Giving Online

Recession’s Impact on Charitable Giving Online

There has been much talk regarding the impact of the credit crunch on the charity sector and giving online. Charities worldwide have suffered to some degree as Donors cutback their online donations.

But how serious is the cutback? Has giving online really taken a plummet? Have Donor dollars really decreased as drastically as we think?

A 2008-2009 charity analysis report was recently released: Rapidata’s Charity Direct Debit Tracking Report 2009 answers these questions and addresses the following key points regarding online giving:

• The monthly cycle of online giving trends: patterns of giving online over a 6 year retrospect
• Impact of recession on online giving: donor cancellation rates (pre and post recession)
• Donor retention: measures to retain donor commitment to giving online

Whether you’re a nonprofit, or a single individual fundraising – insight into such patterns can help both nonprofits and individuals understand donor behavior to be more successful raising donations online (even under grim economic circumstances).

We’ve taken the meat and potatoes of the report and serving it up for you here:

The monthly cycle of online giving trends: Patterns of giving online over a 6 year retrospect

Giving online seems to fluctuate in annual cycles: rising increasingly throughout the summer and peaking around August. Trend reports indicate that online giving falls around December, picks back up in January, and plummets in February and March until the arrival of the start of the next fiscal year shortly after April.

Here is a graph that illustrates online giving trends and average monthly cancellation rates over the last six years (April 2003 – January 2009):

Impact of recession on online giving: Donor cancellation rates (pre and post recession)

Giving online makes giving to charity easier, however it also makes it easier for donors to withdraw or discontinue online giving. Cancellation rates have consistently decreased from pre/post recession.

Here is a graph illustrating Donor cancellation rates before and after the recession, and what these online giving statistics look like as a percentage:

“Cancellations rates skyrocketed from the summer of 2008″ “For instance, in December 2008, 67 per cent more people cancelled their direct debits than for an average December in the pre-credit crunch/recession period. And a statistical analysis shows that these cancellations rates were so high that they were unlikely to have ever occurred under the conditions that were driving cancellations prior to September 2007.” -Rapidata’s Charity Direct Debit Tracking Report 2009

Donor retention: measures to retain donor commitment to giving online

“The process of reactivating a cancelled donor starts from the very moment they cancel.” -Rapidata’s Charity Direct Debit Tracking Report 2009

Rapidata’s donor cancellation report identifies some very interesting findings regarding donor behavior and giving online trends. What are your thoughts on this report?

• Have you cut back on giving online due to present economic circumstances?
• Nonprofits/ Charities/ Fundraisers – Have you experienced a decrease in donations within the past year?
• What are some additional ways you can encourage people to commit to giving online despite present circumstances?

If you enjoyed this post, check out a few others:

Feeding The Hungry: A bus driver’s tale of good deed
Could You Feed Yourself On $5.83 A Day?

Giving To Charity

Charitable Giving & The Greatest Paradoxal Misunderstanding

Our posts have spanned many similar topics all pertinent to giving to charity: the importance of giving, reasons to give to others, the positive power of micro philanthropy, and we’ve even suggested ways to give through volunteer opportunities

Regardless however of how much we encourage people to give to charity (even on the easiest of micro-giving levels)… there are plenty of people that still don’t practice charitable giving. 

And furthermore, from within the charity sector it seems as though the biggest challenge charities face is overcoming the communication barrier that stops the masses, or otherwise potential donors, from giving.

The greatest paradoxal misunderstanding that inhibits many people from giving to charity is the mistaken idea that the only way to maintain wealth is to hold on tightly to what you have. This post aims to present a strong argument and clear case for charitable giving.

The Arguments Of Giving To Charity

Those who don’t give to charity, are rarely satisfied in life

Someone once said, “If you eat enough lobster it will eventually taste like soap”. This also stands true in our personal lives and in our habits of giving – you see hoarding wealth is distasteful and you’ll never be satisfied in life if you hold onto what you have.

Albert Schweitzer puts it beautifully:

“I don’t know what your destiny will be, but one thing I know for certain. The ones among you who will be really happy in life are those who have sought and found how to give.”

Those who don’t give to charity, rarely receive

With a closed fist man retains what he has, in as much as he surely thwarts to attain any more. The only way that money can get in is to have an open hand. 

On a side note, it’s rather quite incredible that every tribe, tongue, and nation all seem to understand the universal symbol of anger… a clenched fist. Gold Mier coined the phrase “you can’t shake hands with a clenched fist”.

