By Joellen Perry We are a nation of
givers. Last year, as the stock market lost nearly a
quarter of its value, as millions of people lost
jobs, and as many others lost sleep worrying about
terrorism and imminent war, Americans nonetheless
gave a record $241 billion to charitable causes.
While foundations and corporations contributed a
good chunk of the philanthropic pie, the
overwhelming majority of those billions--more than
80 percent--was given by ordinary Americans. Tapping
a vast national reservoir of goodwill, two thirds of
households, rich and poor, reached deep into their
pockets last year and pulled out an average gift of
$2,499, according to estimates from Giving USA,
a publication of the American Association of
Fundraising Counsel Trust for Philanthropy.
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The
bulk of the nation's largess--35 percent--goes
to religious institutions, followed by education,
which nets 13 percent of our generosity. We give not
just of our money but also of our time. Nearly half
of the adult population, about 84 million people,
volunteers to feed the hungry, coach the kids, and
comfort the sick.
These are figures to be proud
of, to be sure. But you're about to be asked
for even more. The number of nonprofits nationwide
is now a staggering 1.6 million. That's more
than the entire population of Idaho and a 60 percent
increase in the past decade alone. But while the
nonprofit count is up, state budgets--on which many
charities, especially those serving the needy, rely
for grants--are down. Some experts predict state
shortfalls will reach $80 billion next year, piling
still more tasks on already stretched social-service
organizations (related story). And though Americans gave a
bit more last year than in 2001, the rate of giving
remained where it's been for years, at about 2
percent of the nation's gross domestic product.
"There's more competition for the
charitable dollar," says Bennett Weiner, chief
operating officer of the Better Business
Bureau's Wise Giving Alliance.
Urgent
plea. And that means more "give now!"
appeals in the mailbox and more fundraising calls,
as charities desperately try to distinguish
themselves from their do-good brethren. "We
know you're being bombarded by more groups than
ever," says William Swindell, associate
executive director of development for Father
Flanagan's Girls and Boys Town in Boys Town,
Neb. "We want to be on your short list."
To that end, his group is mounting a campaign to
thank longtime donors--even folks who've given
$100 annually for years can expect a call--and using
lures like discounted tickets to black-tie galas to
get the next generation hooked on giving.
Compounding charities' scramble for donors is
the looming promise of an economic turnaround. There
will be "a more intense solicitation during
this holiday period," says Eugene Tempel,
executive director of the Center on Philanthropy at
Indiana University. "An economic pickup
enhances the prospect that donors might
respond."
With more solicitations, of
course, come greater chances of chicanery. It's
a singular conundrum--even as Americans'
generosity has grown, our faith in nonprofits has
sunk. Widespread disappointment with the handling of
September 11-related donations and a spate of recent
scandals involving nonprofits--from overpaid
trustees to outright embezzlement--have hammered
home the point that the money and trust we place in
charities can easily be abused (related story). In August
2002, the Brookings Institution found that 16
percent of Americans had no confidence in charitable
institutions, up from half that in July 2001.
"There is no SEC for nonprofits," says
Daniel Borochoff, president of the watchdog group
American Institute of Philanthropy.
