Despite the common assumption that donors judge charities based on the organization’s overhead costs, a recent study of wealthy donors indicates otherwise. This survey, which was carried out by the University of Pennsylvania’s Center for High Impact Philanthropy, looked at how the nation’s wealthiest donors choose which charities to support, how they find information about those organizations, how they judge their donation’s impact, and the roles they wish to play at that nonprofit.
Thirty-three individuals who give away an average of $1.5 million every year were interviewed for this study. Many of these people had built businesses in finance, technology, pharmacology, and other fields. Also, most of these individuals understood that charities need money for overhead and other operating expenses and were willing to pay for it.
Social Contacts:
A few donors said they make their largest donations only after being personally involved with the charity; however, most donors said they gave to nonprofits that peers and other social contacts had suggested rather than doing research or looking up nonprofits on a watchdog organization. “Knowing someone on the board or from your peer group that recommends the issue or organization” was listed as important or very important by 26 of the donors.
Many donors said they needed better information on the organizations they support, but they do not aggressively look for the information. Other people said the information they were given on an organization’s effectiveness was not useful.
There are two main reasons donors are reluctant to ask for more information: They do not want to create unrealistic expectations from the charity, or they are afraid of unwanted solicitations. Many donors feel like they are deluged with donation requests, or they find themselves unable to free themselves from a charity once the donor has decided to stop supporting it.
Tangible Projects:
Donors often find it difficult to see the results of their donations. Because of this, some individuals are more inclined to give to tangible or time-limited projects such as buildings or scholarships.
Donors also are hesitant to ask for data that shows an organization’s effectiveness simply because the donor is afraid to burden the charity with extra demands, appear to be a “high-maintenance,” or act as if they do not trust the organization.
As for formal evaluations, some donors said that the data in those evaluations is often poorly presented, does not have the right information, or is not needed.
When questioned about their roles as donors, 9 of the 33 donors said they do not think of themselves as philanthropists, but as “community volunteers” or “community supporters.” Also, many donors said their involvement with the charity has grown as they have gained more experience, time, and wealth. Most donors said they want to help raise awareness for the nonprofit or work with other donors on charitable projects.
To read the survey “I’m Not a Rockefeller: 33 High Net Worth Philanthropists Discuss Their Approach to Giving,” visit the Center for High Impact Philanthropy’s website.
Information taken from: Holly Hall. “New Study Sheds Light on What Wealthy Donors Care About; Many Say They Will Support Operating Costs.” The Chronicle of Philanthropy. http://philanthropy.com.
-- Ashley High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is a subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.