AMERICANS CONTINUE TO OPEN WALLETS NEW GENERATION LEARNING TO GIVE; HOWEVER STILL NECESSARY TO DIG DEEPER
Americans are generous people when it comes to donating money and time in the wake of natural crisis. Donations to the victims of Hurricanes Katrina and Rita, the September 11 relief fund and tsunami survivors have now reached almost $6 billion.
Yet, amid all the talk of "compassion exhaustion," Americans from all walks of life continue to donate, even well into the holiday season.
NEW GENERATION OF GIVERS Helping to feed the fire of giving is a new breed of philanthropists–Generation Y.
Gen Y has grown up appreciating their good fortune in a world they see vividly each day on television and on the Internet. Images convey a sense of urgency, which often translates into rapid donations. The Internet has played a salient role, allowing donors to make gifts easily, while still caught up in the moment.
HOLDING BACK? In spite of increased giving from new sources, each year the nonprofit sector asks: "Will giving be up this year?"
"Since the days of Hurricanes Katrina and Rita, the economy has held steady," said Richard Blackmon, President of RSI Institutional Services Group, which provides fundraising counsel for, faith-based schools and organizations nationwide. "We have every reason to believe that the percentage change in charitable giving will outpace that of the gross domestic product, yielding a positive environment for capital campaigns to begin and to continue."
DIGGING DEEPER Experience tells RSI that the middle class has fairly consistent giving patterns. In 2004, approximately four out of every five adults--83 percent--donated money to one or more nonprofit organizations. Independent Sector's "Giving and Volunteering in the United States 2001" indicates that nearly nine out of 10 American families give charitable contributions, with an average contribution of 3.2 percent of their pretax income.
In truth, most of Americans could be giving more. The average 3.2 percent of income is not that much, put in context of consumption patterns: Americans spend $23.5 billion a year on candy and gum, according to Thomson PDR; and $40 billion a year on weight loss, per Fitness magazine.
If you would like more information on faith-based charitable giving, whether it's tips for giving, trends in giving, or how the results of end-of-year giving will impact not-for-profits, or an interview with Richard Blackmon of RSI, please contact Suzanne Gentry Flodin at 214-553-7071 or suzanne@thegentryagency.com.