Challenges and Opportunities in Dutch Philanthropy Sector

 
A helping hand?
 
Challenges for the Dutch philanthropic sector and
the possibilities of crowdfunding
 
The Dutch Days @ISTR
|
 July, 12
VU University Amsterdam
|
 The Netherlands
Claire van Teunenbroek | Center for Philanthropic Studies, VU Amsterdam
 
Purpose
 
Determine
 
whether
 an 
increasing
 focus 
on
crowdfunding
 is a logical step for the
philanthropic
 sector
1.
The Dutch 
philanthropic
 sector
A 
changing
 donor, eight donation incentives 
(Bekkers & Wiepking, 2011)
2.
Key 
characteristics
 of crowdfunding
Funding strategy
 
12-7-2018
 
Dutch Days @ ISTR 2018
 
2
 
The Dutch philanthropic sector
 
The non-profit sector in the Netherlands is an
economic force of significance
The total value of philanthropy in the
Netherlands amounts to 0.85% of GDP, about 5.7
milliard euro
Viewed as a complimentary source rather than a
substitute to the government 
(Bekkers, de Wit & Felix,
2017)
In 2015 about 81% of the households made a
donation
Average donation amount: 352 euros
 
Dutch Days @ ISTR 2018
 
3
 
12-7-2018
 
Philanthropy as a floating vest?
 
Charities note that it has become harder to reach
potential donors
Donors are less likely to give
In 1999 the Dutch donated 0.93% of GDP, this decreased to
0.77% in 2015
Subsidy cuts have not increased donations
Funding strategies are less effective
Are they still meeting up to the expectations of the
donors?
The most frequent solicitation method is still a house-
to-house solicitation
 
Dutch Days @ ISTR 2018
 
4
 
12-7-2018
 
A changing donor
 
Philanthropy is changing, and with it, the donors.
There is a clear downward trend in the donation
participation rate: less people donate
Segregation & declining prosocial values 
(Bekkers, de Wit &
Felix, 2017))
Less emotionally committed (GIN, 2017): giving from
the hearth and the head
 
Think about:
What do these donors 
need
 and expect from charities
before
 and 
after
 they made a donation?
 
 
Dutch Days @ ISTR 2018
 
5
 
12-7-2018
 
A pound for the orphans?
 
Mr. Ford: Well, I want you to give me a pound, and then I go away and give it to the orphans.
Banker: Yes?
Mr. Ford: Well, that's it.
Banker: I don't follow this at all, it looks to me as though I'm a pound down on the whole deal.
Mr. Ford: Well, yes you are.
Banker: I am! Well, what is my incentive to give you the pound?
Mr. Ford: Well the incentive is to make the orphans happy.
Banker: (puzzled) Happy? You quite sure you've got this right?
Mr. Ford: Yes, lots of people give me money.
Banker: What, just like that?
Mr. Ford: Yes.
 
 
Monthy Python, merchant banker (season3, episode 4)
 
12-7-2018
 
Eight donation incentives 
(Bekkers & Wiepking, 2011)
 
Psychological
 benefits: warm glow feeling
Awareness of need
Solicitation: being asked
Less important?
Cost and benefits
Altruism
Reputation
Values
Efficacy: impact
 
12-7-2018
 
Dutch Days @ ISTR 2018
 
7
 
Funding strategy: crowdfunding
 
Crowdfunding is an online funding tool, where any
individual with a good idea can launch a
philanthropic campaign.
Developed here in Amsterdam in 2006 
(Borst, 2014)
 
 
Dutch Days @ ISTR 2018
 
8
 
12-7-2018
 
Crowdfunding
 
Main question: 
Is crowdfunding in line with
the next generation of givers?
Present 9 key characteristics of crowdfunding
 
Dutch Days @ ISTR 2018
 
9
 
12-7-2018
 
Online (1)
 
12-7-2018
 
Dutch Days @ ISTR 2018
 
10
 
Project oriented (2)
 
