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Registered Charities

Public Trust and Confidence in Charities Holds Steady

Friday 12 November 2010

The Charities Commission has released two new research studies, measuring levels of public trust and confidence in charities, and looking at why people trust and feel confident in charities and how that affects their attitudes towards giving.

Both surveys have been published on the Charities Commission website www.charities.govt.nz. The Commission has made the research available to registered charities, and is encouraging them to use the findings to support their ongoing relationships with donors and supporters.

UMR Trust and Confidence in Charities Survey

The Commission undertook the UMR survey – its second – as part of its role in promoting research into public confidence in the charitable sector and matters relating to charities.

The survey found that a majority of respondents (55%) reported high levels of trust and confidence in charities, but this figure had slipped slightly from 58% in November 2008, and there is some evidence that the public are now viewing charities more critically.

Charities Commission chief executive Trevor Garrett says that publicity about charities' fundraising and easier access to information about charities may have influenced public perceptions about charities. Views may also have been influenced by the wider economic climate. "Many businesses and householders have had to reassess their earnings and their spending during the last year or so, and they also expect charities to look closely at how they raise income and make sure they spend it effectively."

However, the number of people reporting they donated more than $250 in the past 12 months increased from 25% to 31%.

"Looking at why people give to charities, the survey found that the most important reasons why they donate are because the charity works towards an end cause that is important to the giver, and because they believe the charity makes a difference to the matters it is addressing."

Mr Garrett said that Annual Returns filed during the past year by the 25,500 charities registered with the Commission showed donations of almost three quarters of a billion dollars.

The survey also showed a significant increase in public awareness of the Charities Commission (up 10% from November 2008, to 67%), and that almost a third of those respondents had referred to the public Charities Register to find out information about a charity.

"The vast majority of people – 84% – also said they were more likely to trust charities that are registered with the Commission, and that are transparent about how they use their money," he says. "This survey tells us that the public are becoming more critical of how charities use their donations, and are more likely to trust those that are transparent, use their money wisely, and make sure it goes towards helping the people or cause they were set up for, " Mr Garrett says.

Empathy Insight Report – Public Trust and Confidence

The Charities Commission has released research showing that the reasons behind people's trust and confidence in charities tend to remain the same, regardless of whether they have a low, medium or high level of trust in the charitable sector overall.

The research found that even if a person has a lower level of trust in the charitable sector overall, they may still trust individual charities. However, they don't necessarily give to charities they do trust, and may in fact give to some charities they don't particularly trust or have confidence in.

Charities Commission chief executive Trevor Garrett says that having trust and confidence in a charity is just one of the factors that influences giving (of both donations and time). Other factors, such as having been a recipient of a charity's services, also influences trust and confidence.

"Between them, the more than 17,000 charities who filed Annual Returns with the Commission for the year ending 30 September 2010 reported donations of more than three quarters of a billion dollars. It is useful to understand why people do or don't trust charities, and how this might affect their donating and volunteering behaviour," he says. "This knowledge can help charities to design their appeals more effectively, and ensure they give donors the confidence they need to continue their support, and to attract the volunteers who help them make a difference."

"During the past 18 months, trust in charities has remained consistent, with 55% of people saying they have a high or very high level of trust in charities. This research shows that people who had a lower level of trust and confidence in the charitable sector overall still tended to have a high level of trust in individual charities, especially if they could see what the charity was achieving and relate to it."

My Garrett says the research emphasises the need for charities to "tell their story", and show their supporters that they spend their money wisely, and make a difference to the end cause.

"What people are telling us is that they are most likely to support charities whose work they can see and can relate to, and that they want to see tangible outcomes – such as the new roof on the church, or the new equipment being used to help people. "Many of the people who took part in the research made special mention of particular charities, either because they had seen or experienced their work first-hand, or because they knew they might need their help one day."

However, he says, charities may wish to take note of some of the things that people said made them feel less likely to trust or have confidence, and to use that information when designing their appeals or publishing information about their achievements.

The Commission is running a series of discussion groups about the research findings with charities.