Charitable donations by Americans in 2006 totaled $295 billion dollars to charity. That's one large charitable donation, about $100 for every man, woman, and child living in the United States at the time. But why do people give so much to charities?
Reasons to Donate to Charity
Anyone who has worked as a non-profit fundraiser cold calling for charity knows that different people are moved to donate to charity for different reasons. Reasons can range from a desire to help those in need, to a need to tame a guilty conscience, or tax purposes.
A Charitable Donation
A charitable donation is often targeted to help those in need. This need can come from a desire to help the poor, or those with health problems. Health problems often get donations relative to their status as "painful to think about," meaning that a charity such as Smiletrain (now of Oscar-winning "Smile Pinki" fame) which helps children born with cleft palates, is a popular charity. Another example of this is the fact that fight against breast cancer gets more federal funding and donations than the fight against prostate cancer, despite the fact that more men get prostate cancer than women get breast cancer.
Donating to Charity
Another reason people often donate to charity is because they feel guilty. Many different religious groups admonish their followers to give money to the poor. College associations admonish graduates to give money to those currently struggling to pay tuition. Many people cannot even resist feeling guilty seeing a homeless beggar on the street. The feeling of "I ought to do something," is a powerful motivator for many when they give to charity.
Tax Deductible Charitable Donation
One of the most surprising facts one learns when they work in the charitable donation fundraising business is how many people are motivated to donate to charity because of its tax-deductible status. This has made the tax exempt status an extremely sought after commodity among organizations seeking charitable donations. Almost all religious organizations have achieved tax exempt status, and recently even an atheist charity achieved it: The Richard Dawkins Foundation for Reason and Science.
Charitable donation is a part of many people's lives. They have a wide variety of reasons for deciding to donate to charity. They may support the cause behind the charity, or at least support the emotional impact created by the charity's marketing. They may want to donate to charity out of a feeling of obligation. In addition, making a tax deductible charitable donation is very appealing to some people, so all charities try to achieve tax exempt status. The reasons are important, because although Americans have given record sums of money in the past, currently most charities are hurting and need charitable donations to survive in these tough economic times.
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