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Vietnam philanthropy report

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As anywhere, people have a tendency to support causes more when they relate to that person.For example, Senior Citizens are more likely to contribute toward charities that support Senior

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The LIN Center for Community Development serves grassroots not-for-profit organizations

(NPO) and individual and corporate philanthropists

Through bringing together NPOs & donors, resources such as expertise, knowledge, and fundscan be pooled to help local people to meet local needs

Given LIN s aim to advance a more efficient and responsive philanthropic environment, Cimigooffered to conduct a study amongst the general population of Vietnam to understand their

sentiments toward philanthropic activity

This report contains the state of play of philanthropic

attitudes and sentiments in Vietnam today

We hope you enjoy this report and continue to

support LIN s mission

2

This report contains the state of play of philanthropic

attitudes and sentiments in Vietnam today

We hope you enjoy this report and continue to

support LIN s mission

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Philanthropy in Vietnam Today

In Vietnam there is a high incidence of giving (82%), but at a low frequency and with relativelysmall sums People give what they can, but with 63% indicating they have refused to give to acharity due to lack of trust, clearly this is a barrier to opening up more sources of support

The biggest causes that trigger support relate to disaster relief and charities for children and thedisabled This may cause problems for smaller NPOs that focus on, for example, community

development projects as this type of cause is not top-of-mind for the general population

As anywhere, people have a tendency to support causes more when they relate to that person.For example, Senior Citizens are more likely to contribute toward charities that support SeniorCitizens This lends itself to opportunities to increase efficiency of NPO activity through reachingout to people who are connected in some way to that NPO s specific cause

People tend to find out about charities as a result of direct contact or via friends, perhaps linked

to their need for trust But actual engagement with charities is triggered by a very wide range

of sources from local residential authorities through to online This fragmentation may causedifficulties for smaller NPOs to manage

3

In Vietnam there is a high incidence of giving (82%), but at a low frequency and with relativelysmall sums People give what they can, but with 63% indicating they have refused to give to acharity due to lack of trust, clearly this is a barrier to opening up more sources of support

The biggest causes that trigger support relate to disaster relief and charities for children and thedisabled This may cause problems for smaller NPOs that focus on, for example, community

development projects as this type of cause is not top-of-mind for the general population

As anywhere, people have a tendency to support causes more when they relate to that person.For example, Senior Citizens are more likely to contribute toward charities that support SeniorCitizens This lends itself to opportunities to increase efficiency of NPO activity through reachingout to people who are connected in some way to that NPO s specific cause

People tend to find out about charities as a result of direct contact or via friends, perhaps linked

to their need for trust But actual engagement with charities is triggered by a very wide range

of sources from local residential authorities through to online This fragmentation may causedifficulties for smaller NPOs to manage

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Areas of support for NPOs that LIN may want to explore further

The data would suggest that there are some key areas that LIN and partners may want to explorefurther to help support NPOs in gaining traction with the general population:

Trust: It is difficult for smaller NPOs to build consciousness and credibility with the public, and yet

overcoming this barrier is key to triggering support LIN may be able to help through:

Arranging partnerships with larger brands so that the brand s image supports the NPO sContinue to build LIN s profile so that it can be used as a referee for lesser-known NPOsEngage with authorities to build an officially recognised register of accredited NPOs

Efficiency: Greater outcomes relative to inputs can be yielded by targeting groups of people who

have a closer connection to an NPO s cause LIN may be able to help through:

Capability building in the area of segmentation and identification of target groups

Social Media: Online social media combines the benefits of personal referral from friends, direct

contact from NPOs, and ease of reaching target groups Cost of entry is also low Consequently,this might become a key medium for engaging supporters LIN could support by:

Capability building & training on the deployment and use of social media

Donation Channels: It may be difficult for people to donate even small sums frequently as it is

unclear where or how to give LIN could support by:

Exploring new means of making donations, e.g with mobile money transfer services, thatmake it possible to conduct national collections of smaller sums with convenience for all

4

The data would suggest that there are some key areas that LIN and partners may want to explorefurther to help support NPOs in gaining traction with the general population:

Trust: It is difficult for smaller NPOs to build consciousness and credibility with the public, and yet

overcoming this barrier is key to triggering support LIN may be able to help through:

Arranging partnerships with larger brands so that the brand s image supports the NPO sContinue to build LIN s profile so that it can be used as a referee for lesser-known NPOsEngage with authorities to build an officially recognised register of accredited NPOs