Those who don’t give to charity, turn stale

What do we mean by “turn stale”? Consider a pond where water flows out of a pipe, but nothing drains out of the pond. The water eventually becomes stagnant and begins to stink. Eventually layers of scum accumulates and cloaks the surface as stuff goes in but nothing comes out. Ever met someone who reflects a stinking pond?! Take a lesson!

“There are men who gain from their wealth only the fear of losing it” -Antoine Riveroli

The Case For Charity: Why Give?

The Transformational Effect

It’s a peculiar phenominality – it’s as though the mechanical act of giving to charity changes us. A transformational occurence takes place and it is only when we let go and help people in need that we truly feel most happy and fulfilled.

Charity Champs address a few rather potent thoughts on their blog regarding the transformational effect and the impact of charitable giving as they address the question, Does micro-philanthropy work?

The Fruits of Charitable Giving

More explicitly, giving to charity naturally encourages you to become less selfish. The interesting aspect of selfless, more charitable individuals is that they tend to prosper in relationships and in wealth. It’s not difficult to understand this, as selfish people are rarely liked and if you’re not liked you’re less likely to succeed in a world where success is largely contingent upon your success with others.

We’d love to hear your additional thoughts on this post…

• Why do you give to charity?
• How would you encourage people to give?
• Do you experience a change when you give?

Charity Causes

Top 6 Charity Cause Colors

You’ve probably seen them – those colored rubber wrist bands that have become an international fashion statement within the charity sector. Charity advocates worldwide support their favorite charity causes by publicly displaying colored advocacy bands. They come in many colors, each representing a different cause. Ever wondered what each color stands for?
 

 The Support Our Troops Charity Cause

Yellow represents the support of our troops fighting worldwide for freedom! Yellow was originally the color of the United States Cavalry during the 19th century. The yellow ribbon derives its origins from the practice of women wearing yellow ribbons in their hair to display support of their husbands and sweethearts serving in the army.

 The Breast Cancer Awareness Charity Cause

Breast cancer is the #1 most common form of cancer among women. Pink represents international awareness and the support of breast cancer research to put an end to this prevalent epidemic.

 The Anti-Bullying Campaign

Blue represents support of the National Bullying Awareness program. Originally an initiative that surfaced in the United Kingdom has grown in popularity in the U.S. The program targets a parental and administrative call to stop child-bullying in our public school systems by spreading awareness and talking to children about the detrimental impact of child-bullying.

 The Live Free. Smoke Free. Charity Cause

In affiliation with the American Cancer Society – the Live Free, Smoke Free Campaign aims to stop teens from smoking. Orange represents a national effort to raise awareness and keep young people from a lethal dirty habit that takes the lives of millions of people every year!

 The Purple Paws Charity Cause

Purple represents the advocacy of animal rights and the prevention of animal cruelty. The Humane Society of the United States estimates that over 1 million animals are neglected, abused, or killed every year in connection with violence. Support the humane treatment of animals and display the purple ribbon.

Courage: AIDS Awareness Charity Cause

Red has become an iconic international symbol for AIDS awareness. Since 1990, people living with AIDS has increased from 8 million to over 33 million today, reports the United Nations AIDS 2008 Report of the global AIDS epidemic. Global efforts have been made to spread awareness and educate the public regarding preventative measures and the gravity of this increasing pandemic.

We’d love to hear from you…

• What’s your favorite charity cause color?
• What charities do you stand for?

Make A Difference

How To Use Micro Charity To Make A Macro Difference

We recently posted on the topic of micro-philanthropy and its large impact to make a difference in the life of someone in need. Today, this post will further expand on ways that you can make a difference (even if the “money bucket is dry”)! 

But first let’s get something straight: “Charity” is NOT synonymous with writing a personal check. The greatest misunderstanding is the idea that one must give 10% of his or her income in order to be “charitable”. If you can afford 10%, then by all means whip out your check book!

However, for those who would like to make a difference, but struggle to make their own ends meet, here’s what you can do:

Make an 85 cent difference

The most powerful charity is when one displays a truly heartfelt act of kindness.

Recently one of our Recipient members made an 85 cent donation to another Recipient. This small act of kindness carried more value than its actual monetary worth. Our receiving Recipient said:

“85 cents changed my life because I knew someone cared enough to share with us what little they had. It touched me so deeply that it has left a lasting impression on not only my life, but my whole family.” -Michelle (michie)

The interesting dynamic is not so much the impact of the monetary donation itself, but rather the profundity of realizing that someone else out their recognizes your struggle and cares enough about you to give and make a difference in a little way. 

