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Charities Find Disproportionate Relief in Giving Rebound

The increase is welcome news for a sector hard hit by sharp declines in giving in recent years, and while some charities are breathing a sigh of relief, many have yet to share in the recovery.

Why are some nonprofits experiencing record growth while others face continuing declines or flat growth? According to Rob Mitchell, CEO of The Atlas of Giving , the answer lies in the makeup of the individual charity's base of support.

"Charities that are experiencing the greatest income growth are those that receive a high percentage of their support from corporations, foundations, high net worth individuals and bequests," Mitchell said. "Conversely, grassroots programs that rely on a high volume of smaller gifts from individuals continue to struggle."

"High unemployment dramatically constricts the flow of small gifts from individuals," Mitchell continued. "People who are unemployed, underemployed, or fear becoming unemployed generally curtail or suspend their giving, while some cease giving entirely."

Declining consumer confidence also has a direct relationship to transactional giving weakness. Small givers typically gauge their ability to give based upon the availability of discretionary income. For many Americans, high gas prices, rising food costs, and concerns about future financial security may crowd out the desire to donate.

At the same time, rising stock market values and overall improvement in the national economy enhance the availability of assets for major gifts, donor advised funds, grant making foundations, and corporations. Rising stock values also swell estate and trust values and the associated charitable gift implications.

The Atlas of Giving charitable giving forecast shows that the rate of giving growth will decline for the remainder of 2011, ending the year with a 'zero growth' month in December. This bodes poorly for smaller transactional giving, which relies heavily on fourth quarter seasonal gift activity.

The Atlas of Giving is currently projecting that overall giving in 2011 will be 7.7% better than 2010.

Mitchell says the real takeaway from the current experience for charities and churches is that a diversified base of gift support can help smooth the volatility of donations over time.

"A mixture of small gift efforts with major gift activities, cultivation of corporate and foundation support, and promotion of bequest giving is the most effective way to guard against sustained negative income growth as economic conditions fluctuate."

The Atlas of Giving (pat. pending) was created by Philanthromax, LLC and is a web-based service which combines a charitable giving forecast with a report of monthly, quarterly, and annual aggregate charitable giving. Each month The Atlas of Giving provides real-time reports that are utilized by nonprofit executives and managers nationwide. For more information, visit www.atlasofgiving.com.

For content questions:
Atlas of Giving, LLC
Rob Mitchell, 210-240-6381
CEO
info@atlasofgiving.com
or
For media inquiries:
PE Maynard & Associates
Paul E. Maynard, 817-891-1167
paul@paulemaynard.com