Many of us in the social profit sector await with interest, excitement, or even a bit of nerves for the annual giving report from Giving USA. Released this week, there is, as usual, much food for thought in the 2010 giving statistics being discussed. You can download the executive summary here.
While helpful, thoughtful, and great research, it is important to remember that the Giving USA figures are based on estimates derived from an economic formula, not actual donations. This is mainly because the IRS does not release contribution information from taxes filed until two years later. Read more here.
The GOOD news, and there is some, is that giving was up 2% (adjusted for inflation) and bequests were way up. Check out this article from the Chronicle of Philanthropy for more on how different causes fared.
Here’s what I know for sure from working with social profit clients across the country for the past eleven years. People give their time, talent, stuff, and money in good times and in bad. They give when they are inspired, feel there is an impact their gift can make and they give to feel good. Most of the organizations I worked with over the past year experienced higher percentages of gifts from individuals and larger-sized gifts. These organizations took the time to invite feedback from their donors, engage them in seeing up close and personal their programs, and put a face to the dollars they were given.
Most of the organizations I work with also experienced lower or flat support from corporations and foundations and many experienced exponentially large funding cuts from government sources. If you are living these same national trends I encourage you, your board, and staff to keep your supporters close and connected.
And for goodness sake, talk with your supporters about planned gifts.
While it might take years to return giving levels to those of the pre-recession giving, gifts are still being made, thoughtfully and in big numbers.
Iagree with you about the importance of keeping your donors close, especially during bad times, and of having the planned giving conversation if they can’t make a gift of current assets. I would add two things:
1) Many organizations can’t do complex planned giving instruments because they’re too small. For these organizations, I recommend working with their community foundations to be able to offer things like charitable gift annuities to their donors. For donors who depend on their income from stocks, a CGA may make financial sense for them.
2) Also, too many organizations ignore elderly donors who are small givers, not considering that these donors may have significant assets to give through a bequest. Now is the time for organizations to resort their donor lists, seeking those who have given many smaller gifts leading to a large cumulative gift. I urge those organizations to visit these long-time small donors and ask for a planned gift or bequest.
Great blog, thanks for posting it!
Great additions, Katherine!
Lori – you’re so right. So many organizations cut back on fundraising costs the past couple of years, communicated less with their donors because of it and ended up losing more donors than those who didn’t make that switch. I think it was the Fundraising Effectiveness Study which showed that organizations that invested more in fundraising raised more money. I’m looking forward to future research that looks closer at that.
Lori!
congratulation for your outstanding contribution for the suffering humanity as a whole. Would you please do something for our Indian Organisation working for the underprivileged children & women for the last three decades.
May you live long & your world be filled with peace, love & prosperity!
Thanking You.
Sincerely yours
Bipradas Bandyopadhyay
General Secretary
Gramin Seba Sangha
(An Indian N.G.O)
You’re exactly right that people are going to do the best they can to keep giving to the nonprofits that they love. I keep telling my clients to focus on the relationships with their VIP donors and it has paid off big.
Sandy Rees
Time and time again these reports prove that even though the economy is down there are still people who continue to give – and give big! I try to remind my nonprofits that grants are still very much a viable option. Don’t use the excuse of the economy to “slack” on your job. 😉
Thx for the messages, Sandy and Betsy! It always boils down to communication, doesn’t it?