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Archive for the ‘giving’ Category

In its second edition of the World Giving Index, the Charities Aid Foundation has determined that the United States is the most charitable country in the world.

The study found that out of the 153 countries evaluated, the people in the United States were the most generous with their donation and volunteering for charities and other nonprofit organizations.

The study also showed that giving globally has increased by 2% and that volunteering has increased by 1%.

The report also has a great picture showing how giving has been distributed (originally found at http://taxprof.typepad.com/taxprof_blog/2011/12/world-giving-index-2011.html ) shown below:

Map of Giving

Charities Aid Foundation

 

For more information read the report at https://www.cafonline.org/publications/2011-publications/world-giving-index-2011.aspx

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Bell Ringers

Akron Kiwanis

During the ‘Season of Giving,’ most of us are aware that churches and nonprofit organization rely upon the generosity of others for their operations.

Lest we forget, we often receive several letters, emails, phone calls, and of course we will see the Salvation Army bell ringers. However, while most of us are on the receiving end of soliciation… very few of us are aware of the great amount of detail and effort that larger nonprofit organizations use to research and track our giving habits.

Just like retailers and credit companies, many larger nonprofit organizations rely upon market research and public information to learn about our philanthropic passions and wealth. In a recenet NYT article, “Taking Fundraising to the Next Level, author Rob Lieber highlights just how a larger nonprofit organization like a hospital, college, or major foundation will likely track your information.

For most small nonprofit leaders, and most donors, this article will likely be the first time that you see how professional fundraising is done, and like the author, I would say that I support their efforts- even if it seems a little unsettling.

As I read this article, I thought it would also be a great way to help leaders of smaller nonprofit organizations see the bigger picture and learn how some of the biggest and best fundraisers in America support their causes and philanthropy organizations.

Enjoy the reading and have a Merry Christmas.

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Earlier this week Guidestar posted the results of a survey that asked nonprofits about their fundraising and operations for 2011.  Here are some of the highlights:

  • 41% of Charities saw an Increase in Giving for the first 9 months of 2011 over 2010 (28% had less income & 31% no change)
  • 65% of nonprofits saw an increased need for their services– over the past 9 months compared to 2010
  • Approximately 50% of charities have some financial stress – income, cash flow, # of donors, non-donor income

For more information, visit Guidestar’s website

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group of people

laubarnes

If you follow trends in fundraising (most people don’t), then you may remember that America saw a shift in how organizations approach small donors during the 2008 election campaign.

Prior to 2008, most organizations had mainly focused on reaching major donors- and many still do. However, in 2008, there was a major shift in how organizations began to reach out to donors who made many small and medium sized gifts.  The two reasons being:

  1. Most potential major donors have already been targeted
  2. Technology has allowed better access and communication via email, internet, and mobile communciation

Together these two shifts have allowed more and more organizations to expand their base, and thus, improve the stability and size of their fundraising work. But when we look at this trend, however, we see that it has largely been adopted by larger nonprofit organizations, and not small nonprofits or churches.

So beyond the shift, what is the big deal as it relates to fundraising for churches?

Well the main reason is that churches have often been the envy of other nonprofit organizations, for the following reasons:

  • Churches usually have a loyal base that donates weekly, monthly, etc
  • Churches make a regular ask each week, most nonprofits only get 3-5 a year
  • Religious people tend donate 3 times more than non-religious people
  • Religion accounts for the largest segment of fundraising each year
  • People who attend church are usually versed in donating habits and believe in serving other

So with the shift of other nonprofits into expanding their base of small and middle donors… churches, and other small nonprofits, will now be competing more and more for the same donors and money. This competition will not really matter for donors who are over the age of 60 and who physically give in the offering plate each week. But it will matter for donors under the age of 60, who now want more and more access to online giving and better transparency of how their gifts are used.

Thus, if you are a church leader, I would strongly encourage you to work with your financial leadership team to start reviewing how members and participates are currently donating to your church, and how you can make donating more accessible via electronic transfers and online giving. By being aware of people’s financial habits, churches can better offer ways for members to support the mission, ministry, and operations of the church.

For more information about this trend, check out a recent article in the WSJ entitled, “Strength in Numbers

 

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If you have read the book Freakonomics, or listened to Marketplace on NPR, then you probably are familiar with Stephen J. Dubner’s use of statistics to explain common behaviors in economics and society.

As a stats junkie myself, I love their work, and on Tuesday’s Marketplace radio program- Dubner reported on some truths and myths about fundraising (to listen to the program, click the NPR link above). Dubner’s report included an interview with John List, who is a professor at the Univ of Chicago. Professor List studies the economics of charities

So here is a taste from the interview:

  • Seed Money helps– The more seed money that you have induces more people to give, and those people tend to give more money.
  • Matching Gifts– only work up to a 1-1 match.  People will not usually give more than the original match amount (this is contrary to most expert advice)
  • Raffles are a Big Deal– Research shows that by offering someone a prize will increase their gift by almost 100%
  • One & Done- This is new, but it gives control to the donor. Donors who are offered the “give us one gift and you can tell use never to contact you again” option, tend to give more money and more often. Few actually choose to not be contacted again.
  • Guilt Pleas Don’t Work– You may get a 1 time gift from guilt or shame tactics, but in the long run you are only burning bridges.

As you think about how to raise money for your organization and its operations, I would encourage you to consider this information. Take a moment to think about how you raise money for your annual fundraising, and take a second to listen to the full interview.

Blog Notes- the above bullets are paraphrases from the interview found in the Freakonomics & Marketplace Report for Nov. 29, 2011.

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mobile wallet

Feuillu

The holiday season is upon us, and I have begun to plan out my end of year donations. So far it has been fairly easy to make donations online, but in a few cases I have become frustrated by the multiple steps/screens to set up an account.

If you have ever tried to make an online donation, then likely you share my pain.

  • First, you log on to a website of your favorite charity.
  • Then you click the “Donate Now” button.
  • Next you are taken to an second screen and asked to fill out an online form with your name, address, and contact information.
  • Then are asked to enter your bank account or credit card info.
  • And finally you are asked to enter your amount and to click submit.

Now if you were not counting… that is approximately 5 steps.

Not bad, but what if it only took 1 step… sort of like swiping your credit card, writing a check, or dropping cash into an offering plate?

If banks and retail stores have figured out away to make shopping convenient, why can’t charities and banks find a way to make online giving easier?

Enter the mobile wallet.

Originally designed to assist customers to shop at online merchants, (more…)

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Graph showing giving in December

Network for Good

Most churches know that December is a big month for income, and overall online giving for nonprofits mirrors this trend.

In a recent report by Network for Good, research found that 33% of all online giving happens in the month of December.  This is an important statistic to help organizations plan for their operating cash flow, but it also highlights the need to keep websites active and easy to navigate.

Further research shows that many people will make a final blitz of giving on Dec. 31,  in order to beat the tax deadline, a date when many nonprofits are closed.

If you have or are considering online giving, I hope this information will encourage you to review your online giving plans before Dec. 1.

Blog Notes: Special thanks to Network for Good for sharing this information.

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