
Becky Cain
Nonprofit sector, once again doing more
with less, could use your help
Saturday December 14, 2002
As the year ends and we observe our respective holidays, the
act of charitable giving becomes a reality for many. We make our contributions
through volunteer work or with donations of gifts or dollars. Eighty-five
percent of American households donate to charity each year. Philanthropic giving
has become a vital force in a wide variety of nonprofit-sector programs that
range from providing basic needs to enhancing opportunities for individuals,
communities and society. There has been much concern about the effects on giving
because of the Sept. 11 attacks, the weak economy and the downturn in the stock
market. According to the AAFRC Trust for Philanthropy, total charitable giving
reached an estimated $212 billion in 2001. These dollars helped support the
efforts of more than 1.2 million charities and churches nationwide. The number
of registered nonprofits has been growing 5 to 6 percent a year. Looking at the trends in giving can give us a better
understanding of the importance of philanthropy and the nonprofit sector. The
AAFRC Trust breaks down charitable contributions into four sources:
corporations, foundations, bequests and individuals. As has been the case since
1959, living individuals gave more than three-quarters of the total charitable
contributions in 2001. Most individual gifts in the wake of 9/11 were less than
$100. Bequest giving through wills and estates represented about 7.7 percent of
the total. Foundations made grant payments that comprise 12.1 percent, and
corporations gave 4.3 percent. Total giving grew in 2001 by an estimated 0.5 percent over
2000. That is the second-lowest rate of growth since 1959. Of the four sources
reported, giving by individuals and foundations increased, and giving by
corporations and bequests dropped. It is believed that the dollar value of gifts
received by bequests, many of which contain negotiable securities, might have
been lower because of the stock market declines. Surveys conducted in 2001 on giving and volunteering tended to
confirm trends found in previous surveys. These indicate that those of us who
volunteer our time give substantially more financially than those who do not
volunteer. Households that participate regularly in religious services give, on
average, about twice as much as other households. They also are more likely to
volunteer. Nearly 95 percent of us who are asked to give make a
contribution. Donors say the most important factor affecting their contributions
is that someone asks. Those of us who volunteered or made contributions when we
were young are more likely to give and at higher levels than those of us who
were not involved as youths. A weak economy, a downturn in the stock market, increasing
workloads, declining revenues — the nonprofit sector is once again under
pressure to do more with less. Unlike other sectors of the economy, the
nonprofit sector cannot disguise its deficits by ignoring future liabilities,
changing the start of its fiscal year or eliminating unprofitable product lines.
The nonprofit sector will do what it has always done: work harder and longer
with less. While the nonprofit sector gives many a chance to accomplish
something worthwhile, it also needs the resources to do so. Over the years, philanthropy has become an important factor in
providing a vast array of needed services to our communities. The nonprofit
sector has become a growing segment of our economy — providing more and more
services, employing more and more people, and providing hope for many. You too
can give hope by saying yes when asked to make a charitable gift. Cain, president and CEO of the Greater Kanawha Valley
Foundation, is one of the Gazette’s contributing columnists.