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Foundations, charities report $352 million in 2019 disaster funding | Philanthropy news

Data reported to date show that global corporate, individual, private, public, and multilateral funding in response to major disasters and humanitarian crises declined significantly in 2019, from $76 billion in 2018 to nearly $30 billion, an analysis by Candid and Center for Disaster Philanthropy finds.

Based on data from Candid and eleven other sources, the eighth edition of the annual report, Measuring the State of Disaster Philanthropy 2021: Data to Drive Decisions (20 pages, PDF), found that giving by foundations and charities in support of disaster relief totaled $352 million, down from $468 million the previous year. Of those grant dollars, 55 percent supported efforts to address natural hazards and severe weather (including epidemics, storms, floods, and wildfires), 41 percent to disasters in general, and 4 percent to complex humanitarian crises. In terms of strategy, 51 percent of grant dollars from foundations and public charities funded response and relief efforts, 17 percent supported disaster preparedness, 6 percent went to reconstruction and recovery, and 4 percent funded resilience measures. The Bill & Melinda Gates Foundation was the top funder in 2019, awarding thirty-four grants totaling more than $72.6 million, while the American Red Cross was the top recipient, with eighty-seven grants totaling more than $36.3 million.

“It’s critical to fund for response and relief. Yet, it’s also crucial that philanthropy funds preparedness and mitigation, which helps reduce the impact of disasters,” said Candid director of research Grace Sato. “Communities also require sustained funding to support the long road to recovery.”

According to the report, individual donors contributed $20.5 million through donor-advised funds managed by Fidelity Charitable and $6 million through DAFs at Vanguard Charitable and gave $11.3 million through Network for Good and $5.1 million through GlobalGiving.

The report also found that official development assistance from the thirty governments that are members of the Organisation for Economic Co-operation and Development‘s Development Assistance Committee totaled $22 billion, while non-DAC government donors and multilateral organizations contributed an additional $2.8 billion. In the United States, the Federal Emergency Management Agency distributed $3.2 billion, down from $11.2 billion in 2018; the U.S. Department of Housing and Urban Development allocated $1 billion in recovery efforts in 2019 for disasters that took place in 2017; and the U.S. Economic Development Administration invested approximately $381.7 million in disaster-related projects.

The report’s authors note that the analysis is based on 2019 data to date and that the COVID-19 pandemic adversely affected data collection on disasters that predated the pandemic. With the pace of the Internal Revenue Service’s release of IRS 990 and 990-PF filings further slowed by pandemic restrictions and the issuing of COVID-19 stimulus payments, as of August 2021 Candid had received only a third of filings expected for 2019 overall.

“Disaster philanthropy might be a drop in the bucket compared to government funding,” said CDP vice president Regine A. Webster, “but it plays an essential role in helping communities prepare for, respond to, and recover from global disasters and humanitarian crises.”

(Photo credit: American Red Cross)

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One-third of donors directed half their giving to disaster relief | Philanthropy news

Last year, 37 percent of American donors gave half or more of their charitable contributions to disaster relief efforts, and 64 percent gave to a charity they had never supported before, a survey commissioned by Vanguard Charitable finds.

Conducted by the Harris Poll on behalf of Vanguard Charitable, the survey of more than 1,300 American donors found that the top reasons American donors gave to disaster relief included wanting to assist those impacted by humanitarian crises (46 percent), feeling overwhelmed by a situation and wanting to help (33 percent), seeing charitable giving as the only way they could provide support (30 percent), and having a personal connection to the disaster/crisis (30 percent). The survey found that donors who contributed to disaster relief efforts gave more overall, meaning that disaster relief giving did not take away from, or occur in place of, ongoing giving. 

