Posts tagged with: fundraising

offering-plateDespite the struggling-to-recover economy, charitable giving by Americans continues to rise. But a smaller proportion of this money is going to religious organizations.

According to a newly released report by Giving USA, total estimated charitable giving in the U.S. rose 4.4 percent between 2012 and 2013, to $335.17 billion in contributions. The single largest contributor to the increase in total charitable giving was an increase of $9.69 billion in giving by individuals. In 2013, per capita giving by U.S. adults reached $1,016, and average U.S. household giving reached $2,974.

Giving increased for three of the four sources of giving. Only giving by corporations declined slightly in 2013, notes Tom Watson of Forbes, because of the slow rate of growth in pre-tax corporate profits in 2013, at 3.4 percent.

Unfortunately, charitable contributions to religion continue to slow. The report attributes this to the result of declining religious affiliation and attendance and religious-oriented charitable organizations categorized within other subsections.

But as The Economist points out, the sharp overall rise in charitable giving has been driven by the very rich, who tend to favor secular charities:
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A fight broke out this week between non-profit groups over fundraising. While not in direct competition for donor dollars, the U.S. Sportsmen’s Alliance expressed its displeasure with Meijer, Inc. for participating in a fundraising event with the Humane Society of the United States. The program was set up to contribute money to a support Foreclosure Pets Fund, designed to give support to pet owners facing foreclosure.

Meijer suspended the program after fielding complaints from the Alliance that the chain was cooperating with an anti-hunting organization. What does pet foreclosure have to do with anti-hunting? An Alliance statement gets at the crux of the issue, pointing out, “The money donated to the HSUS through this promotion, while not going directly to its anti-hunting campaign, will free up money from the organization’s general fund that can be used to attack the right of sportsmen.”

We put the “fun” in “fungibility.”

That, my friends, is called fungibility, a fancy word that simply is used to identify the ability for money or funds to be transferred between sectors of a balance sheet and across budgets. I don’t want to adjudicate the dispute and attempt to determine whether or not the Humane Society really is anti-hunting, but the cogency of the Alliance’s argument hinges on a valuable lesson, what I’m calling here the “fungibility phenomenon.”

When you give to an organization and you earmark the funds to be used in a particular way, you may be inclined to think that your money is somehow isolated from the rest of the non-profit’s budget. Depending on the by-laws of the organization, that may or may not be the case. Unless there is a minmum set amount that the organization determines it will spend on an area irrespective of special and specific additional donation, any funds that are contributed to that particular area lessen the demand for money to come from other parts of the budget.

The fungibility phenomenon isn’t restricted to non-profits, of course. Corrupt governments have been taking advantage of this phenomenon domestically through state lotteries and internationally through government-to-government foreign aid for decades.

But for the discerning giver, it’s important to note that the fungibility phenomon means that when you give, whether or not you specify a particular need or area for the funds to be used, generally you are supporting the mission of the recipient organization in all its facets, some which you may not like.

And if you’re looking for a charity whose mission you can unreservedly support, the Samaritan Guide is a great place to start.

Blog author: jballor
posted by on Monday, August 28, 2006

The Indiana Youth Institute will present the workshop “Raising Resources for Faith-Based Youth-Serving Organizations” from 9 a.m. to 3 p.m. Sept. 6 at the League for the Blind and Disabled, 5821 S. Anthony Blvd., Fort Wayne, IN 46816.

The workshop will feature Karen Woods, director of the Center for Effective Compassion, which is a part of the Acton Institute for the Study of Religion and Liberty. Cost of the program is $20; to apply for the session, call 1-800-343-7060 or go to their website.

HT: The Fort Wayne Journal Gazette