LOS ANGELES – Amid the sharp contrast between the ultra-rich and desperately poor, a watchdog group has been following where big-money donation dollars are going.
A recent study by the National Committee for Responsive Philanthropy (NCRP) shows that only a small percentage of the money raised by many charitable foundations actually gets to the people they claim to serve.
And this comes at a time when the coffers of philanthropic groups have swollen, even during the Great Recession.
"The 1,000 largest U.S. foundations are still giving less than a third of their grant making to those populations," states Ryan Schlegel a senior research and policy associate at the NCRP.
According to the NCRP, the assets of the country's grant-making foundations increased by more than $320 billion in recent years.
It's not all bad news. On the list of top-20 givers is The California Endowment, which NCRP says gives 79 percent of California grants to social justice organizations.
Daniel Zingale, senior vice president at The California Endowment, attributes that group’s success to "active listening" to the community.
He cites as a recent example how The California Endowment caught onto the fact that lower-income Californians were experiencing a disproportionate number of suspensions and expulsions in secondary school.
Together with students and families, Zingale says the endowment helped raise the awareness of lawmakers and media to impact school discipline reform.
"There are dramatic reductions in those numbers of kids being kicked out, cut by as much as half in many parts of the state,” he points out. “So that's a real change, to have kids' discipline problems being resolved in a healthier way within the school setting rather than kicking them to the curb."
The NCRP studied giving between 2003 and 2013 and says the groups it studied have an opportunity to make a real impact on persistent poverty, systemic racism and violence directed at people on the margins of society.
John D. Rockefeller III initially funded the watchdog group.
get more stories like this via email
The holiday season is here and households in North Dakota and elsewhere might encounter sensitive conversations about lending money to a loved one in need.
There is emerging research about removing stigma and embracing mutual financial support. Higher housing costs, student loan debt and other factors have forced more generations of U.S. families to live under the same roof.
Jeffrey Anvari-Clark, assistant professor of social work at the University of North Dakota, said there is still a narrative about "rugged individualism" and it can be taboo to ask for help in covering expenses. He argued families need to feel comfortable in having these talks.
"There is a balance, I think, between having good independence and taking care of yourself," Anvari-Clark pointed out. "But there does also come a time when you need to receive help from others. "
Anvari-Clark has led research on the topic of "financial interdependence", noting it looks different for each family, as well as many cultures around the world. In America, he thinks financial literacy should stress the importance of saving money to help others in your life and not just building your own nest egg. He acknowledged the need to set clear boundaries because too much support can strain these relationships.
Anvari-Clark emphasized another hurdle to overcome is not letting the person asking the help to carry a lot of shame for past financial mistakes. He sees it as a learning opportunity.
"I'm taking this sense of regret and I'm doing something positive with it to improve my chances moving forward," Anvari-Clark explained.
GoFundMe campaigns are a popular way for people to raise money for someone in a bind. But Anvari-Clark added it does not just have to be a financial donation. At the community level, he sees households buying groceries in bulk to save money or getting creative with child care needs, as ways to embrace this mindset of mutual assistance.
get more stories like this via email
An event in Phoenix today will celebrate and highlight the power of collective giving in the Grand Canyon State.
Ilyasah N. Shabazz, senior operations and communications director for the organization Philanthropy Together, said Arizona is among the states with some of the most diverse set of "giving circles" advocating for a wide range of issues that affect local communities.
These groups bring together folks with shared values to decide where they should invest a gift, which Shabazz added isn't always financial.
"It is also about using our voice," said Shabazz, "so when you see that there are people advocating, they're using their voice, they're giving their time and volunteering their talent."
Shabazz called collective giving a "movement" in Arizona.
Circle Up Arizona's free event will take place from 5:30 to 7:30 p.m. at the Anchor Centre Building Courtyard.
The event is open to all current giving circle members, collective giving networks, and anyone looking to learn more.
Shabazz said groups in Arizona are coming together around a range of issues - ranging from affordable housing, to helping protect and preserve and responsibly manage Arizona's natural resources, to supporting initiatives and giving circles that are led by leaders that are from communities of color.
She added that giving circles not only help communities, but members themselves.
"That could mean with their professional pursuits, but also a lot of giving circles who are finding belonging by being part of these groups," said Shabazz, "and when you think about the trends in loneliness and isolation, those feelings that individuals are having, a lot of people are happy to join these groups and find community."
Research shows three-fourths of those who participate in collective giving report an increased belief in their social influence and feeling that their voices matter on social issues.
Shabazz added that women have also been an influential force within the movement, with 84% of giving groups reporting more than half of their membership is female.
get more stories like this via email
CORRECTION: An earlier version of this article incorrectly stated that Century 21 had raised more than $30 million. The correct amount is more than $3 million. (5:48 p.m. MDT, July 24, 2024)
More than 60 million Americans identify as disabled and many of them turn to nonprofit agencies such as Easterseals for therapy and other assistance.
The organization that became Easterseals was founded more than 100 years ago and has become the largest nonprofit health care agency in the country.
Kendra Davenport, president and CEO of Easterseals, said seeing to the health and wellness of more than 1.5 million people with disabilities is only possible with its team of national corporate sponsors, who collectively raise millions of dollars each year.
"It's critical because, unlike a for-profit, nonprofits have to raise their budget, whether they're raising it through government grants, foundation grants or corporate funding," Davenport pointed out. "And then, of course, there's the funding that comes in through individual donations. That's what sustains nonprofits."
As an example, Davenport cited Century 21 as a partner, raising more than $3 million in 2023 and $138 million during the life of its affiliation.
Easterseals has more than a dozen other corporate partners, including companies like Comcast-NBCUniversal, Coca-Cola and Delta Air Lines.
Davenport explained Easterseals got its name in 1934 from the practice of having donors put a stamp or seal on their donation envelopes. She noted the organization and its dozens of local affiliates work to enhance quality of life and expand local access to health care, education, and employment opportunities for children and adults.
"We provide essential services and on-the-ground support to millions of individuals and their families every year, from early childhood to the critical first five years," Davenport emphasized. "These include autism services, transportation, medical rehab and employment programs that target and assist veterans and senior citizens."
She added it is an ongoing challenge to extend the Easterseals brand because, despite more than a century of service, very few people understand the scope of what the organization does.
"Sixty-one million Americans identify as being disabled," Davenport reported. "That's a quarter of the American population. More people need to understand just how many people are disabled so that we can ensure that our world becomes more inclusive, more equitable and more accessible."
get more stories like this via email