Spring Donation Statistics
by Jessica High

Guidestar, a nonprofit watchdog group, has released their report on March through May’s giving statistics. Their most significant findings were these:

52 percent of charities saw a drop in donations during May through March. This amount is the same as was reported for the October through February period.

36 percent of charities made budget cuts for this year while 36 percent decided to increase theirs.

36 percent of grant-makers said they gave away less money in the three-month period.

Eight percent of organizations said they were in imminent danger of closing because of a lack of money.

These findings came as a surprise to many people; many had expected the drop in donations to be much more severe. Bob Ottenhoff, president of Guidestar, says “either that means they’ve [(givers)] found some ways to get through or the decrease has yet to come.”

Guidestar and Foundation Center leaders warn that there still is evidence that the lows of charitable giving have yet to come. Bradford Smith, president of the Foundation Center, is predicting that foundation grants will decrease by at least 9 percent in 2009. Ottenhoff also said, “individual giving will likewise continue to fall for some time, driven in part by the rising unemployment rate.”

There still is cause for optimism. The IRS still is seeing a steady flow of applications for nonprofit status. Nonprofits need to maintain perspective and make careful choices. Innovation and persistency play key roles in moving forward.

Additional information taken from Chronicle of Philanthropy’s article “52% of Charities Saw Drop in Spring Donations, Survey Finds”

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