Posted on December 30, 2005

Emerging Trends in Philanthropy

In 2005, Americans gave generously to disaster relief efforts around the globe while also supporting their favorite causes closer to home. And in many cases, their decision to give reflected their acceptance of the Internet as a safe and reliable conduit for charitable donations and demonstrated the power of the Web to both target and amplify charitable appeals.

Driven by the experience of the Red Cross and other charities after 9/11, as well as by the enormity of the tsunami disaster at the end of 2004, charity Web sites became more adept at targeting audiences in 2005. Thanks to the 24/7 nature of the Internet, individuals were able to access news and information from the other side of the globe at a moment's notice and could donate to causes and organizations that stirred their emotions or passions with a few clicks of the mouse. At the same time, donors also seemed to be less trusting of open-ended appeals, and, in the aftermath of various disasters, increasingly gravitated to donor-designated funds such as those established by the Red Cross, Salvation Army, America's Second Harvest, and other charities after Hurricane Katrina battered the Gulf Coast.

The year 2005 also saw the continued emergence of giving circles as a convenient and effective way for small groups of like-minded donors to pool and leverage their charitable dollars. In February, New Ventures in Philanthropy reported that at least 220 giving circles had been formed in forty states, and that, collectively, they had donated more than $44 million to charitable causes since 2000, with some participants donating as little as a dollar a day and others contributing up to $20,000 annually.

In other news, charities reported a resurgence in anonymous giving in 2005. Among the largest of the gifts given anonymously during the year were the $100 million from an unspecified number of donors to the Yale School of Music to subsidize tuition for all students starting with the 2006-07 academic year; the $70 million received by Indiana University to create hundreds of new scholarships, primarily for residents of the state; and the $40 million given to the Community of Christ church in Independence, Missouri. And, on opposite sides of the country, groups of former students gave $25 million each to the University of California at Berkeley's Hass School of Business and to Phillips Exeter Academy in New Hampshire.

Giving by Americans Differs Throughout the Country, Report Finds (11/21/05)

Anonymous Giving Is Choice of Many Americans (11/14/05)

'Giving Circles' Attract Donors With Hands-On Philanthropy (10/17/05)

With Online Giving, It's Personal (9/15/05)

Donors Applying More Restrictions to Their Gifts (9/13/05)

Wealthy Remain Cautious Givers, Report Finds (7/19/05)

Online Giving on the Rise, Study Finds (6/20/05)

Nonprofit Organizations Report Sharp Declines in Vehicle Donations (6/15/05)

Charitable Giving to Colleges Rises 3.4 Percent in 2004, Study Finds (3/07/05)