Earlier this year, a Google survey found that more than half of nonprofits use Artificial Intelligence (AI) for some tasks, and that four in five nonprofits think AI may be applicable to their work. As many charities continue to grapple with effective and ethical ways to use AI to further their missions, our Give.org Special Donor Trust Report on Charity Accountability shows that potential donors can be skeptical about the use of AI in solicitation materials.

When asked to imagine charity appeals including AI-generated images, most participants (55%) say they would be discouraged from giving if they knew the appeal was not verified for accuracy by a staff member. Importantly, participants with a household income of $200,000 or more are most likely (70%) to be discouraged from giving based on a charity solicitation appeal including an AI-generated image.

When asked to imagine a charity using artificial intelligence (AI) in its information and solicitation materials, Millennials were most likely to report a very positive (32%) or positive (25%) reaction, considering AI a sign of innovation or a modern tool. This finding suggests that use of AI in solicitation materials can be appealing to some constituents.

AI has vast implications for supporter engagement, donor privacy, charity programs, and much more, but our findings suggest that charities should be cautious not to throw off potential supporters who might be skeptical about the accuracy of information materials produces with AI. 

Heart of Giving Podcast

This week’s Heart of Giving Podcast features Bennie Johnson, CEO, American Marketing Association. Bennie discusses the art, science, and magic of marketing and how charities can strategize marketing their brand.

Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Cystic Fibrosis Foundation
• Health Volunteers Overseas
• International Medical Corps

Public Concerns About Charity Data Privacy

Heart of Giving Podcast

This week’s Heart of Giving Podcast features Stanfort Perry who leads three organizations (AHRC Nassau, Brookville Center for Children’s Services, and Citizens Options Unlimited) that provide various support services in Nassau County, New York to people with intellectual and developmental disabilities.  

Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Alpha-1 Foundation
• United Way Worldwide
• SoldierStrong

Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

Public Perceptions of Charity Impact

Respondents indicated that both immediate and long-term results are important, but more respondents said long-term results are highly important (46.0%) than said the same for immediate results (23.9%). Similarly, most individuals say they value high-quality programs more than high volume programs. Long-term results and high-quality programs are especially important among lower-income survey takers. For example, almost half (48.1%) of participants with household incomes below $70K assign high importance to long-term results, as compared to only 1 in 4 (24.9%) assigning high importance to immediate results.

Our results suggest there is leeway in how impact is communicated. Ultimately, charities should be clear in how they define their own impact and take comfort in knowing that people care about long-term results and quality programs.  Additional insights on how the public perceives charity impact can be found in the 2021 Donor Trust Report. The previous report also indicated that the public does not have a clear understanding of the term “charity impact.”

Heart of Giving Podcast

This week’s Heart of Giving Podcast features Natalie Samarjian, President & CEO, Coro Southern California. Coro’s mission is “to strengthen the democratic process by preparing emerging leaders for effective and ethical leadership.” Some of their activities include board and executive leadership training and a youth fellows program for high school students.

Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Legacy Youth Leadership
• Mothers Against Drunk Driving
• The Grant Cardone Foundation

Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

Public Priorities on Charity Accountability

On Monday, July 1^st, BBB Wise Giving Alliance released the Give.org Special Donor Trust Report on Charity Accountability, exploring public positions and expectations related to a selection of charity accountability themes, including charity oversight, finances, impact, solicitation materials, artificial intelligence, and data security. Those interested in a quick read might appreciate the coverage by The Chronicle of Philanthropy or The NonProfit Times.

When asked to consider the importance of assessing 7 different accountability elements, survey participants said they would most value: an independent review of how the charity spends its money (76%); whether the charity’s appeals are truthful, accurate, and not misleading (73%); and whether the charity adequately protects donor information (61%). Truthful communications and adequate data protection were more frequently chosen as “very important” than aspects like measurement and communication of charity achievements (57%) and adequate board oversight over staff and operations (55%). In an age of distrust, misinformation, and data vulnerability, our survey shows that truthful and accurate communication, and adequate protection of donor information, have become top public priorities. For more, please visit the Donor Trust Report.

Given that individual donors make up the bulk of charitable contributions in the United States, and that public engagement with charities has been in decline, public voices on charity trust are as important as ever. This 4^th of July is a good opportunity to reflect on how charities offer each of us a way to make a difference.

Heart of Giving Podcast

This week’s Heart of Giving Podcast features Leah Henck, President, Freedom Firm USA. After she completed her MBA from Regent University, she joined her husband, an attorney, in India. Together they spent the next seven years serving with Freedom Firm to end child sex trafficking in India. Upon returning to the U.S., Leah continued to support these anti-trafficking efforts as Freedom Firm USA’s President.

Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Compassion & Choices
• Outreach Aid to the Americas
• Our Daily Bread Ministries

Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

Total 2023 Giving Shows Decline From Previous Year

The latest Giving USA: The Annual Report for Philanthropy was released this week, showing total giving of $557.16 billion in 2023. Giving USA is published by the Giving Institute with research conducted by the Indiana University Lilly Family School of Philanthropy. As reported by both the Chronicle of Philanthropy and the Nonprofit Times, while this total shows a 1.9% increase over 2022, there was a decline of 2.1% in inflated-adjusted dollars. The decline in inflation-adjusted contributions also signals a continuing decline in the number of U.S. households in the U.S. that donate to charity. As reported in the Chronicle, individual donors accounted for 73 percent of overall giving in 2013 but now account for only 67%. After adjusting for inflation, the $374.40 billion in giving by individuals suffered a decline of 2.4% from the previous year’s total.

Giving USA shows the sources of the total $557.16 consists of the following:

Individuals – 67% – $374.40 billion
Foundations – 19% – $103.53 billion
Bequests – 8% – $43.68 billion
Corporations – 7% – 36.55 billion

The distribution* of funds by type of organization are:

Religion – 24% – 145.81 billion
Human services – 14% – 88.84 billion
Education – 14% – 87.69 billion
Gifts to grantmaking foundations – 13% – $80.03 billion
Public-society benefit – 10% – 62.81 billion
Health – 9% – $56.58 billion
International affairs – 5% – $29.94 billion
Arts, culture & humanities – 4% – $25.26 billion
Environment and animals – 3% – $20.66 billion
To individuals** – 3% – $20.66 billion

*Giving USA report the type of organization dollar distribution should be adjusted by subtracting $61.66 in unallocated giving.
**Giving to Individuals consists of in-kind gifts made by pharmaceutical companies to patients in need.

After adjusting for inflation, the top three categories in terms of increases over 2022 are: Gifts to Foundations (up 10.8%), Public-Society Benefit (up 7.2%) and Education (up 6.7%).

Heart of Giving Podcast

This week’s Heart of Giving Podcast features Greg Warner, the author of Engagement Fundraising: How to Raise Money for Less in the 21^st Century and CEO and Founder of MarketSmart, a marketing software and services firm that helps organizations prioritize and cultivate major donors and legacy supporters.

Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Community Table
• Ocean Conservancy
• PCI-Media Impact

Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

Creating Community 

The Donor Participation program hosted by BBB Wise Giving Alliance in New York City on March 21^st covered a number of issues related to the decline in U.S. households contributing to charity. The last panel of that day discussed how expanding charity involvement in communities might help reverse this trend. (The full panel remarks can be viewed here.) Elz Cuya Jones, Deputy Director of the North Star Fund served as moderator for the following four speakers: (1) Margaret Richardson, Chief Corporate Affairs Officer, GoFundMe; (2) Nathan Chappell, Senior Vice President, DonorSearch AI; (3) Sara Lomelin, CEO, Philanthropy Together; and (4) Darryl Griffin, National Associate Executive Vice President, Development Strategy & Effectiveness, American Heart Association.

Among other topics, speakers gave views on their approach to community building. Margaret Richardson noted that GoFundMe provides a great lesson in growing communities. It helps people share their funding story which assists them in making a connection with others who either donate or help spread the word. Nathan Chappell added that so much of today’s fundraising is transactional. Instead, he suggested that the focus might be on the quality of the connection a person has today and in the future. To this end, he believes that AI can help improve the understanding of people to help achieve this objective. Sara Lomelin explained that collective giving is a powerful movement that helps grow communities. She said, “A giving circle can range in size from ten people in a kitchen to a large group of 500 donors giving $3 million a year.” She noted these voices reflect a diversity of experiences and backgrounds but share a common interest in addressing certain charitable issues that put community first rather than just an individual’s decision. Darryl Griffin said the recent pandemic helped spark a shift at the American Heart Association to strengthen online communities based on heart disease risk factors such as blood pressure, poor diet, and lack of physical activity. For more, see the full panel remarks.

Heart of Giving Podcast

This week’s Heart of Giving podcast features Alyson Niemann, Executive Director, Mindful Philanthropy, which is dedicated to connecting funders and organizations in the mental health and substance abuse spaces, advocating for increased funding, and supporting impactful initiatives.

Building Trust Video

As part of the Building Trust Video series, we are pleased to share an interview with Rick Lofgren, President & CEO, Children’s Organ Transplant Association (a BBB Accredited Charity) that helps children and young adults who need a life-saving organ, bone marrow, cord blood or stem cell transplant by providing fundraising assistance and family support. The organization also works with patients over the age of 21 who need a transplant due to a genetic disease such as Cystic Fibrosis or Sickle Cell Anemia.

Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Water.org
  
• Earthworks
• Osteogenesis Imperfecta Foundation

Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

Communicating Charity Impact Across Donor Segments

On March 21^st, BBB Wise Giving Alliance hosted a Donor Participation program that addressed concerns about the decline in the number of households in the U.S. supporting charity. One of the panels (The full panel remarks can be viewed here.) sought to explore how donors might be more inspired to give by communicating about the charity’s impact. (Barbara O’Reilly, Founder and Principal, Windmill Hill Consulting, and a member of the BBB Wise Giving Alliance Board, served as moderator for this discussion and initially asked panelists to explain their views on this issue. How might focusing on different donor segments (e.g., giving levels, donor types, demographics, etc.) be used to better accomplish this goal? She noted that a one size fits all strategy is not effective and donors want to a sense of community.

Jean Accius, President & CEO, Creating Healthier Communities, said that he joined the organization a year ago and knew about its 65-year history of using a workplace giving model. Through goal setting, testing, and developing a case for support, they recognized their call to action to address health inequities across the country and moved the organization from being a workplace transactional organization to one that is more transformative. They no longer see donors as just supporters but as owners of their mission.

Brady Josephson, Vice President, Marketing & Growth, charity:water, noted that his organization was hyper focused on truth and transparency, “Tell people what you are doing, carry it out, and communicate the impact.” charity:water had the advantage of focusing on one thing – clean and safe drinking water in developing countries. Brady added that “One can reverse engineer how charity:water succeeded so much: it removed traditional blockers to giving.” For example, there is an opaqueness to not knowing what a specific developing nation looks like. Address that and help motivate supporters.

Julia Ritz Toffoli, Principal Behavior Designer, Ideas42, explained that donors want to be informed not overwhelmed. They want to be reassured and included, invited into the conversation, as opposed to just broadcasting out to them. She noted the Ikea® effect – that we value something we help create more than just something given to us. Engaging with donors can help achieve this objective and make them lifetime supporters. For more, view the full panel remarks.  

Heart of Giving Podcast

This week’s Heart of Giving Podcast features BBB Wise Giving Alliance President & CEO, Art Taylor. Art revisits an article that appeared in the Stanford Social Innovation Review about collaboration and provides updates on collaboration activities in the charitable sector.

Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Plant With Purpose
  
• International Institute of Rural Reconstruction
• Hope Walks

Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

Keynote Presentation by CEO of GivingTuesday 

Asha Curran, CEO, GivingTuesday was the keynote speaker at the March 21^st Donor Participation Program hosted by the BBB Wise Giving Alliance in New York City. (The full remarks can be viewed here.) Asha shared the history of the organization which was “created in 2012 with a simple idea – a day to encourage people to do good.” Over 12 years, this idea has grown into a global movement that inspires millions of people to give, collaborate, and celebrate generosity. She explained that one of the engines of its success was that they “broke the rules,” they decided not to “brand” it. Instead, they allowed the idea behind GivingTuesday to go viral and be adapted by others to help spread the intended generosity mission. For example, Dress for Success, which helps provide professional attire to help women thrive, created “Giving Shoesday.” Overall, the program has grown immensely since its founding and helped raise $3.1 billion on November 28th in the U.S. in 2023. In addition, GivingTuesday now takes place in 101 countries. While the heart shaped logo is used in some form by all of these participating programs, many have incorporated their respective country’s colors and/or other modifications to reflect their culture. Mission over brand is a core concept at GivingTuesday, the name and logo is less important than what you are seeking to achieve.

In response to concerns about the decline in the number of households that are donating to charity in the U.S., Asha said she believes generosity is abundant and that people’s political world view does not affect their generosity mindset. Collective giving can help inspire people to recognize that they can be part of something bigger than themselves. In part, the charitable sector needs to move from transactional fundraising to relational fundraising. Finally, she noted that we may need to step away from a word like “donor” and instead think of supporters as champions, leaders, or ambassadors so they can be viewed as owners of their mission. For more, see the full presentation.

Heart of Giving Podcast

This week’s Heart of Giving Podcast features a second visit with Aaron Bass, CEO of EastSide Charter School in Wilmington, Delaware. Aaron is re-thinking K-12 education for underprivileged children by also supporting their families and the larger community.

Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Gift of Life International
  
• Western Resource Advocates
• Make-A-Wish Wisconsin

Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

Six Questions to Ask About Tornado Relief

Over the Memorial Day weekend, tornadoes and heavy storms hit Texas, Oklahoma, Arkansas, and Kentucky leaving significant damage. As you look for ways to support relief efforts, BBB Wise Giving Alliance recommends that you consider the following questions.

