Posted , by Wendy McGrady, Executive Vice President and Chief Operating Officer. Topic: Fundraising, National Research Collaborative, Philanthropy Research & Events.

How and Why We Give: Highlights from the Generosity Commission’s Final Report

 

By Wendy McGrady, EVP and COO

I was in D.C. for the release of The Generosity Commission’s report at the end of September. Based on my experience and the report’s findings, my article was recently published on the Giving USA blog. Below is my high-level summary of their findings and recommendations. I would encourage you to read my blog post and the full report, and I would love to chat with you about the big picture questions shaping our sector.

The Generosity Commission’s Final Report

After years of research, focus groups, and listening sessions throughout the philanthropic sector to consider the implications of the decline in participation in giving and volunteering by everyday donors, The Generosity Commission released its final report on September 17th.
The report, Everyday Actions, Extraordinary Potential: The Power of Giving and Volunteering, explores the reasons for this decline, celebrates generosity and everyday donors and volunteers as the backbone of our society, and asks what we should do about changes to the philanthropic landscape. According to the report, giving and volunteering:
  • Affirm our commitment to meeting community needs and working together toward a larger purpose
  • Foster social connectedness in a time when our nation faces “the epidemic of loneliness and isolation”
  • Provide crucial support to nonprofits that have filled gaps in services not provided by the government or the market for at least a century
  • Promote good physical and mental health
Yet, over the last 10 years there has been a 15.8% decrease in the number of households donating to nonprofits, and the pandemic resulted in a 25% decrease in people volunteering with nonprofits.
The pandemic certainly provided a logical reason for less volunteering and maybe even fewer donors, but pandemic levels of participation—in giving and volunteering—never recovered. Now, we are faced with a continuing trend of declining participation in these traditional expressions of generosity and the resulting decrease in diverse perspectives, social connection and the practice of civil engagement. These are important elements of living in community that we certainly don’t want to lose.

THE GENEROSITY COMMISSION RESEARCH SHOWS:

  • People have given and continue to give time, money, goods and expertise, but many of these expressions of generosity are beyond the scope of what has historically been counted as a donation.
  • The last few decades have shown a clear decline in the share of American households that report donating to charitable organizations. In 2008, 65% of households reported donating to nonprofits; in 2018, that dropped below 50%. Nonprofits of all sizes have been impacted by this trend. However, smaller nonprofits, which make up most of the nonprofit sector (88% have a budget of $500,000 or less), have had an even more pronounced loss of donors and dollars.
  • The total number of donors decreased during the pandemic while the average gift grew substantially: over 200%. Further, generosity during the pandemic raised our awareness about people giving in creative ways to support neighbors and communities by donating blood, advocating for policy or giving to a specific local need.
  • The decline in donor participation has been concentrated within a few demographics, with level of education as the single strongest predictor of volunteering and age as the strongest predictor of giving.
  • Social connectedness influences volunteering and giving—people who belong to one or more community groups are more likely to volunteer (by 14.3%) and give (by 8.6%). Further, volunteering and giving appear to increase the likelihood that adults vote in national elections when controlling for other factors.
  • Public conversations about generosity are dominated by those who don’t represent everyday givers. Everyday givers don’t want to talk about their giving or be told how to give. However, they do want to know their gifts are making a difference and are willing to discuss their giving with those close to them if it inspires increased giving.

THE COMMISSION MADE MANY RECOMMENDATIONS UNDER 4 KEY AREAS:

  1. Research: Expand efforts to better understand diverse expressions of generosity.
  2. Culture: Encourage leaders and public figures to share their experiences with generosity and infuse ideas, beliefs and norms about the benefits of giving and volunteering in art, music, education, media, etc.
  3. Practice: Support community foundations to lead efforts that encourage giving and volunteering. Reinforce the importance of business leaders supporting giving and volunteerism in their organizations.
  4. Policy: Promote local, state, and federal policies that would incentivize giving and volunteering, such as charitable tax deductions, sufficient funding for the IRS Exempt Organizations division and state charity regulations, and simplified regulatory compliance.
To boil it all down, The Generosity Commission’s focus on the decline in participation is tied to a belief that a broad base of participation in giving and volunteering has an intrinsic social good that must be pursued and promoted. I believe they’ve got it right! We all need to do all we can to encourage, promote and recognize giving by everyday donors.
The report concludes:
“So, we inhabit this shifting landscape of generosity with some apprehension at its transformed terrain, with resolve to cultivate it purposefully where we can, and with excitement about how it will continue to develop in the coming years. If this moment represents in any respect a crisis of generosity, then it is one that we can approach with resolve, and even with wonder, at the opportunities that lie ahead.”
Let’s all move forward with wonder at the opportunities that lie ahead.
How can you promote and celebrate generosity at all levels in your organization?  I’d love to hear your thoughts and ideas.
Email me at wendy@curtisgroupconsultants.com, and let’s discuss!
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