12-7-2018
 
Dutch Days @ ISTR 2018
 
11
 
Specific (3)
 
12-7-2018
 
Dutch Days @ ISTR 2018
 
12
 
Transparent (4)
 
Dutch Days @ ISTR 2018
 
13
 
12-7-2018
 
Democratic (5)
 
 
 
Dutch Days @ ISTR 2018
 
14
 
12-7-2018
 
Updates (6)
 
Dutch Days @ ISTR 2018
 
15
 
12-7-2018
 
Community and active (7)
 
Dutch Days @ ISTR 2018
 
16
 
12-7-2018
 
Not just a drop in the bucket (8)
 
Dutch Days @ ISTR 2018
 
17
 
12-7-2018
 
Rewards (9)
 
Dutch Days @ ISTR 2018
 
18
 
12-7-2018
 
No financial intermediaries (10)
 
Dutch Days @ ISTR 2018
 
19
 
12-7-2018
 
Key characteristics of crowdfunding
 
Online
Transparent
Strategy
Updates
Project oriented
Specific
No financial
intermediaries
 
 
Dutch Days @ ISTR 2018
 
20
 
12-7-2018
 
Democratic
Beyond the ATM
From giver to
contributor
Focus on relationships
Rewards
 
A helping hand?
 
The use of the internet to reach potential donors
has not increased since 2007
6% donated to an internet campaign in 2005 and 7%
in 2015 (GIN).
Makes up for <1% of the giving in the US and
Netherlands
 
12-7-2018
 
Dutch Days @ ISTR 2018
 
21
 
Next step
 
The scientific debate on crowdfunding  is in
the begin stage 
(Short et al., 2017)
A significant amount of studies focused on
increasing the success 
(Kshetri, 2015)
How can we increase the 
popularity
 of
crowdfunding?
 
12-7-2018
 
Dutch Days @ ISTR 2018
 
22
 
Thank you
 
Claire van Teunenbroek, PhD candidate   | 
Center for Philanthropic Studies
Email: p.s.c.van.teunenbroek@vu.nl | Twitter: @PSCTeunenbroek
Site: 
https://crowdfundingpscvt.wordpress.com/
 
 
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The Dutch philanthropic sector faces challenges such as changing donor behaviors and decreased donations. This has led to a discussion on the viability of crowdfunding as a funding strategy. With philanthropy being a significant economic force in the Netherlands, the sector is exploring new ways to engage donors effectively. The article also delves into the characteristics of crowdfunding and its potential impact on the traditional philanthropic model.


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  1. A helping hand? Challenges for the Dutch philanthropic sector and the possibilities of crowdfunding The Dutch Days @ISTR| July, 12 VU University Amsterdam| The Netherlands Claire van Teunenbroek | Center for Philanthropic Studies, VU Amsterdam

  2. Purpose Determine whether an increasing focus on crowdfunding is a logical step for the philanthropic sector 1. The Dutch philanthropic sector A changing donor, eight donation incentives (Bekkers & Wiepking, 2011) 2. Key characteristics of crowdfunding Funding strategy 12-7-2018 Dutch Days @ ISTR 2018 2

  3. The Dutch philanthropic sector The non-profit sector in the Netherlands is an economic force of significance The total value of philanthropy in the Netherlands amounts to 0.85% of GDP, about 5.7 milliard euro Viewed as a complimentary source rather than a substitute to the government (Bekkers, de Wit & Felix, 2017) In 2015 about 81% of the households made a donation Average donation amount: 352 euros 12-7-2018 Dutch Days @ ISTR 2018 3

  4. Philanthropy as a floating vest? Charities note that it has become harder to reach potential donors Donors are less likely to give In 1999 the Dutch donated 0.93% of GDP, this decreased to 0.77% in 2015 Subsidy cuts have not increased donations Funding strategies are less effective Are they still meeting up to the expectations of the donors? The most frequent solicitation method is still a house- to-house solicitation 12-7-2018 Dutch Days @ ISTR 2018 4

