How responsive are charities to market needs?

Voluntary organisations have a unique set of stakeholders. Their services are paid for, not by their customers, but by ‘purchasers’ such as social services or grant-making trusts. This separation of customers from purchasers denies voluntary organisations a direct market mechanism for feedback on their services. As a result, charities are in danger of providing outdated poor-quality services for years, while convincing purchasers that they are still doing a good job. This paper examines the extent to which voluntary organisations do in fact respond to market needs, despite their undemanding environment. The paper draws on research from 15 national disability charities to explore the extent to which charities are market orientated, and to identify examples of best practice in the field. The paper concludes by identifying the critical role played by charity chief executives in urging their own organisations to adopt marketing principles. Copyright © 1999 Henry Stewart Publications     

New approaches to funding not‐for‐profit organisations

This paper seeks to record and to explain the enormous growth in interest over the last few years in the provision of loans and other investment to not‐for‐profit organisations. It argues that this funding development fills a gap in the market. It describes the following new approaches: social investment, the provision of ‘patient capital’, and an ‘investment’ or ‘venture philanthropy’ approach to grant making. The factors driving the growth in use of these approaches are examined and their relevance to fundraising charities considered. Finally, the paper discusses how key stakeholders including the government and charitable trusts are adapting to this new environment. Copyright © 2004 Henry Stewart Publications     

Lifecycle‐based donor performance analysis

With charities of all sizes now having the ability to collect and store very large quantities of data about their donors on in‐house database systems, detailed donor performance analyses have an increasingly essential role to play in the effective planning and management of fundraising. If, however, such activities are to support fully the work of fundraisers then it is important that they are undertaken from the perspective of the fundraiser rather than of the specialist data analyst. This paper introduces an approach to donor performance analysis that is founded on what is termed a ‘donor lifecycle model’. The aim of this is to provide a formal analysis methodology that provides end results that can be more easily interpreted by nonspecialists and so more effectively used in support of the efficient planning of fundraising programmes. Copyright © 2000 Henry Stewart Publications     

Trustee decision making in small UK charities

Management theory suggests that increasing the quantity and quality of management information available to key members in organisations will lead to improvements in their decision making. However, judgements as to what counts as ‘management information’, and in what its quality consists may vary according to organisational location, size and purpose. Where those ‘key members’ are volunteers, as with charity trustees, perceptions of management information need, amount and value, may vary further. This paper explores aspects of this theory, with particular reference to trustees of small charities in the United Kingdom. It outlines a research programme drawing on trustees in organisations working for children and for people with disabilities. A range of findings is presented, recording trustee experiences of and responses to management information, as this affects their charities' performance. Following from three in-depth case studies in small charities, findings show that informal systems are in operation, whereby trustees devolve much of the responsibility for management information to their chief officers, who are then monitored by their chairs. While this system is viewed by participants as an effective and practical means of enabling decision making, certain questions are raised regarding trustee liability and accountability.     

A solicitor's perspective on charitable gifts in wills

• In the climate of public spending cuts, charities are increasingly expected to fill the gap. Yet charities themselves face huge challenges. Not just increasing demand for their services but falling income and low investment returns. Encouraging philanthropy has never been more important, and that includes legacy giving. Following the announcement last year of the Government's major inheritance tax incentive to encourage us to give more to charity on our death, the time is right for a major report on current trends in charitable legacy giving. Late last year, Mishcon de Reya undertook the most detailed analysis ever by a firm of solicitors of its clients' wills. In a study of over 1000 wills, we did not just look at how many people leave a legacy to charity. We considered the value of the legacy, the type of legacy, the likelihood of the charity ever receiving it, whether clients prefer to give to multiple charities, and the most popular charitable sectors. This article will give a quick overview of our research followed by a more detailed look at the three types of legacy to charity: cash—‘for example, I leave £10,000 to charity’,—specific items—‘for example, I leave a painting to charity’—and residuary gifts—‘for example, I give half my estate to charity’. The article will then briefly touch on the charity sectors most favoured by our clients before giving a brief summary of Mishcon de Reya's key findings in conclusion.

