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Population changes, fiscal challenges, technology impact fundraising

February 26, 1996; Canadian FundRaiser

Fundraisers should focus on and think more about the implications of our aging populace, according to Susan Wright, Partner - The Randolph Group, in her recent presentation to the National Society of Fund Raising Executives - Greater Toronto Chapter. Discussing key trends affecting fund raising in the late 1990s, she called the baby boom generation, "A pig in a python that continues to drive changes in the age structure of our changing population."

Data on voluntarism and giving suggests the aging trend may be both good and bad. According to the 1995 Goldfarb Survey, voluntarism is declining in those aged 65 and over, but increasing in people under 35. Yet older Canadians gave more in 1994, with the average donation for 65+ being $890. According to Statistics Canada Charitable Revenue data, the average donation for all donors was $634. "The mature population brings a new set of challenges and opportunities for fundraisers. They are retiring (average age 62) and have free time. They are also better off (81% of those 55+ are mortgage-free vs 34% of those under 55), and most tend to have pensions. The mature population has reached the "being experience" stage -- comfortable with themselves, interested in experiences, yet retaining a strong aversion to exaggerated claims and misleading imagery," Wright said. Their rationale for giving is clearly reflected in the Goldfarb data, which established that personal commitment to a charity rises with those over age 65.

Wright also talked about key demographic trends, including the shrinking of the average Canadian family income; the record high household debt; the jobless recovery; the growing proportion of part-time employment and the growth in multiculturalism. Noting their direct and indirect impact on the effectiveness of direct marketing and telemarketing, not to mention community support to our institutions, she added that while demographics should be taken with a grain of salt, they do give fundraisers a sense of where to focus in the future.

A real potential for triple-dipping With the fiscal squeeze faced by fundraisers as profound as it is multi-faceted, Wright said "Cuts at the federal, provincial and municipal level will create significant demands on not-for-profits, and result in an increased emphasis on self-sufficiency, revenue generation and fund raising. So expect to see a proliferation of public foundations and organizations not traditionally involved in fundraising getting into the business: libraries, municipalities and school boards to name a few. Coupled with a transformation in attitude occurring in the public sector - to let the users pay full cost; find the money elsewhere; fundraise for public services and establish real needs vs frills - there looms a real potential for `triple dipping' - coming to the trough three times; through taxes, user fees and fundraising."

Wright also noted the impact of technology on the field - the quickening pace of new technologies being introduced; the growing ownership of personal technology; the 30 million PCs currently thought to be on the Net and expected to double by the end of next year; the rapid growth of digital publishing, and the movement of fund raising on-line. With Canadian organizations establishing sites daily, the American Red Cross using a web page to solicit donations by mail; the British Library utilizing an Adopt-a-Book Appeal; Relief Net making donations to one of 21 different humanitarian charities quick and easy; and Cyberspace Christmas Campaigns a success (every time you look at a page the corporate sponsor pays a dime to the non-profit organization), it won't be long before technology really takes hold as a generally used and accepted methodology.

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