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A global perspectives series: Fundraising in Italy

A global perspectives series: Fundraising in Italy

Dear Diary,

I am overjoyed to share with you my interview with Francesca DeMarco, a fundraising and philanthropy consultant, based in Northern Italy. Francesca and I discussed relevant and timely topics that include donor engagement and trust in Italy, but translatable to everyone around the world.

On behalf of my readers, Francesca, thank you so much for sharing all of this knowledge with us.

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Question: Please describe the nature of charitable giving in Italy.

Francesca: In my experience charitable giving in Italy is characterized by two competing characteristics naturally pervasive in this culture: generosity and skepticism.

Italians are very generous and respond immediately to calls for help. In fact, 39% of Italians see charitable giving as something to do on demand, when necessity hits (such as a natural disaster). We see this time and again in local emergencies such as COVID or earthquakes and in global emergencies such as the war in Ukraine. Unfortunately, the corollary to this is that only 24% see giving as an essential component of their lives which they plan and do each year. (Donare 3.0).

These statistics are evidence of an underdeveloped philanthropic culture in general society. This is partly due to the second characteristic: Skepticism for any institution deriving from a history of political instability and corruption. There is distrust as to how an organization is run and how it spends its money, whether public funds or philanthropic donations.

I would argue though – and have seen – that good, methodical fundraising can overcome the latter to take advantage of the former.

Question: Francesca, thank you for mentioning trust because it does seem like an international concern and topic when it comes to philanthropic entities. I was reading about the decline of giving after Covid in Italy (Source) , and I believe a lot of countries also saw an understandable decline in giving. Can you share how you are analyzing giving trends as of late, and what you think people should focus on?

Francesca: The number of Italians supporting charities was indeed off in 2021 after the 2020 pandemic year. But this number rebounded a bit in 2022, likely due to campaigns responding to the war in Ukraine. We still won’t have the official 2023 numbers for a few more months.

Other trends that are a little more up to date: In 2023, 1 in 4 Italians gave to medical/scientific research (i.e. cancer research) and 1 in 5 gave to emergencies such as natural disasters or humanitarian causes. This was partly driven by severe flooding in our North/Central region (Italiani Solidali 2023 by BVA DOXA).

Crowdfunding platforms are seeing increased traffic, with one of the largest sites, GoFundMe, seeing an increase of 66% in the number of donations from 2022 to 2023. This is a very interesting indicator of personal fundraising and community engagement: People are getting involved as ambassadors to a cause and the aggregation of gifts can be seen in some cases as an expression of political will. They are voting with their pocketbooks.

And the reason Italians give is shifting: In the past, giving has been an act of solidarity, joining in something larger than ourselves. However, now it is more driven by impact. In a 2023 survey, 44% of donors said that their key motivator was to do something concrete to help others (Waldenlab Osservatorio sulle donazioni 2023).

Question: I am curious as to how these donors are defining “something concrete”? And what is your reaction to this motivation?

Francesca: I believe they are responding to specific requests as opposed to vague needs. So, an ask such as “Your 80 Euros will provide 20 meals to the homeless” is more convincing than “Help us feed the hungry.” It’s about the trust issue: they want to help other people, not organizations. We are seeing lots of these impact calculators all over websites. While, ultimately, I would prefer giving to be less “transactional,” donors rightly want to feel like their individual gift is making a difference. It’s up to the organization to steward them well and engage them further.

Question: As we all know, cultural norms differ, and all engagement and cultivation strategies are not adoptable in every country. Can you share three cultivation strategies that fundraisers should know when engaging with Italians in their country?

Francesca: Right. Strategies differ but, in the end, it’s all about creating and nurturing a meaningful relationship. So how to do that in Italy?

To counteract the natural societal skepticism discussed earlier, this relationship has to be based on trust.

To start, transparency and honesty in reporting is key. Many organizations have gotten very good at this through their annual reports, or bilancio sociale. These are also very useful in responding to the impact motivator we noted. The most sophisticated and compelling versions are very thorough through concise snapshots of the organization and include solid data on not only the activities funded by donations, but also the full financial picture, governance structure, historical trajectory and plans for the future all wrapped into one. 

A very effective technique is peer to peer cultivation and solicitation. A potential donor often finds another donor as opposed to a paid representative of the organization more credible and trustworthy – again due to this skepticism. Thus, asking committed donors to sign letters, speak on video, join one-to-one meetings or share their experience at events can be very helpful in addition to staff touch points. 

Lastly, I have found that testimonials from the ultimate beneficiary of the contribution is useful and captivates the emotional and rational side of a prospect’s decision making. A personal story about the need and the way the contribution helped to address it concretely is effective if told in letters, video or in person at events.

None of this is rocket science, the key is a well-planned and personalized approach – just like in the U.S.

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Thank you again, Francesca. You have provided so many key elements in fundraising that many around the world are currently experiencing in regard to stewardship, impact giving, and engagement.

Diary readers, where should we go next on our learning journey? Let me know in the comments. Did you know that this interview is part of A Global Perspective Series? Make sure to check out the other interviews.

 

Until next time, June 15th!

 

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