Oh dear im afraid this has turned out quite long, I've been trawling around the internet trying to get info on how effective fundraising is. Its easy to find information from the perspective of a charity but much harder to find out how much donations individual fundraisers are (partially) responsible for.
I'm gonna continue looking into it, but I found this stuff so far very interesting so I thought I'd post it here.
1.
"The average monthly donor gives between $18 and $20, and many of those who signed up in 2002 are still giving monthly today, said co-founder and president John Finlay."
"The pay is $13 an hour plus benefits, with no commissions: Imagine Canada, a charitable umbrella organization, and the Association of Fundraising Professionals both prohibit them. Still, many canvassers set personal goals of signing three or four monthly donors a day"
http://publicoutreachgroup.com/ca-fr/bl ... use-street
from what I've read so far 3 monthly donors a day seems like maybe a general figure I'll use until I've got more information.
if the average donor is giving $19 a month for 5 years thats = $19 x 12 x 5 = $1140
and if the average fundraiser is signing up 3 people per day = $1140 x 3 = $3420
and if the fundraiser works an 8 hour day they're total daily donation will be = $3420 - ($13 x 8) = $3420 - $104 = $3316/working day
thats canadian dollars so, $3316 (CAD) = 3,344.32 (USD)
"Founded in 2002, the company guarantees charities between a 2:1 and 3:1 return on investment over a five-year campaign, with the agency absorbing the risk."
huh? if the amount a fundraiser is getting people to donate per day is over $3000, and if the returns are 3:1, is that to say that a charity spends $1000 to get $3000? (or does the charity invest $1000 to get $4000 as I believe betting works??)
because to make that >$3000 the fundrasing organisation is spending much less than $1000! if the fundraisers daily wage is $104 and then maybe they have some administration costs but maybe they are making a lot of money?...
2.
Wikipedia cites similar returns (tho link is dead:/)
"The fundraisers may be employed directly by the charity as part of an 'in-house' team. They may also be employed by an agency working specifically in the area of fundraising. In this case, the company is usually paid a fixed fee per person signed up. This fee depends on a number of variables, such as the number of donors required and the average annual donation desired. Though charities can normally expect to generate a minimum return on their investment of 3:1 over the duration of a donor's giving relationship with them.[1]"
"On average, the supporter who signs up on the street will continue giving for 5 years. Regular giving is understood by those working in the charity sector as the most effective form of giving, allowing for long term planning. So, a supporter giving £10 a month will, over 5 years, give £600 to the charity, and also lead to the likelihood of the charity claiming Gift Aid, a further 25% tax relief from the government[citation needed]"
http://en.wikipedia.org/wiki/Street_fundraising
does this mean the charity gets an extra 25% of £600 ? I thought a donation had to be one single donation over a certain amount to qualify for this?
1 supporter = £600 = $953.68
or 1 supporter = £600 + 25% of £600 = £600 + £150 = £750 = $1,191.69
which is comparable to the first figure.
3.
"Besides, look at the facts: in the financial year of 2009-2010 street fundraising brought in 177,665 brand new donors to various charities, giving, roughly, on average £8 per month.
That’s not including gift aid and let’s not get into the debate on how many people drop out – because with rising minimum ages and stricter quality controls, attrition’s not the issue that it may have been in the past. As for myself, I run two teams of fundraisers for the British Red Cross and, with the amount of new donors we’re on course to recruit this year, will raise £1,500,000 projected over a three-year period."
http://blogs.redcross.org.uk/fundraisin ... -chuggers/
4.
"Once a donor signs up, the standing order lasts six years on average"
"I started on £8 an hour and am now on £10. There are targets - we're supposed to sign up five people a day - but it doesn't affect your pay."
"This is the most efficient and cost-effective way for a charity to raise money. It gives enough scope to plan for the future (the average donor gives for about 5-6 years) and not waste money. While there is still so much poverty, suffering and death I feel that being as understanding and as generous as possible is the least we can do.
Kim, England"
"I worked as a chugger but only lasted one week. My agency paid commission and the targets were tough. Seeing how automated and pushy some of my colleagues were made me quit ASAP. I was quite uneasy, especially as if you earned over a certain amount you got 40% - think how little the charity would get after the agency took its fee.
