Event Reflection by Ashton Cane
July 23, 2013
On June 26, 2013, the Hudson Institute held its annual discussion, “Giving USA 2013,” which focused on charitable giving as a form of civic engagement in the United States in 2012. Stacey Palmer of The Chronicle of Philanthropy set the tone: these are tough times in philanthropy and organizations need to look for new ways to go after money. The panel posed three key questions: When will philanthropic giving numbers resume to pre-recession levels? What will it take to increase giving? And, what does this mean for individuals and organizations, alike? Data on giving in 2012, revealed that giving is on the rise and that it received a 3.5% increase from 2011. Other findings from ~1@BODYURL[id=114jbcurl789]@ include: • Giving to groups for the arts, culture and humanities grew significantly after earlier declines, rising 7.8%; • Giving to organizations that focus on the environment and animals rose 6.8%; • Gifts to international causes tapered off in 2012 with a modest increase of 2.5% after high growth rates in recent years; • Donations to religious organizations, which still take in the largest share of all U.S. giving, were nearly unchanged, and • Donations to foundations, which vary based on the size of gifts from wealthy U.S. donors, fell 4.6% to $30.58 billion. The panel was split on when giving numbers will resume to pre-recession levels. Studies by the Lilly Family School of Philanthropy of Indiana University claim that philanthropic giving numbers are on the rise and project that in six years giving will be back to the rate it was in 2007. Panelist Ruth McCambridge, Editor of the Nonprofit Quarterly, disagreed, “This is the slowest economic recovery in American history and with giving at its lowest, we are looking at a long haul to the return of heightened philanthropic giving numbers.” What actions can we take to increase giving? The panel discussed new and different ways to raise money and increase overall giving. Informing donors of the returns on their investments is a strong tactic for charities and nonprofits. This strategy allows donors to feel connected to where their money goes and how their money is influencing change. If donors feel like they are involved in decisions concerning the use of their money, then they are more compelled to give more over time. Other tactics include making private fundraising a part of the organization and utilizing social media strategies. Levels of commitment can vary from dedicating staff to fundraising or simply putting a “donate now” button on organization websites. What does this mean for you? Research conducted by the Lilly Family School of Philanthropy found that 72% of contributors to giving in 2012 were individuals, making up the majority of those who gave. Even in hard times, the nonprofit sector relies heavily on donations from individuals. One panelist suggested individuals give up luxuries and symbols of economic prosperity in order to promote a world of philanthropic giving. What do you think: Do individuals have a responsibility to give? Would you give something up in order to support a nonprofit or charity? What would incentivise you to donate to a nonprofit or charity?