Downturn in Donations Appears to Be Easing

In the charity world, December brings with it all the stress of a final exam.

These 31 days count so much toward determining if a nonprofit organization passes or fails when it comes to monetary goals for the entire year. This month alone brings in, by many estimates, about 30 percent of a charity’s annual gifts.

Volunteers from Bank of America fill bags full of food to be distributed for the Backpack Buddies program at the Lowcountry Food Bank.

The combination of holiday spirit and the last chance to snag a tax write-off means donors of all levels open their wallets. This year, experts say, people plan to open them a little wider.

Rick Dunham, a Dallas-based authority on charitable giving, names the performance of the stock market as the most important indicator of how much individuals and companies give each year. Slight economic recovery in 2010 should translate to dollar signs for nonprofits.

“With the stock market being up this year, compared to a year ago, and with a bit more stability, we would anticipate holiday giving at year end most likely would be stronger,” Dunham said in an interview.

The Nonprofit Research Collaborative published an end-of-the-year fundraising survey that declared, “The worst may be over.”

The results, which compared October 2009 and October 2010, found that the number of charities reporting decreased contributions fell and that those reporting increased contributions grew, both by double digits. Representatives of nearly 2,400 public charities and more than 160 private foundations took the online survey.

Nonprofit expert Steve MacLaughlin, director of Internet solutions at Daniel Island-based Blackbaud Inc., pointed out that recent rebounds come in the wake of devastating crashes. Donations fell 11 percent in October 2009, according to MacLaughlin, who has an optimistic take on the newfound small gains.

“Flat is the new up,” he said. “Flat is better than being down.”

Source: The Post and Courier