By Lauren Young
NEW YORK, Dec 1 (Reuters) – December 2 is the date this year when nonprofit organizations will celebrate Giving Tuesday, a global movement encouraging philanthropy on the heels of Black Friday and Cyber Monday.
Michael Thatcher, president and chief executive officer of Charity Navigator, which rates nonprofits on their financial health and transparency, spoke with Reuters about the state of American generosity amid economic uncertainty.
This interview is edited and condensed.
Q: Are Americans still as generous, given the shaky economy, political turmoil and world events?
A: We survey our audience every year. At the end of October, we heard from about 1,400 users. About 32% plan to give more this year, 41% plan to give about the same, and about 8% plan to give less. The quick math tells me things are good. People still want to give and are engaged.
Over the past year, we’ve seen strong support around big events from fires in Los Angeles and flooding in Texas to the conflicts in Ukraine as well as in Israel and Gaza. In the last week of October, we also saw about a 600% increase in giving to food banks and food pantries across the country as SNAP benefits got cut.
Q: Giving Tuesday is different from crisis giving. How so?
A: Crisis giving is reactive. Giving Tuesday is a chance to focus on what you personally care about.
Q: Inboxes are already full of appeals. How should people decide where to give?
A: Start with causes that grab you by the heart. What do you care about most – education, cancer, something else? – and then get specific. Don’t let clever solicitations drive your decisions. Be careful about fraud and lookalike organizations, which unfortunately spike during crises and on Giving Tuesday. Make sure it’s a real charity with a mission that matches your goals. Then look for evidence of results.
Q: What evidence and metrics should donors look for?
A: At Charity Navigator, we rate several areas. We pull three years of Internal Revenue Service filings to see if an organization has strong financials and good governance, like an independent board, and whether it can weather rainy days. You want to find organizations that are efficient and effective. We help calculate cost per outcome so donors can see what their money is likely to accomplish. We look at culture and community, which is really how organizations listen to the communities they serve and use that feedback to improve. Last is leadership and adaptability. What is the plan, and what is the strategy to execute that plan?
Q: What do demographics say about who gives?
A: Looking at last year’s data, about 53% of our donors were women versus men. It fluctuates a bit. By age, about 42% of donors were between 65 and 74. The second-largest group was 25 to 35. Younger donors, including millennials and Gen Z, tend to volunteer at higher rates. They often have less money at this stage, but they engage by giving time. They also lean toward cause-based giving rather than loyalty to a specific institution.
Q: What’s your bottom-line advice for Giving Tuesday?
A: Pick your causes first, verify the charity and look for proof of impact. Favor organizations that listen to the people they serve and that invest in capable leadership.
(Reporting by Lauren Young in New York; Editing by Matthew Lewis)