Thank you Becky! 

Make a more “personal” difference

You can make a difference on a more personal level by taking the time to identify struggling people with specific needs and meeting those needs where possible. For example, one of our members recounted a time when she struggled to buy clothes for her children for the upcoming school year. An observant neighbor identified her need through observation – collected a bag of clothes her own children had outgrown – and dropped them at the doorstep of the struggling mother. 

It brought tears to her eyes to think that someone else paid enough attention to her needs and was kind enough to take initiative and meet those needs. 

It’s easy to quickly dump off our old clothes at the Salvation Army, but let’s slow down our chaotic pace of life and observe the people close to us who we can help and make a difference. 

Make the opportunity to make a difference 

Life can easily fly by if you don’t slow down your pace of life for a moment to consider opportunities to help others. It’s easy to get sucked up in your own world of problems and forget that there are other people out there who are hurting.

One of our team members recounted one of her greatest regrets was not reaching out to an elderly lady during a time of emotional distress. After the passing of her husband, Elaine Kellar’s health quickly deteriorated. 

Our team member wished she had slowed down her busy schedule for a just a moment and offered companionship – a mere few visits to show someone cared would have made a world of difference to an elderly woman who felt alone and forgotten. 

Nothing is more discouraging than the feeling of being alone. The most effective way to make a difference is to be physically there for someone. 

Keep your eyes and ears peeled for people with needs. Slow down your pace for just a moment and consider the opportunities to make a difference in the lives of people in your community.  As our Recipient member MJ beautifully said:

” I will be giving where ever I can” – “this time with more focus on what I can do for others to get my mind off of all the bills that keep coming in. Of course I will still pay them as I can, but in the middle of the storm I forgot to care for others”.

Make a difference by listening

We’ll keep this one short, sweet, and simple. There’s absolutely nothing that compares to having the emotional support of someone to talk to. Make a difference by listening to someone who needs an ear.

We’d love to hear from you…

• Has someone made a difference in your life? 
• Have you ever done something to make a difference in life of someone else?
• What are some other ways that you can make a difference?

Make a difference today!

The Culture of Charitable Giving

4 Reasons People Give To Charity

Why do people give? What influences one’s charitable inclination? What is the culture of charitable giving?

This post reviews an interesting study introduced by Arthur C. Brooks (social scientist and economic analysist of charitable giving). Through research and observation, Brooks has identified four primary driving forces behind one’s economic incentive to give:

1. Religion as it relates to a moral code and charitable giving
2. Strong charitable principles within the family
3. Level of wealth and prosperity on charitable giving
4. Political views regarding government’s responsibility to meet societal needs

Religion as it relates to a moral code and charitable giving

Although religion alone is not a single deterministic factor of one’s likelihood to give, Brooks notes there is a significant corollary between the exercising of faith as it relates to a value system and moral code. Giving patterns are generally higher among those who avidly practice a faith versus those who do not. Brooks puts it this way:

“religious people just give like crazy”

Strong charitable principles within the family

Among his research, Brooks noted a few key observations regarding the culture of charitable families. He found that families that give to charity have a different quality about them. They tend to have more family integrity, healthier habits, more meaning and purpose, and are generally happier.

Additionally, there is an unusual relationship between charitable giving and one’s likelihood to experience long-term prosperity. There has also been suggestion that charitable giving increases longevity. Brooks noted from his research and observation that families usually experience a 4 out of 1 increase in wealth. The qualities mentioned above could quite possibly be the influential factors of being prosperous in life. Generally speaking, people who are healthier and happier are more likely to be socially accepted and consequently “success” is a likely end by-product.

However, the question as it relates to charitable inclinations:

• Are those qualities a by-product of charitable giving?
• Or, are families that exhibit those qualities more likely to give?

Level of wealth and prosperity on charitable giving

Contrary to what one might assume, level of wealth does not impact charitable giving. In fact, the most generous of givers are those among the poor and lower working middle class when you consider their percentage of income to what they give to charitable causes. Interestingly, poor and lower middle class do not generally reap any tax benefits for charitable giving – thus striking out any tax incentive as a viable influential factor. Brooks states:

“We Americans can take a charity lesson from people of modest means who work for a living in the United States”. 

Political views regarding government’s responsibility to meet societal needs

Charitable inclinations are also revealed in one’s political stance regarding the government’s responsibility to its people. Comparatively speaking those who feel the government should take the initiative are twelve times less likely to give to charity than those who feel that charitable giving is a societal responsibility.

