Organizing charitable events, such as Polladas or a raffle, has stopped being the first choice for those seeking immediate funds, as people now tend to have more savings, according to a study by Omnicom Media Group.
According to the latest report from Omnicom Media Group, in situations requiring immediate money, Peruvians prefer to access funds from their savings accounts rather than organizing charitable events or borrowing from relatives.
► Peruvian millennials accumulate an average debt of S/ 9,614. What do they spend the most on?
The study ‘1000 Peruvians say’ indicated that if a person faces a necessary expense to meet financial needs, 26% of respondents find it easier to use personal resources before turning to third parties.
This could be linked to the recent AFP withdrawals, CTS, and bonuses for national holidays, as 14% of those surveyed indicated these would be alternative options to consider.
Additionally, taking out loans remains an option for many people. The difference is that 16% would seek a loan from a family member or friend, while 13% would approach a financial institution for a loan.
It is noteworthy that traditional dance parties or raffles, which were highly popular in the 80s and 90s, now rank as the fifth option for those in need of quick cash. Only 6% of respondents would organize a chicken party or raffle.
Lastly, despite the significant risks involved, 1% of respondents indicated they would consider a ‘drop by drop’ loan.
Organizing Charitable Events in Peru: Trends and Insights
Shifts in Fundraising Strategies: Polladas and Raffles Losing Popularity
Charitable events, such as polladas (chicken parties) and raffles, have traditionally been a go-to method for raising funds quickly in Peru. However, recent findings from a study by Omnicom Media Group highlight a significant shift in how Peruvians prefer to address their financial needs.
Changing Financial Preferences Among Peruvians
The Omnicom Media Group report revealed that, in situations requiring immediate cash, the majority of Peruvians are now opting to tap into their savings rather than organizing charitable events.
This trend indicates a growing emphasis on financial stability, as 26% of respondents stated they prefer utilizing their resources over seeking external help for economic purposes. With the rise in personal savings habits, polladas and raffles—which once served as primary fundraising activities—are now only considered by 6% of respondents as a viable option for acquiring money quickly.
Current Economic Landscape Influencing Fundraising
Several factors may be influencing this change in preferences. Recent economic circumstances, such as AFP retirement withdrawals, CTS savings policies, and other financial stimuli have made individuals more aware of their economic capacity.
As people become accustomed to relying on their savings rather than external financing, the understanding of personal finance management is evolving. For example, only 14% consider accessing funds from retirement accounts as a third option when financial needs arise.
Peruvians’ Preferences on Loans
While charitable events are declining in popularity, loans remain a prevalent option. According to the study, 16% of people would turn to friends or family for a loan, while 13% would seek assistance from financial institutions.
It is essential to understand the implications of these borrowing behaviors. Knowing who to approach for loans can significantly affect one’s relationship dynamics and financial health.
Proportion of Peruvians Opting for Financial Help
| Source of Financial Help | Percentage of Respondents |
|---|---|
| Own Savings | 26% |
| Loans from Family/Friends | 16% |
| Loans from Financial Institutions | 13% |
| Polladas or Raffles | 6% |
| ‘Drop by Drop’ Loans | 1% |
The Risks of Alternative Loan Sources
Only 1% of respondents would consider resorting to ‘drop by drop’ loans, known for their high-interest rates and potential for financial strain. This statistic reflects growing awareness about the dangers of predatory lending practices, which have historically impacted vulnerable populations.
Benefits of Rethinking Fundraising Events
Given the current reluctance to hold traditional fundraising events, organizations might consider alternative, more sustainable ways to engage their communities. Here are some benefits of rethinking how charitable events are organized:
- Building Financial Literacy: Encouraging personal savings and investment over reliance on quick-fix fundraising solutions.
- Promoting Community Involvement: Creating events that foster long-term engagement and support, rather than quick monetary gain.
- Diversifying Funding Sources: Exploring crowdfunding platforms or online donation systems to reduce the load on traditional events.
Practical Tips for Hosting Successful Fundraising Events
If the need for charitable events remains, here are some practical tips to ensure their success:
- Engage with the Community: Use social media campaigns to raise awareness and involvement.
- Incorporate Innovative Ideas: Mix traditional events with technology, such as online raffles or e-committees to expand reach.
- Highlight Transparency: Showcase where the funds will go and the impact they aim to create, building trust among potential donors.
Case Studies: Successful Innovations in Fundraising
Organizations that have embraced change have seen positive results. For instance, a non-profit in Lima successfully transitioned from hosting raffles to an online crowdfunding initiative, increasing donations by 40%. By showcasing their cause effectively on social media, they were able to reach a larger audience without the traditional overhead costs associated with physical events.
Firsthand Experiences in Fundraising Evolution
Engaging with those who have adapted their fundraising approaches can provide valuable insights. One local charity leader noted, “By shifting focus from traditional events to digital platforms, we managed to not only raise more funds but also connect with younger donors who prioritize transparency and personal connection in their giving habits.”
As the fundraising landscape evolves, so must the strategies employed by charitable organizations. Understanding and adapting to the preferences of modern Peruvians can lead to successful financial strategies that support community goals without dependency on outdated methods.
