Nearly half of the Christian adults in America have reduced their charitable giving because of the economic downturn, according to a recent Wilson Research Strategies survey commissioned by Dunham+Company.
“This study shows that the sharp rise in fuel costs has already begun to impact giving by Christians who are the backbone of philanthropy in America,” said Rick Dunham, president and CEO of Dunham+Company, which specializes in fundraising for Christian ministries. “Christian nonprofits need to understand that now, more than ever, it’s crucial to be proactive in communicating the importance of their mission and their organizational effectiveness to their donors in order to sustain the same share of donor dollars that are becoming more scarce.”
Forty-six percent of the Christian adults surveyed — representing 62.5 million Americans — indicated that they have reduced their giving to charity. People older than 55, the segment of the population most supportive of nonprofit organizations, were most affected (53 percent) by the faltering economy.
However, the study found that those who attend church frequently are less likely to have the economy affect their giving, and those who rarely attend church are more likely to decrease their giving. Those attending non-denominational churches overwhelmingly say the economy has not impacted their giving (62 percent).
The skyrocketing price of gasoline is cited as the primary reason for the decrease in charitable giving by a large number of the respondents (49 percent), while nearly one in four (22 percent) cited the increase in food prices as being the driving force.
The greater the household income, the less impact the sagging economy has on charitable contributions. Fifty-five percent of households with incomes of $40,000-$60,000 say the economy has limited their contributions, but only 40 percent of households of $60,000-$100,000 income concur. And approximately one in three (31 percent) households with incomes more than $100,000 say the economy is affecting their support of charities.
“With nearly one-third of households with incomes over $100,000 indicating that the economy is impacting their charitable giving, organizations relying on major donor revenue need to carefully assess the status of those donors and then stay in close touch with them,” Dunham said. “Organizational leadership must be careful to not presume that major pledges will be fulfilled.”
According to the poll, just 6 percent of Christian donors referenced the volatility of the stock market as having an impact on their giving.
The study indicates that the areas of the country where charities should be least affected by this decline are the West North Central states (North Dakota, South Dakota, Nebraska, Kansas, Missouri, Iowa and Minnesota) and Mountain states (Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona and New Mexico).
The areas of the country that can expect to be most affected include the East Coast states and the East North Central (Wisconsin, Illinois, Indiana, Michigan and Ohio).
