, by age, December 2008

Religious organizations receive the most donations

Figure 29: Trended type of charitable contribution in the last 12 months, 2002-08

Children’s causes have especially broad appeal to U.S. donors

Figure 30: Charity categories, by age, December 2008

Religious organizations

Figure 31: Trended U.S. charitable donations for religious organizations in constant prices, 2001-07

Figure 32: Religious contributions in the last 12 months, by income, April 2007-June 2008

Educational institutions

Figure 33: Trended U.S. charitable donations for educational organizations, in constant prices, 2001-07

Figure 34: Educational contributions in the last 12 months, by income, April 2007-June 2008

Human service organizations

Figure 35: Trended U.S. charitable donations for human services organizations, in constant prices, 2001-07

Figure 36: Social welfare contributions in the last 12 months, by income, April 2007-June 2008

COMPARISON OF AVERAGE ANNUAL DONATIONS TO MAJOR RECIPIENT CATEGORIES

Key points

HIGHEST ANNUAL AVERAGE DONATION BY INDIVIDUALS GOES TO RELIGIOUS GROUPS AND OTHERS THAT DIRECTLY AID THE NEEDY

Figure 37: Average amount contributed in the last 12 months, by age, April 2007-June 2008

The wealthy report significantly higher annual average household donations than the middle class

Figure 38: Average amount contributed in the last 12 months, by income, April 2007-June 2008

HOW DONORS LEARN ABOUT CHARITIES

Key points

Word of mouth and media cited as primary sources of charity awareness

Figure 39: Source of charity information, by age, December 2008

Affluent more likely to cite news and employers as the way they learned about their charity

Figure 40: Source of charity information, by income, December 2008

HOW DONORS RESEARCH CHARITIES

Key points

Social networks and websites primary sources of background research

Figure 41: Preferred method of research prior to donation, by age, December 2008

Affluent more likely to conduct research and utilize auditor services

Figure 42: Preferred method of research prior to donation, by income, December 2008

LEADING CHARITABLE ORGANIZATIONS

Salvation Army, Shriners Hospitals, and The Nature Conservancy have the most assets

Figure 43: Top 25 charities with the most net assets in the U.S., November 2008

The Salvation Army

Shriners Hospitals for Children

The Nature Conservancy

INNOVATION AND INNOVATORS

Leveraging the gaming trend: The UN’s playagainstallodds.com

The Donor’s Choose model: Providing people with a way to help the children they feel need it most

ADVERTISING AND PROMOTION

Key points

Analysis of television advertising

Most emphasize emotional appeal over statistical facts

Figure 44: Salvation Army doing the most good campaign, 2008

Figure 45: American Red Cross disaster relief, 2008

Local impact and aiding children are also prominent themes in television ads

Figure 46: United Way ad, 2008

Figure 47: Feed the Children ad, 2008

Elements to consider when building and redesigning websites

RACE AND ETHNICITY

Key points

Giving significantly higher among Asians and whites

Figure 48: Made a contribution in the last 12 months, by race/ethnicity, April 2007-June 2008

Whites most likely to favor local charities

Figure 49: Type of charity preferred to donate to, byrace/ethnicity, December 2008

Blacks and Hispanics more likely to state that they expect to give more in 2009

Figure 50: Expected charitable donation compared to previous year, by race/ethnicity, December 2008

Hispanics and blacks more likely to report giving to religious organizations

Figure 51: Incidence of giving in the last 12 months, by race/ethnicity, April 2007-June 2008

Figure 52: Average amount contributed in the last 12 months, by race/ethnicity, April 2007-June 2008

Social networks primary source of information about charities, especially among whites and

Hispanics

Figure 53: Source of charity information, by race/ethnicity, December 2008

Figure 54: Preferred method of research prior to donation, by race/ethnicity, December 2008

APPENDIX: OTHER USEFUL CONSUMER TABLES

Figure 55: Attitudes about self—contributor vs. non contributor, April 2007-June 2008

Figure 56: Religious attitudes—contributor vs. non contributor, April 2007-June 2008