Creative Fundraising Ideas

How To Raise Funds & Have Fun: Creative fundraising ideas for creative minds

The idea of fundraising can seem a bit daunting. Where do you find the time? The energy? The support? But fundraising can be a heck of a lot easier than it seems if you get creative with your fundraising ideas. 

Whether it’s to benefit charity, or even support someone battling through a tough time – creative fundraising ideas lurk in every neighborhood nook and cranny. We’ve done a bit of legwork for you and gathered some creative fundraising ideas. We’d love to hear some of yours at the end…

The $10 Fundraiser

Ten dollars can quickly multiply to an easy $1,000 with this creative fundraising idea: Pick ten people (ie. friends, family, neighbors, co-workers, church members, etc) and ask them to find ten other people to donate $10. Cha-ching, easy as pie. 

BBQ Fundraisers

Who doesnt like a good old BBQ? They’re a fun, family-friendly way to fundraise and a great way to draw community around the causes you care most about.

Yard Sale Fundraisers

Yet another great way to fundraise. Clean out your garage and ask your neighbors to donate items to support your cause. Be sure to publisize your yard sale as a fundraiser for charity. Set a fundraising goal to encourage people, maybe they’ll give you more for your junk! =)

The Popcorn Fundraiser

A deliciously creative way to fundraise which calls for a movie night in your very own living room. Scatter pillows on the floor, pop some corn and pop the lights. Live in a cupboard? Not enough room in the house? Nominate your neighbor’s house! 

Birthday Bash Fundraiser

Using your Birthday as an excuse is a great way to fundraise. Host a birthday bash in honor of a cause you care about. 

Bingo & Bowling Fundraisers

Games are always a creative way to fundraise. Everybody loves them, they’re age appropriate for most children, and everybody wins in the game of Charity! 

Wing Fling or Chili Contest Fundraiser

Some of the best creative fundraising ideas involve food. Gather your community around food contests and encourage your community to join in and sample delicious food for the sake of charity.  Who would turn that down??

Creative fundraisers can be a highly effective way to raise money for causes you care about. We learned a story about a few young people who threw a party and raised over $40,000. What started out as a modest appeal to raise donations for a charitable cause evolved and materialized into what is now an annual event; a fine example of the power of creative fundraising and the impact a few people can make when gathered in the name of a cause they care most about. Start small and you never know where your creative fundraising ideas will lead…

Share with us your creative fundraising ideas…

• Have you ever participated in a creative fundraiser?
• What fundraising activities are people doing in your community?  

New to fundraising? Start fundraising now! 
Like this Blog post? Check out a few other creative fundraising ideas

The Generosity Index

The Things You Say…

Have you ever experienced a time when someone casually said something that spoke to you profoundly?

Ironically – as the communicator continues to ramble on, you realize that he or she has no idea that during that fraction of a moment they just imparted words that touched your life.

It’s remarkable how a few mere simple words can leave such a branding impact. Yet it’s those little things that people say – those random moments and life encounterances that can leave a lasting impression on your life forever.

We asked for your feedback and we were deeply moved by your responses. Your lives and stories have touched us in extraordinary ways. Here’s a recap of some of the things you said this month that spoke to us profoundly:

“There are many sheep who mindlessly carry on in everyday life” – “people who cannot see what is right in front of them” – “So I guess we have to point things out and give others time to see how they can participate and/or volunteer” – “It’s like the child in a messy room stepping over things, but doesn’t realize it’s messy or that they stepped over anything until you point it out”. – JT, on Volunteer Opportunities

In the regard to: giving what you can – “I know it’s a drop in the bucket, but every bucket is filled with little drops. It’s never filled if people think their droplets are too small” -Becky (Rayhawk), on Micro Philanthropy

“One of my happiest moments was when I officially became a recipient and received my very first donation from Rayhawk – that was a very special day. Thank you again Rayhawk, you put a big smile on my face that day. It was not about the amount of her donation, it was about the sincere gratitude from another recipient. I cherish those moments with great pride. Being a member of the MicroGiving Foundation has made a huge impact in my life today” – Jamel, on Micro Philanthropy

“My girlfriend died last May 23, 2008. Her name was Theresa Renee McVety” – “She died in a car accident”, but “she was an organ donor”. “A person regained her eye sight, and Tess’s liver saved a life. At the wake, we had two balloons representing the organs she donated. They floated in the air with hope and sorrow. It’s a good thing for people to donate their organs. It sad when we lose our loved ones, but it’s nice to know there’s a piece of them still here. As I’m crying, Tess, I want to tell you that I love you and miss you. I’m proud that you donated your organs. This site gave the world a chance to introduce you.” -Christy Lauzon, on Give Life

