Americans Are Incredibly Generous

October 3, 2017

The annual results of Giving USA are in, and once again Americans gave in unprecedented fashion. Specifically, $390.05 billion was gifted in one of four categories: direct gifts ($281.6 billion or 72% of the total), foundation gifts ($59.28 billion or 15% of the total), bequest gifts ($30.36 billion or 8% of the total) and corporate gifts ($18.55 billion or 5% of the total).

What I’ve found interesting though, is the fact that individuals play such an important role in giving. For example, individuals make bequests, so that brings the total giving by individuals to 80%. Yet, it doesn’t end there. About half of all foundation gifts come from family foundations, which are mostly controlled by individuals. That raises the total given further to almost 88% or $343 billion.

I offer a few points of reflection about these numbers:

First, America is amazingly generous

Our level of giving is unparalleled anywhere in the world. For example, last year charitable giving as a percentage of America’s GDP was 1.44%. The countries closest in giving to the US are New Zealand at 0.79% of GDP, Canada at .77% of GDP and the UK at .54% of GDP. In contrast, the countries that were furthest away from the US were France (0.11% of GDP) and China (0.03 % of GDP). Fully, 83% of American households donated to charity in the last year compared with China (11% of households) and India (14% of households). Those were among the least charitable countries.

Second, too often nonprofit fundraising depends on corporations and foundations almost to the exclusion of individuals

All too frequently, nonprofits rely on a few foundation and corporate gifts and not enough gifts from individuals. No doubt, they receive gifts from individuals, but those usually come through direct mail or special events. Executives often work hard, but they sometimes fail to work smart by locating, cultivating and eventually soliciting major gifts in face-to-face visits.

That’s where doing your homework and building relationships with individuals pays off. Certainly that takes time, but the transformational potential of a large major gift is well worth the effort. And there is a high probability that there are people in your universe who regularly make major gifts. In fact, 93% of high net worth households ($1,000,000 or more) gave to charity, and their average gift was $25,000 or more. The money is there, but nonprofit executives will have to work and be resourceful to get their case in front of these donors.

Third, If you haven’t experienced increases in funding over the last year, you may need help.

Giving USA tracks nine sectors annually, and all of them experienced increases. These include giving to religion; education; human services; foundations; health; public-society benefit; arts, culture and humanities; international affairs; environment/animals; and individuals. Additionally, giving by individuals (the largest source of gifts) grew by nearly 4%.

The results are impressive, but what if your organization hasn’t experienced such increases? There may be several reasons. As a fundraising consultant, I would counsel clients to start by answering a few questions:

How many individuals give?
What has the trend been over the last few years?
What sources give (individuals, foundations, bequests or corporations)?
How do we grow our donor base and how can board members help?
What is our donor retention rate?

These are just a few questions to answer if you want to experience the increases other organizations have been experiencing. Professional fundraising audits and fundraising plans are also quite helpful. However, regardless of what you do, it will require deliberate work that includes analysis, strategic planning and action to move your organization forward. Yet, if you’re up for the task, it is well worth the effort!

“I really support The Covenant Group’s strategic planning process because their approach encourages staff-based support with board buy-in, and I felt that was important given what we were trying to achieve. The outcome is an effective plan that builds consensus and provides a clear sense of direction.”
- Jennifer Scott, Director of Development - The Cabbage Patch Settlement House

“The Covenant Group is highly competent, very experienced and knowledgeable. They provided a broad perspective by equipping us with useful data…and best practices in the field. All in all, they are excellent.”
- Dan Jones, CEO - 21st Century Parks

“The campaign has truly been a miracle. People were committed from the beginning, but…even raising $650,000 seemed like a stretch. To nearly double that amount is incredible! When the plan they developed allows you to hit a goal like that, it builds such a sense of community. The momentum built by the campaign is spilling outside the walls of our church and benefiting others in the process.”
-Father John Hollowell - Annunciation of the Blessed Virgin Mary Catholic Church

“For those of us who don’t do this everyday, The Covenant Group instilled confidence in us. They helped us get through the fear and apprehension by providing us with a process, training and motivation. They taught us and helped us plan in a way that was for the better. We have built lasting relationships with donors and we will continue to steward these relationships long into the future.”
- Sue Finke, Director of Institutional Advancement - Covington Catholic High School

“No one anticipated we could raise this amount. Even the Archdiocese is surprised. The funds raised represent about 15 times our annual giving. But it’s not just the financial results. People stand around talking more than they did before the campaign. There is also a renewed and energized spirit among the parishioners. It’s the most exciting thing to happen in our parish in the last 100 years.”
- Gary Libs, Campaign Co-Chair - St. Mary of the Knobs Catholic Church

“The Covenant Group’s process involved a lot of people in our congregation doing small tasks … that built ownership. They took our vision and put it into a concrete plan. They helped us understand the importance of making our vision clear and laid out the steps to make the vision a reality. Their process built consensus and showed people how they could help. Their methods are based on a solid theological foundation that includes key documents, prayer support, and requisite training … all of which were invaluable.”
- Daniel Montgomery, Pastor - Sojourn Community Church

“Everything The Covenant Group did to help us…in the initial stages was helpful…the development of the case statement; our materials; the training of our Board members; strategies; all these steps laid the foundation for eventual success. They brought such a high level of professionalism, a wealth of experience and a strong track record of integrity and success… just being associated with The Covenant Group helped us.”
- Nancy Doctor, Development Director - Wellspring

“The structure The Covenant Group provided was excellent. It allowed our members to use their God-given talents to benefit the church community They helped us develop a plan and identify key leadership candidates to chair the effort, as well as engaging between 80 to 100 people to carry out the work of the campaign. It was truly a whole congregation effort and The Covenant Group helped facilitate that. They helped us reach our full potential as a congregation.”
- Ron Poisel, Pastor - Christ Lutheran Church

Americans Are Incredibly Generous

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