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| MP91013 |
| MAPS CHARITY FUNDING JULY 2003 |
| Overview |

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This report covers: Charities, funding, top 50 charities by income, government incentives, tax relief on gift aid, funding channels, National Lottery, donations, grants, voluntary work, sponsorship, advertising, direct marketing, direct mail, bequests, endowed trusts, foundations, medical charities, charity cards, children's charities, disaster appeals, Charity Shops, Television Appeals,Animal charities, the Environment, Charities for the Homeless, The Elderly, Third World Charities, Wellfare,overseas aid, gift aid, Share Giving,ONLINE donations,
Charities covered include: Cancer Research Fund, NACRO, Barnaardo's, Oxfam, Mencap, Help The Aged, National Lottery Distribution Fund, Wellcome Trust, Nuffield Nursing Home Trust, Shell Foundation, Anchor Trust, The Leverhulme Trust, The Community Fund, The percent Club, The Guardian Giving List ,Children in Need Appeal, Comic Relief, Fairbridge Charity, Action on Elder Abuse, MIND, SANE, Muslim Aid, War Child |Trust, The Big Issue Foundation, Shelter, Refugee Action, GiveNow.org, JustGiving.com, Red Cross
| Executive Summary 6 |
| 1. Introduction 8 |
| BACKGROUND 8 |
| Objectives 8 |
| Methodology 8 |
| Original Research 9 |
| Problems in the Research Process 9 |
| DEFINITION 9 |
| 2. Strategic Overview 10 |
| Introduction 10 |
| LEVELS OF INCOME 10 |
| Table 1: Number of Main UK Registered Charities by Income Bracket (number, percent and £m), 2002 10 |
| Figure 1: percentage of Main UK Registered Charities by Income Bracket ( percent), 2002 11 |
| Table 2: Earnings by UK Registered Charities (£bn), 1998-2002 12 |
| Table 3: Top Ten Fundraising Charities by Total Income (£m), 2000/2001-2001/2002 13 |
| Sources of Income 13 |
| Table 4: Breakdown of Imperial Cancer Research Fund's Income by Source (£m and percent), 2000 14 |
| Table 5: Breakdown of NACRO'S Income by Source (£m and percent), Financial Year 2001/2002 15 |
| Table 6: Breakdown of Barnardo's Income by Source (£m and percent), Financial Year 2001/2002 15 |
| Table 7: Breakdown of Oxfam's Income by Source (£m and percent), Financial Year 2001/2002 16 |
| Table 8: Breakdown of Mencap's Income by Source (£m and percent), Financial Year 2001/2002 16 |
| Table 9: Breakdown of Help the Aged's Income by Source (£m and percent), Financial Year 2000/2001 17 |
| Distribution 18 |
| The National Lottery Distribution Fund 18 |
| Grant-Making Trusts 19 |
| The Wellcome Trust 20 |
| Nuffield Nursing Homes Trust 20 |
| Shell Foundation 20 |
| Anchor Trust 20 |
| The Leverhulme Trust 20 |
| The Community Fund 21 |
| Business 21 |
| Business in the Community 21 |
| Annual Awards for Excellence 21 |
| The percent Club and The Guardian Giving List 22 |
| Table 10: Top Ten FTSE100 Charity Givers Ranked by percentage of Pre-Tax Profit Donated ( percent and £000), 2002 23 |
| Table 11: Top Ten FTSE 100 Charity Givers by Cash Donated ( percent and £000), 2002 24 |
| Cause-Related Marketing Campaign 25 |
| Television Appeals 25 |
| BBC Children in Need Appeal 25 |
| Comic Relief 26 |
| Charity Shops 27 |
| Competitive Structure 28 |
| Marketing and Advertising 29 |
| Table 12: Main Media Advertising Expenditure by the Charity Sector (£000 and percent), Year Ending December 2002 29 |
| Figure 2: Charity Sector Main Media Advertising Expenditure by Media Breakdown ( percent), Year Ending December 2002 30 |
| Table 13: Charities with Main Media Advertising Expenditure Exceeding £1m (£000), Year Ending December 2002 30 |
| Table 14: Charity Sector Main Media Advertising Expenditure by Medium (£m and percent), Year Ending December 2002 32 |
| Table 15: Main Media Advertising Expenditure by Product Group (£m), 2001 and 2002 32 |
| The Consumer 34 |
| Young People 34 |
| Animal Charities 34 |
| The Environment 35 |
| Charities for the Homeless 35 |
| The Elderly 35 |
| Third World Charities 35 |
| Market Forecasts 35 |
| 3. Welfare 37 |
| Introduction 37 |
| BACKGROUND 37 |
| Table 16: The UK Population by Age Band (million and percent), 1971-2021 37 |
| Market Size 38 |
| Table 17: Children's Charities with Donated Incomes of Over £10m (£m), Financial Years 2000/2001/2002 39 |
| Featured Charities 39 |
| Fairbridge Charity 39 |
| Action on Elder Abuse 40 |
| 4. Healthcare 42 |
| Introduction 42 |
| BACKGROUND 42 |
| MARKET SIZE 43 |
| Featured Charities 44 |
| Alcohol Concern 44 |
| MIND (National Association for Mental Health) 44 |
| SANE (Schizophrenia A National Emergency) 45 |
| 5. Overseas Aid 46 |
| Introduction 46 |
| BACKGROUND 46 |
| Market Size 46 |
| Featured Charities 47 |
| Muslim Aid 47 |
| War Child Trust 47 |
| 6. Homelessness and Refugees 48 |
| Introduction 48 |
| BACKGROUND 48 |
| Market Size 48 |
| Featured Charities 49 |
| The Big Issue Foundation 49 |
| Shelter 49 |
| Refugee Action 50 |
| 7. New Methods of Donating 51 |
| Government TAx Incentives 51 |
| Payroll Giving 51 |
| Gift Aid 51 |
| Share Giving 51 |
| Businesses 52 |
| ONLINE donations 52 |
| GiveNow.org 52 |
| JustGiving.com 53 |
| 8. An International Perspective 54 |
| The US 54 |
| Europe 55 |
| 9. PEST Analysis 56 |
| POLITICAL FACTORS 56 |
| ECONOMIC FACTORS 57 |
| SOCIAL FACTORS 58 |
| TECHNOLOGICAL FACTORS 58 |
| 10. Consumer Dynamics 60 |
| OVERVIEW 60 |
| Table 18: Summary of Findings ( percent of respondents), 2003 60 |
| "I Have Donated to Charity Within the Past 6 Months" 61 |
| "I Have Bought a National Lottery (Lotto) Ticket in the Past Month" 61 |
