I
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.