Plummeting numbers seem to suggest that philanthropy is not as popular as it was just years ago.
In fact, alarming statistics show that individual charitable donations in America has dropped by nearly 10% over the past five years, which begs the obvious question; what’s happening to charity? Is it no longer being done? Are the needy being neglected? Is the growing culture of apathy taking over? Are we growing cold to the pains of the world?
Regardless of the reason, non-profits, charities and support groups that rely partially or wholly on the general public’s support are searching for ways to reverse this dismal trend. What’s the solution you ask?
Alternative fundraising! For example, trendy new words like crowd-sourcing, micro-financing and even macro-financing have been created.
Groups seeking the assistance of others have been finding creative news ways to attract donors by either broadcasting their cause to large numbers of people who, when even donating a small amount, can make an enormous impact to their cause.
Other groups find ways to reciprocate by creating an added incentive to the donor, whether it be a more personal feeling or a cleverly structured tax advantage. These new forms of donative incentives are really changing the face of philanthropy.
Organizations like Kiva and World Vision have made it their mission to make the donor feel more attached to those benefiting from the charity work by providing personalized overviews of those in need, thus creating a bond, a feeling of responsibility and accomplishment to the donor. As evidenced by these groups’ success, this works well - but is still limited by the constraints of the donor’s wallet. This leads us to the second group of non-profits that have appealed to capitalism to help their cause.
Planned giving for the purpose of tax reduction.
Many people are aware of life insurance policies that can be purchased during ones life and at death they pay out to a preselected charity effectively lessening the tax burden often endured when estates are settled. However, if you wish to make a difference before you pass on you should consider the process that has made the small, non-profit organization HEDAC (Help Eliminate Disease and Addiction Canada) such a raging success. It’s a relatively new process called Profitable Giving.
An oxymoron you protest, but in all seriousness HEDAC and their distribution chain have been overwhelmed by the success of this coupling of business and heart. Because of an agreement between several companies and many relief seeking individuals, average Canadians have been able to realise a tremendous tax reduction while Canadian companies have been able to increase revenues for charitable works being done. For more information on projects like this, search “Registered Profitable Giving Arrangements”.
So the question remains, will the stress of the world cause us to ignore those in need? Or will we look to HEDAC, the micro success story, and see a world of sharing and saving rather then a world of apathy and greed?
Written by Murray Jantzi, July 2011
Giving seems to be less and less in fashion these days, particularly for individuals.....