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An Important Part of Civil Society;
An Important Source of Support for NGOs


The very wealthy are a very small percentage of the population in any nation. Many philanthropic activities are achieved by the millions of people whose smaller-scale contributions of money, volunteer time, and resources help to support a range of institutions and services today. All across the United States today, organizations such as volunteer fire departments, schools, hospitals, Boy Scouts and Girl Scouts, museums, botanical gardens, neighborhood associations, theaters - and all kinds of environmental groups - rely on philanthropic support from ordinary citizens for their growth and survival.


Sowing the Seeds of Philanthropy
NGOs can cultivate philanthropy and protect their long term interests without abandoning their current fund raising activities. The effort required would be minimal, but like the farmer who puts away seed during harvest time, the payoffs should multiply.

Support the Concept of Philanthropy
The first and simplest action that NGOs can take is to begin supporting the concept of philanthropy. At its heart, it is the act of giving to support others in one's own community. Potential local donors must experience the expectation of philanthropic giving and they must realize that their contributions are valuable. Schools, churches, unions, hospitals and service organizations can all join with environmental NGOs in promoting philanthropy and citizen involvement.

Promote the Practice of Philanthropy
Everyone learns by doing. Use your NGO to model the practice of philanthropy. Every member of the organization should be expected to pay yearly dues, even if they are so small that they are more symbolic than practical. You are asking for their symbolic but tangible commitment of support. Otherwise, your NGO sends members a dangerous message: that they are not needed.

Encourage Donors and Members by Reporting Results
Donors like frequent brief communications about the works of the organization that they support. A brief newsletter keeps up enthusiasm, especially if it provides clear and dramatic success stories. This does not need to be done on a laser printer, or in color, or with anything particularly "high tech". For most donors, it is more important to receive a sincere and inspiring progress report than a fancy (expensive) publication.

Publicize the Historical Roots of Philanthropy in Your Region and Nation
It is easier to gain acceptance of an old and venerated custom than to develop a new one. Therefore, it is important to document that philanthropy was once part of your society's traditions. Articles in newsletters, journals, newspapers, and textbooks on the practice of philanthropy in the past will support its revival.

Use Foreign Funding to Raise Local Matching Funds
It is often easier to get additional support for an already partly funded project. The vote of confidence that comes with an outside funding source can enhance your credibility and develop a healthy sense of competition with foreigners. Anticipate the discontinuation of foreign funding by using outside money to raise local matching funds. In this way, you can also identify the limits of local funding sources. You will develop a realistic idea of how much funding you will be able to raise from your community in the future and at what level your organization can be sustained.

Small Scale Projects Encourage Local Donors
Focus more of your fund raising, publicity, reporting, and indeed your daily operations upon short term small scale projects that demonstrate concrete results. It may even be necessary to break larger projects up into smaller increments. Donors want to see results. As the ethic of capitalism takes root, individual donors as well as corporate donors want to see quick results from their "investments".

Small size projects have many advantages:

Consequently, recipients and donors will be kept on a more equal footing than is the case with large and impersonal foreign aid programs. The likelihood of a longer term partnership is increased when partners perceive themselves as equals.

What Kind of People Give to What Kinds of Philanthropic Causes?
Recent studies of charitable (philanthropic) giving in the United States show that the majority of gifts were made to organizations to which the recipient has some personal connection, or from which the individual or his or her family benefits. (for example, private schools and universities, municipal orchestras or museums, health care and medical research). This means that fund-raising for a particular NGO can target those who stand to benefit from its work. It also means that each NGO should be explicit about how its programs will benefit the contributors personally, as well as their community. For example, a cleaner waterfront area could mean healthier families, and more income for businesses which depend on tourists.


Philanthropy by "Average Citizens":
Alive and Growing in Central Europe


A major study of citizen philanthropy in Hungary, "Individual Giving and Volunteering in Hungary" (prepared by Central Statistical Office Department of Social Statistics, 1525 Budapest pf. 51, 1995), interviewed a random sample of 14,833 Hungarians. The results belie the popular assumption that Central Europeans lack civic spirit. Researchers found that Hungarians gave significant amounts of money, in-kind donations (clothing or food) and/or volunteer time to charitable organizations; 65% of the general public qualified as "donors or volunteers" for the year 1993. Of the donors, 24.9% had given cash donations only, and 17.7% had given all three kinds of support.

What types of people in Hungary were most likely to donate? The researchers conclude that "Citizens' charitable behavior is closely bound up with their socio-demographic characteristics, with their social embeddedness. Women are better donors, but they volunteer less than men do. The best donors are those well educated, highly positioned people aged between 30 and 60, who live in large cities with consolidated (2 children) families, have a relatively high income from various sources, and are connected to voluntary organizations not only as supporters but also as members." (p. 2 - 3).

What types of organizations did the Hungarian donors choose to support? "The favourite supportees of the in-kind donors proved to be the voluntary associations. The majority of the cash donors gave to churches. Citizens helping local public institutions represented the highest share among volunteers."

What is the economic significance of such individual contributions? "This direct individual financial support to foundations, voluntary associations, churches and public institutions reached almost 8 billion HUF [about 302 million USD], about 0.3 per cent of the total disposable income. The imputed value of the voluntary work was even higher; it exceeded 14 billion HUF [528 million USD]. In short, individual giving and voluntary work have turned out to be important not only morally, but economically, too."

Individual philanthropic support is more developed in the United States, having over two hundred years of unbroken tradition. A recent study publicized in The Chronicle of Philanthropy (October 17, 1996, p. 10) has shown that about 75% of all American households make some charitable contribution each year, and 48% of American adults volunteer at least four hours a week. Similar to the Hungarian findings, married people with full time jobs and education beyond secondary school are most likely to donate. Interestingly, however, the lowest-income American donors gave a higher percentage of their income, (4.3% in 1995), while those in the middle income range gave 1.9%, and those with the highest incomes gave on average 3.4%.

Creating a "Cycle of Philanthropy"
People learn to give their time and money to organizations and causes they value, just as they learn to do other things: through experience. Of Americans surveyed, 72% of large donors said that "when they were young, they were helped by others", and 78% said that an important reason they gave money was because they volunteered at the organization. Of volunteers, 78% had belonged to a youth group, and 71% had done some kind of volunteer work in their youth.

The message for NGOs everywhere is clear: by involving members, and designing programs for young people, they are building a base of support for the future as well as achieving specific goals in the present.

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This is a copy of the November/December 1996 ECOLOGIA Newsletter archived at the CCSI Web site.

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