what can we learn from charity sectors in other countries?...• so we should see two types of...
TRANSCRIPT
What can we learn from charity sectors in other countries?
Joe Saxton
Presentation to Charityfair – May 2016
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Areas to be covered
• Tax and the economy
• Giving
• Volunteering
• What do we have to be proud of?
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Tax and the economy
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Charitable giving by individuals as percentage of GDP
Data: from mixtures of sources and needs to be treated with some caution Source: Gross Domestic Philanthropy – An international analysis of GDP, tax and giving, CAF 2016
0.03%
0.03%
0.04%
0.05%
0.09%
0.11%
0.11%
0.12%
0.13%
0.14%
0.16%
0.17%
0.22%
0.23%
0.30%
0.30%
0.34%
0.37%
0.39%
0.50%
0.54%
0.77%
0.79%
1.44%
ChinaMexico
Czech RepublicSpain
SwitzerlandNorwayFranceJapan
FinlandAustria
SwedenGermany
IrelandAustralia
NetherlandsItaly
Russian FederationIndia
SingaporeSouth Korea
United KingdomCanada
New ZealandUnited States
`
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Effect of taxation on giving
• Tax burden – no significant relationship
• Top income tax rate – no significant relationship
• Government expenditure – no significant relationship
• Corporation tax rate – no significant relationship
• Average rate of Employee social security charges – no significant
relationship
• Average income tax level – no significant relationship
• Employer social security charges – significant relationship
Data: from mixtures of sources and needs to be treated with some caution Source: Gross Domestic Philanthropy – An international analysis of GDP, tax and giving, CAF 2016
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Relationship between macro-economic factors and types of charity behaviour
Giving as % of GDP and the following factors:
• GDP per capita (Purchasing power parity) – no significant
relationship
• Unemployment rate – no significant relationship
• GDP overall – significant relationship
Giving as % of GDP and giving factors:
• Donating money – significant relationship
• Volunteering time – significant relationship
• Helped a stranger – significant relationship
Data: from mixtures of sources and needs to be treated with some caution Source: Gross Domestic Philanthropy – An international analysis of GDP, tax and giving, CAF 2016
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So globally what does influence giving behaviour
• Religion and religious practices are very important for the better
• Cultural and government practices within a country – eg Saturday subbotniks in Turkemenistan, 3 days of volunteering in the UK (if it happens) are important for better and worse
• Events continue to be important – eg floods, earthquakes, refugees, etc
• But the evidence on tax being important is much less clear
Data: from mixtures of sources and needs to be treated with some caution Source: CAF World Giving Index 2015 – a global view of giving trends, CAF 2015
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Giving behaviour
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The States has a lot to teach us about giving - individuals
• Americans are much more generous than we are, particularly very wealthy individuals, and give substantial donations.
• Often donations go to the Arts and Education as much as traditional charities
• Seats on a board are often much more clearly about getting donations (give, get or get off)
• Americans celebrate giving much more – recognise donors much more
• (what can you think of that was named after, or by a donor, in the UK)
• Who is responsible for changing our attitude to giving in the UK?
Source: Professor Adrian Sargeant, personal correspondence
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The States has a lot to teach us about giving - structural
• US foundations have to ‘payout’ at least 5% of their endowment each year. This prevents the build up of large reserves
• We don’t have any mechanisms which encourage people to give today but get some degree of assurance for the donor’s future income – many in the US testify to the importance of ‘planned giving products’
• There are numerous ‘philanthropy days’ where a community comes together to celebrate what it has done for Omaha, or Detroit, or Scranton or where-ever
• Boards are beginning to have a longer term (and more involved) view of fundraising. Not just focus on this year, and not just scrutinise to pick holes in what is being done.
• In short in the US boards take a bigger burden for raising funds
Source: Professor Adrian Sargeant, personal correspondence
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Lessons and best practice from other countries
• Mobile giving – Kenya
• Near field technology – Hong Kong
• Virtual reality – Unicef and refugee camps
• Choice – WWF and adoptions
• Trust – importance of understanding where money goes
Source: Daryl Upsall, personal correspondence and copies of presentations
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An example from Germany
Source: Daryl Upsall, personal correspondence and copies of presentations
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Volunteering
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Differences in volunteering
• New Zealand and US have bigger emphasis on community volunteering – more akin to being a good neighbour or citizen
• The UK tends to emphasise this less, and lump it all in as volunteering
• So we should see two types of volunteering: organised and formal (eg working in a charity shop), vs community and informal (eg helping a neighbour, etc)
• In Australia there is a lot of state-mandated volunteering: 15 hours a week to keep benefits as one of a number of choices. Much more accepted as part of the cultural landscape down under.
Source: Rob Jackson, personal correspondence. http://robjacksonconsulting.blogspot.co.uk/2014/09/mandated-volunteering-two-country.html
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What we have to be proud of
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The strong side of the UK’s charity sectors
• High levels of individual donations compared to the global norms
• (A system which combines high level of donations, and high levels of health & social security compared to many countries)
• High levels of volunteering at both community and charity levels
• Vibrant and growing numbers of charities and community organisations
• Over 80% of the population use charity services
• Charities and community organisations are an integral part of daily life for many people
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Thank you to:
• Professor Adrian Sargeant
• Rob Jackson
• Daryl Upsall
• For all their wisdom and insight
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