Why Eurostar’s charity partnership with the Ashden Awards is a very good idea*

Partnering to create value 

Interested in fostering innovation, Eurostar has teamed up with the Ashden Awards for Sustainable Energy to create a new prize for local sustainable transport initiatives.

In principle, Eurostar could have created an infrastructure of its own – promoting the award, going out to find charities, getting some judges together, figuring out criteria, judging entries, creating some kind of award ceremony, getting press coverage of the award.

The Ashden Awards already has all that. By partnering with Ashden, Eurostar has saved itself all the bother of building it all, which (a)leaves more money in the kitty to help the great initiatives it finds and (b)leaves itself more time to help the great initiatives it finds. Plus Eurostar avoids painfully learning all the lessons about how to run an awards programme which Ashden has already learnt in its 11 year history.

“If you want to go far, go together” 

Great donors focus relentlessly on IMPROVING THE WORLD. They use anything and everything which helps with that. So they partner with other donors who know more than they do and share their existing infrastructure. They don’t let themselves get bogged down in the process of finding charities & dishing out money – but rather focus on where they can MOST IMPROVE THE WORLD. Following in the tracks of Warren Buffett’s partnership with Gates which save him building a whole machinery of his own, and Cheryl Cole’s partnership with the Prince’s Trust.

Good giving: all aboard.

*I would say this. It was my idea & me who introduced them!

What will Comic Relief let you do on an aeroplane?–>

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Cheryl Cole Foundation: The most important 3 words

It’s off to a great start. But trouble ahead? Here’s what it should do.

In its first year, Cheryl Cole’s Foundation is teaming up with the Prince’s Trust.

Good.

New donors almost always do well to partner with existing donors and existing charities. They get to learn without making mistakes of their own, and to piggy-back on existing infrastructure so get work done at very low cost. And given Ms Cole’s unsurprising focus on disadvantaged young people in Britain’s North-East, the Prince’s Trust will be a great teacher.

Trouble ahead?

Less cheery are hints on the Foundation’s website about plans after the first year. There’s talk of charities being able to “apply” to the Foundation which will post “a short application form to complete and all applicants will be asked to send in their accounts”.

This sounds like bad news because it sounds like gearing up to create a new infrastructure – to seek applications, make charities fill in forms, consider applications, make grants, monitor them….

Why? LOADS of grant-makers already exist and have that infrastructure. Piggy-backing on somebody else’s makes sense for new donors, and it makes sense for any donor.

Ms Cole, here’s what you should do:

Focus on a few areas. Donors get most done when they choose just a few areas in which to operate. So it’s great that in Year One, you have a single focus. I suggest never having more than four areas. Understand the problems you’re trying to solve: which you can only do if they are few in number.

In each area, partner with a donor who’s already there – just piggy-back on their infrastructure. It’ll work well for you in Year One, and it’ll work well for you forever. Less work for you faffing about receiving & reading forms from charities; and you’ll create less work for charities in filling in your forms. Far from leaving you then with no role, it frees you up from the business of sourcing & selecting charities – to crack on with raising funds, and actually helping them. Minimise the wastage you create.

Play to your strengths. All donors do best when they use for charity the skills and resources which are unique to them. For the Prince of Wales, that’s his convening power. For Goldman Sachs, it’s their financial wizardry which they used to create a bond, thought to have saved half a billion lives. For Dragon James Caan, it’s his public reputation for being good at picking winners, which he used to raise loads of money from the public for Pakistan after the earthquake. For you, my dear, it’s your amazing media pull. That gives you two opportunities. First, a great ability to raise funds. People will trust you to put on a good party which they’ll pay to come to, or to endorse a good beauty product, which they’ll pay for. So your auction of your clothes on ASOS.com is a great move. And second, ability to highlight issues in the press. You went with Comic Relief up Kilimanjaro: great coverage for Comic Relief. You got malaria: suddenly everybody knows about malaria. If you decide that you’re interested in female genital mutilation, or low-pay in jobs dominated by women working part-time, the public will hear a lot about that.

Don’t restrict yourself to charities. Charities are one (very good) way of creating change, but they’re only one tool in the box. If you’re serious about creating economic opportunities, you may do well to look at social enterprises, and/or funds which invest in social enterprises. Discriminate between organisations solely on their ability to create change, not on what their tax-code happens to be.

Cheryl: 3 words. Whatever it takes.