Copyright © 2012 John Wiley & Sons, Ltd.     

The diary of a charity donor: an exploration of research information from the Royal Mail Consumer Panel and Mail Characteristics Survey

This paper looks at direct mail in the United Kingdom across all market sectors and in detail at the charity sector. It uses the research information that Royal Mail has been collecting foroveradecadetoshowthegrowthofthe medium. The diary system used by the Consumer Panel gives an insight into the typical donor and their relationship with charities. This paper looks only at direct mail: ‘personally addressed advertising material that is delivered through the post’. This definition means that leaflets put through the letterbox are excluded. Copyright © 1999 Henry Stewart Publications     

How to make sure your donors read your publications

Voluntary organisations pour large chunks of their usually slender resources into producing publications in the hope that these will carry their many promotional messages to a variety of audiences, particularly donors and other supporters. The authors feel that little is known about how donors view and use these publications and whether or not their senders get good value for money. This paper presents an outline of findings from research recently commissioned by the authors into how donors read and use the publications and other printed communications sent to them by charities they support. The conclusion is that many charities could take simple actions to improve their publications, and some suggestions are made. From the authors' experience they supply guidelines charities can follow if they wish to change the way donors perceive, read, enjoy, remember and respond to the publications they send. Also included is a checklist for basic strategic planning so that any charity can ensure that tomorrow's donors will receive communications based not just on what the charity wants to send, but also on what the intended audience wants to receive.     

An investigation into the values dimensions of branding: implications for the charity sector

• Branding is being adopted by charities and written about in academic and practitioner charity literature with increasing frequency. There is also growing concern, however, about the over-commercialistion of the sector and the misappropriation of techniques developed specifically for the commercial environment. Literature supporting the claim that charities are values-based organisations is reviewed and the proposition is made that it is in fact the non-negotiability of charity values that differentiate them from commercial organisations. Given the significance of values in the charity sector, the paper argues that a clearer understanding of how values are conceptualised in branding is necessary in order to establish whether branding is an appropriate and effective tool in the charity context. To achieve this, the paper reviews relevant branding literature focusing in particular upon the delineation of the values dimensions identified in for-profit branding models. To aid further understanding of these values dimensions in the non-profit context and their applicability (or otherwise) to it, the metaphors of brand as ‘mirror’, ‘lamp’ and ‘lens’ are introduced.
• It is argued that in the corporate sector the brand concept has been utilised to ‘mirror’ those values that underpin the needs and desires of consumers. In contrast to the passive mirror, when operationalised as ‘lamp’, it is claimed that the brand aims to influence both the values of the organisation and the values of its target audience. It is postulated that neither of these approaches is appropriate for values-led organisations and that it is only as a metaphorical ‘lens’, projecting the values of the organisation itself that branding offers an applicable and effective model in the charity context.

Copyright © 2006 John Wiley & Sons, Ltd.     

Who does what in enabling ambidexterity? Individual Actions and HRM practices

Abstract

In this paper, we explain how ambidexterity, the simultaneous pursuit of exploration and exploitation, is enabled at the individual level of analysis. Research on ambidexterity has been dominated by theoretical approaches focusing on the organisational level; however, we know little about how ambidexterity is enacted by employees. There is also limited work on the multilevel aspects of individual employee actions, for example, particular roles and specifically the level of seniority of the role. We address these gaps by asking: Which individual actions are undertaken by employees at particular levels of seniority in the organization to enable ambidexterity? In order to answer this question we draw on previous research to construct reliable measures of the individual actions that enable ambidexterity. The hypothesized mediation effect of these individual actions is confirmed on the basis of survey data from 212 employees from a UK-based Professional Service Firm. The findings indicate that senior employees are more likely to use ‘integration’, ‘role expansion’ and ‘tone setting’, whilst employees with specialist knowledge about their clients use ‘gap filling’ to enable ambidexterity. Finally, we draw together these findings with 35 interviews conducted to present the HRM practices which support ambidexterity.     