“Microgiving.com reminds me a lot of my family, a lot of brothers and sisters who want to see others do better in their lives. I would love to see more people on ‘microgiving.com’ to help others – no matter what. I would do the same for anyone who would help me in my life.” – Dave, on Micro Philanthropy

“Do I believe and support Micro Philanthropy? Yes. The ideology and action of philanthropy speaks to the deep trait of caring for others in this world, otherwise we would live in world laced with greater challenges than we witness today. Just imagine what that world look like.” Randy, on Micro Philanthropy

“I will be giving whenever I can. I am re-doing my budget and this time I’m focusing more on what I can do for others to get my mind off of all the bills that keep coming in. Of course I will still pay them as I can, but in the middle of the storm I forgot to care for others.” -MJ, on Community Service Ideas

“It’s amazing how much a dollar can add up. If everyone on this site gave just a few people $1 that would show the power of giving what you can and gaining so much more by doing it.” -Tania Osborn, on Micro Philanthropy

“Yes, compassion is contagious. When you’re around nice people it does make you feel more inspired when we join together to help someone!” – Elaine Wellington, on Micro Philanthropy

“I am deeply moved by the compassion of this community. I never expected to find this, not online, not on the internet where all you hear and read about are the predators and scammers that constantly feed on people exactly like you all – with loving and giving hearts. I came across Microgiving by accident really. However I no longer believe that, because whether I’m ever given a dime in support of my mission I am inspired and encouraged daily by the outpouring of support and gratitude – and the  encouraging words from those who leave comments and blogs here.” Keryl, on People Helping People

May your lives be truly blessed,
as you have truly blessed us…

Sincerely,
MicroGiving

Micro Philanthropy

Micro Philanthropy & the Magnitude of the Micro Philanthropist

Just what is micro philanthropy?

Micro philanthropy is a form of philanthropy that uses the power of “micro” donations to enable anyone to give any amount within his means—directly to someone in need. The power of micro donations comes into play when millions (dare we hope?) all join together and give a little:

$1  x  1,000,000 (you’s & me’s)  = $1,000,000

But what is the difference between micro-donations versus one large donation? Which is better? Isn’t the end impact both the same? Both cases impact the lives of people in need. However, micro philanthropy is changing the entire face of philanthropy in ways that people have yet to even realize.  The profundity of micro giving is extraordinary and the differences are worth consideration:

Micro-philanthropy is for ALL social & economic backgrounds

The beauty of micro philanthropy is that one need not be wealthy to give and help someone in need. Anyone, regardless of financial circumstance, can experience the sensation and transformation of philanthropy. A single dollar donation is a single statement that speaks loudly of where your hearts at.

Micro philanthropy is more personal and intimate

The cool thing about Microgiving.com is that our site is a philanthropic platform allowing you to give directly to an individual in need—right to the heart of the cause. Traditional philanthropic donations are passed through a “middle-man”, or a charity organization that allocates your donations where they see fit. Micro philanthropy cuts out that middle man and allows you to develop a special relationship with the individual you help. Micro giving is breaking down those impersonal walls and cultivating organic relationships that traditional philanthropy will never achieve.

Micro philanthropy changes your perspective

Consider your $1 donation which went to the purchase of medicine– saving the life of a dying girl in Cambodia. Suddenly one’s perspective changes as now the value of a discarded soda can translates into the difference between life and death for a child in a third world country.

Micro-philanthropy stimulates a collective energy

Micro philanthropy generates something that a single large sum donation could never possibly accomplish.  The aggregated total of a multitude of $1 donations creates a philanthropic energy around the act of giving that is unmatched against the single donation of one million dollars. In fact, no single monetary amount of money will ever compare to the charitable energy that comes from a multitude of micro givers. MicroGiving is a place that aims to harness the energy that amasses when a body of people come together to give.  In sum, worldwide change can in fact be made by people like you through the power of micro donations.

So how does the network effect impact us as a group whole; does collective philanthropic action influence us?  Do we feel more inspired when we join together to make change? Is compassion contagious? If so, we must consider…

What then is the true value of micro philanthropy?

Could it quite possibly be worth more than one large single philanthropic donation..?

Please share your thoughts with us. We’d love to hear your feedback on this topic…