Charitable Giving In BC

Vancouver, BC - A new Ipsos-Reid poll reveals that BC residents are avid givers to charitable causes, and that despite some significant barriers that exist towards charitable giving, the future looks bright for the not-for-profit sector in British Columbia.

The findings show that 74% of BC residents over the age of 18 have made at least one donation to a charitable or not-for-profit organization in 2001, and the average total amount contributed is $791. While the vast majority (68%) of BC residents contributed less than $500 last year to charitable causes (and 48% gave $200 or less), the average is driven upwards by a small (13%), dedicated group of contributors who donated over $1,000 last year.

Older residents (55+), are the most avid givers, as 86% have donated, and the average contribution is $852. Although this group represents 29% of the adult population in BC, they account for 39% of total charitable giving in the province. Younger residents (18-34) donate the least, with only 66% contributing, and an average of $315 annually.

Furthermore, a substantial proportion (25%) of residents are planning to donate more to charitable causes in 2002, over double the proportion (12%) who plan to donate less. Increased donations are most likely among those in the 18-34 year old age group (33%), and the 35- 44 year-old group (30%).

"The market for charitable donations in British Columbia appears to be poised for significant growth over the next five years," said Steve Mossop, Senior Vice President at Ipsos-Reid in Vancouver. "In addition to a growing propensity towards charitable giving overall, the population of the heaviest spending segment (55+) is poised to grow 35% by 2007, and 53% by 2012."

Barriers To Giving Are Significant

Despite the expected increase in spending, charitable organizations are faced with mounting consumer barriers towards charitable giving. The single largest barrier is competition and clutter within the charitable giving marketplace, as 76% of residents agree that there are too many organizations asking for their money. Current economic conditions in BC have likely had an influence on the 72% who agree that they simply don't have any more money to spare. Perceptions that certain charitable organizations have poor reputations (59%) probably fuel the perception that donations will be wasted on administration (56%). Other barriers to donating include the fact that 49% feel like they are already doing their share, while 47% didn't like the approach the charity used when asking for a donation. Other reasons include:

"Charitable organizations need to do a better job in marketing themselves in order to address increased competition for charitable dollars, and to break through the clutter that exists in our daily lives" says Mossop. "By thinking like marketers, they will need to become more focussed on managing their brand reputation, and offer compelling reasons through carefully crafted marketing campaigns if they hope to succeed. A simple knock on a door or telephone call is not enough. They need to care about their approach and their message, and be able to be publicly accountable for their spending initiatives."

Health-Related Charities Dominate

When asked about which organizations they think of first when donating money to charitable or not-for-profit organizations, 30% of BC residents mention health-related organizations (particularly cancer-related), followed by social/community organizations (20%). Churches and religious organizations (17%) and Children's charities (12%), are further down the list, and at the bottom is wildlife/environmental causes (6%), and International aid organizations (3%).

On an individual basis, health-related organizations are the most recognized charitable causes. When thinking about specific charitable or not-for-profit organizations, the Canadian Cancer Society tops the list, mentioned by 15% of BC residents. About one-in-ten BC residents mention the Heart & Stroke Foundation (11%, total mentions), the Salvation Army (10%) or the United Way (9%). Six percent or fewer mention the SPCA (6%), the Diabetes Association (6%), the BC Cancer Foundation (5%), the Red Cross (5%), the BC Cancer Agency/Research Centre (4%) or the BC Children's Hospital (4%).

"Branding is an important part of the equation for Charitable giving," says Mossop. "Our research shows that the majority of givers don't pre-plan their contributions, and are likely to give it to organizations who are the most visible in their community. Having a well-recognized brand is a key ingredient to successful fundraising"

These are the findings of a special feature of our BC Ipsos-Reid Express poll conducted between April 2nd and 9th, and May 1st and 8th, 2002 among a representative cross-section of 800 British Columbian adults each wave. These data are statistically weighted to ensure the sample's regional, age and sex composition reflects that of the actual BC population according to 1996 Census data. With a provincial sample of 800, one can say with 95 percent certainty that the overall results are within 1773.5 percentage points of what they would have been had the entire adult BC population been polled. The margin of error will be larger for other sub-groupings of the survey population.