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Yankelovich MONITOR Minute, March 2009

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Closing the Charity Gap

Four in 10 consumers believe that they are not doing all they should to support charities. This number is
poised to increase, resulting in even more consumers experiencing a mismatch between the way they aspire
to behave and the way they actually behave. And when there is a gap between aspiration and reality, a
sense of frustration, pessimism and even guilt can take hold. This week's MONITOR Minute takes a closer
look at ways in which marketers can help consumers meet their goals and close the gap between their
aspirations and their behaviors related to supporting charities.

THE CURRENT ECONOMY HAS CHANGED THE GAME

According to Yankelovich MONITOR data, as recently as mid-2008 the percentage of consumers who
reported giving time and/or money to charities in the past year had been increasing. But the current
recession has changed the game, and now there is much concern about the economy's impact on corporate
and charitable giving. Almost two-thirds (63%) of consumers in the Dollars & Consumer Sense 2009 survey
fielded this January and February said they gave less money to charities in the past year due to their
feelings about the economy and their personal finances. And The Center on Philanthropy's Philanthropic
Giving Index (PGI), a gauge of nonprofit fundraisers' confidence in the current fund-raising climate, fell 27%
between June and December 2008, the largest single drop since the PGI began in 1998. And 94% of
nonprofit fund raisers said the economy is having a “negative” or “very negative” effect on fund raising. (2)

Groups Defined

This MONITOR Minute focuses on two groups of consumers to bring to life the differences between those
experiencing a “charity gap” and those who are not.

 “Aspiring Givers” are those consumers who say they should be doing more to support charities
(40% of the total population ages 16+). Of these, 56% are already giving some amount of time
and/or money to charities.
 “Satisfied Givers” are those consumers who say they are doing their part to support charities (33%
of the total population ages 16+). Of these, 84% are already giving some amount of time and/or
money to charities.
The remaining 27% describe themselves as neither “should be doing more to support charities” nor “are
doing their part to support charities.”

ASPIRING GIVERS: WANTING TO HELP, BUT FACING CHALLENGES OF THEIR

OWN

It all comes down to time and money—or a lack thereof. Aspiring Givers are facing a time shortage (which is
likely a factor of life stage because they are younger than Satisfied Givers and more likely to be parents with
children at home). And many are struggling with serious financial anxiety, including worrying about keeping
up with the cost of living (68%), paying their monthly bills (48%) and having enough money to put food on
the table (46%). Debt and a lack of spending discipline are also major concerns. Their current situation is
leading to a sense of frustration and a loss of control—fewer Aspiring Givers than Satisfied Givers say they
are in control of their lives or that they are managing their stress. Despite these issues, Aspiring Givers
maintain a go-getter attitude that is founded in a desire to be seen as someone who lives their passions,
knows how to get things done and works toward self-improvement.

Quote of Note

“Giving generally follows the economy. And anyone can tell you the economy is hurting.”

—Sharon Bond, Spokesperson, GivingUSA Foundation (1)

IMPLICATIONS AND OPPORTUNITIES

 Show and tell. Let consumers—especially Aspiring Givers—know what your company is already
doing to help those in need. Convey your passion for helping others, and don't be afraid to be
enthusiastic. While consumers have little tolerance for superficiality or exaggeration, it's okay to
brag if it comes from a place of passion rather than hype. Recognize that many consumers will be
skeptical of what you say, so be transparent—offer multiple proof points and different ways of
allowing them to check you out.
 Close the loop. After consumers have donated or volunteered—in big ways or small —foster
feelings of control, and close the loop by giving them details and information about the actual
impact of their contributions. Talk not just about the amount of money an organization received, but
how did they use it? Who benefited? (Literally— put a name and face to the funds.) How, and in
what ways? Share this information on-site, on packaging, online, etc.
 Give them a say. Your preferred nonprofit or humanitarian effort may not be your customers'
preference. Whether you are donating a percentage of sales, matching a donation or asking for a
small contribution at point of purchase, put Aspiring Givers in the driver's seat, and give them some
say in where the money should go.
 Be a teammate—in actuality and in spirit—by helping these consumers achieve their goals. Don't
go for a big behavior change; they are too bogged down in anxiety (financial and in general). Show
respect for their current economic situation by reviewing current charitable programs to see where
program requirements clash with consumers' desired financial goals and behaviors. For example, in
retailer programs where a percentage of sales goes to charity, the retailer's contribution shouldn't
hinge on whether or not the consumer uses the retailer's credit card.
 Make it fun! Come up with creative ways for consumers to get involved, in the context of
celebrating or enjoying themselves. This applies to things consumers are already doing (or buying),
as well as potential new experiences. Aspiring Givers skew younger than those without a charity
gap, so don't be afraid to push the boundaries on creativity and novelty.

BOTTOM LINE
Amid the current economic downturn, some consumers are struggling with reconciling their desire to help
others with their inability to follow through. With creativity and commitment (not necessarily extra funds),
marketers can become true partners—perhaps even heroes—in helping consumers realize their goal of
helping others.

DIGGING DEEPER
RUNNING WITH IT

 In Boston earlier this year, consumers could help out by…lifting a pint of Guinness. For a limited
time, several area restaurants donated $1 to the Greater Boston Food Bank (GBFB) for every
Guinness purchased. According to promoters, “You're going to be having a few beers anyway, why
not help out the GBFB while you're at it?” (3)
 To celebrate Pancake Day, participating International House of Pancakes restaurants around the
country recently offered diners a free stack of pancakes in return for a $1 contribution to the
Children's Miracle Network. Last year, this promotion helped IHOP collect $875,000 for the
children's charity.(4)
 Last Christmas, Facebook partnered with the nonprofit group ChangingthePresent.org to create an
alternative solution to the age-old problem of what to get Dad this year. In lieu of the shaving set or
novelty sweater, ChangethePresent allows consumers to purchase “gifts” for friends and family that
“change the world.” Shoppers can select from such items as 10 square meters of land cleared of
minefields or two months worth of food for the family of a malnourished child. Facebook helped out
by creating an application on its site that allows for $1 gifts from the company to be exchanged
between friends. (5)

MONITOR RESOURCES

Yankelovich MONITOR 2008/2009

Yankelovich MONITOR LIVE: “Mind the Gap: The Value of Measuring Differences Between Consumers' Real
and Ideal Selves,” 02.11.09

SOURCES

1. “A Little Less of the Pie: Economy, Rising Prices Crimp Charitable Giving,” AARP.org, June 2008
2. Briefing on the Economy and Charitable Giving , The Center on Philanthropy at Indiana University,
December 2008
3. “Help the Greater Boston Food Bank by Having a Guinness,” DrinkCraftBeer.com
4. “N.J. IHOP Restaurants Giving Away Shortstacks for Charity,” The Star-Ledger Continuous News
Desk, nj.com, 02.22.09
5. “Changing the Present: A New Kind of $1 Gift on Facebook,” facebook.com

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