| Table 19: Donations to Charity and Purchase of National Lottery Tickets ( percent of respondents), 2003 62 |
| "I Donate to Charity by a Direct Debit or Standing Order" 64 |
| "I Usually Make a Donation to Television Appeals Like Comic Relief" 64 |
| Table 20: Donating Via Direct Debit or Standing Order and Donating to Television Appeals ( percent of respondents), 2003 64 |
| "Charities Spend Money More Efficiently Than The Government Would" 67 |
| "I Would Give More to Charity if I Knew the Money Reached the End Cause" 67 |
| Table 21: Attitudes Towards Efficient Use of Donations by Charities and Confidence in Donations Reaching the End Cause ( percent of respondents), 2003 68 |
| "Charities Spend Too Much on Advertising" 70 |
| "Charities Receive More Money, Now That They Get Donations From the National Lottery" 70 |
| Table 22: Perception of Charities' Expenditure on Advertising and Level of Income from the National Lottery ( percent of respondents), 2003 71 |
| "I Have Raised Funds for Charity Within the Past Year" 73 |
| "I Have Sponsored People Who Undertake Activities for Charity in the Past Year" 73 |
| Table 23: Involvement in Active Fundraising and Support for Others' Fundraising Activities ( percent of respondents), 2003 73 |
| "Charities for the Homeless and Addicts Need More Help from the Public" 76 |
| "Charities Should Help Refugees Who Are Being Persecuted in Their Own Country" 76 |
| Table 24: Attitudes Towards Less Popular Causes ( percent of respondents), 2003 77 |
| 11. The Future 79 |
| COLLABORATIVE WORKING 79 |
| RECRUITMENT 79 |
| Table 25: Reasons Given for Recruitment Difficulty in the Voluntary Sector ( percent), 2002 80 |
| The New Philanthropist 81 |
| The New Donors 81 |
| 13. Further Sources 82 |
| Associations and Charities 82 |
| Publications 89 |
| General Sources 90 |
| Bonnier Information Sources 90 |
| Government Publications 92 |
| Other Sources 92 |
| A government consultation document Private Action, Public Benefit, published by the Strategy Unit in September 2002 recommends a radical change to the way charities are defined and how they are regulated. The review suggests a new legal form, the Community Interest Company, placing a firm emphasis on the community aspect of the work charities do. |
| At present, many organisations, such as private schools (for example, Eton), colleges and universities, and private hospitals, are registered as charities while others, i.e., those with overt political interests, such as Amnesty International, are not. (Amnesty UK is, however, registered as a charity.) The Government recommendations will mean a huge shake-up in the charity sector, forcing many to prove their contributions to the community in order to retain their charitable status. |
| In May 2003, the consultation period was coming to a close, although early indications are that a far-reaching review was not only necessary but welcomed by associations representing voluntary organisations. |
| There are other major changes happening in the not-for-profit sector. Businesses are continuing to become more deeply involved in sponsoring projects as they realise the benefits of being associated with good causes. The Tesco Computers for Schools project produced £7.5m worth of IT equipment for schools in 2001. |
| In 2002, the largest corporate donors were the oil companies BP PLC and Shell Transport & Trading, which between them donated nearly £124m. The banks Lloyds TSB, Barclays, HSBC and the Royal Bank of Scotland also featured in the ten top corporate donors, with combined contributions of £101.4m. |
| Individual giving, despite the continuing economic downturn, continued to rise, largely due to an increased uptake in the Gift Aid scheme and the ease with which donations can be made online and over the telephone. A survey commissioned from BMRB Access by Key Note for this report shows that, in the last 6 months, 80 percent of respondents had given to charity. In the survey carried out by NOP for the previous Key Note Charity Funding Market Assessment report, published in 2001, the percentage of givers was just 61 percent, compared with the 60 percent of people surveyed who had bought National Lottery tickets in the previous month. In 2003, the percentage buying National Lottery tickets had fallen to 56 percent, with just over half of the sample (54 percent) believing that charities get more money now that they get donations from the National Lottery. The Charity Commission reports total charity income for 2002 up by £2.74bn, showing the voluntary sector as one in growth. |
| The electronic transfer of funds will play an increasing part in transactions as they not only cut administration costs but allow for easy calculation and reclamation of the tax incentives the Government has granted. These extend to payroll giving and, as charities are keen to engage donors in long-term commitments, payroll giving will play an increasingly important role in charity fundraising. |
| The opinion survey commissioned by Key Note for the 2001 Charity Funding report showed that the percentage of respondents who believed that charities would spend money more efficiently than government had nearly doubled. This is a clear indication of the growing confidence from the public in the way charities conduct themselves and a trend charities need to exploit as they explore all of their options for the future. |
Text © 2003 MAPS
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Last updated by Amanda Porteous August 2003