By Amy Hoak, MarketWatch
CHICAGO (MarketWatch) — More Americans are in the giving mood this year, thanks to a slowly improving economy that’s making people a shade less fearful they’ll get a pink slip instead of a holiday bonus.
Still, many need to mind their budgets when opening their hearts.
More bang for donation bucks
Philanthropy advisers can help clients identify causes in need and organizations that use donations most efficiently.
Thirty-six percent of charities reported an increase in donations during the first nine months of the year, up from 23% during the same time period in 2009, according to the Nonprofit Research Collaborative, a group that includes the Association of Fundraising Professionals, Blackbaud, and the Center on Philanthropy at Indiana University, among others.
And 37% reported a decrease in giving the first three quarters of this year, down from 51% that said the same last year.
“Based on what we’ve seen so far... we would extrapolate that this end of the year is likely to be better than what it was in 2009 but not nearly what it was in 2007 — the best on record,” said Melissa S. Brown, associate director of research for The Center on Philanthropy at Indiana University.
It‘s possible that Americans are starting to be more generous as they gain more confidence in their job security. “Maybe the pink-slip phase has passed by and people can count on having their jobs a little longer,” she said. Read story on employers’ hiring plans strongest since 2008, according to Manpower.
Another survey released in October found that 55% of American donors plan to maintain their level of charitable giving in the fourth quarter, and 8% said they’d give more than in past years because the need for help is more acute, according to research from the Fidelity Charitable Gift Fund. About 600 adults participated in the survey, and all of them intended to donate $200 or more to charity in 2010.
All that said, there are plenty of Americans who are still affected by a job loss, underemployment or fear that they will lose their jobs. Even for them, there are plenty of affordable ways to donate this time of year.
If you’re giving on a budget, stop and think before you give, to be sure that what you’re able to donate has the greatest impact for your cause, said Eileen Heisman, chief executive of the National Philanthropic Trust, an independent public charity dedicated to increasing philanthropy.
Cash gifts
Every dollar makes a difference, said Lisa M. Dietlin, president of Lisa M. Dietlin & Associates, a Chicago-based philanthropic consulting agency for individuals and nonprofits. Cash donations are typically most helpful because they allow nonprofits to distribute money where it’s most needed.
But the trick to donating funds on a budget is making every dollar you give feel meaningful to you. Your mailbox may be jammed with fundraising pleas from your alma mater and any other nonprofit you’ve ever supported. But before giving a dime, decide what your giving goals are and try to resist the onslaught of direct mail. Read more on why you need a “do not donate” list.
“People get really overwhelmed about the number of appeals in their mailbox. Make a plan, set a budget and do the best you can,” Dietlin said. “Don’t let guilt drive you. Make a decision.”
Reevaluate past giving decisions and be flexible, Heisman said. Just because you liked something five years ago doesn’t necessarily mean you will feel the same about it this year, she said.
Research organizations online, Heisman said. Want to have the vetting done for you? There’s no shame in finding out who famous philanthropists — Bill Gates or former President Bill Clinton, for example — are giving to these days and piggyback on them, she said. They have teams of people vetting organizations on their behalf.