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Why Does It Matter That
We Gave $262 Billion To Charity?

By Jeffrey Byrne, President & CEO
Kansas City

Jeffrey ByrneI know we have all recently seen a number of articles on giving in the United States. However, I want to emphasize how important it is that we strive to understand giving, so here goes. . .

In June the Giving USA Foundation and the Center on Philanthropy at Indiana University released a report that said Americans gave $262,000,000,000 to charity in 2005. Why does this matter?

First, we, as Americans, are the most generous people on the face of the earth. Every year, since giving has been tracked, Americans have given more than in the previous year (with the exception of 1987, when there was a national and world recession). Even when there have been catastrophes around the world and on our own soil, Americans have simply dug deeper into their pockets and have given even more to relief causes.

Second, this figure debunks the myth of “donor fatigue.” In national studies, nonprofit executives report a belief that “their organization has not been affected by ‘donor-fatigue,’ but that other nonprofits have been affected.” This belief is mistaken! Donor fatigue is defined as when donors become “tapped out” by many, many organizations asking for very limited resources. The data just does not reflect that this phenomenon has yet occurred.

What is true is that when Americans have been pressed to give to 9-11 relief organizations, or to the tsunami relief, or to relief efforts for Hurricanes Rita and Katrina, we have rallied and have “dug into additional resources” to give to these organizations, while also maintaining giving to our “natural” nonprofits.

Third, it is important to understand the major source of philanthropy in our country. It’s not corporations or foundations which, respectively, make up only 5 and 11 percent of total giving. The major source of charitable giving is from individuals! People just like you and me are responsible for a whopping 84 percent of all charitable giving through their current gifts and after-death gifts.

It is vital that we inform our volunteer board members and donors of this fact. It is also important that, as nonprofit executives and directors of development, we understand this fact and put into place fundraising plans that target individuals—not just once a year for a donation—but on a continual basis with communication that will truly engage donors in our cause, mission and vision—without necessarily asking for that donation.

Finally, to reach nonprofit fundraising potential, it is important to have a well-defined and diverse fundraising program and plan. This means you must have a plan in the first place—one that places emphasis on board giving, staff giving, direct mail and telemarketing, a special event and a real plan to cultivate and solicit one-on-one major donor support from individuals, foundations and corporations. It doesn’t matter if you consider a major gift from a donor to be $1,000 or $100,000. What’s important is that you have a plan to cultivate and solicit these donors to invest in your vision for the future.

Ultimately, understanding and implementing “best practices” as described above, will result in a more defined, substantial and successful fundraising program for your nonprofit.

Note: Jeffrey Byrne & Associates, Inc. is a member of the Giving Institute, which partially funds the publication of Giving USA 2006. On September 20, the Greater Kansas City Community Foundation, Jeffrey Byrne & Associates, Inc. and the School of Philanthropy at Indiana State University will present the latest findings from Giving USA 2006 at the Ewing Marion Kauffman Foundation in Kansas City, Missouri. To learn more about this program, or to request a presentation in your community, please contact us at www.fundraisingjba.com or toll free at 1-800-222-9233.


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