Two-thirds of donors are cutting back on their charitable giving due to economic worries, a survey by non-profit consulting firm Dunham+Company found. Another 10% plan to cut back entirely until the economy gets back on track.
“According to Giving USA 2011, U.S. charitable giving dropped to $30 billion annually from 2007 to 2009,” said Rick Dunham, president and CEO of Dunham+Company. “Giving recovered slightly in 2010, and has continued to make a comeback in 2011, but now it looks like charities are in for some more rough waters with the economy in such disarray.”
Charities in search of new donors will find it particularly challenging, as only 22% said they would consider gifting to an organization they have never supported before.
Asked what are the top three factors impeding their decision to give, donors sited job loss, rising cost of living expenses and uncertainty over the economy.
A full 43% said they expect the economy to continue to decline, 31% said it will stay the same, and only 17% are hopeful it will improve.
The study was based on a survey of 497 adults who have donated at least $20 in the previous 12 months.
Money Management Executive