The NonProfit Times - March 1, 2009 - (Page 8) NPT SPECIAL REPORT Continued from page 1 Those in the middle of the age categories seemed more likely to make a charitable purchase in the new study. Ages 35 to 44 had the highest response (29 percent), followed by ages 55 to 64 (22 percent) and ages 45 to 55 (25 percent). Both the 18 to 24 and 25 to 34 demographics reached 21 percent, beating out the 65 and older demographic at 17 percent. The conventional wisdom that those with greater household incomes would be more prone to make charitable purchases did not hold up in the 2009 survey. Household income from $35,000 to $50,000 had the best number at 29 percent, followed by those who make $75,000 or more (28 percent) and those who make $50,000 to $75,000 (21 percent).Those who make less than $25,000 hit 19 percent, beating those who make between $25,000 and $35,000 (18 percent). Between 2006 and 2009, the largest decrease for charity purchases in age demographic came from the 65 plus group with 46 percent, followed by ages 18 to 34 at nearly 45 percent and ages 45 to 54 by nearly 44 percent. The West saw the largest decrease from 2006 to 2009 in purchases, nearly 50 percent, followed by North Central area with 44 percent and the Metro area with nearly 44 percent. Purchases at special events decreased more than 63 percent from 2006, followed by consumer retail, down nearly 57 percent. Retail overall decreased 44 percent. Online fared better than in-person purchases, with only a 21 percent overall decrease, but only 6 percent of the respondents bought something online. Regarding household income, those with less than $35,000 showed a 55 percent decrease in charitable purchases, followed by those making $50,000 to $75,000 with a 50 percent drop. Those making more than $75,000 decreased only 18 percent. While the sluggish economy in 2008 and the start of 2009 certainly plays a role in all purchasing, not just cause marketing, another reason for some of the cause marketing slowdown could be part of the “ribbon-ization of America,”according to Carol Cone, chairman and founder of Bostonbased Cone, Inc. Awareness pieces, like magnetic car ribbons, are not effective enough to stand on their own according to Cone, who described the trend as “passé. It’s over. It’s DOA.” She said, “Anybody can add a ribbon onto anything.The question is whether it will be effective. And why are you doing it? If you are doing it just to join the bandwagon, that wagon is long gone.” Several charitable trends have also peaked and now fallen since the 2006 survey, which could contribute to the declines, according to Paul Schervish, director of the Center on Wealth and Philanthropy at Boston College. The Lance Armstrong Foundation launched the LIVESTRONG bracelets in 2004 and by 2005 sold more than 55 million, and were found on the wrists of everyone from Oprah to the neighborhood deli owner. Other charities tried to capitalize on the LIVESTRONG success without producing the same mega-results -- people only have so much room on their wrists. “So, some of us don’t wear them and one thing is just the phenomenon of saturating, or satisfying, the market,” said Schervish. “Some retailers are moving away from selling custom items that benefit charities and are doing more in terms of soliciting contributions at checkout,” said David Hessekiel, founder and president of Cause Marketing Forum. He explained that programs where donations come directly from the consumer cuts down on spe- Three Years Makes A Difference Charitable purchases decline across the board We asked 1,000 people in January 2009 if they made charitable purchases, like a wristband, clothing or other items, in the past 60 days. We compared those results to an identical survey taken in January 2006. These graphs track the percentage of purchases for 2006 and 2009 across factors like gender, age, education level and income. 50 40 30 20 10 0 2006 18-24 25-34 35-44 45-54 65+ 2009 55-64 50 40 30 20 10 0 2006 Male Female 2009 PURCHASES BY GENDER PURCHASES BY AGE 50 40 30 20 10 0 2006 High School Incomplete High School Graduate 50 40 30 20 10 0 2006 Less than $25K $25K-$35K $35K-$50K $50K-$75K 2009 $75K+ 2009 College Incomplete College Graduate PURCHASES BASED ON EDUCATION LEVEL PURCHASES BASED ON INCOME LEVEL 8 MARCH 1, 2009 THE NONPROFIT TIMES www.nptimes.com http://www.wealthengine.com http://www.wealthengine.com http://www.nptimes.com
Table of Contents Feed for the Digital Edition of The NonProfit Times - March 1, 2009 The NonProfit Times - March 1, 2009 Buyers' Choice Where's All the Money? Stocks of Vendors Tracking Worse Than Indexes Contents Calendar Page 4 AFP Conference Map Spring Clean-Up NPT Fundraising Guide Financial Paradox Business Briefs NPT Jobs Resource Directory Advertiser Index The NonProfit Times - March 1, 2009 The NonProfit Times - March 1, 2009 - Stocks of Vendors Tracking Worse Than Indexes (Page 1) The NonProfit Times - March 1, 2009 - Stocks of Vendors Tracking Worse Than Indexes (Page 2) The NonProfit Times - March 1, 2009 - Calendar (Page 3) The NonProfit Times - March 1, 2009 - Page 4 (Page 4) The NonProfit Times - March 1, 2009 - Page 4 (Page 5) The NonProfit Times - March 1, 2009 - Page 4 (Page 6) The NonProfit Times - March 1, 2009 - Page 4 (Page 7) The NonProfit Times - March 1, 2009 - Page 4 (Page 8) The NonProfit Times - March 1, 2009 - Page 4 (Page 9) The NonProfit Times - March 1, 2009 - Page 4 (Page 10) The NonProfit Times - March 1, 2009 - AFP Conference Map (Page 11) The NonProfit Times - March 1, 2009 - AFP Conference Map (Page 12) The NonProfit Times - March 1, 2009 - AFP Conference Map (Page 13) The NonProfit Times - March 1, 2009 - AFP Conference Map (Page 14) The NonProfit Times - March 1, 2009 - Spring Clean-Up (Page 15) The NonProfit Times - March 1, 2009 - NPT Fundraising Guide (Page 16) The NonProfit Times - March 1, 2009 - Financial Paradox (Page 17) The NonProfit Times - March 1, 2009 - Business Briefs (Page 18) The NonProfit Times - March 1, 2009 - NPT Jobs (Page 19) The NonProfit Times - March 1, 2009 - Advertiser Index (Page 20) The NonProfit Times - March 1, 2009 - Advertiser Index (Page 21) The NonProfit Times - March 1, 2009 - Advertiser Index (Page 22) The NonProfit Times - March 1, 2009 - Advertiser Index (Page 23) The NonProfit Times - March 1, 2009 - Advertiser Index (Page 24)
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