A recent Wilson Research Strategies/Dunham+Company poll of Christian adults in America has found that nearly 50% of these adults have reduced their giving to charity as a result of the current economic situation.46% of Christians surveyed indicated they have reduced their giving to charity (that represents 62.5 million Americans) as a result of the sagging economy. Of particular concern is that those most impacted by the faltering economy are those ages 55+ (53%). This is the demographic segment of the population that is most supportive of non-profit organizations.
However, the study found that those who attend church frequently are less likely to have the economy affect their giving, while those who rarely attend church are more likely to decrease their giving. And those attending non-denominational churches overwhelmingly say the economy has not impacted their giving (62%).
The study indicates that the areas of the country where charities should be least impacted by this decline in giving are the West North Central states (North Dakota, South Dakota, Nebraska, Kansas, Missouri, Iowa, and Minnesota) and Mountain states (Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona, and New Mexico).
The areas of the country that can expect to be impacted the most include the East Coast states and the East North Central (Wisconsin, Illinois, Indiana, Michigan, and Ohio).
The skyrocketing price of gasoline is cited as the primary reason for pulling back on giving by a large margin of the respondents (49%) while nearly 1 in 4 (22%) cited the increase in food prices as being the driving force for reduced charitable contributions.
One very important finding is that the greater the household income, the less impact the sagging economy has on charitable contributions. 55% of households with incomes of $40,000-$60,000 say the economy has impacted their contributions, while only 40% of households of $60,000-$100,000 say the same thing. And less than 1 in 3 (31%) of households with $100,000+ income say the economy is impacting their support of charities.
While this is good news, the impact of a decrease in major donor giving could be significant if a charity relies on major donor support for a significant portion of its revenue.
One other finding to note is that while only 6% of Christian donors indicate that the decline in the stock market has impacted their giving, the study indicates that this may be an issue with donors with household income of $80,000-$100,000.
“What this study shows is that the sharp rise in fuel costs has already begun to impact giving by Christians who are the backbone of philanthropy in America,” stated Rick Dunham, President and CEO of Dunham+Company. “Christian non-profits need to understand that, now, more than ever, it’s crucial to be proactive in communicating the importance of their mission and their organizational effectiveness to their donors in order to sustain the same share of what may become scarcer donor dollars.”
“In addition,” Dunham continued, “with nearly one-third of households with incomes greater than $100,000 indicating that the economy is indeed impacting their charitable giving, organizations that rely on major donor revenue need to carefully assess the status of those donors and ensure they stay in close touch with them. Organizational leadership must be careful to not presume that major pledges will be fulfilled.”
For an historical perspective on giving during recessionary periods and what you should do, please click here
This study was part of Wilson Research Strategies May Christian Omnibus Study of n=1,000 Christian adults nationwide. All respondents were contacted via Random Digit Dialing methodology. Interviews were conducted via live telephone interviewer May 27-29, 2008. A sample of n=1,000 has a margin of error of +/-3.1% at the 95% confidence level.