Gary O'Boy, UK"
http://news.bbc.co.uk/2/hi/uk_news/2090680.stm
I dunno what the "This is the most efficient" bit is based on.
5.
"DialogueDirect, a professional fundraising business which reported recruiting 260,000 donors for its clients such as Children International and Plan USA, pays its street solicitors $9.14 an hour plus "performance related pay." DialogueDirect also reports on its web site that its "Dialoguers" or street solicitors "are averaging between $500 and $1000 per week." A full-time 40-hour week at $9.14 per hour is only $365. This means that the average solicitor earns 27% to 63% of their pay by meeting "performance and quality targets.""
"The web site of DialogueDirect states that they "charge [to the charity] a flat fee for donors acquired.""
"Children International pays DialogueDirect $210 for each new child sponsor who agrees to a minimum monthly donation of $22, according to the charity's current fundraising contract with DialogueDirect. This means that a donor will have to make regular $22 payments for ten months before any of their contribution can start to benefit children. The campaign goal, according to the fundraising contract, is 19,048 new Children International sponsors for a $4 million fee to DialogueDirect."
http://www.charitywatch.org/articles/st ... tions.html
6.
"Some large charitable groups pay up to £136 to outside companies for every direct debit secured on the street by professional fundraisers or ‘charity muggers’."
"On average, charities pay about £100 for everyone who they persuade to sign up. If someone donates £5 a month, it would take almost two years before the premium is covered.
The British Heart Foundation confirmed it pays the equivalent of £136 per signature, while Cancer Research UK said it paid an average of £112.
Charities have defended the use of the middlemen to find donors, saying they raised up to £4 for every £1 of costs."
http://www.southportvisiter.co.uk/south ... -27188218/
*only* £136 per donor doesnt really seem to add up, if thats the only charge to the charity, given some of the previous figures. maybe some/many of these articles are just wrong
7.
"They approach potential donors on the street every five seconds and ten out of every 100 people stop to listen to what they have to say. They use their in-depth knowledge about the Red Cross to encourage them to sign up as regular givers.
...
Liam said: “Every single person I talk to, I tell them about the Red Cross. Whether they sign up to become a supporter or not, they walk away knowing something about it. They might go home and decide to have a look at the website, decide to volunteer or make a donation some time in the future. It’s about raising awareness as well as money.
...
On average, every new donor that Liam signs up pledges to give £110 in their first year of support and they may continue to donate to the Red Cross for many years to come."
http://www.redcross.org.uk/Donate-Now/O ... eets-apart
"It’s about raising awareness as well as money." - awesome! maybe this type of fundraising is more suited to organisations who also want to raise awareness?
8.
"High attrition rates can be the main reason why charities drop out of street fundraising. Andrew Cook, director of communications and fundraising at WaterAid, says the charity trialled it for five years from 2001 but has now stopped. "We found with street that the attrition rate was high, and long-term supporter loyalty is critical to our fundraising," he says.
But many charities find that the method generates satisfactory returns. According to a spokeswoman for Save the Children, for every £1 invested in face-to-face, the charity raises another £2."
http://www.thirdsector.co.uk/news/10291 ... ngBulletin
9.
"The attrition rate (number of donors dropping out) in the first year is very high. Between 33% and 58 % of donors recruited in this way will cancel their direct debit within twelve months."
http://www.ecalpemos.org/2011/04/giving ... -face.html
10.
"In 2010, an investigation by Newsnight found that charities were paying an average of £100 to the agencies who provide chuggers, which meant that if you signed up to pay £5 a month, you had to wait well over a year for your money to go where you intended. The previous year, the PFRA revealed that around 55% of donors recruited in 2008 via street fundraisers cancelled their donation within 12 months, which effectively meant that charities saw almost no benefit from their temporary generosity at all."
http://www.guardian.co.uk/commentisfree ... -charities
11.
"One former chugger from Gloucestershire said it was a lucrative job. “I got £7 an hour, plus £30 for every sign-up you got after the eighth, which meant that the better fund-raisers were on a stupendously good wage,” said the fund-raiser who wished to remain anonymous.
“I did door-to-door so we got driven to various locations and basically had to harass people in their own homes. We were meant to average two sign-ups a day to keep our job.”"
http://www.telegraph.co.uk/news/newstop ... ggers.html
12.