How we can get more pop princess’ giving to charity—>

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Promoting giving to charity is like marketing discretionary purchases

Getting more people to give to charity = getting people to change their behaviour. That is, it’s a marketing job. The same as getting you to buy Coke rather than Pepsi, or to buy stilton outside Christmas, to buy a Rolex at all, to join a club, to read a newspaper.

Giving is particularly tough to market because people can survive perfectly well without it. It’s like a discretionary purchase.

What then can we learn from how discretionary purchases are marketed?

First, make it desirable. Giving, and any other discretionary purchase, has to provide some benefit sufficiently substantial that people will part with money despite not needing to. Fun, humour, aspiration, opportunity to look cool, being ‘in the know’, social acceptability, convenience, getting one up, protecting your family, interesting experiences, buying into a dream… Red Bull gives you wings. You can’t beat the feeling. A crown for every achievement. Because I’m worth it. Sch…you know who. For successful living.

If something is desirable enough, people will do it – even if it’s difficult or expensive. The more desirable it is, the more difficulty or expense they’ll tolerate. People camp out overnight to get a new iPad2. Diamonds command huge price despite zero practical value and an indistinguishable cheaper substitute.

Some analyses about increasing giving make a fundamental error in solely addressing barriers. Perhaps removing barriers is necessary but it’s certainly not sufficient. No practical barriers prevent me from robbing my elderly neighbour or eating loads of cake. That’s not why I don’t do them: the reason I don’t do them is because they’re not remotely desirable to me. We also need a desirable carrot.

Actually, maybe barriers don’t matter at all. Coca Cola recently increased sales by over 1000% (yep, you read that right) by making purchases harder. Its vending machine was so high that a person couldn’t use it alone and needed a friend’s help. Social experiences are highly desirable.

Second, people don’t know why they do things or why they don’t or what would make them do things. As Henry Ford knew, punters have no idea what would make them part with money: “If I’d asked them, they’d have said a faster horse.” Focus group mums told cake companies that they wanted baking to take less time, so the companies made cake-mix: which the mums didn’t buy because that felt like cheating. You simply can’t rely on people to understand and report on why they don’t do things.

Third, segment the market. Whereas some of us want complexity, to be mavericks, to change the system, and think of ourselves as global citizens, others value simplicity, conforming, preserving the status quo and see ourselves primarily as citizens of our local community. That is, desirable experiences vary substantially between segments.

Maslow’s hierarchy of needs can be used to powerfully segment people according to the fundamental psychological need most pressing in them. Giving behaviour is consistent within each segment, but varies markedly between the segments: including whether people give, how they give, motivations for giving, interest in volunteering and the causes they select [evidenced in regular surveys comprising over 1000 questions with more than 8000 people, replicated internationally].

Philanthro-wonks beware: we are concentrated in one segment so need to learn to engage better people dissimilar from ourselves.

Also beware because few philanthro-wonks have backgrounds in marketing. We tend to be from more analytical backgrounds, so inaccurately assume that people are pretty rational.

How do you give yours?

The way to boost giving is to market it – like any other discretionary purchase. Make people aware at a relevant time, make it desirable in ways that are relevant to a variety of segments, and give people something to say about it to their mates afterwards.

Overpriced champagne, anyone?

How a single word could increase giving—>

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Why do charities ignore millions of donors?

Despite my giving £200 to Cancer Research UK through JustGiving when a friend did a sponsored something, I never heard a bean from Cancer Research UK about it. A year later, I gave £100 to another charity when another friend did a sponsored something. Heard nothing. And last month, I gave to a third charity when a third friend did a sponsored something. Again heard nothing.

What a dreadful experience.

And what idiotic behaviour by those charities. They act as though they had no interest in me or my money or support. I’ve not given to any of them again, though as it happens, I’m passionate about cancer and would have given loads more since then if only they’d asked.

Maybe JustGiving is deterring half the nation’s donors

Nearly half of donors in the UK give through the sponsorship website JustGiving*. I wonder whether they all have as thankless and uninspiring an experience as I did.

Charities claim to be terribly keen to get new donors, and know that recruiting new donors costs five times as much as retaining existing donors. Given the chatter in Charity Land about increasing giving and recruiting new donors, charities should surely be focusing hard on sponsorship because it’s such a good entry point – sponsoring a friend is very natural and very popular. Half the nation doesn’t give at all, and charities need to do much better than this to encourage them to start.