“From COVID-19 to a devastating humanitarian crisis caused by the war in Ukraine, we’ve seen donors respond to disaster relief needs in inspiring and meaningful ways,” said Vanguard Charitable president Rebecca Moffett. “In fact, this data reflects that disaster relief support is an integral part of the giving landscape, often increasing total generosity as donors look to give when and where support is needed most. And because the money in donor-advised funds has already been set aside for charitable purposes, donations from DAFs tend to be more responsive in moments of crisis, and more resilient during moments of economic uncertainty.”

(Photo credit: Getty Images/Drazen Zigic)

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Trust in nonprofits fell slightly last year, survey finds | Philanthropy news

While there is room for U.S. institutions across the board to increase public trust, a majority of respondents believe nonprofits will do what is right for society, a survey conducted by Independent Sector finds. 

Conducted in February in partnership with Edelman Data & Intelligence, the third-annual Trust in Civil Society survey found that 56 percent of Americans said they trust nonprofits, down 3 percentage points from the 2020 benchmark study (59 percent). Trust in philanthropy edged down from 36 percent to 34 percent during the same period. According to the survey, financial well-being and education are major drivers of trust, and trust of nonprofits among women fell during the pandemic.

Given the findings, Independent Sector recommended that nonprofits work to make greater progress to support and strengthen the country, for example by leveraging trust in the social sector to strengthen U.S. democracy, deepening engagement with communities and institutions, and upholding public expectations of government accountability.

“Increasing public trust of institutions and the social sector is a pressing issue for the U.S. We all benefit from strong public trust,” said Independent Sector president and CEO Daniel J. Cardinali. “Trust is the priceless currency for nonprofits, philanthropies, business charity programs, and all of us to build a healthy, equitable society. We see what happens when trust breaks. Our 2022 Independent Sector Trust in Civil Society report elevates important data and recommendations for conversations about how the social sector can engage more deeply and do better so everyone in our country thrives.” 

(Photo credit: Getty Images/SDI Productions)

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Digital, other channels of giving are expanding, study finds | Philanthropy news

Emerging trends in the United Kingdom and Brazil reveal an expansion of digital and other types of channels for giving, including online giving, crowdfunding, charity rounding up, and social impact publishing, a new research series from the Indiana University Lilly Family School of Philanthropy at IUPUI finds.

The research series, Digital for Good: A Global Study on Emerging Ways of Giving, builds on the school’s Global Philanthropy Environment Index and Global Philanthropy Tracker and will be released in phases over the next five months. The first two studies examine philanthropic engagement in Brazil and the UK prior to and throughout the COVID-19 pandemic, with profiles of China, India, Kenya, Singapore, South Africa, and South Korea to follow.

Based on an analysis of three case studies in Brazil, the first profile found that prominent emerging ways of giving include charity rounding up, crowdfunding, and social impact publishing, which involves the production of inspiring, revenue-producing editorial content. Donations collected through rounding up for charity via Arredondar increased from BRL1,091 in 2013 (equivalent to $590 in 2021, adjusted for inflation) to more than BRL1.6 million in 2020 (equivalent to $330,186 in 2021, adjusted for inflation). In addition, the study found that the most successful initiatives prioritized transparency and accountability in giving.

Based on an online survey of nearly 3,000 individuals in the UK, the profile found that prominent expanded methods of giving include online giving and crowdfunding. Among donors interviewed between May and July 2021, 60 percent reported that gifts they had made in the past year had been made online, with the most common way being through a third-party app. In addition, researchers found that 63 percent of people who used social media to request donations also made requests in person.

“The results of the first two country profiles suggest an evolution in giving practices and highlight a significant expansion of digital giving practices and peer-to-peer giving,” said Amir Pasic, the Eugene R. Tempel Dean of the Indiana University Lilly Family School of Philanthropy. “While these findings are the first in a series, the documented growth in digital giving and shifting donor expectations in the UK and in Brazil reinforce existing evidence that digital practices can help democratize the practice of philanthropy. Digital innovation makes philanthropy accessible and fosters greater transparency and accountability for how gifts lead to impact.”

(Photo credit: Getty Images)

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