"One of the longest standing street fundraising companies in the UK, Gift Fundraising, has gone into voluntary administration with some 300 staff reportedly being made redundant.
...
Gift Fundraising says it has raised more than £100m for UK charities, both large and small, over the past 10 years.
...
Across Australia an estimated 200,000 charity givers are recruited every year with an annual value of $50m. The average ‘life’ of these recruited donors is five years."
http://www.probonoaustralia.com.au/news ... -its-doors
13.
"An average stay of five years or more on a monthly giving programme is not uncommon. A donor giving even $10 per month will often contribute $600 or more to the organization without costly re-solicitation. When handled properly, monthly donors will continue to donate for years to come, and many will increase the size of their gift when asked."
http://talentegg.com/employer/public-ou ... undraise-/
14.
"The days were long, hard and repetitive. With Amnesty the target was for each of us to get eight people a day to give £5 a month."
http://www.bbc.co.uk/news/magazine-12525580
15.
"you agree to sign up, the canvasser takes a void cheque or a credit card number and your monthly promise to donate $10, $20, $30 or more in Sick Kids' case, or a $35 monthly sponsorship in World Vision's case. What you don't know is that the canvasser and his company get a commission of $180 or more to sign you up. Depending on the size of your donation, it could be six months to a year before your donation starts helping children."
"Acquiring monthly donors is expensive work up front that charities hope will pay off as each year goes by. For example, in 2005 new monthly donors brought in to Sick Kids earned the charity $4 million. But the cost of acquiring those doors was $3.5 million, leaving the charity just over $500,000 in actual contributions. What Sick Kids is banking on is that these donors will stay on, because the charity will keep all of the money they donate the next year."
Sick Kids Foundation could not tell the Star the average time its donors stay in the program, but it noted it currently has 56,800 monthly donors who contribute a total of $13.5 million annually.
http://www.thestar.com/news/investigati ... ising-mess
but if we presume the average donor stays with them for 5 years :O!...
I wonder if being a fundraiser could be better than a proffesional philanthropist?
Presuming you work directly for the charity and not through a fundraising organisation
sorry if I've made any stupid maths errors, I finished this a bit late at night
I'm gonna continue looking into it, but I found this stuff so far very interesting so I thought I'd post it here.
1.
"The average monthly donor gives between $18 and $20, and many of those who signed up in 2002 are still giving monthly today, said co-founder and president John Finlay."
"The pay is $13 an hour plus benefits, with no commissions: Imagine Canada, a charitable umbrella organization, and the Association of Fundraising Professionals both prohibit them. Still, many canvassers set personal goals of signing three or four monthly donors a day"
http://publicoutreachgroup.com/ca-fr/bl ... use-street
from what I've read so far 3 monthly donors a day seems like maybe a general figure I'll use until I've got more information.
if the average donor is giving $19 a month for 5 years thats = $19 x 12 x 5 = $1140
and if the average fundraiser is signing up 3 people per day = $1140 x 3 = $3420
and if the fundraiser works an 8 hour day they're total daily donation will be = $3420 - ($13 x 8) = $3420 - $104 = $3316/working day
thats canadian dollars so, $3316 (CAD) = 3,344.32 (USD)
"Founded in 2002, the company guarantees charities between a 2:1 and 3:1 return on investment over a five-year campaign, with the agency absorbing the risk."
huh? if the amount a fundraiser is getting people to donate per day is over $3000, and if the returns are 3:1, is that to say that a charity spends $1000 to get $3000? (or does the charity invest $1000 to get $4000 as I believe betting works??)
because to make that >$3000 the fundrasing organisation is spending much less than $1000! if the fundraisers daily wage is $104 and then maybe they have some administration costs but maybe they are making a lot of money?...
2.
