Growing the market for charitable contributions

I was having a discussion with some people from a charity organisation about the shape of the charity market and how there is a limited amount of funds for charitable contributions. This market was constrained as it was suggested that 25% of the population donates; it sounds right. As a result there was a fear that charities compete and they cannibalise the “supporters” or donations market.  I was not sure that this was a large problem with all the new and old types of ways charities raise money.  While the donations market is limited there is a larger market surrounding it  which means there is really two markets here:

1) pure donation

2) normal purchases of products that people make, but in this case happens to benefit charities.

The first market is clear and well defined. A supporter gives money, gets a tax deduction and charity gets money.

The second market is not well defined and overlaps with the commercial market. In this market donor fatigue takes a long time to set in and for most consumers this budget is not part of their charity budget. For example, take a look at Christmas Cards or used books. Christmas Cards, I, like you, need them every year to send to friends, I can get them from the store or a charity.

If a charity reaches me first, I buy there. The money from this does not come out of my charity budget but my Christmas budget. I feel good that I know some money goes to the charity but it does not reduce my notional charity budget.

Similarly with used books, I buy what I want or need from Abebooks or a church sale, but when I buy from a church I again do not reduce my budget for charitable contributions, but my book budget is reduced.

Overall, yes the second market does reduce my disposal income but not to a degree that it effects the money I give to a charity. In this regard LetsGoForDinner.com will grow the market for charitable contributions because it does not consume the charity/donations budget.

Does this resonate or does someone have completely different data?

Cheers