Charitable Giving Rising After Economic Recession
Charitable giving is on the rise after a sharp fall during the economic recession according to a well-respected source and another major study – Giving USA Foundation and a survey by Cygnus Applied Research, respectively.* Overall charitable giving increased in 2010 over 2009 by 2.1 percent in inflation adjusted dollars. Moreover, four out of five donors anticipate contributing the same amount or more in 2011 than in 2010. Only 7 percent intend to decrease giving this year, compared to 17 percent in 2009. In addition, people who are “actively religious” give far more than other segments of the population. For example, the survey finds that actively religious young adults under age 35 contributed five times more to charities than those young adults who were not active in a faith community.
It is imperative for ministry leaders to pay attention to those issues that impact donors when they consider giving. These issues include the faith-based organization’s reputation, measurable results, and donor appreciation. A good reputation is a key reason that people support a charity throughout the years. Building a well-respected staff and strong volunteer leadership team over the long-term is essential to the financial health of the ministry. The consistency of this solid reputation matters more than most others factors in securing major gifts.
People are very interested in the outcomes of their financial support. Donors are highly engaged in learning the ways in which real dollars impact a community through ministry. Stories of changed lives demonstrate these measurable results perhaps better than any other information. Most charities are quick to thank their donors in personal ways. The culture of showing appreciation to donors is now pervasive in the charitable world. Ranging from hand-written thank you notes to personal visits to invitations to special events, fundraisers are working hard to make sure donors realize how grateful they are for people’s generosity. As this level of response is raised, people’s expectations also rise. Thus, those faith-based organizations that are finding creative ways to express appreciation are positioned well to be the recipient of increased giving.
Most revealing in the recent study by Cygnus Applied Research is the surge in online giving. A majority of every age segment indicated that they would consider making a gift online – marking the first time that more than half of those over age 65 said that they would give via the Internet. 75 percent of people between age 35 and 64 were favorable to online giving, and a huge 86 percent of the under 35 crowd prefer to give online.
Initially, I was a bit skeptical of some of the survey results. Faith-based organizations and churches often seem far removed from the traditional charitable world. Do these findings really have any bearing on us? I have learned from experience over the years that they very much do. Worship attendees do not make the clean distinction between the church, faith-based ministries, and all other non-profit organizations. When people consider charitable giving, the distinction in their mind is not nearly as clear between the church and non-church organizations.
So, what are we to do? How do we react to information like that shared in these research findings? I do not believe we should ignore them or discredit them. We might embrace the research, learn from its findings, and seek to tweak, or in some cases overhaul, our fund development practices. However, we have a higher calling ultimately. Our goal is not simply to secure larger charitable gifts. We are called to make disciples of Jesus Christ for the transformation of the world.
The responsibility is on us as Christian leaders to teach biblical stewardship, to grow financial discipleship. We are to nurture the spiritual gift of generosity as Paul lists in Romans. We are to teach the principles of tithing. We are to remind people that all we have is a gift from God. We are to create a culture of generosity that pervades all of our community. We are to cultivate effective year-round, holistic stewardship ministries. We are to teach children about being a steward of the Kingdom. When we are engaged actively in these stewardship ministries, we truly distinguish ourselves from all of the other organizations soliciting funds. We are distinct first and foremost because of the call of God in our lives to share generously, to practice tithing, and to give as a response to God’s goodness.
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*Portions of this article are based on the research findings of Cygnus Applied Research, as reported in The Chronicle of Philanthropy, Volume XXIII, No. 12, May 5, 2011.

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