Giving has been on the rise nationwide during pandemic
Anyone can be a philanthropist, regardless of income, status or net worth. The origin of the word, philanthropy, perhaps explains it best. Derived from the Greek words, “philos,” meaning loving, and “anthropos,” which means humankind, philanthropy is basically giving of talent, time or finances. It means opportunity, aid and kindness in every sense of the word. It can be expressed as the parent who volunteers at his or her child’s school, as a group of community leaders who take the time to aid the homeless or as a donor who provides funds to support a specific cause.
Philanthropy has been part of our world since the beginning of time, and trends indicate that it has always been resilient in times of crisis. To underline that point, national giving was on the rise during the pandemic.
Pandemic trends
According to research by the Bank of America and the Indiana University Lilly Family School of Philanthropy, approximately 90% of high-net-worth Americans gave to charities in 2020, a third of them giving more to organizations focused on meeting basic needs. Almost half gave in direct response to the pandemic.
Other trends that emerged from this study included a focus on giving back locally; increased giving outside of charities, meaning giving directly to local individuals and companies; and an increase in unrestricted gifts, meaning a more flexible approach to giving.
Funding had to be distributed quickly without restrictions, and the public responded by trusting that nonprofits would use the funds based on their greatest needs and allowing them flexibility as new challenges arose.
On a local level, when the pandemic hit, our community responded with flying colors. The Community Foundation of Anne Arundel County sprang into action, opening its Community Crisis Response Fund to aid the number of people affected by the COVID-19 virus in Anne Arundel County. Through CARES Act funds and response fund grants, your Community Foundation awarded more than $1.3 million of the nearly $5 million in funding it provided to local nonprofits in 2020. CFAAC grants were made directly to organizations serving vulnerable and underserved populations of all ages. Donate to the CCRF at cfaac.org.
Trends for the future
Charitable organizations and publications, such as nptrust.org, GlobalGiving. org, philanthropy.com, that are keeping track of the philanthropy world have noticed many trends in giving for 2021 and beyond. Here is a synopsis of the three that were mentioned the most.
1. Trust-based philanthropy
Trust-based philanthropy or unrestricted giving is gaining attention as a result of the pandemic. Trust-based philanthropy allows charitable organizations the flexibility to respond quickly to crisis and disasters.
2. Racial and social inequality focused giving
The struggle around the issues of racial and social inequality will remain a focus in giving. Disparities in housing, education, hunger and health will continue to motivate donors. Locally, CFAAC researches persistent needs and challenges in our county. Every three years, CFAAC publishes a Community Needs Assessment Report, Poverty Amidst Plenty. The publication is a detailed and comprehensive report to determine the greatest areas of need so we can achieve a healthy and strong community for all county residents. CFAAC will publish the next Community Needs Assessment Report in 2022. You can view the current Needs Assessment Report at cfaac.org.
3. Adaptability and flexibility in fundraising
Nonprofits and charitable organizations are adapting to the new normal of virtual programming and fundraising as a result of the pandemic. COVID-19 has changed the course for many nonprofits as they shift to a new way of forming relationships and connections. These nonprofits will continue to adjust as needed in the form of online fundraising, webinars, video-streaming and virtual events and meetings.
CFAAC is adapting, too. Throughout these times, we have provided online educational programming to aid community members as well as nonprofits. Last year, we transformed our annual Celebration of Philanthropy Awards Luncheon into a high-quality virtual event, viewed by more than 10,000 people. This year, we made the choice to celebrate virtually once again. You can watch this exciting livestreamed event on Nov. 5, at noon, by registering for free at cfaac.org.
Follow CFAAC on social media to view the inspiring stories of the 2021 awardees during the coming weeks.
CFAAC is a tax-exempt, 501(c)(3), publicly supported philanthropic organization with the long-term goal of building permanent funds that provide support to local nonprofit organizations through grants and special projects. Check us out at cfaac.org.