A Trend Towards Longer-Term Giving

According to the WallStreet Journal, the recent economic crisis has helped people to focus onlong-term change rather than donating to the cause de jure.  This trend is due partially to governments’ diminishedability to sustain charitable programs; and partially to the improved availabilityof information to the public on charities’ long term needs.

The reduction inavailability of government funds requires a major shift in donor thinking.  Traditionally, a foundation might provide agrant to get a charity going on the assumption that the charity would thereaftersustain itself through other contributions and government funding.  As these other sources of funding dry up,foundations are looking at more long-term relationships with the charities thatthey fund and pursuing approaches such as promising continued funding tocharities that have a sustainability plan in place.

The increase in longer-termfunding is also a product of the increased availability of information todonors.  The internet provides donorswith a wide range of metrics that enable them to pick and choose where theirmoney goes based on a charity’s performance. The other side of this coin is an increased knowledge base amongcharities on how to get their message out and an improved ability to show the long-termeffects of their work, and their future plans.

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