Efficiency: Greater outcomes relative to inputs can be yielded by targeting groups of people who

have a closer connection to an NPO s cause LIN may be able to help through:

Capability building in the area of segmentation and identification of target groups

Social Media: Online social media combines the benefits of personal referral from friends, direct

contact from NPOs, and ease of reaching target groups Cost of entry is also low Consequently,this might become a key medium for engaging supporters LIN could support by:

Capability building & training on the deployment and use of social media

Donation Channels: It may be difficult for people to donate even small sums frequently as it is

unclear where or how to give LIN could support by:

Exploring new means of making donations, e.g with mobile money transfer services, thatmake it possible to conduct national collections of smaller sums with convenience for all

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Part 1.

What is our propensity to give today?

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The vast majority of people (8-in-10) do make contributions to charitable organisations, but with low frequency

Contributed to Charitable Organisation (%)

82 18

Given money, time, or expertise in Past 5 Years

Yes No

The incidence of giving is high, but the

frequency of giving is low, 2-3x per year or

less

This may indicate an opportunity to increase

frequency through overcoming barriers;

barriers could include:

Trust is the receiver reliable?

=> Monthly 4-5x 2-3x 1x None

The incidence of giving is high, but the

frequency of giving is low, 2-3x per year or

less

This may indicate an opportunity to increase

frequency through overcoming barriers;

barriers could include:

Trust is the receiver reliable?

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Contributions tend to be monetary, and in relatively small sums

Value of Contributions in Past 1 Year in VND (%)

64 19 10 11 6

Size of annual contribution

<500k 500k-1m >1m-5m >5m-10m >10m Not Money

People often give what they can and the headline is not meant in a disparaging way But the

low frequency and low sums may indicate systemic problems that LIN and partners could work

to overcome:

Trust are people giving less because of misuse worries?

Understanding do people give money because it is easier or is it they unaware that

physical effort or expertise can also be given ?

Channel people may not know how or where to give The sums are too small for banks(and many won t have bank accounts) Collection points may be too dispersed to be

convenient LIN & partners may want to consider partnerships with emerging mobile

money-transfer companies that would allow for national-scale collection with ease &

convenience for people, and able to handle small-sum transfers too

7

People often give what they can and the headline is not meant in a disparaging way But the

low frequency and low sums may indicate systemic problems that LIN and partners could work

to overcome:

Trust are people giving less because of misuse worries?

Understanding do people give money because it is easier or is it they unaware that

physical effort or expertise can also be given ?

Channel people may not know how or where to give The sums are too small for banks(and many won t have bank accounts) Collection points may be too dispersed to be

convenient LIN & partners may want to consider partnerships with emerging mobile

money-transfer companies that would allow for national-scale collection with ease &

convenience for people, and able to handle small-sum transfers too

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Part 2.

Which causes are likely to stimulate us to give?

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Vietnamese people are most likely to come together to alleviate a disaster or to support the disabled & children But this may

highlight problems for smaller, community oriented NPOs

Causes Most Likely to Support (%)

42 52 62 Childrens' Rights & Dev.

Help Disabled People

Disaster Relief

Whilst revealing the widespread support for the

major causes, it also reveals the difficulty that

many smaller, grass-roots NPOs may have in

attracting funds

If these smaller NPOs are focused on community

development issues, for example, this may not be

top-of-mind for people to donate to

This perhaps highlights the importance of

organisations such as LIN to help stimulate

funding of these smaller, but still worthy activities

9

12 15 23 25 30 39 42

Community Dev.

Healthcare Senior Citizens Environment Education Poverty & Welfare Childrens' Rights & Dev.

Whilst revealing the widespread support for the

major causes, it also reveals the difficulty that

many smaller, grass-roots NPOs may have in

attracting funds

If these smaller NPOs are focused on community

development issues, for example, this may not be

top-of-mind for people to donate to

This perhaps highlights the importance of

organisations such as LIN to help stimulate

funding of these smaller, but still worthy activities

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17 32

35 49

Senior Citizens - 15-24 Senior Citizens - >50

Children - Males Children - Females

Causes Most Likely to Support (%)

