Giving Days Benefit Community Foundations in Many Ways, New Report Says

Title: “Beyond the Dollars: The Long-Term Value of Giving Days for Community Foundations”

Organization: John S. and James L. Knight Foundation, prepared by Third Plateau Social Impact Strategies

Summary: Giving days, the primarily online crowdfunding events that have gained popularity in recent years, have benefits beyond just the dollars raised for local nonprofits, according to a new report. The study analyzed 49 campaigns run by the 18 giving-day organizers supported by the Knight Foundation.

“Community foundations are moving in a direction of being less transactional and more strategic,” says Lilly Weinberg, director of the organization’s community-foundations program. “Giving days help move them in that direction.”

The events can boost community foundations’ other goals and attract, retain, and increase donor-advised funds, thus making those organizations more sustainable, the report found.

More Visibility and Donors

Some community foundations will continue holding giving days while others will choose not to, Ms. Weinberg said. The events are not ideal for every region, but there is a lot to learn from them.

Among the findings:

• Giving days have helped community foundations increase their visibility and credibility among both their local charities and donors. About 48 percent of nonprofits and donors heard about the community foundations for the first time as a result of a giving day. About 72 percent of nonprofits and 64 percent of donors reported knowing more about community foundations after participating in the campaigns. And about 96 percent of nonprofits and 86 percent of donors said they viewed the community foundations as valuable.
• The events have helped democratize giving, bringing in first-time, lower-dollar donors. On average, 57 percent of nonprofits said that during giving days they received donations they otherwise would not have raised. Thirty-six percent of donors said they gave more than they would have without the nudge provided by a giving day. In all but one giving-day season, the median donation was around $50.
• Like other forms of philanthropy, giving days struggle to attract a diverse donor base. More women, individuals identifying as white or Caucasian, English speakers, people who attended college, and those over the age of 40 give during giving-day campaigns than other groups.
• The events help strengthen community foundations’ capacity to raise money. Giving-day campaigns helped community-fund staff members learn how to use digital tools such as social media and online fundraising technology. Over all, community foundations found that giving days helped them engage their donor-advised fund holders.
• The events have helped community foundations become hubs of information on charitable giving. The organizations gathered information about other local charities’ missions, budgets, boards, and impact and helped these groups collect donor data and learn new skills.