As the busy holiday season gets into gear and many worthy causes compete for our donations, what better time to consider how best to put your charitable impulses to good use?
The Chronicle of Philanthropy, a publication that covers nonprofits, has long kept tabs on fundraising in America, but recently the publication unveiled a new ranking that reveals the public’s backing of nonprofits. The Chronicle’s list of “America’s Favorite Charities 2018” identifies 100 organizations that have seen the greatest support, based on funds they received last year.
One big takeaway is that the nation’s growing economic divide following the 2008 recession has had a lasting impact on who is giving and who is receiving donations.
“The very wealthy are giving extremely generously, and they’re giving to the kinds of causes that they are interested in,” said Stacy Palmer, the editor of the Chronicle of Philanthropy. Meanwhile, she said, “the middle class is cutting back.”
Palmer explains that over the past decade there has been a 10 percent drop in the share of Americans who give to charity, primarily because of a slump in donations from the middle class.
The Chronicle found that charities that have traditionally depended on smaller contributions from middle-income donors, such as the United Way Worldwide and the American Cancer Society, experienced severe declines in support.
At the same time, institutions that receive donations from the very wealthy performed well, like hospitals and colleges such as Mayo Clinic, the University of Nebraska and Harvard University.
Several nonprofits that rely on donations from the middle class are also anxiously waiting to see the impact of the tax law that passed last year. The law reduced the numberof people who can deduct charitable contributions when they file their taxes, which could mean that there is now less of an incentive for many folks to give.
The way that many Americans think about giving is changing, Palmer said.
"Just writing a check [to a charity] used to feel like the kind of thing we all did [to make a difference]," Palmer said. But nowadays, she said, “there are lots of informal ways that people help each other,” like helping a neighbor in need or giving money to a crowdfunding website.
"It’s possible that those things altogether are more meaningful,” she said. "We’re seeing a shift in how we promote social change.”
We can thank millennials for these developments, Palmer said, because their approach to giving is quite expansive and has influenced other age groups. But while many of these more informal ways of helping others may be beneficial, they are hard to keep track of and are not counted as donations in the traditional sense.
Many donors increasingly want to see the direct results of their giving and are more selective about who they support, which could explain the success of organizations such asDonors Choose. The online charity encourages people to give directly to public school teachers and classrooms in needy communities, and it has received high marks for accountability and transparency.
As for advice about how to make smart choices when it comes to charitable giving, Palmer suggests people look for organizations that are making a difference in ways most important to them. She also advises doing some homework about charities before giving.
“If you’re a truly thoughtful donor,” she said, you might want to consider causes where “there is a lot of need, but other people might not be willing to give to.”
Palmer points to organizations that are working to alleviate the effects of the opioid crisis, for example. They may not be places we think about during the holidays, but they offer the opportunity to make a significant difference.
