The nature of charitable giving has changed, and there are four primary reasons for this:
- Technology has made it not only easier to give to charities, but to know about charities and how efficiently they perform.
- Changes in the U.S. tax code have created a disincentive for giving, especially for those who gave strictly for purposes of a tax deduction.
- The rise of Donor Advised Funds (DAF) has made it easier for donors to contribute meaningfully to a cause.
- Concerns for transparency and organizational efficiency have driven the need for increased disclosure and external oversight.
High profile scandals have eroded public trust in corporations as well as not-for-profit organizations. This has led charitable givers to reward organizations that provide full organizational transparency.
It Pays to be Open
A recent study published by GIVE.ORG has highlighted several important statistics related to donors' behaviors:
- Donors give 54% more to organizations that have received endorsement from a third-party
- 73% of donors say it's very important to trust a charity before giving
- Only 19% of donors say they highly trust charities
- 44% of donors say they choose a charity to support based on their accomplishments
- 39% of donors rely on third-party evaluations to choose which charity they support
- 35% of donors say they rely on the charity's efficiency (measured as the percentage of charitable monies that reach their intended constituency)
Donor's Age Impacts How/Why they Donate
- Senior Citizens are much more likely to give to a charity based on third-party evaluations (56%)
- Senior Citizens place far less value in an appealing story (6%)
- Generation Z places less value on third-party evaluations (19%)
- Generation Z places the greatest weight on the organization's passion for a specific cause that the donor believes in (46%)
Being transparent can help your organization yield more donors and higher donations. Are you wondering what information you should be sharing with the public and your prospective donors? Zinner's Not-for-Profit Team can help you improve your reporting and help drive more donations! Let's talk!
