Archive for December 23rd, 2014

December 23, 2014

#GivingTuesday Has NOT Made a “Huge Difference”

Earlier this month, I expressed my concerns about #GivingTuesday. Now, the Lilly Family School of Philanthropy at Indiana University and the Case Foundation have announced the results.

Guess what? Despite all the hype and self-congratulatory headlines, #GivingTuesday did not accomplish much.

The official #GivingTuesday website  proudly displays this message:

#GivingTuesday Thank You

However, are the good, well-intentioned folks at #GivingTuesday correct? Did the occasion really make a “huge difference”?

#GivingTuesday 2014 inspired $45.68 million in charitable giving, according to an infographic prepared by the Case Foundation.  The final tabulation is expected to be even greater. Over 15,000 charities participated, representing 68 countries.

#GivingTuesday Full Infographic-Dec 2014The numbers look great at first glance particularly when recognizing that donations grew by more than 63 percent over #GivingTuesday 2013.

But, let’s look at the numbers a bit more closely.

Last year, total philanthropic giving to the nonprofit sector in the USA totaled $335.17 billion. For our discussion here:

  1. Let’s assume that total giving in 2014 increases by four percent to $348.58 billion.
  2. Let’s assume that the initial reports that were shared were only half of the actual results. This would mean that donations on #GivingTuesday totaled $91.36 million, likely an overly generous estimate.
  3. Let’s assume that 100 percent of the reported donations were made in the USA.
  4. Let’s assume that the more than 15,000 participating charities are all based in the USA.
  5. Let’s assume that no donations would have come in on that day if it were not for #GivingTuesday.

With those assumptions in mind, let’s look more closely at the #GivingTuesday results:

• #GivingTuesday generated 0.026 percent of donations for the year despite the day itself accounting for 0.274 percent of the calendar. In other words, despite the big promotional push, #GivingTuesday produced a disproportionately low volume of giving.

• With more than 15,000 participating organizations, #GivingTuesday generated an average of just $6,091 per organization. While it’s nice to have the $6,091 of income, it’s hardly a transformational amount especially considering that that amount includes money that would have come in anyway.

Beyond the numbers we do know, we do not know how much money would have come in anyway. We do not know how many new donors were inspired to give. We do not know if organizations are able to retain #GivingTuesday donors. We do not know if larger organizations are simply siphoning support from smaller organizations. We do not know if #GivingTuesday simply shifts when people give without inspiring more people to give, more people to give more often, and more people to give more.

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