What should happen

“I’m so glad I did that. I’m really going to make sure that I do it again” is how charities should leave donors feeling. So at the very least, charities need to:

  • Thank donors for the donation
  • Give some indication of what they can do with that amount of money (“Your £200 will enable us to answer 57 calls to our helpline from people concerned about cancer”, or somesuch)
  • Offer to stay in touch in future, preferably with inspiring good news stories about what they’re achieving

It would be clever of them also to tell me about the number of other people who also give to that charity:  social norming is strong and I want to feel that I‘m part of some big club. They should have their letter written or ghosted by some celebrity or somebody whom the charity’s helped, so the donor feels a personal connection (“I was so worried when my dad got cancer last year. He was cured of it, and I’m so grateful to people like you who’ve given to support Cancer Research UK’s work who found how to cure him. Together we can beat this…” or something).

Does JustGiving make this hard?

Maybe it’s difficult for charities to contact donors through JustGiving. I don’t know: perhaps it only lets charities ‘see’ the marathon runners (or whatever) but not the friends who sponsor them. In which case, charities need to better arm their marathon runners to pass on thanks to their donors.

Have you had similar or better experiences with sponsorship?

I’m very interested in whether my three dismal experiences are typical and there’s a systemic problem, or whether the sponsorship experience is generally better.

When you’ve sponsored people, have you heard from the charities? Nicely? Did it encourage you to give again?

(First published here, which gathered much discussion.)

________________________

*JustGiving claims to have channelled donations from 13 million people. NCVO/CAF think that 28 million adults give in a typical month.

Sources: http://www.justgiving.com/about-us/press/latest-news/facts-and-figureshttp://www.cafonline.org/pdf/UK%20Giving%202010_101210.pdf

Chatter about increasing giving: The Cabinet Office’s Green PaperThe Philanthropy ReviewThe Giving Pledge etc etc.

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Raising funds? Just dress well!

Wearing designer logos virtually doubles donations

According to a study reported by The Economist, all you have to do to increase donations is to dress well! A team of volunteers knocking on doors solicited donations raised nearly twice as much when wearing designer gear as when they weren’t (38 EUR cents against 19).

This is particularly interesting because most people who work for charities (and are doing the asking) are not people interested in brands. They’re a different value mode: brand-conscious people tend to be outer-directed people, whereas most people in charities are inner-directed. To increase giving, people in charities need to become better at relating to people quite different from themselves.

Other ways to engage more people to give —>

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Who gives to charity, why, who doesn’t, why not & what to do about it

segmentation based on Maslow’s hierarchy of needs is helpful in showing who gives, who doesn’t, and how to get more people giving more substantially and more often. This paper describes the segmentation, gives the data about giving behaviour and recommendations of increasing giving: Aha – Driving Giving, April 2011.

The segmentation defines three groups of people according to the fundamental psychological need or ‘value’ which is most pressing in them. Giving behaviour is consistent within each segment, but varies markedly between the segments.

Who gives, who doesn’t and why not

Donors are most likely to be ‘inner directed’ people: society’s scouts who are interested in ethics, ‘issues’, analysis and complexity.

Least likely to give are ‘sustenance driven’ people: socially conservative, people concerned about belonging, tradition, drawn to authority.

Furthermore, it seems that all the inner directed people involved in charities may be detering the other two groups – outer directed people and sustenance driven people – from getting involved.

The segments choose very different causes. Sustenance driven are prefer institutions such as hospitals and ex-service personnel; outer directed people choose ‘people’ causes, eg, children, deaf /blind, training organisations; and inner directed people are drawn to the environment, heritage, culture and international development.

To increase giving

Giving has been promoted and dominated by one segment: to grow it, we need fresh approaches:

1. Reach out to each segment. Fish where the fish are: they go to different places, read different magazines, join different groups.

2. Make it desirable. Make giving more talkable, give people something to say on their Facebook status, make it more fun, more socialable – giving is often a totally silent activity – show people what their donation can achieve, make giving socially normal, avoid it feeling like a loss or a luxury.

3. Make it easy. Talking about the complexity of measuring results, for example, is great for inner directed people but probably scares others away.

Do inner directed people dominate the ‘philanthropy industry’?

We’re testing a hypothesis that they do. Find out your segment here, and then post your answer (indicated if you’d like to remain anonymous).

