As Charities' Revenue Drops, Individual Giving Rises
April 9, 2020 While 80% of charities participating in a recently completed national survey anticipate their 2020 revenue will be lower than expected due to the impacts of the coronavirus pandemic, individual giving at a major donor-advised fund was up 36% last month, compared to the same period a year ago, with most donors planning to maintain or increase their charitable giving this year.
The BBB Wise Giving Alliance on Tuesday announced that its survey at the end of March, of 118 accredited charities spanning a broad range of missions and sizes, found that:
80% of charities anticipate their 2020 revenue will be lower than expected. Most charities (89.4%) are concerned about maintaining a financially stable organization in 2020.
Charities anticipating decreased revenue believe that: donors will likely be less able to give (93.5%), charities will be less able to host fundraising events (69.6%); and donors will redirect support to individuals in need (54.4%).
More than half of individuals (52.5%) say they expect to give about the same, and another 30.8% of individuals say they plan to give more in 2020. Younger generations intend to increase their giving, with 47.7% of Millennials and 60.8% of Gen Z participants saying they plan to give more.
23.9% of individuals respondents say they plan to give money to small business (directly or via crowdfunding), and 24.5% say they will look for ways to help unemployed individuals directly.
Then, yesterday Fidelity Charitable, a Boston-based nonprofit that is the largest grant maker in the United States, announced that total grant volumes recommended in March by its donors increased 36% compared to a year ago.
Those donors reportedly recommended more than $100 million in grants from their donor-advised fund accounts to over 4,500 nonprofits in response to the COVID-19 pandemic since tracking officially began last month.
A Fidelity Charitable study completed at the end of March found that most donors (79%) plan to maintain or increase the amount they give to charity this year. However, volunteer activity is likely to dramatically decrease due to the pandemic, with 47% of recent volunteers saying they believe the amount of time they volunteer will decrease or stop entirely because of the pandemic.
A donor-advised fund enables donors to contribute cash, securities, or other assets to a fund and take an immediate tax deduction, and then direct which charities those invested funds should support.
GivingTuesdayNow Set for May 5
GivingTuesday, the global generosity movement, recently announced #GivingTuesdayNow, a global day of giving and unity, set to take place on May 5, 2020 as an emergency response to the unprecedented need caused by COVID-19.
The day is designed to drive an influx of generosity, citizen engagement, business and philanthropy activation, and support for communities and nonprofits around the world.
Since its 2012 launch, #GivingTuesday has been celebrated in the U.S. on the Tuesday after Thanksgiving to benefit any registered charity or any type of 501(c) organization.
Last December, more than 2,000 Massachusetts nonprofits participated in Giving Tuesday fundraising.
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