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Giving Is Down, but What Does That Mean?

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It doesn't need sugar-coating. The economy has made life difficult and different for families all over the country in all kinds of ways. We've seen blog posts about budgeting, cutting out unnecessary spending and going without extras. But the recent news that charitable giving has dropped 100 billion is a big indicator that we're all cutting back. Everywhere on everything.

The news that donations are down isn't surprising in itself. We've all been cutting back in one way or another. Cutting back on or completely cutting out giving money to our favorite charities makes sense when you look at the advice we've all been given. When it comes down to buying groceries and medication or helping others, it makes sense that we're taking care of ourselves and our families first.

The surprising thing is the huge drop -- that 100 billion -- in 2009. I know that I played a part in that drop, however small, as we cut back our normal donations by nearly half. My family isn't scrounging to put food on the table, but we have re-budgeted money and have cut back on the extras. Seeing these numbers now, I feel kind of guilty.

My husband doesn't feel guilty. He says that we do what we can, both with money and with our time spent volunteering. He has no guilt that we cut back on the giving of money. His attitude falls in line with the findings by the Women Give 2010 study out of the University of Indiana. They found that women give more than men.

The study featured four findings about men, women and giving.

  • In each of the five different income groups analyzed, female-headed households are MORE LIKELY TO GIVE to charity than male-headed households.
  • In every income group except for one, women GIVE MORE than men.
  • Female headed households are MORE LIKELY TO GIVE than men in comparable households except for the widow/widower category.
  • Female headed households GIVE MORE than men in comparable households
    except for the widow/widower category.

The conclusion of the study is that gender matters in philanthropy. Of course, I'm wondering if they did a study comparing men and women with hands on volunteering if it would still be the same, taking into account what my husband said about volunteering still counting as our family contributing to charitable works. Are men more hands on? (I don't know the answer: do you?) I'd like to see some number crunching comparing the two for a real view on how men and women differ on the subject of supporting charities -- either with money or with works.

The fact remains: giving is down. Men and women alike have cut back. What does it mean? What are we doing?

Over at Katya's Non-Profit Marketing Blog, she talked about the Giving USA reports about charitable donations in 2009. She highlighted the various groups that saw increases and decreases and made another interesting point.

Giving to individuals decreased by 3.6 percent in current dollars in 2009. Most often, these are gifts of medications to patients in need and are made by operating foundations created by pharmaceutical manufacturers.

This is probably one thing that isn't heavily researched by those looking at the decreases in the Top 400 Charities. How many people had to re-budget their money to help out family members or close friends who came on the hardest of times? As an example, my grandfather died this past January. In April, my grandmother was diagnosed with breast cancer. Her health insurance was charging a ridiculous amount for each radiation appointment. As a family, we helped her finance her health by fronting money. We're still "giving." Are people taking notice?

I hope that readers won't read the news that giving is down and either dismiss it -- "We just don't have the money to give!" -- or feel too guilty and/or insignificant to do anything about it -- "What good is my twenty dollars in the face of 100 billion?" There are ways that families can give -- money and time -- even during the hardest of times.

Bloggers have already thought up and written about creative ways to give back during this season of "less."

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Ruby Anna 5 pts

I enjoyed reading your article as I can really relate to the topic. My husband and I have been married for over 17 years now and we have four children. We ran our family-owned restaurant for many years before closing the doors in 2007 due to the economy and more and more people not dining out. It was a huge adjustment and we actually tried to look at it as a blessing in disguise: finally being able to be home during the holidays and, of course, spending more time with the kids. My husband has been able to find a couple of jobs that have, unfortunately, not lasted long. I was lucky enough to find a job that I really enjoy but it really doesn't pay the bills. We are literally living day to day to make ends meet, praying that one of our vehicles doesn't break down.

So - why do I feel guilty about not contributing? The Vets call, the Special Olympics call, but we just cannot give. My husband is now looking out of state for work and I will still be here working 40 hours a week, raising 4 kids, making sure they all get up and get to school in time and I still make it to work on time. I am tired of feeling guilty. I am really, really tired!

Then you hear about some Hollywood's stars new shoes designed by some French designer for $10,000 that they just received before flying off in their private jet to their third home in England because they are needed to star in an upcoming movie. I'm sure we can all agree that these "stars" are just too important and busy to be bothered with "giving". They make me very ill. When they do give, it's always highly publicized. There is just nothing I can type on the computer to make you understand how strongly I feel on this subject!

I know you're not pointing fingers at anyone in particular for not donating. I just wish someone could tap the resources (or point the finger) out west (meaning where the stars are).

What we need is a modern-day Robin Hood!

Thanks for letting me spout off! I think I'll stop now before I turn to drinking -oh yeah, I can't afford it.

www.sumofthisnthat.blogspot.com ( http://www.sumofthisnthat.blogspot.com )

ModaMama 5 pts

The double whammy effect Adrienne mentioned actually seemed like a siege from all sides in my world of funding. Aside from actual dollar amounts dropping, donor retention disappearing, and less available grant dollars to go around the dollar was buying less while costs went sky rocketing.

