Americans Want Charities to Change Their Ways

To the Editor:

Jonathan Small asks: “Why are contributions growing if confidence in the [nonprofit] sector is so low?” (“The Growth in Giving Shows Confidence in Charities is High, Letters, April 17). In support of a high level of confidence (various studies to the contrary), he states: “Virtually year after year, at least since 9/11, giving to nonprofits has increased.” In current dollars, his numbers are correct.

A recent report from the Urban Institute, however, indicates a different picture. In “The Nonprofit Sector in Brief: Facts and Figures From the Nonprofit Almanac 2007,” the think tank notes that, based on Giving USA’s 2006 edition, “private charitable contributions increased by more than 13 percent in current dollars. In constant (inflation adjusted) dollars, however, there is virtually no change over this period, though the U.S. economy expanded by 12 percent and total personal income increased by 7 percent.”

At a time of increasing financial pressures on so many nonprofit organizations, a hard look at how things are going and what needs to be done to change them for the better is required. Essentially flat philanthropic giving (in real terms) does not express confidence in the nonprofit sector. This is the kind of “soft confidence” we need to avoid.

Fred A. Matthews
Senior Donor Adviser
Planned Parenthood of Western Washington
Seattle