Blurred vision: public trust in charities

Recent evidence that people's trust in charities is low holds serious implications for a sector that needs high levels of public confidence and support to thrive. This paper reports on qualitative focus group research initiated by the Third Sector Foresight Consortium on Trust, set up by the National Council for Voluntary Organisations (NCVO) and the Henley Centre. Strong negative views about fundraising and marketing strategies, ‘fat cat’ salaries and fraud are only partially offset by favourable opinions of the aims and role of charities in society. There appears to be a ‘blurring’ of the voluntary sector's identity and boundaries in the public mind, with overlaps with the state and business sector threatening to obscure the distinctive character of charity and widespread suspicion of the abuse of charitable status. A consequent demand for greater openness and accountability focuses on information about charity finances and performance measurement. Suggestions for further research and strategies for the charity sector to respond to the findings conclude the paper. Copyright © 1999 Henry Stewart Publications     

Employees' perceptions of HR investment and their efforts to remain internally employable: testing the exchange-based mechanisms of the ‘new psychological contract’

This study investigates the relationship between perceived investment in employee development (PIED) and the internal employability efforts that such perceptions are assumed to influence under the terms of the ‘new psychological contract’. A cross-sectional survey among 238 employees in a Norwegian IT and management consulting firm provides support that PIED relates positively to employees' openness to develop themselves and adapt to changing work requirements (‘internal employability orientation’) and their active pursuit of new competencies and career trajectories within the organization (‘internal employability activities’). However, our findings challenge widely held claims that investment in employee development elicits these responses by way of the reciprocal mechanisms of a social exchange relationship. While PIED is found to relate positively to employees' perceptions of a social exchange relationship with their organization, these positive exchange experiences are not supported to influence internal employability outcomes. Our findings do support, however, that PIED relates negatively to perceived economic exchange relationships that in turn undermine internal employability orientations. Suggestions for future research and implications for practice are discussed.     

The coming of age of major giving

The beginning of the 21st century may well usher in a golden age of major gifts. Not only are those donors born at the beginning of the twentieth century distributing their wealth, but ‘Baby boomers’ and ‘Generation X’ are accumulating significant assets at much younger ages. Each generation appears able and willing to make larger donations to charities. By rethinking major gifts strategy charities can benefit from the increasing wealth and affluence.Copyright © 2000 Henry Stewart Publications.     

Infotorials as a charity marketing weapon

A feature of the development of charity marketing over the last decade has been the increasing use for promotional purposes of human interest press stories prepared by charity employees and published in newspapers and magazines. These ‘infotorials’ follow the editorial style and layout of the host publication and present information about a social or medical problem in a readable and entertaining way. They are read in the same frame of mind as surrounding items, but their source is not revealed (as would be necessary for an orthodox commercial advertorial). This paper outlines the results of a survey of 45 charities known to employ infotorials for marketing communications, focusing on placement policies, management and evaluation, and respondents' perceptions of the benefits involved. Three clusters of charities engaging in the practice became apparent, differing mainly in the degree to which infotorials were seen as a means for gaining competitive advantage over rivals rather than for disseminating information about a charity and its work.     

A practical guide to corporate fundraising on a regional basis

Regional corporate fundraising has the potential to become a growth area as major companies move out of big cities and wish to become involved in supporting charities in the regions where they relocate. This paper gives ‘hands-on’ guidance to charities on the way to approach corporations; the importance of thorough research is stressed, as is the necessity for clear, professional proposals that point out the benefits to both charities and corporations. Much practical advice is given and many specific opportunities for fundraising are listed. Copyright © 1999 Henry Stewart Publications     

Do UK charities have a lot to learn?

This article discusses the key findings of some recent research carried out into the application of market segmentation in the UK charity sector. 410 of the top performing charities (as ranked by income from voluntary donations) were surveyed to profile their major donor groups. Respondents were also asked to indicate how this data was used for fund-raising purposes both in terms of new donor recruitment and existing donor development. The findings show that with the exception of a very few large organizations, the UK charity sector still has much room for improving the sophistication of its fund-raising techniques.     

