Where is GIVING going in the world and LATAM? (part 3)

For Norma Galafassi

I welcome you to the final part and “landing” of our world GIVING data tour which we shared in our two previous articles. (If you haven’t read them yet, here is the first and here the second) For all of us in the fundraising world there is no doubt that it is essential to be able to know who our donors are, how they behave, their characteristics, how they make decisions and see how to motivate and encourage the philanthropic potential of all our audiences; at the same time that we ensure the commitment to them through the actions carried out by our organisations.

 

Below some of the conclusions we reached about “giving” in the world and LATAM:

      • Globally, more than half of the population actively participates in charitable actions, whether helping strangers, donating money or volunteering time.
      • Indonesia continues to be the most generous country in the world according to the CAF World Giving Index 2023, followed by Ukraine, which has seen a significant increase in its position. Myanmar, Indonesia and the United Kingdom are some of the top countries in terms of monetary donations.
      • All these compiled reports reveal an interesting global picture of trends in giving and donations to nonprofit organisations. Although we see an increase in participation levels in some regions, such as Indonesia and Ukraine, countries like the United States, the United Kingdom and Canada with a philanthropic tradition, have experienced a drop in the number of donors or in the volume of donations due to inflation and the post-pandemic.
      • Inflation is hitting many countries and thus lowering some donation levels  as in economic downturns people who make less income decrease their charitable giving.
      • In the United States for example, the total giving in current dollars has declined for the first time since 2009, in inflation-adjusted dollars total giving was comparable to pre-pandemic levels. In many other countries giving has recovered but still not at pre pandemic levels. 
      • The Ukraine crisis has also impacted on donation behaviours, showing the interconnection between worldwide events and philanthropy. In Spain, although there is an increase in income, there are also changes in the donation pattern and donor demographics. These findings challenge us to rethink our fundraising and promotion strategies in order to adapt to an always changing environment and guarantee lasting impact. 
      • All the above together with the economic crises, and in many places, the  increasing inequality, are showing that charities have bigger needs to address but the general public is also struggling to get the help needed. In this context, smaller organisations suffer the most.
      • In LATAM, although countries such as Chile, Honduras and Paraguay show high percentages of people donating money, the region’s largest economies, such as Brazil and Mexico, have lower donation rates. However, an increase is observed in the total amount donated in Brazil, indicating a possible change in the trend.
      • Religion, perceived happiness and immigration are factors that influence the generosity of people globally. Immigrant communities also contribute significantly to their countries of origin.
      • In most countries middle income individual giving has declined in donor numbers but the average of total amount given looks unaffected due to the impact of the major donors’ activity that concentrate big junks of giving. 
      • It’s evident that in every country where we could check some kind of Giving statistics, the percentage of people making donations compared to the country’s total income is extremely low. 
      • The number of HIGH net worth individuals has been increasing in the last years and the amounts they manage is enormous. We are currently experiencing the “Great Transfer of Wealth,” and over the next few decades financial experts are expecting that between $40 trillion and $140 trillion will be passed from one generation to the next. Up to one-third of this wealth will be transferred to nonprofits through planned giving.

Based on all the above conclusions, at in2action we recommend you these key action points for your organisation fundrasing strategy in the future:

      • Clearly it is key that your organisation has a diversified fundraising strategy. Organisations cannot afford to base their entire strategy on a single technique or a single target audience.
      • In that sense, organisations need to test alternative techniques to get more unrestricted money such as payment for services, social finances, etc.
      • In the context of the donors withdrawing their donations, it is essential to work on retention and relationship building. Talking to donors of all types is something that all organisations should encourage and emphasise.
      • Taking into account that in some countries the number of individual donors has reduced, NPOs are likely to rely more on the support of large donors, foundations and companies to fund their activities. It is key to find the best ways to engage with major and institutional donors as well.
      • Organisations exploring the world of financial instruments that enable new businesses may also find a great entry door for those individuals with high purchasing power as well as new funding models.
      • It is key to prioritise capacity building within the organisation. With technology advancing and the way people donate changing, new ways to raise funds will likely emerge and media such as more online campaigns, crowdfunding and digital marketing strategies will take hold to reach more people from different parts of the world. It is key that staff  can have the necessary tools and be up to date to be able to continue with these trends in each region.
      • With more people moving around the world, more people in the diaspora will contribute to causes in their home countries. This could mean more donations helping development in different parts of the world.
      • With growing concern about global issues, individuals and NGOs will focus more on the sustainability and social impact of their actions. The shift might be towards projects and programmes that address long-term challenges, such as climate change, poverty and social inequality.
      • As younger generations take on a more active role in society, we will see changes in how society approaches philanthropy. There may be more interest in using data to inform donation decisions, in social activism, and in participating in movements for social and environmental justice.
        There is no doubt that, at a global level, there is a huge need to continue the work on advocacy and campaigns to encourage philanthropy, addressed at every socio-economic target audience, in order to achieve an increase in the amounts donated vis a vis the general income of each country.

We would like to hear from you. If you have data on your country that you would like to share with us, please do so. We will love to add them and enrich our global vision and journey. 🙂

If you still haven’t read our previous articles find them here is the first and here the second.

The Worldwide and LATAM Giving report by Norma Galafassi, is now available for download here, with data of over 12 reports from around the globe, key conclusions, ideas and trends for your organisation’s fundraising efforts.

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