Charitable Giving has Issues… and Solutions.
November 9, 2009Today, the Wall Street Journal had an incredibly interesting article titled “What’s Wrong with Charitable Giving – and How to Fix It.” The article, written by Pablo Eisenberg, details the gap between what charitable organizations need and what foundations and individuals are giving.The great thing about the article is that it does more than call out issues, it gives possible solutions to this problem.
Eisenberg highlights a number of reasons for why this gap is happening, sighting the bureaucracy, inflexibility, caution and short-sightedness as issues plaguing foundational practices. He also calls attention to the current economic situation and how it isn’t helping either. Mr. Eisenberg goes on to deftly break down the solution into nine categories:
1. Increase distribution percentage
2. Increase general operating support
3. Increase multiyear funding
4. Adopt rolling grant making
5. Allocate more funds to the truly needy
6. Reach out to local groups and underserved regions
7. Simplify application and reporting procedures
8. Improve public accountability
9. Fund the watchdogs
All of these will definitely make a difference and most relate specifically to the behaviors of foundations and corporations. However, he forget to add one thing to the list…. Project 7. No, we aren’t trying to say we are the answer to everything, just a great conduit for the real solution – you, the consumer.
As part of the article, Eisenberg included the below charts and graphs that break down philanthropy by the numbers. Low and behold, individual donors made up 75% (or $229.28 Billion) of the contributions made in 2008. What does this mean? We as individuals make a huge impact when it comes to charitable giving. And, when each individual contribution is added to the pot it makes a big difference.
So, how does Project 7 play into this and help provide a solution? In a few ways:
1. By harnessing the power of the consumer and giving them a way to give back without changing their every day activities.
2. By providing transparency and accountability on where the funds are going and how they are being used.
3. By allowing the consumer/individual to choose where the funding goes
Project 7 puts charitable power in the hands of the people making most of the charitable contributions – you. So go ahead, give a little to change a lot.