Charity shop volunteers: a case for ‘tender loving care’

The main purpose of this paper, which features all the shop volunteers in the town of Ruislip (and some in a neighbouring town), is to build a picture of the volunteer workforce and to note some distinguishing features about volunteer groupings that have been identified. It discusses some of the management challenges facing charities in marshalling their volunteers and notes the very important part the local shop manager plays in that process. Finally it discusses some of the consequences to volunteering of the migration to ‘professionalism’. It is suggested that charities, by understanding what is happening to volunteering in the retail sector, will extract maximum contribution from the efforts of their volunteers, present and future. A competitive edge may be found by some if they employ a humanistic approach to the management of volunteers. Copyright © 1999 Henry Stewart Publications     

New goods,old records and second‐hand suits: charity shopping in South‐West England

Charity shops are now a familiar feature of high streets and shopping precincts throughout the UK. As the sector has grown charities have taken an increasingly commercial approach to selling; many charities have introduced new goods in their shops. It is suspected that these changes have significantly broadened their customer base. As yet, however, little research has beendoneoncharityshopcustomers. This paper is based on a survey of 592 customers in 25 charity shops in the Bristol area. It explores who is using the shops, the types of goods they are purchasing and the amounts they are spending. Findings include a number of revealing differences between the purchasing habits of men and women, some of which appear to be peculiar to the charity shops sector. Copyright © 2000 Henry Stewart Publications     

Making Government Volunteering Policies More Effective

Faced with declining civic trust on the one hand and increasing fiscal stringency on the other, many governments have issued policies to encourage volunteering, or to mandate departments and agencies to recruit and involve volunteers in their work. Little research has been undertaken to follow up on these initiatives. This article reports the results of a study comparing two health and social service trusts in Northern lreland with respect to their response to governmental policies to incorporate volunteers into the provision of health and social service care. The study examines the priority accorded by the trusts to the implementation of these policies; the support they give to volunteer administration and management and the missing links in this process.

A central theme of the study is the role played by the volunteer co-ordinator in promoting and sustaining a volunteer programme in the trust. The article first examines the policy context for volunteering in Northern lreland and indicates how policy was implemented in the health and social service trusts. The article then turns to the research design and methodology used in the study. Following a presentation of the findings, the article concludes with a discussion of the findings and their Implications for research and practice in the implementation of statutory volunteer policy.     

Charity registration and reporting: a cross-jurisdictional and theoretical analysis of regulatory impact

Governments increasingly regulate charities to restrict the number of organizations claiming taxation exemptions, reduce charities’ ability to abuse state support, and detect and deter fraud. Public interest theory arguments suggest that regulation could increase philanthropy through enhancing public trust and confidence in charities. Nevertheless, public choice theory argues that regulators seek to maximize political returns, ‘manage’ charity-government relationships, and reduce potential regulatory capture.

We analyse charity regulatory regimes using these two regulatory theories and the relative costs and benefits of different regulatory regimes. Heeding these should reduce regulatory inefficiency and balance accountability and transparency demands against benefits charities receive from regulation.     

Results of the first survey of independent trust grantmaking: who is setting the agenda?

Based on an analysis of 2,300 grants made by a representative sample of independent trusts and foundations, ‘Patterns of Independent Grantmaking in the UK’ is the first national survey identifying where independent trusts allocate their funds. The results show that, as in mainstream central and local government expenditure, social care was a clear priority for independent grantmakers, not only attracting the highest proportion of grants overall, but also the single largest proportion of funding, £233m. This figure equals just over one‐third of local authority support for social services in the voluntary sector and indicates that the collective impact of independent funding to the sector is significant. Social care funding consisted mainly of a large number of small to medium‐sized grants. Health was the second largest area, followed by education and the arts. There was a considerable regional imbalance in funding. Given this fairly conservative pattern of funding, the question arises whether funders are led by applicants or vice versa? What is needed to introduce more change and risk into trust funding? Copyright © 2000 Henry Stewart Publications.