It's Giving Tuesday. How should reporters cover year-end donations?
By Paddy Hirsch
Americans are some of the most generous givers in the world, frequently topping the Charities Aid Foundation’s World Giving Index. That’s a year-round story, so why do we tend to focus on year-end donations when we report on charitable giving?
The when
The end of the year, starting on Giving Tuesday — the first Tuesday after Thanksgiving — is when Americans give the most. Nonprofits receive anywhere between a quarter and a third of their annual donations in the month of December alone. And as much as 12 percent of donations are made on Dec. 31.
Those are some compelling numbers. But they change, every year, and while a quick web search will turn up dozens of websites that toss out statistics on giving, the diligent reporter quickly will find out that they generally pull from just a handful of sources. The Annual Report on Philanthropy from Giving USA is a treasure trove of data on charitable giving. Another is the AFP Foundation for Philanthropy’s Fundraising Effectiveness Survey. These organizations pull data from a wide range of nonprofits, and the findings they generate are chopped up and rehashed in papers and press releases, by everyone from banks and insurance companies to political pressure groups and personal finance websites.
The why
Why do so many Americans wait until the end of the year to give? One big reason: taxes. In order to qualify for any tax benefits in a given year, donations have to be made by midnight on Dec. 31 of that same year. And if you’re a household on a budget, it’s hard to predict how much you can afford to give for any given year, until the year is almost done. Hence the rush of donations at the end of the year, and the blizzard of solicitations that precedes it.
The federal tax code doesn’t just play a big part in determining when we give; it can also affect how much we give. The rules governing tax benefits for charitable giving fluctuate, and reporters can refer to the IRS website for the current rules on how much individuals and companies can deduct from their taxes, and which organizations qualify as a charity. Remember to check state laws for restrictions at that level, also.
The who, what, where and how
Some of the best stories on charitable giving come from observing trends in which groups give more or less; what people donate; which organizations we give to; how they connect with us; and how we give. There have been big changes in all of these trends over the last few years, and a quick web search will throw up some correspondingly loud headlines about them.
These headlines can represent exciting opportunities for reporters looking for an interesting angle on year-end giving. But a closer look at the accompanying story often reveals that many of these bulletins are generated by finance firms or marketing companies using small data sets. The findings can turn out to be focused on specific target groups, such as high net worth individuals, or green donors, rather than the everyday consumer of personal finance content. In some cases, the publisher might have a political agenda to promote. This doesn't mean these organizations aren’t good and valid sources of information and trends, only that reporters should consider these sources carefully before using them, and be aware of the constituencies they represent.
ADDITIONAL RESOURCES
Paddy Hirsch is a Freelance Reporter for NPR. He can be reached at paddy@paddyhirsch.com and their website is www.paddyhirsch.com. Finance 411 is a bi-monthly feature, presented by RTDNA and the National Endowment for Financial Education.
Finance 411 is a bi-monthly feature, presented by RTDNA and the National Endowment for Financial Education. Interested in becoming a contributor? Email info@rtdna.org for more information.