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July 27, 2008

Charities Will Soon Face Global Competition for Donors, Fund Raiser Predicts

An online world full of donors who are not concerned with geographic boundaries could mean American charities will soon be competing with a world of nonprofit organizations for donations, an international fund-raising expert told an audience of fund raisers and marketers at a conference in Washington last week.

Globalization is forcing nonprofit groups to adapt to a world with more choices than ever before, a greater focus on the individual, and fewer boundaries, says Jon Duschinsky, founder of Bethechange Consulting, a Paris company.

For example, he says, American donors interested in medical research can increasingly find information on the most promising trials and studies in the world, rather than limiting their money to American researchers and organizations.

Mr. Duschinsky pointed to GuideStar an online database of American nonprofit groups that helps donors find charities to support. He pointed out GuidesStar now also has a site in Britain, and is starting GuideStar Europe, which will cover Germany, Hungary, Ireland, and the Netherlands.

Mr. Duschinsky predicts that within five years, and probably sooner, those sites will allow donors to make global, not just domestic, choices about which charities to support.

“International giving could blow the socks off of the charity world, and blow a lot of organizations out of the water,” he says.

He recognized that tax issues do have to be considered for international giving, but noted that many studies have shown that tax breaks are not the biggest motivator for donors.

Mr. Duschinsky made his comments at a conference in Washington sponsored by the Direct Marketing Association of Washington and the Association of Fundraising Professionals’ Washington chapter.

— Sue Hoye

Sunday July 27, 2008 | Permalink

Comments

1. This is so exciting! It means, in part, that we’ll have to be laser-focused on our mission and excellent at telling our story.

   Where many see world-wide competition, I see world-wide donor potential! There’s so much wealth being created in countries like India, that this will help us reach them.

   Yep, I’m an optimist! grin

   — Marc A. Pitman, Fundraisingcoach.com    Jul 29, 12:53 PM    #

2. The organization I’m involved with, uPlej.com, uses GuideStar to verify and review all charities that join our service. Although we are only working with u.s. charities because of IRS guidelines, we see this as a great thing for the future of online giving!

   — Jon Klemin, uPlej.com    Jul 29, 05:18 PM    #

3. Mr. Duschinsky is correct in pointing out that there is increased competition for dononations in a global marketplace. Unfortunately he omits an obvious point: American nonprofits now have access to a broader pool of donors than ever before…if they take advantage of that opportunity they will prosper in ways they have never anticipated in the past. The key is finding, and using, the right tools to reach that expanded audience.

   Susan “Rose” Riskind

   — Susan "Rose" Riskind    Jul 29, 06:13 PM    #

4. Win-Win situations should ONLY be viewed as good things. If global money makes more things happen globally, everyone will profit from it.
   I only hope that the tax laws make international giving easier than the EU and the US seem to want to…

   — Joe Brown Leer    Jul 31, 08:16 AM    #

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