  5. A changing donor Philanthropy is changing, and with it, the donors. There is a clear downward trend in the donation participation rate: less people donate Segregation & declining prosocial values (Bekkers, de Wit & Felix, 2017)) Less emotionally committed (GIN, 2017): giving from the hearth and the head Think about: What do these donors need and expect from charities before and after they made a donation? 12-7-2018 Dutch Days @ ISTR 2018 5

  6. A pound for the orphans? Mr. Ford: Well, I want you to give me a pound, and then I go away and give it to the orphans. Banker: Yes? Mr. Ford: Well, that's it. Banker: I don't follow this at all, it looks to me as though I'm a pound down on the whole deal. Mr. Ford: Well, yes you are. Banker: I am! Well, what is my incentive to give you the pound? Mr. Ford: Well the incentive is to make the orphans happy. Banker: (puzzled) Happy? You quite sure you've got this right? Mr. Ford: Yes, lots of people give me money. Banker: What, just like that? Mr. Ford: Yes. Monthy Python, merchant banker (season3, episode 4) 12-7-2018

  7. Eight donation incentives (Bekkers & Wiepking, 2011) Psychological benefits: warm glow feeling Awareness of need Solicitation: being asked Less important? Cost and benefits Altruism Reputation Values Efficacy: impact 12-7-2018 Dutch Days @ ISTR 2018 7

  8. Funding strategy: crowdfunding Crowdfunding is an online funding tool, where any individual with a good idea can launch a philanthropic campaign. Developed here in Amsterdam in 2006 (Borst, 2014) 12-7-2018 Dutch Days @ ISTR 2018 8

  9. Crowdfunding Main question: Is crowdfunding in line with the next generation of givers? Present 9 key characteristics of crowdfunding 12-7-2018 Dutch Days @ ISTR 2018 9

  10. Online (1) 12-7-2018 Dutch Days @ ISTR 2018 10

  11. Project oriented (2) 12-7-2018 Dutch Days @ ISTR 2018 11

  12. Specific (3) 12-7-2018 Dutch Days @ ISTR 2018 12

  13. Transparent (4) 12-7-2018 Dutch Days @ ISTR 2018 13

  14. Democratic (5) 12-7-2018 Dutch Days @ ISTR 2018 14

  15. Updates (6) 12-7-2018 Dutch Days @ ISTR 2018 15

  16. Community and active (7) 12-7-2018 Dutch Days @ ISTR 2018 16

  17. Not just a drop in the bucket (8) 12-7-2018 Dutch Days @ ISTR 2018 17

  18. Rewards (9) 12-7-2018 Dutch Days @ ISTR 2018 18

  19. No financial intermediaries (10) 12-7-2018 Dutch Days @ ISTR 2018 19

  20. Key characteristics of crowdfunding Online Transparent Strategy Updates Project oriented Specific No financial intermediaries Democratic Beyond the ATM From giver to contributor Focus on relationships Rewards 12-7-2018 Dutch Days @ ISTR 2018 20

  21. A helping hand? The use of the internet to reach potential donors has not increased since 2007 6% donated to an internet campaign in 2005 and 7% in 2015 (GIN). Makes up for <1% of the giving in the US and Netherlands 12-7-2018 Dutch Days @ ISTR 2018 21

  22. Next step The scientific debate on crowdfunding is in the begin stage (Short et al., 2017) A significant amount of studies focused on increasing the success (Kshetri, 2015) How can we increase the popularity of crowdfunding? 12-7-2018 Dutch Days @ ISTR 2018 22

  23. Thank you Claire van Teunenbroek, PhD candidate | Center for Philanthropic Studies Email: p.s.c.van.teunenbroek@vu.nl | Twitter: @PSCTeunenbroek Site: https://crowdfundingpscvt.wordpress.com/

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