Powered by Small Donors, Giving Is Surging
The first half of 2020 was remarkably strong for fundraising, with donations rising almost 7.5 percent over the first half of 2019, writes Eden Stiffman.
Perhaps most surprising is that it wasn’t just the wealthy who were behind the rise: Gifts of $250 or less accounted for a big part of the growth. They rose 19. 2 percent, perhaps due in part to the $300 charitable deduction made available to every American as part of the Cares Act.
“The significant increase in gifts under $250 shows many donors have been moved to give even amid the pandemic and resulting economic uncertainty,” Elizabeth Boris, chair of the Growth in Giving Steering Committee, said in a news release.
What’s happening now: A poll released this week found that the death of Ruth Bader Ginsburg was a major motivator for giving to charity in recent days. Eighteen percent of people under 30 gave for that reason while another 16 percent said they gave because they wanted to affect the election, according to a report from Cause and Social Influence.
Where the money for charities is: Assets at private foundations have soared in recent months to about $1.1 trillion, regaining all the ground lost since the market plunge in March, according to new estimates from FoundationMark. The research organization says that means grant making will hold steady at last year’s rates, probably about $85 billion.
The market’s fluctuations are a big reason for grant makers to give generously now, write Phil Buchanan of the Center for Effective Philanthropy and investment consultant David Salem in an opinion article. “Spending more now is not just the right thing to do,” they write. “It is cheaper than when markets were tanking.”
A Sevenfold Increase in Giving for Racial Justice and Equity
In the months since George Floyd was murdered, rich donors have given at least $208.3 million to advance racial justice and support diversity, equity, and inclusion programs, according to a new Chronicle tally of public gifts from individuals.
That 2020 sum is a marked increase from 2019, when affluent philanthropists gave $26.2 million publicly toward such efforts, writes Maria Di Mento. And the tally does not include the many millions big donors have given to top historically Black colleges and universities, which have also seen a significant rise in donations this year.
Among the donors giving generously are Jrue and Lauren Holiday, professional athletes (shown at the top of this morning’s newsletter) who gave roughly $5 million in July to launch the Jrue and Lauren Holiday Social Justice Impact Fund to fight systematic racism and social and economic inequality in Black neighborhoods.
Other big donors include Gail and Philip Holloman, who provided $1 million this summer to the Urban League of Greater Southwestern Ohio to create its Center for Social Justice.
Philip Holloman, retired president and COO of the Cintas Corporation, says that four years ago he was in his driveway when a police officer drove up to him and asked if he was lost or needed help, implying that Holloman looked like he didn’t belong there.
“I’m in my own driveway and I’m being questioned, and that’s just one example,” Holloman says. “In a different situation with somebody different, that could have escalated.”
Ford steps up its racial-justice giving: The Ford Foundation announced Friday $180 million in new funding for U.S. racial justice and civil-rights groups, doubling its existing commitments to $330 million.
The big picture: Donations from the wealthy come as more than $6 billion has been committed by foundations and companies to efforts related to race.
Still, nonprofits led by people of color face significant increases in demand for their services at the same time they have struggled with severe budgetary challenges, according to a survey by the Building Movement Project.
More than a third of the organizations in the survey reported helping individuals who had lost a loved one to the coronavirus, and about 60 percent said they serve people who face unsafe working conditions, writes Jim Rendon.
“This crisis is going to continue to get worse and come in waves,” says Deepa Iyer, a co-author of the study. “These groups have moderate budgets; they have smaller staff. They were already making do with little before the crisis. They are worried about whether they can meet the evolving needs of their communities that are leaning on them even more than before.”