Wikipedia cites similar returns (tho link is dead:/)
"The fundraisers may be employed directly by the charity as part of an 'in-house' team. They may also be employed by an agency working specifically in the area of fundraising. In this case, the company is usually paid a fixed fee per person signed up. This fee depends on a number of variables, such as the number of donors required and the average annual donation desired. Though charities can normally expect to generate a minimum return on their investment of 3:1 over the duration of a donor's giving relationship with them.[1]"
"On average, the supporter who signs up on the street will continue giving for 5 years. Regular giving is understood by those working in the charity sector as the most effective form of giving, allowing for long term planning. So, a supporter giving £10 a month will, over 5 years, give £600 to the charity, and also lead to the likelihood of the charity claiming Gift Aid, a further 25% tax relief from the government[citation needed]"
http://en.wikipedia.org/wiki/Street_fundraising
does this mean the charity gets an extra 25% of £600 ? I thought a donation had to be one single donation over a certain amount to qualify for this?
1 supporter = £600 = $953.68
or 1 supporter = £600 + 25% of £600 = £600 + £150 = £750 = $1,191.69
which is comparable to the first figure.
3.
"Besides, look at the facts: in the financial year of 2009-2010 street fundraising brought in 177,665 brand new donors to various charities, giving, roughly, on average £8 per month.
That’s not including gift aid and let’s not get into the debate on how many people drop out – because with rising minimum ages and stricter quality controls, attrition’s not the issue that it may have been in the past. As for myself, I run two teams of fundraisers for the British Red Cross and, with the amount of new donors we’re on course to recruit this year, will raise £1,500,000 projected over a three-year period."
http://blogs.redcross.org.uk/fundraisin ... -chuggers/
4.
"Once a donor signs up, the standing order lasts six years on average"
"I started on £8 an hour and am now on £10. There are targets - we're supposed to sign up five people a day - but it doesn't affect your pay."
"This is the most efficient and cost-effective way for a charity to raise money. It gives enough scope to plan for the future (the average donor gives for about 5-6 years) and not waste money. While there is still so much poverty, suffering and death I feel that being as understanding and as generous as possible is the least we can do.
Kim, England"
"I worked as a chugger but only lasted one week. My agency paid commission and the targets were tough. Seeing how automated and pushy some of my colleagues were made me quit ASAP. I was quite uneasy, especially as if you earned over a certain amount you got 40% - think how little the charity would get after the agency took its fee.
Gary O'Boy, UK"
http://news.bbc.co.uk/2/hi/uk_news/2090680.stm
I dunno what the "This is the most efficient" bit is based on.
5.
"DialogueDirect, a professional fundraising business which reported recruiting 260,000 donors for its clients such as Children International and Plan USA, pays its street solicitors $9.14 an hour plus "performance related pay." DialogueDirect also reports on its web site that its "Dialoguers" or street solicitors "are averaging between $500 and $1000 per week." A full-time 40-hour week at $9.14 per hour is only $365. This means that the average solicitor earns 27% to 63% of their pay by meeting "performance and quality targets.""
"The web site of DialogueDirect states that they "charge [to the charity] a flat fee for donors acquired.""
"Children International pays DialogueDirect $210 for each new child sponsor who agrees to a minimum monthly donation of $22, according to the charity's current fundraising contract with DialogueDirect. This means that a donor will have to make regular $22 payments for ten months before any of their contribution can start to benefit children. The campaign goal, according to the fundraising contract, is 19,048 new Children International sponsors for a $4 million fee to DialogueDirect."
http://www.charitywatch.org/articles/st ... tions.html
6.
"Some large charitable groups pay up to £136 to outside companies for every direct debit secured on the street by professional fundraisers or ‘charity muggers’."
"On average, charities pay about £100 for everyone who they persuade to sign up. If someone donates £5 a month, it would take almost two years before the premium is covered.
The British Heart Foundation confirmed it pays the equivalent of £136 per signature, while Cancer Research UK said it paid an average of £112.
Charities have defended the use of the middlemen to find donors, saying they raised up to £4 for every £1 of costs."
http://www.southportvisiter.co.uk/south ... -27188218/
*only* £136 per donor doesnt really seem to add up, if thats the only charge to the charity, given some of the previous figures. maybe some/many of these articles are just wrong
7.
"They approach potential donors on the street every five seconds and ten out of every 100 people stop to listen to what they have to say. They use their in-depth knowledge about the Red Cross to encourage them to sign up as regular givers.
...
Liam said: “Every single person I talk to, I tell them about the Red Cross. Whether they sign up to become a supporter or not, they walk away knowing something about it. They might go home and decide to have a look at the website, decide to volunteer or make a donation some time in the future. It’s about raising awareness as well as money.
