International Trends in Philanthropy

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1 International Trends in Philanthropy The Osborne Group, Inc. Fall

2 Future Trends Budget deficits and government cuts are spurring increased need for charity Increasing tax breaks and legislation encouraging significant philanthropy Attitudes shifting: postwar rebuilders retiring and creating foundations with their wealth Survey of 1,600 of the newest German foundations found: 60% created by people over 60, 42% were childless The Osborne Group, Inc. 2

3 Structures for Giving Vast majority of US giving done by individuals, and through estates Also true of Asian giving Highest European growth in: Community Foundations Private Foundations Corporate Foundations 61,000 new foundations registered in the last decade with the European Foundation Center 3,000 of 12,000 German foundations since 2000 The Osborne Group, Inc. 3

4 Positive Growth Reasons for rapid, dramatic increase in philanthropy include: Community Philanthropy Appreciation of power of local giving Desire to create planned, on-going impact Revised tax laws easing foundation formation The Osborne Group, Inc. 4

5 U.S. Giving Internationally $95 billion moved internationally $61.7 billion was sent from ex-pats living in the U.S. Of philanthropic support: $2.2 billion from foundations $5.1 billion from corporations $13.4 billion from private and voluntary organizations The Osborne Group, Inc. 5

6 Crossing Boundaries A number of US foundations are reaching out to support international efforts: Management of not-for-profits & foundations Support for underlying mission & programs Staff/board development The Osborne Group, Inc. 6

7 Corporate Giving Corporate giving is on the rise These industries lead the increase: Pharmaceuticals Banking The Osborne Group, Inc. 7

8 Are We Annoying Our Donors?* *London Sunday Times/AFP Hand dryers - 4% Opening milk cartons -11% Plastic bags that rip - 13% Piped music - 17% Too few supermarket checkouts - 24% Car alarms - 29% Cell phone conversation in public places - 29% Answering machines and voice mail trees - 33% Drivers who hog the middle lane - 34% JUNK MAIL 65% The Osborne Group, Inc. 8

9 Other International Trends* *Resource Alliance International Congress Local resource mobilization Less giving and volunteering by younger generations Large funders seeking international partners Demand for greater effectiveness More fundraising without borders Accountability and transparency The Osborne Group, Inc. 9

10 The Lingering Challenge: The cultural taboo about talking about money We have a big impact on this last challenge: Educating our donors about the joy of giving is a fundamental and lasting impact we can all have The Osborne Group, Inc. 10

11 Universal Reasons for Giving Motivation for giving appears to have some universal underpinnings: Compassion Religious belief Giving makes the giver feel good These three reasons appear among the top motivators around the world The Osborne Group, Inc. 11

12 Changing Definitions Many experts have identified a growing understanding of the difference between charity and philanthropy Most community & private foundations are structuring themselves to promote longterm philanthropy The Osborne Group, Inc. 12

13 Tradition of Giving Increasing understanding and acceptance world-wide The Osborne Group, Inc. 13

14 Donors Have More Choices! Less than 5,000 large NGOs in early 1970s (i.e. Save the Children, WWF, World Vision, Red Cross, etc.) Today, there over 45,000 New NGOs being formed around the world as we speak The Osborne Group, Inc. 14

15 Changing Attitudes Budget deficits and government cuts are spurring increased need for charity Increasing tax breaks and legislation encouraging significant philanthropy Attitudes shifting: postwar re-builders retiring and creating foundations with their wealth The Osborne Group, Inc. 15

16 600,000 New Millionaires Worldwide* * % rise in assets among the million+ population 2.6 million high-net worth individuals in Europe 2.3 in Asia 300,000 in Latin America and Middle East 100,000 in Africa The Osborne Group, Inc. 16

17 Highest European Growth Community Foundations Private Foundations Corporate Foundations 61,000 new foundations registered in the last decade with the European Foundation Center The Osborne Group, Inc. 17

18 Reasons for EU Increases Community Philanthropy Appreciation of power of local giving Desire to create planned, on-going impact Revised tax laws easing foundation formation The Osborne Group, Inc. 18

19 EU Corporate Giving On the rise Pharmaceuticals Banking The Osborne Group, Inc. 19

20 Transformational International Gifts $62,000,000 US to WWF 35,000,000 to NSPCC The Osborne Group, Inc. 20

21 Donor Motivation The Osborne Group, Inc. 21

22 Universal Reasons for Giving Compassion Religious belief Giving makes the giver feel good What impact and accountability The Osborne Group, Inc. 22

23 Do You Know Me? Motivation Values Decision makers Aspirations Challenges What gives me JOY The Osborne Group, Inc. 23

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