• Are the appeals clear?   Look for appeals that are clear about what disaster relief services or areas the charity is addressing.
• Is the charity experienced in disaster relief?  Support experienced organizations that stand ready to provide quick and effective assistance. Be cautious of organizations that form overnight in the wake of a disaster.
• Should you donate money or goods? Donating money is the quickest way to help and provides charities the flexibility to channel resources to impacted areas. Instead of donating food, consider supporting food banks near an impacted area. Visit Feeding America (a BBB Accredited Charity) which works with food banks across the country.
• How can you verify the charity’s trustworthiness? When it comes to evaluating a charity, rely on expert opinion. We recommend giving to charities that meet all 20 BBB Standards for Charity Accountability, found at BBB’s Give.org.
• What about crowdfunding requests? If engaging in crowdfunding, it is safest to give to someone you personally know and trust. Also review the platform’s policies and procedures, keeping in mind that while some crowdfunding sites take significant measures to vet posts, others don’t.
• Is the donation tax deductible?  In the U.S., contributions to organizations that are tax exempt under section 501(c)(3) of the Internal Revenue Code are deductible as charitable donations for those who itemize on their federal income tax. Keep in mind, however, that donor-restricted contributions to help a specific individual or family are generally not deductible, even if the recipient organization is a charity. For additional details, see page six of IRS Publication 526.

The following organizations are BBB Accredited Charities (i.e., meet the 20 BBB Standards for Charity Accountability) are engaged in activities to assist tornado relief efforts. This list will be updated as additional efforts come to our attention.

American Red Cross

Salvation Army

Matthew 25: Ministries

Heart of Giving Podcast

This week’s Heart of Giving Podcast features NoirUnited International co-founders, Macire Airbot and Nassim Ashford, rejoin Art to provide an update on their efforts to assist African college students displaced by the war in Ukraine.

Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Communities In Schools
  
• Disabled American Veterans
• Good360

Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

The Need for Broader Support of Charities

At the Donor Participation program hosted by BBB Wise Giving Alliance on March 21^st in New York City, the second panel focused on the need for broader and pluralistic support for charities at a time when the number of U.S. households that contribute is declining. The full panel discussion can be viewed here.   

This topic was introduced by Jane Wales, Vice President of the Aspen Institute and Executive Director of the Program on Philanthropy & Social Innovation at the Aspen Institute. She also serves as the Co-Chair of the Generosity Commission, a nonpartisan group of leaders committed to celebrating and supporting America’s spirit of generosity as expressed through everyday giving, volunteering, and other forms of civic participation.

Wales noted that democracy can be described as having two core attributes: (1) commitment to pluralism, and (2) self-governance involving three sectors (public, private and social). In turn, civic society is powered by engaged citizens. What happens if/when there is a concentration of agency in fewer hands? What happens when the sense of agency decreases in a system that is by the people and for the people? Wales explained that while there has been an overall increase in the total amount donated to charities in the U.S., there has been a decrease in everyday giving and volunteering. Can anything be done to reverse this trend? There are many contributing factors, including an increase in economic uncertainty, the concentration of wealth, social isolation, and the decline in societal trust.

In May 2023, The Generosity Commission released a report on How and Why We Give: Research Insights on the Aspirations and Motivations That Inspire People to Give and Volunteer. This report states it “…seeks to help leaders in the social sector, business, policy and beyond reach, communicate with, and engage current and potential givers.”

The next panelist, Page Rice, Director of Research at Hattaway Communications, expanded on this report, starting with some of the guiding questions:

• How do people practice generosity?
• What does generosity mean to them?
• What motivates people to donate and volunteer?
• What gets in their way?
• How can we better connect with current and potential givers based on what matters most to them?

Rice noted that researchers segmented donors into reimagined categories that reflect the audience’s mindsets on giving, volunteering and other prosocial behaviors. Individuals were asked a series of 50 questions about such things as religiosity, donation behaviors, and other factors. They were then segmented into six categories:

• Super Givers 17% – champions of generosity with both desire and means to be generous
• Connection Seekers 16% – investors in building community and seeking to make social connections to make an impact
• Next Generation Doers 15% – youngest givers, looking for recognition and leadership opportunities
• Civic-Minded Hopefuls 20% –  donors who want a just world and are engaged in civic actions, but feel stuck and not sure how to make a difference
• Show-Me Scrutinizers 12% – skeptical donors who do their own research to help them make giving choices, generally older donors
• Apathetic Non-Givers 20% – least likely to give, apathetic to giving, volunteering and other prosocial activities

Armed with this information, organizations might be able to help expand engagement opportunities and increase donation participation. Additional information can be found in the report.  

Heart of Giving Podcast

This week’s Heart of Giving Podcast features Valerie Green, who helped found a nonprofit dance organization in 1998, Dance Entropy, which “seeks to plant creative seeds in communities across the world.”

Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Project HOPE – The People-to-People Health Foundation
  
• Ronald McDonald House Charities
• National Organization for Rare Disorders

Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.