One of the greatest strengths of Main Street, America is
giving
.
I got to thinking about how generous we are in the U.S. when my colleague, Natasha Golinsky of Next-Level Nonprofits http://www.nextlevelnonprofits.com/ in Vancouver, BC, made the generous offer to curate creative ideas that leaders have for fundraising into an ebook.
Since fundraising is a primary stressor for leaders, I’m jumping up and down, celebrating Natasha’s vision. And, it made me curious about what research exists, what trends might be emerging, to support leaders accountable for fundraising.
Using What We Know
We all know that the Great Recession has changed the United States. The wealth distribution gap is even wider than before. There are many more families in need. Governmental safety-net programs have been reduced. Unemployment remains chronic and high.
If you’re a leader whose success depends in part on fundraising, you may be feeling the Catch 22: more people are in need, people have less to give .
Charity Navigator tells the story: total giving in 2011 was 11% below giving in 2007, before the charitable sector felt the effects of the recession. When adjusting for inflation, total giving has declined 9 times since 1971 (typically on our close to recessionary years). http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=42
This is the “bad” news that brings opportunity to think and do things differently. Are you focusing your fundraising energies and efforts in the same ways you always have?
While I hope that you attract billionaires looking to give too, here are some trends and research that are worth paying attention to.
Gender Matters
Women at every income level give to charity more often than men do—and they tend to donate more money on average than their male counterparts.
Researchers at the Women’s Philanthropy Institute at the Indiana University Center on Philanthropy’s studies show that “if you do not pay attention to women, you will lose out on a huge audience. This trend will continue as women continue to gain income, education, and wealth. Women also outlive men, so you really have to pay attention to women as donors.” http://www.philanthropy.iupui.edu/research-by-category/women-give-2012
Those gender differences are more pronounced among people making more money, the Institute found. For example, all but 4 percent of women who made more than $103,000 gave to charity, while only three-fourths of men who made that much did.
Women Give More Time, Too
Women also give more volunteer time than men. The Bureau of Labor Statistics’ report for 2012 showed that “Women continued to volunteer at a higher rate than did men across all age groups, educational levels, and other major demographic characteristics. http://www.bls.gov/news.release/volun.nr0.htm
By age, here’s who to look to for volunteer time giving:
- 35- to 44-year-olds were most likely to volunteer (31.6 percent)
- Volunteer rates were lowest among 20- to 24-year-olds (18.9 percent)
- For persons 45 years and over, the volunteer rate tapered off as age increased
- Teens (16- to 19-year-olds) had a volunteer rate of 27.4 percent
Or, you might want to target efforts on age groups that aren’t currently volunteering as much time – you might be surprised at how well you can attract them to your cause!
The Rich Aren’t the Most Generous
Middle-class Americans give a far bigger share of their discretionary income to charities than the rich. Households that earn $50,000 to $75,000 give an average of 7.6 percent of their discretionary income to charity, compared with an average of 4.2 percent for people who make $100,000 or more. http://philanthropy.com/article/America-s-Generosity-Divide/133775
Zip Codes Make a Difference
Rich people who live in neighborhoods with many other wealthy people give a smaller share of their incomes to charity than people who live in more economically diverse communities. When people making more than $200,000 a year account for more than 40 percent of the taxpayers in a ZIP code, the wealthy residents give an average of 2.8 percent of discretionary income to charity, compared with an average of 4.2 percent for all itemizers earning $200,000 or more. http://philanthropy.com/article/America-s-Generosity-Divide/133775
Individuals Matter Most
Okay, some might argue that corporations are people (I’m not one of them), but corporate giving accounted for just 5% of the total U.S. giving in 2011. Giving by individuals (which includes bequests and family foundations) is critically important as it represents nearly 9 out of every 10 dollars donated.
New Trend: Crowdfunding
Crowdfunding is exploding and has literally changed my monetary giving habits. I find it thrilling and fulfilling to be part of a virtual community of givers toward relief efforts, artists’ work, documentaries, authors, inventors, start-ups, scientists, and civic projects.
One of the things I love most about crowdfunding is the fantastic information – that comes regularly during the life of a campaign and after – about my gift and the person or entity’s progress. A couple of the most well-known crowd funding platforms are http://www.KickStarter.com and http://www.IndieGoGo.com .
More platforms are coming online all the time, some of which focus specifically on community and nonprofit funding needs; http://www.CommunityFunded.com is a one example.
Might crowdfunding be a way to achieve your fundraising goals? Part of your strategy?
Need Help? Expert Pro Bono Assistance for Nonprofits
Need a fund development or strategic plan? A new website or public relations assistance? Technology a pain point for you?
The Taproot Foundation is the place to go. With over 500 experts providing pro bono services, they’re sure to have got someone skilled at what you need most. The next service grant deadline is June 1. See: http://www.taprootfoundation.org/
Start Your Own Trend: Fresh Fundraising Ideas?
Want to share your most successful, creative fundraising ideas? Get ideas from other leaders around the globe?
Feel free to comment here or reach out to Natasha at Next Level Nonprofits.
If you are C-Suite Nonprofit leader, you might want to join the LinkedIn Group that offers incredible networking, advice and idea-generation: Support & Skills for Nonprofit Executive Directors & CEOs.
Hope this post “gives” you a little something to think about. I’m wishing you much success!