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Prince Harry: gives charity what he does best

Prince Harry goes to the Arctic: of course the press  go too.

Smart guy. He’s doing what great donors do best: bringing to his charitable passions the most valuable and most unusual resources he can access. Raising the profile and respect for the Armed Forces a focus for the foundation he’s established with his brother. They could have just raised money – “the least valuable social-change asset” according to Kurt Hoffman, former  director of the Shell Foundation. But they’ve rightly figured out that they can do much more than that.

His mother did this: taking cameras with her when she shook hands with people with HIV. Bill Clinton does it when he lends his brand to donors which encourages and emboldens them (the Clinton Hunter Initiative, set up with sports entrepreneur Tom Hunter; the Clinton Giustra Mining Initiative set up with mining magnate Frank Giustra). Consultants Bain & Co. did it when they incubated the now-hugely successful non-profit consultancy Bridgespan. My former neighbour’s eight-year-old child did it when he spent his Sunday afternoon washing neighbours’ cars to raise money for charity. Comic Relief does it when they publish all their impact data.

Donors invariably do best when they deploy everything they’ve got.  Good for Prince Harry.

What another prince has been doing for charity with a pop star—>

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Let’s inspire better giving, by… celebrating failure!

When did you last hear of a charity that was rubbish?

By some estimates, fully 60% of donations are made with no research into the charity’s performance.

Whereas about 0% of commercial investments are made with no research into the company’s performance.

Why the difference?

Because we never ever talk about bad charities. We hardly ever even talk about relative performance.

Commercial investors look for high-performance companies solely because they’re perfectly aware that poor-performing ones exist which they’d like to avoid. But most people just don’t know that some charities are much better – and, by implication, some much worse – than others. So of course it never occurs to them to find and avoid the poor-performing ones.

This isn’t some theoretical notion. I know of two programmes delivering the precise same outcome, one 96% cheaper than the other. It’s about education. So every time somebody funds one child through the more expensive programme, fully 24 children needlessly miss out. It’s described here, in Buy one, get 24 free!

We need to stop this.

All students must be above average

We don’t need to slag charities off, but can set up the notion of relative performance in how we talk. For example, rather than saying “x charity distributes books to schools in Ghana”, or even “x charity manages to distribute books to schools in Ghana for only $5/book”, it’s more powerful to say that “x charity delivers books to schools in Ghana more cheaply than any other programme”. Or “Y charity can provide the same level of care to more older people than other organisations do”, or “Z hospice is in the top quartile of hospices in the UK.” These types of statements are quite rare about charities, though perfectly normal elsewhere in our lives – schools, hospitals, local authorities, companies.

For sure it’s a tall order to do this. For one thing, evidence about charities’ individual performance is thin on the ground, let alone about their performance relative to others. But I see no attempt to rectify this. If you know of anybody publishing relative performance data, I’d be interested to hear. I have only ever seen the one example mentioned. And since we need more comparative data, we better be prepared to fund charities to collect it – or collect and collate it ourselves.

Of course, I appreciate that charities’ work varies – hospice care for a severely disabled person is a different kettle of fish to care for a non-disabled person – so comparisons are difficult. But that’s no excuse for not trying.

Since donors are allocating scarce resources, they obviously do make choices between charities. And if we – donors who are interested in ambitious charitable giving – never set up the notion of performance as a criterion, then it won’t be. We have only ourselves to blame if people choose based on other criteria – such as who’s famous, or large, or the best at asking for money, or has the best fluffy bunny photo.

So perhaps paradoxically those of us interested in high-impact giving should talk more about failure and about relative performance. If we only ever talk about charities being great, we feed the notion that giving to ANY charity is good enough. Which – if you’re one of those 24 children left behind – just isn’t true.

What’s great & what’s weird about Peter Singer’s book–>

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Buy one, get 24 free!

I just have to share this because it’s so stunning.

You want to improve education in rural India. A good start is to improve attendance. So you look at the causes of non-attendance: poor transport to/from school; children having no uniforms; parents having poor incentive / not seeing the incentive to send their children to school; children being ill because of intestinal worms. You design programmes to solve each problem.

Any of these sounds like a good idea. You could persuade a donor to fund any of them.

Well, crickey, it turns out that the differences in performance are just vast. The charming-sounding de-worming programme is fully 25 times cheaper than making payments to families if their children show up to school: a 96% discount. That is, for every child you reach through a ‘conditional cash transfer’ programme, fully 24 needlessly miss out.

