Last week a friend asked me this simple, yet poignant question, “Do you really think my little $100 donation that I give to each of a few Sonoma Valley nonprofits really makes that much of a difference? I hear all the time that big donors are giving them thousands, so I’m not so sure my small donations matter.” I immediately shared with my friend that those small contributions comprise a large percentage of the total annual revenue of most Sonoma Valley nonprofits and that he should keep giving those $100 donations if he wants our local
In its most recent study on American Donor Trends, the Ventura-based Barna Group reported that more than half of all respondents to a national phone survey donated to charities in an annual amount of $500 or less. Other brands that give back.
Specifically, 22 percent said that the total value of their charitable contributions was $100 or less over the course of the year. The 2014 Red Kettle Campaign of the Salvation Army took in over $144 million in small bills and coins. A classic example of small donations making a big difference is from the 2008 Presidential campaign. That year, President Obama raised $29 million in online donations with 90 percent of those transactions coming from people who donated $100 or less, and 40 percent from donors who gave $25 or less.
According to Sharon Somogyi, La Luz Center’s Operations and Donor Stewardship Manager, “About a third of our donors are under $100. I see them as our bread and butter. I feel it is important to recognize and appreciate all individual and business donors as they give from the heart and to their capacity. For example, we have a donor who lives on Social Security who gives $25 a month earmarked for emergency assistance and family support. We depend on that and it has greatly impacted the lives of our clients who were recipients of her generosity.” She added, “On a grander scale, at our Noche Latina event last month, we had three very generous donors step up and match all $100 donations made to Fund-A-Need. It was amazing to watch $100 dollar bids turn to $400.”
The size of a financial contribution is directly tied to the donor’s age. In its 2013 Nonprofit Donor Engagement Benchmark Study, Charity Dynamics and NTEN reported that more than 80 percent of survey respondents aged 18 to 29 reported that they gave $100 or less to their favorite charity in the prior year. On the other hand, 30 percent of those 40 years or older reported that they gave $500 or more to their favorite charity in the previous year.
Laura Zimmerman, Sonoma Valley Education Foundation Executive Director, remarked, “Each year we receive hundreds of donation that are under $100. These are incredibly important to us. We have a very special donor who sends us a personal check for $10 each month. We have teachers, community members and even recent high school graduates who provide electronic recurring donations to us each month or each year. Sometimes they call to increase their donation when they get a raise or a new job. It adds up quickly. You might not even miss $20 dollars a month when you give automatically. But over a 10 year period your donation will total $2,400 and that is a significant gift.”
The Giving USA 2015 report revealed that of the $358.58 billion received in 2014 by American nonprofits, 80 percent of that came from individuals, including 8 percent from bequests. The remaining 20 percent came from foundations and corporations. The amount given by individuals in 2014 was 5.7 percent more than in 2013. Almost one-third of that individual giving was to religious organizations, followed by a combined 27 percent to education and human service organizations. In 2014, per capita giving reached $1,050 and household giving was $2,030. Each individual’s and household’s giving was distributed to multiple nonprofits in relatively small increments.
Lee Morgan Brown, the new executive director of the Sonoma Valley Mentoring Alliance, said, “The size of the donation is not as important as the outcome it produces. In the nonprofit world there are all shapes and sizes of donors. However, finding the donor’s heartstring is number one…for the Mentoring Alliance, every donation shifts the paradigm of children’s futures.”
According to Charity Navigator, if you are in the 33% tax bracket, the actual cost of a $100 donation is only $67 ($100 less the $33 tax savings). The actual cost to a person in the lowest bracket, 15%, for a $100 contribution is $85. For a person in the highest bracket, 35%, the actual cost is only $65. As your income tax bracket increases, the real cost of your charitable gift decreases. As we approach the end of the year, remember to donate those small (and large!) gifts to your favorite Sonoma Valley nonprofits’ year end appeals to impact your tax savings and build a stronger community.
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