Latest research shows where fundraising opportunity lies this End of Financial Year
This article was initially published on Fundraising & Philanthropy Magazine.
In ntegrity’s bi-annual donor sentiment survey of 300 Australians, we captured a snapshot of the current mood and intentions towards giving this EOFY. The findings present a resilient picture of charitable giving.
The majority of Australians are still giving, but generational differences hold stronger than usual this EOFY
Our research reveals a heartening trend: the intent to give remains strong among Australians. 54% of respondents reported donating last tax time, and the projection for this year shows an increase, with 68% intending to donate. Within this cohort, an encouraging 18% aim to donate more than they did last year.
However, the giving landscape is nuanced, marked by generational divides and a dichotomy between expressed intentions and actual giving behaviour. This complexity is where opportunities lie, particularly among older, affluent donors, where discretionary spending — and, by extension, potential for increased donations — shows signs of growth.
Year-on-year changes in essential and discretionary spending by age
Source: CommBank IQ, November 23
Be aware of the shifts in giving preferences, compared to Christmas
When comparing charitable giving trends between Christmas and EOFY, there’s a noticeable shift in top causes. Children’s charities remain the most supported at 33%, followed closely by medical research at 28%. Interestingly, support for homelessness has seen a drop from 26% to just 12%, while a quarter of all respondents are unsure who they’ll give to, showing there’s big potential to influence these donors even now. This shift highlights changing donor priorities and interests over different giving periods.
Strategic Considerations for Maximising EOFY Giving
Regardless of what cause you’re fundraising for, there are a range of things you can do to ensure you maximise your tax time donations. Here are four strategies to keep in mind:
1. Prime Audiences: Our research shows that there is a blend of advanced planners and spontaneous givers. 36% of respondents plan their giving ahead of EOFY, while 59% make a spontaneous decision.
Of those planning ahead, 33% plan several months out while 50% make their plan a few weeks out from 30 June. Of those planning, 34% planned months in advance.
Extended market presence before EOFY can maximise reach to both segments, keeping you top of mind for both the planned and spontaneous givers.
2. Align with Donor Motivations: Altruism remains a powerful motivator, with 46% citing a desire to give back to the community as a significant factor.
On the flip side, tax incentives continue to play a crucial role, with 54% considering tax deductibility as important. Amid the cost-of-living crisis, emphasising the value of every contribution (regardless of size) and expressing gratitude for donations during challenging times are key messages.
3. Reassess your Channel Mix: The preference for online donations (24%) and face-to-face interactions or cash contributions (11%) highlights the importance of convenience in the donation process. Tailoring strategies to leverage these preferred channels can enhance donor engagement and facilitate easier giving experiences. Be aware that preference for telemarketing is down, even more than last year.
4. Optimise, optimise, optimise – especially in the final week and days: For EOFY, the bulk of your donations come through in the last five to seven days of your campaign. In fact, many organisations will see over 50% of their revenue come in during the final week and the majority of that 50% in the final three days before 30 June. Set aside a large chunk of your budget for those final days. Switch in new, more urgent creative and consider adding even more incentives to give (eg, matched giving). Recognise that competition will be very heavy in the final week of the financial year therefore advertising costs will increase based on competition. The largest donations, however, tend to come in the final week so the return on this more expensive advertising spend is well worth it.
The EOFY presents a unique opportunity for charities to engage with a broad spectrum of donors. Despite economic uncertainties, the willingness to support charitable causes remains strong, underscored by a mix of steadfast and emerging donor motivations.
As organisations navigate this landscape, the insights from our latest research offer valuable guidance for tailoring approaches that resonate with diverse donor groups, ultimately contributing to a successful fundraising outcome.
To learn more and get a deeper insight into our latest donor sentiment research make sure to join us for our upcoming webinar on 11 April.