Friday, December 9, 2011

Are your funds going to stay the same?

Here's a new study from the 2011 Social Good Survey that suggests that donations to nonprofits next year will remain at 2011 levels.

I think many clients are not that optimistic - especially those who rely on private and public grants.  One client with 98% of funds from government agencies for its housing programs is just now beginning to think about other fundraising venues!

The survey, which polled nearly 2,500 people in the U.S. and U.K., found that 72% of U.K. respondents and 65% of U.S. respondents say they expect their 2012 giving will remain the same as last year. All respondents in the 2011 Social Good Survey were older than 18 and had given at least $10 to charity in 2011.

This is certainly not catastrophic news considering that nearly $300 billion dollars were donated to charity in 2010 (2011 numbers are unavailable but likely similar).

What’s most surprising is that despite the potential giving plateau, respondents acknowledged that non-profits were the most effective change-makers. Of those surveyed, 12% of U.K. respondents and 18% of U.S. respondents said they plan to give more in 2012.

The largest motivator for giving is still a personal connection. When asked what would inspire a donation, the two highest responses were “a cause they believed in” (44% in the U.K., 35% in the U.S.) and a personal connection to the organizations (24% in the U.K., 18% in the U.S.).

Less than half of the total respondents felt that non-profits and charities do a good job of spending funds and managing operations. However, the study showed that the more a person knew about the non-profit world, the more positive they were about the efficacy of non-profits.