Magic?

Here’s the really amazing thing. If you de-worm children School A in the village, you get better attendance not only there, but also in School B down the road – where you did precisely nothing. Magic? Well, it’s because worms are infectious and children play in close proximity – so de-worming School A reduces the chance of a child in School B getting worms, so their attendance improves too.

Salutory tale

Obviously the data here are striking in themselves. But what’s also remarkable is how rarely we see comparative data like these. Without them, for all we know, we’re routinely funding the uber-expensive, uber-wasteful programmes.

If we’re to make most difference with our charitable giving, we need to get these data. We need to fund charities to get them, or – better – fund somebody independent to get them.  

(This example comes from J-PAL – the Abdul Latif Jameel Poverty Action Lab in Massachusetts Institute of Technology, which specialises in randomised control trials of techniques for poverty alleviation.)

Source: http://southasia.oneworld.net/todaysheadlines/deworming-improves-school-attendance-says-report

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Of course we don’t discuss charitable giving: there’s no decent term for it

Language shapes how we think. No clear language: no clear thinking

What is this thing that we do? “Deploying money, time and other resources to achieve positive social and environmental change”. A snappy phrase, don’t you think??

I’ve been talking a lot recently about this (‘this’ being ‘deploying money, time….’), and am frustrated at the absurd length of the sentences I get into because… there’s no verb for this. What do you call it? I’m VERY interested to hear your ideas. I’ve heard several verbs used, all of which are pretty unhelpful & misleading in my experience:

“Giving” is too passive for what I mean. I give you a book at Christmas largely to signal that I like you. Sure, I hope that you’ll read and like it, but I’m not primarily trying to educate you. If you don’t read it, but nonetheless get joy from my having bothered to give it to you, that’s great. “It’s the thought that counts”, as all our mothers told us: the value is in the act of giving, rather than the ‘results’ – which I why I don’t audit your knowledge on the book a month later. It’s yours – to do with as you will. If you want to burn it, or “re-gift it”, that’s totally up to you. But not so with ambitious charitable giving: I don’t “give” time to the children’s charity of which I’m a trustee. I invest or deploy or use that time to help the children – I give through the charity. It’s not the thought that count: it’s the results.

“Giving it away” is even worse. It implies that the recipient is ‘away’ – distant from you. Carnegie was wrong: it isn’t, as he claimed, “more difficult to give money away than it was to make it”: all you need to do succeed at ‘giving money away’ is to stand in the street and dish it out. You won’t need long. Ambitious charitable giving isn’t about a recipient who’s ‘away’ – it’s about a recipient or cause that you care about, and hence you’re very interested in them doing a good job. Carnegie needed our missing verb: I suspect he meant that “it’s harder to deploy this money in such a way that it achieves positive social and environmental change”, which probably is harder than making it.

“Investing” is just confusing, because it’s so commonly used to mean something totally different (ie, deploying money to generate a financial gain). I don’t invest money in a human rights campaign: I have no expectation of seeing that money again – let alone with a profit – because the campaign has no mechanism for generating revenue.

“Donating” is possible, but also rather passive. Associated with loose change or taking clothes to second-hand shops, it hardly implies expectation of significant change, or holding the “don-ee” accountable.

It matters that there’s no term for it. Any passing socio-linguist will confirm that language shapes how we think – people normally only perceive things for which they have words, and the words signal what’s important. Hindi has different words for ‘elder brother’ and ‘younger brother’ because the difference matters.

However can we create a culture where people “use money and other resources to achieve positive social and environmental change” well (as opposed to badly) if we can’t even speak about it?

And by the way, it matters that there’s no verb. I happen to think that there’s no decent noun for this stuff either*, but even if there were, we’d still need a verb. “I’d like to [insert non-existent verb] better”, “this course / book / article will help you …. better”, “we’ve learnt so much from sport or business about how to [insert non-existent verb] well”, “they’ve made a great innovation in non-existent verb-ing.”

Ambitious charitable giving: what do you call yours?

~~~~~~~~~~

*These nouns include philanthropy, venture philanthropy, philanthrocapitalism. There are (in my view) good reasons to steer clear of these: (a)hardly anybody can spell them! (b)nobody, apart from philanthro-niks ever uses them, and (c)they’re horribly ill-defined. Often people discuss them at complete cross-purposes because they’re using them to refer to quite different things.

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