Perfecting our giving
Cathy Pharoah
Director of Research
Tuesday 29th November 2005
What are we working towards?
Our vision
A world in which giving in a committed and
effective way is a recognised part of everyday life
Our cause
effective giving
What do we do for individuals?
for individuals, we have created a range of ways to make giving to charity simple and tax-efficient
Charity Account trusts legacies consulting and advice Give As You Earn
individuals give more than £250m through CAF’s giving solutions each year
7.3 7.3
2
1.13
2.4
0
2.5
5
7.5
1992 1994 1996 1998 2000 2002
year
£ bn
2003
Total individual giving
Tax-efficient giving
Source:
Estimated growth in individual giving and tax-efficient giving (adjusted for inflation at 2002 prices)
Individual giving as % of GDP 1972 – 2002
Sources: Giving USA (1995-2003; CAF's Individual Giving Surveys (1992-93); NCVO NOP Individual Giving Surveys (1995-2002). US GDP figures provided by US Department of Commerce Bureau of Economic Analysis – National Income and Product Accounts (adjusted for inflation). UK GDP figures provided by the Office of National Statistics – National Accounts
0.5
1.5
2.5
72 - 91 92 94 96 98 00 02 yr
%GDP
1.5%1.8%
1.9%
US
1.2%0.9%
UK
UK giving pyramid 2003
£0.5-0.7bn
£1bn
£6.3bn
£1.5bn
very wealthy
mass affluent
general public
legacies
individuals, legacies, corporate + private family foundations
% of value of donations given by household income deciles 2003
2nd top13%
Top inc decile28%bottom half
31%
5th top7%
3rd top10%
4th top11%
Source: CAF Analysis of EFS Survey Data, ONS, 2003
Total given through Gift Aid 1998/99 – 2004/05
Sources: HMRC statistics with additional calculations by CAF.
1,833 1,981 1,989 2,1322,462
2,757 2,842
1,000
1,500
2,000
2,500
3,000
1998/99 2000/01 2002/03 2004/05
£ million
% of donors using Gift Aid1999 – 2003
0.63
1116
21
05
10
152025
1999 2000 2001 2002 2003
Sources: CAF/NCVO NOP Individual Giving Surveys (1995 – 2002)
Payroll giving in context
2% of UK taxpayers use payroll giving only circa 10% of people with access to a scheme use
it £83m in individual donations promotional initiatives
millennium: Children’s Promise April 2000: 10% government supplement on donations April 2000: removal of £1,200 per year donation limit July 2001: The Giving Campaign April 2004: SME grant scheme
Source: Analysis of UK Payroll Giving, 2005
Children’s Promise scheme
Source: Analysis of UK Payroll Giving, 2005
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
1998/99 1999/00 2000/01 2001/02 2002/03
One-off Children's Promisedonors
Long-term donors
Long-term trend in % population giving
Source: Inside Research (CAF/NCVO, 2003)
64.7
67.9
70.3
65.9
67.267.5
68.5
67.3
62
64
66
68
70
72
1995 1996 1997 1998 1999 2000 2001 2002
%
Average individual gift size
Source: Inside Research (CAF/NCVO, 2003)
11.82
10.07 9.61 9.8
11.5912.29 12.39
12.93
6
8
10
12
14
1995 1996 1997 1998 1999 2000 2001 2002
£
Tsunami giving/online giving
81% donated money to the appeal 50% had donated more to the tsunami appeal
than any other cause in the last year 61% of online were first time 40% of telephone were first time abolition of paper trail
Source: CAF telephone survey (NOP), January 2005
Potential market – conversion of donations to tax-efficiency (£bn)
convertible methods,
2.1
tax-efficient,
2.1non-
convertible methods,
2.8
Source : Data from CAF/NCVO Individual Giving Survey 2003
What CAF Offers
Give As You Earn
CAF runs Give As You Earn – the UK’s largest payroll giving scheme
employees make regular donations direct from gross salary
four options for giving Charity Account direct donation staff charity fund personal trust
UK registered charities and charitable organisations receive funds
encourage companies to match and pay admin fee connectandgive – online tool, tailored pages
Corporate and individual trusts
no need for Charity Commission or Inland Revenue approval
no need to appoint trustees or submit accounts to the Charity Commission
place capital sum in trust distribute interest on capital sum invested methods of payment
chequebook standing order written instruction
statements
Gift Aid Charity Vouchers
how can you make donations? by posting direct to chosen causes by depositing vouchers in collecting boxes
who can you give to? any charity registered in the UK local groups such as places of worship, scout groups
and schools fundraising events and appeals disaster funds such as the DEC
Gift Aid Charity Vouchers
new, innovative method of making small donations tax efficient £100 buys a book of 20 vouchers worth £122.40
each £5 voucher has Gift Aid added relieve charities of the burden of tax recovery higher-rate taxpayers can claim the difference between basic rate
and higher rate on the gross value of their gift
Charity involvement in National Giving Week
charities use the campaign for fundraising Imperial War Museum, RNLI (SW), AYME (Assoc. of Young
People with ME), BIBIC (British Institute for Brain Injured Children)
campaign has been successful media coverage – Radio 4 Money Box, 10+ local radio stations,
It’s Your Money BBC1 traffic to website – close to 3 times the level of last year market research – 16% awareness of NGW campaign with
13% saying they have given more to charity National Giving Week – repeat in 2006 – welcome
participation
National Giving Week (Second) – October 2005
National Giving Week – CAF awareness building campaign to encourage committed, tax efficient giving
engaging individuals, companies and charities with:
media promotions/charity prize draws – Daily Mail, Community Channel participation by Give As You Earn – Prudential, Legal &
General, General Motors promotional events – financial advisers, Ideal Home
Exhibition
School Charity Accounts
working with young people to encourage pupils to fundraise and decide on which charities to support
a national network of School Charity Accounts – start-up balance of £500
a ‘one – stop’ charity finance management system for schools
to be delivered by CAF and Giving Nation next stage is to carry out a feasibility study –
September 2006