...
On average, every new donor that Liam signs up pledges to give £110 in their first year of support and they may continue to donate to the Red Cross for many years to come."
http://www.redcross.org.uk/Donate-Now/O ... eets-apart
"It’s about raising awareness as well as money." - awesome! maybe this type of fundraising is more suited to organisations who also want to raise awareness?
8.
"High attrition rates can be the main reason why charities drop out of street fundraising. Andrew Cook, director of communications and fundraising at WaterAid, says the charity trialled it for five years from 2001 but has now stopped. "We found with street that the attrition rate was high, and long-term supporter loyalty is critical to our fundraising," he says.
But many charities find that the method generates satisfactory returns. According to a spokeswoman for Save the Children, for every £1 invested in face-to-face, the charity raises another £2."
http://www.thirdsector.co.uk/news/10291 ... ngBulletin
9.
"The attrition rate (number of donors dropping out) in the first year is very high. Between 33% and 58 % of donors recruited in this way will cancel their direct debit within twelve months."
http://www.ecalpemos.org/2011/04/giving ... -face.html
10.
"In 2010, an investigation by Newsnight found that charities were paying an average of £100 to the agencies who provide chuggers, which meant that if you signed up to pay £5 a month, you had to wait well over a year for your money to go where you intended. The previous year, the PFRA revealed that around 55% of donors recruited in 2008 via street fundraisers cancelled their donation within 12 months, which effectively meant that charities saw almost no benefit from their temporary generosity at all."
http://www.guardian.co.uk/commentisfree ... -charities
11.
"One former chugger from Gloucestershire said it was a lucrative job. “I got £7 an hour, plus £30 for every sign-up you got after the eighth, which meant that the better fund-raisers were on a stupendously good wage,” said the fund-raiser who wished to remain anonymous.
“I did door-to-door so we got driven to various locations and basically had to harass people in their own homes. We were meant to average two sign-ups a day to keep our job.”"
http://www.telegraph.co.uk/news/newstop ... ggers.html
12.
"One of the longest standing street fundraising companies in the UK, Gift Fundraising, has gone into voluntary administration with some 300 staff reportedly being made redundant.
...
Gift Fundraising says it has raised more than £100m for UK charities, both large and small, over the past 10 years.
...
Across Australia an estimated 200,000 charity givers are recruited every year with an annual value of $50m. The average ‘life’ of these recruited donors is five years."
http://www.probonoaustralia.com.au/news ... -its-doors
13.
"An average stay of five years or more on a monthly giving programme is not uncommon. A donor giving even $10 per month will often contribute $600 or more to the organization without costly re-solicitation. When handled properly, monthly donors will continue to donate for years to come, and many will increase the size of their gift when asked."
http://talentegg.com/employer/public-ou ... undraise-/
14.
"The days were long, hard and repetitive. With Amnesty the target was for each of us to get eight people a day to give £5 a month."
http://www.bbc.co.uk/news/magazine-12525580
15.
"you agree to sign up, the canvasser takes a void cheque or a credit card number and your monthly promise to donate $10, $20, $30 or more in Sick Kids' case, or a $35 monthly sponsorship in World Vision's case. What you don't know is that the canvasser and his company get a commission of $180 or more to sign you up. Depending on the size of your donation, it could be six months to a year before your donation starts helping children."
"Acquiring monthly donors is expensive work up front that charities hope will pay off as each year goes by. For example, in 2005 new monthly donors brought in to Sick Kids earned the charity $4 million. But the cost of acquiring those doors was $3.5 million, leaving the charity just over $500,000 in actual contributions. What Sick Kids is banking on is that these donors will stay on, because the charity will keep all of the money they donate the next year."
Sick Kids Foundation could not tell the Star the average time its donors stay in the program, but it noted it currently has 56,800 monthly donors who contribute a total of $13.5 million annually.
http://www.thestar.com/news/investigati ... ising-mess
but if we presume the average donor stays with them for 5 years :O!...
I wonder if being a fundraiser could be better than a proffesional philanthropist?
Presuming you work directly for the charity and not through a fundraising organisation
sorry if I've made any stupid maths errors, I finished this a bit late at night