Wealthy Americans’ donations to charities dropped considerably from 2007 to 2009, according to a study released this week by Bank of America Merrill Lynch. The Center on Philanthropy at Indiana University researched and wrote the study.
The good news is that more than 98 percent of the 800 surveyed with an average wealth of $10.7 million donated to nonprofits in 2009. The bad economy is much to blame for the darker side of this picture: The average donation fell to $54,019 in 2009 from $83,9034 in 2007.
Wealthy households reported that they give when they believe their gift will make a difference (72.4 percent), when they feel financially secure (71.2 percent) and when they know the organization is efficient in its use of donations (71 percent).
The top reason high net worth donors gave for not giving to organizations they supported in the past shows another dynamic at work. Nearly 60 percent in the study said they stopped donating because of too frequent solicitations or that they were asked for inappropriate amounts. About 30 percent said it was because their household circumstances changed.
I am a member of an American Legion Post in Ohio, and have found that those who do donate are more than willing to give to a 501(c)3, but very unwilling to give to a 501(c)19 non-profit. Even those organizations that help nonprofits get programs or equipment to do their work are not willing to donate or help a veterans organization. Local fundraisers bring in very small sums to the point that most of our members are unwilling to participate in our fundraisers.
It would be very helpful if I could find donors who want to help veterans. Most of the veterans organizations I know are very diligent in how any money raised is used, and it would not be too hard to keep records on how and where expenditures go, if requested. Any suggestions?