Charitable Giving to Fight Cardiovascular Diseases: Is It Any

Different During A Recession?Rene Bekkers

Philanthropic Studies,VU University Amsterdam

r.bekkers@fsw.vu.nl

2009 European Heart Network WorkshopMay 14, 2009

Today’s 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?

Recession effects

• Direct: economic value of your organization’s 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

Evidence from Giving USA

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

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 today’s recession?

• How have economic downturns affected donations in Europe?

Annual donations received by all charities in the Netherlands

0

200

400

600

800

1000

1200

1400

1965 1970 1975 1980 1985 1990 1995 2000 2005

inkomsten fondsenwerving

Source: ‘Fondsenwerving in tijden van crises’

Mill

ion

Eur

o

Fundraising income in % of GDP

0

0,05

0,1

0,15

0,2

0,25

1969 1974 1979 1984 1989 1994 1999 2004

inkomsten fondsenwerving in % van bbp

Source: ‘Fondsenwerving in tijden van crises’

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

Income Hartstichting, 1994-2006

0

5

10

15

20

25

30

35

40

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Source: own calculations based on CBF database

Mill

ion

Eur

o

Bequests up, donations down in downturn

0

2

4

6

8

10

12

14

16

18

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

door to door bequests donations other

Source: own calculations based on CBF database

Mill

ion

Eur

o

Sources of income, Hartstichting

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

other

donations

bequests

door to door

Source: own calculations based on CBF database

Costs relative to income

-15

-10

-5

0

5

10

15

20

25

30

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

growth costs growth income

Source: own calculations based on CBF database

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

Social Status and Donations

0

10

20

30

40

50

60

70

D C B-low B-high A

% donors annual donation (Euro)Source: Giving in the Netherlands Panel Survey, 2007

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 patientsSource: ‘Straight from the Heart’

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’

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

References

• Rene Bekkers, Philanthropic Studies, VU University Amsterdam, r.bekkers@vu.nl

• http://renebekkers.wordpress.com

• ‘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.