June 10, 2009
Parsing Giving USA's Numbers: a Calamity or a Relief?
Writing on the Tactical Philanthropy blog, Sean Stannard-Stockton says there are two “factually accurate headlines” that could have run with the release of Giving USA’s annual study on donations.
Here’s the first one: “Charitable Giving Exceeds $300-Billion. Second Highest Level of Giving Ever!”
And here’s the second: “Charitable Giving Falls Dramatically. Largest Percentage Drop on Record!”
So which is right? Mr. Stannard-Stockton, a frequent contributor to The Chronicle, sees it like this: Charitable giving contracted sharply in 2008, but “that contraction was less than many people feared and the total amount given was within the range of the level of giving seen over the past few years.”
Gifts made directly to secular charities, when adjusted for inflation, fell 8.5 percent, he says, the worst drop on record “but not terribly different than the 6.1 percent drop in 1975.”
“Things are tough,” Mr. Stannard-Stockton continues, “but there was no apocalypse.”
How do you read Giving USA’s findings?
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Mr. Stannard-Stockton makes valid points, but fails to account for the fact that the stock market—a key driver of philanthropic activity— didn’t hit it’s tailspin until well into the third quarter of 2008. Moreover, the 8.5% drop is the overall number—many individual charities saw declines of greater extremes.
My primary concern with Stannard-Stockton’s remarks is this: we may psychologically reduce the impact of the economic crisis to the point we won’t take advantage of the crisis to make tough decisions on fundraising practice and policy. We shouldn’t let a good crisis go to waste.
— Darrow Zeidenstein Jun 11, 02:27 PM #
What do you want first, the good news or the bad news? Whoops! They’re both the same.
— Lorri Greif, CFRE Jun 11, 03:48 PM #
I think Mr. Stannard-Stockton makes an excellent point.
I posted on that at http://www.smartergivingguy.com, noting that “Despite widely-felt individual and country-wide economic distress, Americans were still remarkably generous — giving more than $300 billion!” The giving climate continues to be rough — making it specially important for donors to make sure they are giving to strong charities doing solid work — and avoiding charities who waste money through poor management or worse.
— Ed Long Jun 11, 07:21 PM #
I still think that this measure of success falls short b/c it is grounded in dollars; how many lives were changes, how many people and communities served, etc?
— Alexis Peter Surovov, CFRE Jun 15, 08:09 AM #