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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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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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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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10 Dimes

The Good Foundation

Today my wife sent me an article entitled, “Is Tithing Realistic?” It is written by Peter Dunn, aka Pete the Planner, on his blog www.petetheplanner.com.

If you don’t know Pete, you may not be aware that most of his blogs are about how to manage money. Usually they are logical, funny, and a bit crass, but rarely do they tackle religious topics.

However, in this blog, Pete tries to tackle the religious spiritual practice of tithing. Or in layman’s terms, the philanthropic practice of giving 10% of your income to God, for the support of the church, its charitable programs, and its operations.

It is an interesting article because it is written by a financial planner, who admittedly says:

  1. He is a Christian
  2. He struggles to tithe- and doesn’t quite achieve it
  3. That his post is not about scripture or the religious reasons of the practice
  4. And that he feels uncomfortable writing this blog

However, what I really loved about the blog, was that Pete didn’t stop there… He continues by admitting what makes tithing hard:

  1. God doesn’t have a bank account- God isn’t going to knock on your door to collect (more…)

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On Monday, I talked about how technology can bridge the accountability gap that separates donors from beneficiaries, and in the post I shared that I would write 3 blogs showing how such examples can be used. This is the second of three posts.

You might have heard of Mark Horvath if you listen to NPR, watch CNN, or if you are a SXSW junkie-  He is the guy who started the the nonprofit organization, InvisiblePeople.tv, in 2008 to help tell the true story of homelessness in America.

Mark started the project when he found himself homeless, and when asked why he launched the site Mark said (excerpts taken from an interview by Kevin D. Hendricks):

Two things,

1) When I started InvisiblePeople.tv, I was close to 19 months unemployed, moving fast forward into foreclosure. I don’t think I could have filled out one more job application, and I filled out a lot. I couldn’t find work and I had to do something to keep from going crazy.

2) I knew from my own experience that the homeless story wasn’t being told correctly. We needed to empower (more…)

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Pie Chart

GuideStar

According to GuideStar, giving to nonprofits has remained fairly consistent with giving patterns in 2010.  There seems to be a slight increase, but many donors are still concerned about their personal income and the economy.

The pie chart to the right shows that 44% of nonprofits surveyed have shown an increase in giving, over the first 6 months, compared to 2010. While 25% have see no change, and 30% have seen a decrease.

In its report, GuideStar also noted that the larger the nonprofit organization, the more likely they were to see growth in income (the 44% listed above).  For example, 57% of organizations that spent more than $3 Million showed an increase in giving for 2011 over 2010. While only 34% of organizations that spent less than $250,000, showed an increase.

This information can be helpful to plot where your organization is in its fundraising, operating, and donation cycle, and I would encourage you to read the full report at www.guidestar.org

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