Charitable Giving to Fight Cardiovascular Diseases: Is it Any different During Recession

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Charitable Giving to Fight Cardiovascular
Diseases Is it Any different During Recession?

• Rene Bekkers
• Philanthropic Studies,
• VU University Amsterdam
• r.bekkers_at_fsw.vu.nl
• 2009 European Heart Network Workshop
• May 14, 2009

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Todays Questions

• How much will fundraising income for charities
  fighting cardiovascular diseases decline as a
  result of the economic recession?
• What effects have recessions had in the past?
• Who gives to cardiovascular diseases?
• How strongly are donors affected today?
• How will the mix of sources of income change?
• What are sources of fundraising income?
• How strongly are these sources affected?

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Recession effects

• Direct economic value of your organizations own
  wealth and the value of bequests declines
• Indirect
• Willingness to donate may decline
• Mix of sources of income may change
• Fundraising effectiveness may decline

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Evidence from Giving USA

• Little decline in recession years
• US donors perceive needs to be higher in
  recession years

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Downturn Effects in Europe

• European situation is different taxes fund basic
  needs, charity funds extras
• Economic downturn is likely to reduce
  psychological sense of economic security
• How are donors to Heart Organizations doing in
  todays recession?
• How have economic downturns affected donations in
  Europe?

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Annual donations received by all charities in the
Netherlands
Million Euro
Source Fondsenwerving in tijden van crises
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Fundraising income in of GDP
Source Fondsenwerving in tijden van crises
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Correlates of income

• Housing prices strongly positive, lag 1 year
• Stock market positive, lag 2-3 years
• Unemployment growth negative, lag 1-3 years
• Consumer confidence positive, lead 0.5 year

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Income Hartstichting, 1994-2006
Million Euro
Source own calculations based on CBF database
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Bequests up, donations down in downturn
Million Euro
Source own calculations based on CBF database
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Sources of income, Hartstichting
Source own calculations based on CBF database
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Costs relative to income
Source own calculations based on CBF database
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Who Gives?

• Patients and their social circles
• Connections with family members, friends
• Empathy and identification are key to
  understanding donor behavior
• In conjunction with social responsibility and own
  health

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Social Status and Donations
Source Giving in the Netherlands Panel Survey,
2007
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Detailed profile

• Know heart patients
• Average income, education
• Older, below average health
• Larger networks, especially family and
  acquaintances
• Donors to Dutch Heart Organization (vs other
  health charities)
• Average income, below average education, rent
  homes,
• Above average empathy/responsibility, know heart
  patients

Source Straight from the Heart
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Detailed profile

• More generous donors
• Older, above average income, below average
  education, home owners,
• Larger networks, know heart patients
• Church attendees, higher empathy/responsibility
• If heart patient is known higher
  empathy/responsibility and worse own health

Source Straight from the Heart
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Conclusions and Discussion

• Donors to charities fighting cardiovascular
  diseases are likely to suffer stronger effects of
  the economic downturn
• No effects on fundraising costs?
• Decreasing proportion of income from bequests
• Benchmarking is needed Giving Europe

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References

• Rene Bekkers, Philanthropic Studies, VU
  University Amsterdam, r.bekkers_at_fsw.vu.nl
• http//www.fss.uu.nl/soc/homes/bekkers
• Straight From the Heart. Pp. 197-221 in
  Advances in Medical Sociology, Volume 10
  Patients, Consumers and Civil Society US and
  International Perspectives, edited by Susan
  Chambré and Melinda Goldner. Emerald Group
  Publishing.
• Fondsenwerving in tijden van crises. In Geven
  in Nederland 2009 Giften, Sponsoring, Legaten en
  Vrijwilligerswerk, edited by Theo Schuyt, Barbara
  Gouwenberg and Rene Bekkers. Amsterdam Reed
  Business.