Some Demographic Differences

Targeting groups and segmenting donors may help in the efficiency

of gathering donations

Some variations were observed within

demographics, but in largely obvious ways

For example older people were more likely to

support Senior Citizens charities than

younger people

This suggests, as with marketing branded

products, a segmentation of donors is likely

to yield greater efficiencies

LIN and partners may be able to help NPOs

identify target groups that will be more

responsive to engagement with that

particular NPO and cause

10

28 39

47 57 17

Education - HCMC Education - Hanoi

Disabled - Hanoi Disabled - HCMC Senior Citizens - 15-24

Some variations were observed within

demographics, but in largely obvious ways

For example older people were more likely to

support Senior Citizens charities than

younger people

This suggests, as with marketing branded

products, a segmentation of donors is likely

to yield greater efficiencies

LIN and partners may be able to help NPOs

identify target groups that will be more

responsive to engagement with that

particular NPO and cause

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Part 3.

Who are we likely to give to?

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Whilst international NPOs, religious bodies, and government

agencies have most support in total, it is clear that there is room for independent NPOs as well

Your 1 st Choice for Donations (%)

25

9 13 17 30 32

Corporate Programs (e.g Vinamilk fund;

Vina Capital Foundation fund)

Intern'l Orgs (e.g.Operation Smile, Handicap international)

VN Govermental Orgs (e.g Fatherland

Front,Women's Union) Religious Orgs (e.g Pagodas, Churches)

VN Independent Orgs (e.g.local orphanages, disabled schools )

HCMC Hanoi

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Issues with reliability and transparency have caused 6-in-10 people not to give to a charity at some point

Ever Refused to Give to a Charity (%)

63 38 Refused to give?

Yes No

Reason for Refusal (%)

A reason for some of the major

governmental and religious bodies to be

a first choice may be due to their

longevity of establishment and thus

supposed trustworthiness

With 6-in-10 having refused to give to

charity at some point, clearly there s an

opportunity for LIN and partners to

support the perception of credibility of

many other NPOs

13

Reason for Refusal (%)

2 12 22

63 65

Other

I don't know how to Not enough time or money Process of funding is unclear Organisation is not "Reliable"

A reason for some of the major

governmental and religious bodies to be

a first choice may be due to their

longevity of establishment and thus

supposed trustworthiness

With 6-in-10 having refused to give to

charity at some point, clearly there s an

opportunity for LIN and partners to

support the perception of credibility of

many other NPOs

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A way to stimulate trust as well as funding may be to work hand in hand with manufacturers or other brand owners

More Likely to Try a Product

If Profits Went to a Charity (%)

4% I would give it a try

If given a choice between two products, with

one having some of the profit go to a charity,

nearly half of people said they would try

that product

With smaller organisations perhaps

struggling to demonstrate credibility, it may

be possible to partner with established

brands for mutual benefit

The benefits are not just in the funding from

the brand owner, but also the halo effect of

a trustworthy brand supporting a

(Price,brand,etc)

I would not try it

If given a choice between two products, with

one having some of the profit go to a charity,

nearly half of people said they would try

that product

With smaller organisations perhaps

struggling to demonstrate credibility, it may

be possible to partner with established

brands for mutual benefit

The benefits are not just in the funding from

the brand owner, but also the halo effect of

a trustworthy brand supporting a

lesser-known NPO

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Part 4.

And how can we get the word out

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Online social networks may need to become a key channel as they can be mass and yet still maintain direct & personal contact to build necessary trust

Sources of Information on Charitable Organisations (%)

33

38 Friend Referral

Direct Solicitation

Perhaps because of the trust factor, direct

contact with a charity or friendships are important

sources of information However, these

approaches are people-heavy and difficult to turn

mass

Given that the vast majority of young people and

higher-income groups are now online in urban

areas, NPOs probably need to consider this

channel, particularly via social networks, to get

their cause heard & supported

Social networks combine the factors of direct

approach, friend referral, and ease of access

Social media capability building could be a key

area of support that LIN and partners could

provide

16

22 9 24 26 33

Other Radio Newspaper

TV Online

Perhaps because of the trust factor, direct

contact with a charity or friendships are important

sources of information However, these

approaches are people-heavy and difficult to turn

mass

Given that the vast majority of young people and

higher-income groups are now online in urban

areas, NPOs probably need to consider this

channel, particularly via social networks, to get

their cause heard & supported

Social networks combine the factors of direct

approach, friend referral, and ease of access

Social media capability building could be a key

area of support that LIN and partners could

provide

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