Market Analysis Charitable Organization

Market Analysis

1. General Market Profile

Based on the fundraising and marketing nature of PANI, the market analysis is based on the market that will provide charitable donations in order for the non-profit organization to purchase and donate water filtration systems to rural areas of Nepal. PANI was formed to reduce water borne diseases in Nepal due to poor sanitation in their water systems.

A. Individual Giving vs. Private Giving

The vast majority of contributions resulted from individual giving. In 2014, the largest source of charitable donations received from non-profit organizations originated from individuals at $258.51 billion, or 72% of total giving compared to corporations, which gave only $17.77 billion or 5% of charitable donations. The pie chart below shows all the data. ("Charitable Giving Statistics").

Chart 1. Individual Giving and Private Giving    

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B. Charitable Donations Based on Adjusted Gross Income

Those at the high end or low end of the income distribution give a higher percentage of their income as opposed to contributors in the middle. There is a U-shaped relationship between total adjusted gross income and charitable donations as shown by data from the IRS’s 2011 Statistics of Income in the chart below. Those making between $45,000 to $50,000 a year, the lowest average income from the set of data, gave 4 percent of their income to charitable causes. On the other end of the spectrum, those making $10,000,000 or more, the highest average income from the set of data, donated 5.9 percent of their income to non-profit organizations. The lowest giving individuals are those making $250,000-$500,000; they are in the middle of the set of data and donate only 2.4 percent of their income. The lowest paid individuals and the highest paid individuals donate the most to charitable organizations. The chart below breaks down charitable donations as a percent of adjusted gross income for the year of 2011 ("Charitable Giving in America: Some Facts and Figures.).

Chart 2. Charitable Donations Based on Income

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C. Charitable Donations by Age

By comparing the charitable donations among the five generation groups, generation Great and Silent are tied at 87.8 percent participation rate, which is the highest for all generations. Millennials have the lowest participation rate at 80 percent. However, participation of giving remains close among all generations with only 7.8 percent separating the lowest and highest participation rates. The chart below shows the percent of participation of giving among all five generations (“Generational Differences in Charitable Giving and in Motivations for Giving”).

Chart 3. Charitable Donations by Age

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D. Online Giving

Online giving is a simple, easy, and convenient way to raise money for non-profit organizations.  In 2013, overall charitable giving grew by 4.9 percent while online giving grew by more than double that or 13.5 percent; this was the second consecutive year that online giving grew double digits. Access to computers and the increase in social media usage has allowed non-profit organizations to grow online fundraising ("Charitable Giving Statistics").

2. Market Needs

The need for water filtration systems is essential in order to help alleviate the contraction of water borne diseases in Nepal; this is issue is taking the lives of thousands every year. Advertising will educate and inform about the need for water filtration devices in Nepal due to the lack of sanitation. With aggressive social media campaigns, PINA will illustrate the dire conditions in Nepal or how unpleasant it is to live in Nepal with unsanitary water. Through these advertising campaigns, Americas will realize just how important PINA’s cause is as well as how useful their purchase of merchandise or donations will be to those suffering in Nepal.