December 2010 Quick Survey Analysis

By Rory Hayes, Volunteer Researcher, Directory of Social Change

In our December Quick Survey we asked:

More and more company giving to charities is in the form of ‘in-kind’ rather than cash donations. This can include anything from allowing staff to volunteer, to using company premises, to donating equipment, to helping promote the charity’s cause or brand. DSC believes that this trend disguises a lack of cash donations flowing from companies to charities, and that charities prefer cash to other kinds of support. Do you…

There were 371 responses, including 118 written comments. A selection of the comments are provided below, following the main themes of opinion which appear in bold.

A large majority of respondents preferred cash donations and the freedom and flexibility they provide…

‘‘Companies like to get rid of old equipment… cash means the charity can decide what is best to do.’’

‘‘It is difficult for us to find things that companies would be able to donate. Cash is vital for us to survive in the current climate.’’

‘‘In-kind gifts have their value, as does the time/expertise that companies can provide, however cash donations can allow for unrestricted funds that assist where grants may not be able to - i.e. to cover overheads, unexpected expenses/repairs.’’

‘‘Often the type of support offered is actually of no use to a particular organisation. Cash is always useful.’’

‘‘In-kind donations are of course much appreciated, but sometimes they may not quite fill the acute need. It is lovely to have an offer of help with e.g. PR or equipment, but it does not pay the accountant's bill, annual insurance or utilities needed for operation.’’

‘‘While 'in-kind' is very acceptable and often generous, charities need to be able to manage their affairs without such constraints.’’

Many respondents also argued that in-kind gifts were not always useful, and in many instances could become more of a hindrance than a help…

‘‘Staff secondment can be helpful as an in-kind donation but only if the appropriate project and high-level and suitable skills are available. Supervising "easy" projects such as painting walls or gardening by unskilled people can cause the charity more hassle than it is worth.’’

‘‘However appreciative we are of "in kind" donations with volunteers etc from companies - we can run the service without them, but we can't run the service without funding.’’

‘‘Companies who ask us to organise and run a teambuilding/volunteering day for their staff expect this service to be supplied free, even though the activities take up our staff time.’’

‘‘Often donations in kind do not take into consideration the transportation costs and import duty that has to be paid on the items for charities working abroad. This can result in paying more than buying new in the country of operation.’’

‘‘It is very frustrating as a charity to only be offered in kind support, especially staff volunteering, when you are unable to accommodate their gift, it appears ungrateful.’’

‘‘If the 'in-kind' offer is in the form of staff who want to volunteer in service provision, then the charity may engender costs in terms of placing and training them. Cash gifts can just be invested into getting on with the job wherever the need is!’’

Some respondents even argued that companies are using in-kind donations for their own good…

‘‘They [companies] want to wear the mantle of ethical integrity that charities bestow on them, but they don't want to pay for it.’’

‘‘As spare cash becomes tight, so companies seek other ways of raising their profile. Gifts in kind are becoming the trend.’’

‘‘Practical help involves staff and has a greater local profile than just giving a donation. Good for public relations & involving staff in the community, but not much help to national charities’’  

‘’Companies like to have their brand stamped all over a donation.’’

However, other respondents disagreed with the majority and said charities should do more to make use of in-kind donations…

‘‘Charities should challenge themselves to cut back on spending and utilise what companies are offering them.’’

‘‘Charities actually exist to 'get stuff done' for which 'in kind' donations can be every bit as useful as money.  It's all to do with how charities plan things - if they know what they're trying to achieve and what resources they have, they should put those to best use rather than endless running after the obvious option of funding.  Too many charities are relying on a 'cash stream' rather than an 'action stream' to allow them to make progress and demonstrate results.’’

‘‘Charities have no right to expect cash donations from businesses which support them.  They need to use much more imagination in exploring in-kind donations and adapting the charity's "wish-list" to the "give-list" of their supporters.’’

‘‘In-kind gifts can be just as valuable to a charity as cash gifts. You just have to be careful what you ask for!’’