Wednesday, April 11, 2007

Surprising facts: American donors and "the least of these"

A friend e-mailed me a link to Sheryl Sandberg's essay that appeared in The Wall Street Journal recently ("The Charity Gap," page A15, April 4, 2007).

Sandberg's findings stood over against what most of us believe about American charitable commitments and concerns.

Whenever American donors are asked, we report back the belief that most of our donations go to assist those less fortunate than ourselves--right?

However, the facts of our giving tell a very different story.

Sandberg's report cites a study underwritten by Google.org that reveals less than one-third of the money individuals gave to nonprofits in 2005 went to help the economically disadvantaged.

"The analysis, carried out by the Center on Philanthropy at Indiana University, concluded that only 8% of donations provide food, shelter or other basic necessities. At most, an additional 23% is directed to the poor -- either providing other direct benefits (such as medical treatment and scholarships) or through initiatives creating opportunity and empowerment (such as literacy and job training programs). It's just not true, in other words, that the major beneficiaries of charity and philanthropy are the disadvantaged," Sandberg reports.

Among wealthy donors the gap affecting the very poor is even wider.

Those earning more than $1 million per year give only 4% of their donations for basic needs and an additional 19% to other programs geared toward the poor, even though they also report when asked that most of their donations go to assist the poor.

Why does this matter?

The role of individuals in American philanthropy is often misunderstood. Individuals give more than four times as much as foundations and corporations taken together.

Here's an amazing fact, according to Sandberg's report: fewer than 10,000 American families contribute more than 20% of all donations.

Sandberg provides some interesting analysis as to reasons behind these trends.

I found her comments on church giving to be instructive, but not so surprising.

When I drop my check into the offering plate on Sunday morning, I may have in mind my congregation's outreach to the homeless, but the fact is less than 20% (in most churches far less) of every dollar given in church benefits the poor in my community or anywhere in the world. For individuals and families earning below $100,000, church giving accounts for the majority of gifts offered up.

Really wealthy donors target education and health care in their giving. Sadly, less than 9% of these dollars go for scholarships to low-income students and only about 10% supports health care initiatives for the poor.

Sandberg concludes, "As Americans consider their 1040s this year, they need to ask if there is a disconnect between their desires and their actions. Many will find, perhaps to their surprise, that what they want to do is not, in deed, what they're doing. If so, they should start looking deeper into how their donations benefit those whose economic fortunes are dramatically different from their own."

[Ms. Sandberg is vice president of global online sales & operations at Google Inc. and a board member of Google.org.

Read the entire article at: http://online.wsj.com/article_email/SB117565580732059314-lMyQjAxMDE3NzA1NDYwNTQ1Wj.html.]

11 comments:

Anonymous said...

You were clearly being kind, Larry. Everything I have read indicates that, on average, less than 3% of money given to chuches goes to help the poor and disadvantaged. Churches don't even tithe to the poor!

Anonymous said...

And see this is where I begin to struggle. So many - where I live - don't believe in any government help. They "say" it's "our" responsibility - not the government's. But then in reality, they're so stingy. I think mostly because they believe these people could do better if they wanted to do better. They don't the poor any slack. Some have even been laid off for a short-time (even a couple of years is a short time), but they've managed to get by and get back on their feet. So everyone else should be able to do the same. I have so little patience with this mindset.

Anonymous said...

Belinda,

You may be the most judgemental person I've ever come in contact with.

Anonymous said...

Larry, hi. I am wondering what percentage of your CDM's budget comes from church? Does your experience verify these claims in article?

Also, if rich give to schools but not scholarships, to what are they buying? Buildings and footballs? :)

Anonymous, it is ironic to judge someone for being judgmental, don't you say?

Pot -- kettle. :)

(Belinda, I also do not think you are judgmental, just possibly living in the wrong place it seems)

Larry James said...

Jacques, good question.

If you mean what % comes directly from churches, it is a good bit less than 5%. If you mean what % comes from churches and individuals who may attend churches, then it moves to something under 10% of our annual budget.

Anonymous said...

Though everything counts, this is a shame. Churches I am sure think that they are doing more, and so do their members. I am part of a church that publishes where we spend the money each quarter. Missions struggles to be above 10%, despite all our talk.

Anonymous said...

Jacques,

I'm just noticing how often the word "they" is used in her comment. Its entirely about how people not like her don't do as good of a job helping people. I don't know if that's judgemental or just pointing out what she's doing.

penny said...

penny said...
the horatio alger myth is thriving in America! in a class i am taking, we discuss the stereo-types surrounding the poor, and that many Americans believe that poor people, or the unemployed could get jobs if they weren't so lazy, and wanting the government to provide for them; why, anyone can make good here, as long as they have the gumption.
in the course, we learned that the underclass and the unemployed are so because of lack of opportunity, not because of desire to earn their own way.
i do think it a shame that the less than 1% of U.S. families that hold the vast majority of this nation's wealth are not giving more. it stands to reason that those with more assets should help those with less; but for the capitalist ideal that America is built on, the gap might be less a chasm, and more a crack in the sidewalk.

mundiejc said...

Penny,

Maybe if instead of pointing the finger at those with more, we might turn it on ourselves and say "how much more can I give?"

Seems like I remember Jesus saying something about a a speck in your brothers eye and a plank in your own?

Anonymous said...

how is my comment judgemental?? I live in North Alabama. These are comments I hear almost daily. How is it judgemental when I state the facts and the way it makes me feel? I'm judgemental for being impatient with folks that are down on their luck?? I must be be missing something to earn that label. Why do you always post as "anonymous?"

Anonymous said...

A lot of people think is easy, but all the same , is easy said than done. how do one start making it without a push? where do we get that push from when all hopes are gone?