Figure 57: Type of charity preferred to donate to, by income, December 2008

Figure 58: Amount of money donated to charity in the previous year, by age, December 2008

Figure 59: Incidence of giving in the last 12 months, by age, April 2007-June 2008

Figure 60: Incidence of giving in the last 12 months, by income, April 2007-June 2008

Figure 61: Charity categories, by income, December 2008

APPENDIX: CONTRIBUTIONS BY RECIPIENT CATEGORY

Figure 62: Trended U.S. charitable donations for religious organizations, in current prices, 2001-07

Figure 63: Trended U.S. charitable donations for educational organizations, in current prices, 2001-07

Figure 64: Trended U.S. charitable donations for human services organizations, in current prices, 2001-07

Figure 65: Trended U.S. charitable donations for private foundations, in current prices, 2001-07

Figure 66: Trended U.S. charitable donations for health organizations, in current prices, 2001-07

Health

Figure 67: Trended U.S. charitable donations for health organizations, in inflation-adjusted prices, 2001-07

Figure 68: Health contributions in the last 12 months, by household income, April 2007-June 2008

Private foundations

Figure 69: Trended U.S. charitable donations for private foundations, in inflation-adjusted prices, 2001-07

Figure 70: Private foundation contributions in the last 12 months, by household income, April 2007-June 2008

Social Welfare

Figure 71: Trended U.S. charitable donations for public/societies benefit, in current prices, 2001-07

Figure 72: Trended U.S. charitable donations for educational organizations, in inflation-adjusted prices,2001-07

Figure 73: Social welfare contributions in the last 12 months, by household income, April 2007-June 2008

Arts and Humanities

Figure 74: Trended U.S. charitable donations for arts, culture and humanities organizations, in current prices,

2001-07

Figure 75: Trended U.S. charitable donations for arts, culture and humanities organizations, in inflation-adjusted prices, 2001-07

Figure 76: Arts and humanities contributions in the last 12 months, by household income, April 2007-June 2008 .78

Figure 77: Public radio contributions in the last 12 months, by household income, April 2007-June 2008

Figure 78: Public television contributions in the last 12 months, by household income, April 2007-June 2008

International Affairs

Figure 79: Trended U.S. charitable donations for international affairs organizations, in current prices, 2001-07

Figure 80: Trended U.S. charitable donations for international affairs organizations, in inflation-adjusted prices,2001-07

Environmental/Animal

Figure 81: Trended U.S. charitable donations for environmental/animal organizations, in current prices,2001-07

Figure 82: Trended U.S. charitable donations for educational/animal organizations, in inflation-adjusted prices,2001-07

Figure 83: Environmental contributions in the last 12 months, by household income, April 2007-June 2008

Unallocated donations

Figure 84: Trended U.S. charitable donations for unallocated organizations, in current prices, 2001-07

Figure 85: Trended U.S. charitable donations for unallocated organizations, in inflation-adjusted prices,2001-07

Figure 86: Other contributions in the last 12 months, by household income, April 2007-June 2008

Average annual political contributions from individuals

Figure 87: Political contributions in the last 12 months, by household income, April 2007-June 2008

APPENDIX: TRADE ASSOCIATIONS

Abstract

The cause marketing battle

The tsunami of December 2004 and Hurricane Katrina in August 2005 both motivated giving in a manner that is unique in recent history. Some large non-profits that provide disaster relief (eg, American Red Cross and The Salvation Army) emphasized their work in this area in 2008 advertisements as they have come to understand that disasters are among the most powerful drivers of donations. Indeed, charitable giving spiked within each of the four major donor categories reviewed in this report in 2005 as a result of the disasters.

This clearly indicates that, where appropriate, organizations should emphasize their disaster relief work on websites as well as in direct mail and telemarketing campaigns. Given the current economic crisis and an extremely low level of consumer confidence, it will be especially important for organizations to emphasize how they are directly aiding those who have the most need for essentials like food, shelter and medical care. Other issues such as education and the environment will be regarded as less important causes because there are literally millions of needy Americans at this point in history.

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 250,000 market research reports, company profiles and country profiles from over 650 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.