All of this being said the lack of abundant resources led to some great non-profit mergers to better serve their stated needs. When you look at a mid-sized city that has a variety of organizations all doing essentially the same task, or tasks that could easily be streamlined to fill the need, this pressure forcing them together is a benefit to everyone. This more competitive environment also forced organizations to look at whether or not they are relevant and need based or whether their moment in the sun has passed. It has made a lot of sloppy non-profits clean up their acts as well as make supporters consider what causes were truly important to them as opposed to a mailing list they couldn't get off of for some cause they couldn't actually describe passionately.

www.SaraInAkko.blogspot.com ( http://www.SaraInAkko.blogspot.com )

Life in the Middle East, with craft and spice

Jill Miller Zimon 5 pts

Thanks for this in-depth look at a really hot topic.

Just to supplement! I wrote about this report and its potential connection to women's political contributions here:

http://womenandpolitics.org/archives/women-need-to... ( http://womenandpolitics.org/archives/women-need-to... )

Jill Writes Like She Talks ( http://www.writeslikeshetalks.com )

In The Arena: Jill Miller Zimon, Pepper Pike City Council Member ( http://jillmillerzimon.blogspot.com )

JennaHatfield 9 pts

And the best you can do is, quite honestly, good enough. Right? Thank you for commenting. Sending my best!

Contributing Editor Jenna Hatfield (@FireMom ( http://twitter.com/FireMom )) blogs at Stop, Drop and Blog ( http://stopdropandblog.com ) and The Chronicles of Munchkin Land ( http://thechroniclesofmunchkinland.com ). She is a freelance writer and newspaper photographer.

JennaHatfield 9 pts

That is a FANTASTIC example and I thank you for sharing it. I hope more people are inspired to "give" in this way.

Contributing Editor Jenna Hatfield (@FireMom ( http://twitter.com/FireMom )) blogs at Stop, Drop and Blog ( http://stopdropandblog.com ) and The Chronicles of Munchkin Land ( http://thechroniclesofmunchkinland.com ). She is a freelance writer and newspaper photographer.

JennaHatfield 9 pts

First off, good for you. Secondly, I similarly think that actual work often means more than the money. My husband and I have been talking about this all day.

Thanks for your comment! Keep up the good work, literally.

Contributing Editor Jenna Hatfield (@FireMom ( http://twitter.com/FireMom )) blogs at Stop, Drop and Blog ( http://stopdropandblog.com ) and The Chronicles of Munchkin Land ( http://thechroniclesofmunchkinland.com ). She is a freelance writer and newspaper photographer.

realhartford 5 pts

I actually have given more in the past few years than before. It's probably not as much as I could give, but I feel like if I have money left after I pay my bills, it should be spent wisely instead of on disposable/temporary material things. My partner does a lot of hands-on volunteer work, which I have also begun to do. Comparing those two side-by-side, I would say that my actual work is more significant than the money donations.

-Kerri is the author of Real Hartford ( http://www.realhartford.org ) and Gringo A Go-Go ( http://www.gringoagogo.com )

( http://www.gringoagogo.com )

Melissa Ford 5 pts

We've never been able to give a ton of money, but I have stepped up my time. Or lending my skills. For instance, I saved one place around $4000 for doing for free what they would have needed to pay someone to do. We could never make a $4000 gift, but I can give my skills.

Melissa writes Stirrup Queens ( http://stirrup-queens.com ) and Lost and Found ( http://lostandfoundandconnectionsabound.blogspot.c... ). Her book is Navigating the Land of If ( http://thelandofif.blogspot.com/ ).

Desi Valentine 12 pts

Yes, we have cut back our giving by about 75%, really just to balance the household budget against our rising cost of living. What we've done to (sort of) make up for it is more volunteer work, and we save our deposit containers to give to the kids' non-profit gymnastics club every three months. It's not enough, I know, but it's the best we can do for now.

AdrienneRoyer 5 pts

Good post! I worked in the nonprofit sector for six years and still work in fundraising. Several thoughts:

Unlike other recessions, the philanthropy sector was faced a double-hit in 2008 when the market crashed.

Not only has unemployment drastically cut back on individual giving, the most stable funding source for most nonprofits, but foundations also lost considerable amounts of their endowments which were invested in the market.

Normally, foundations give a payout of 5% of earnings from the average of previous 12 quarters (some have different formulas). When the market drops 40% and then slowly rebounds, that average is factored in for at least three years.

This means that the total amount of grant money for 2010 was considerably less than 2009. Other foundations had to decrease funding allotments because the principle of their endowments was threatened.

Many other organizations either eliminated or cut back on sponsorships for either programming or events. Since financial companies make up a significant portion of sponsorships, they faced a PR battle if they took TARP funds.

Other organizations no longer want to sponsor events like 5K runs or golf tournaments, previously the bread and butter of nonprofit events. They dislike the "fat cat" appearance that it gives.

Some studies suggest that for every federal dollar invested in the nonprofit sector, private contributions decrease by .50.

This makes sense. Most government grants require that nonprofits publicize the information. Donors see the news and think that the organization is set, and their dollars are better off somewhere else. Most grants only fund specific programs, so this can actually be detrimental to the bottom line of most nonprofits since general donations usually cover operating expenses.

Adrienne works in the conservative movement and blogs at Cosmopolitan Conservative. ( http://www.cosmopolitanconservative.com )