Americans in 2005 opened their hearts and wallets to victims of natural disasters. But chances are, the compassion of ordinary people will be even more important next year, particularly for local charities that perhaps didn’t reap this year’s surge in donations.
Americans gave record sums to charity in 2005, with the increase going to relief and recovery efforts. The American Red Cross’ hurricane fund topped $1.8 billion, a record for any U.S. charity for a specific disaster campaign, The Associated Press reported. The Salvation Army also raised more for hurricane response, $295 million, than for any previous disaster.
Closer to home, the Denver Foundation reports that 98 percent of metro Denver residents give either time or money to charity – and 72 percent do both.
The figures indicate that donor fatigue, in which charitable giving declines after a round of constant solicitations, hasn’t hurt the relief agencies, but other organizations have probably seen potential donors go elsewhere. A consulting firm says giving to Colorado’s small and medium-sized charities has fallen off, with about a third of their usual patrons shifting all or part of their giving to large organizations handling disaster relief. “More and more organizations are competing for donors’ attention and a share of a finite pool of resources,” said Aurora-based Common Community Communication Links. About half of Colorado charities that responded to the survey said that in addition to their traditional local mission, they also were called upon by community leaders to assist with national disaster-relief efforts. The one-two punch left about 60 percent of Colorado non-profits expecting to eliminate local programs or reduce budgets – even as they expect to see more demand for their services. The combination may devastate Coloradans who rely on their services.
If the gaps are to be closed, the money likely will come from ordinary people.
Americans making $50,000 to $100,000 are by one measure two to six times more generous in their charitable donations, with gifts equal to more than 2.5 percent of their investment assets, than the super rich. The least generous group of working-age Americans are young and prosperous, but inexperienced with philanthropy: Those making $500,000 to $1 million and millionaires under age 35 make charitable gifts equal to just 0.4 percent of their investments, according to the San Francisco-based NewTithing Group, which tries to encourage the most prosperous Americans to give more.
The Denver Foundation uncovered similar numbers in Colorado. “Although families with higher incomes tend to give more dollars to charity, they tend to give a much smaller percentage of their income than those with lesser annual household incomes,” said its 2005 study. For example, people making $30,000 a year give 4.5 percent of that to charity, while those earning $100,000 or more a year give 2.4 percent of their income to good causes.
The working stiff who writes a few checks to charity every year is a hero with the organizations who rely on public support. This year, donors have much to be proud of.
