Getting a Little

Posted by Estela Kennen Nov 1, 2006

According to an annual Chronicle of Philanthropy survey, nonprofits had a big year in 2005. Charitable donations went up 13% last year, for the 400 biggest organizations, that is. But according to an article in the November 6 issue of Time magazine, this largesse is at a cost to the over one million smaller non-profits around the nation. The top 400 get one-quarter of all donations, leaving others literally short-changed.

The problem is understandable – with so many options, most of us don’t know what’s out there or how best to distribute our money. That doesn’t mean that grassroots efforts necessarily get left out. For instance, $4 billion went to United Way, which then works with local non-profits to effect change at the community level. And charitable giving to community foundations, which also redistribute the wealth, is up (nearly 42% for the largest foundations). Nonetheless, most smaller non-profits would benefit from more direct donations, rather than relying solely on grants. Here are three quick tips to organizations diversify their source of income:

• Have a plan. People are more likely to give if they understand how that money’s going to be used, and the results they can expect.

• Ask. If you don’t ask, you won’t get – it’s that simple. People may assume that your organization has all the funds it needs.

• Cultivate your donors. Someone who gives once is more likely to give again. Remember to give thanks for each contribution, and to keep donors involved about your organization’s activities and successes.