In this series, we take a look at the current news impacting the nonprofit sector, specifically fundraising. Our intention is not to be reactive, but to be proactive in our analysis of the news and consider how fundraising and philanthropic efforts can improve outcomes and adapt to meet the times.
This week: Record-High Donations Fell Shy of Need, Tech Modernization Can't Leave Data Security In The Dust, and The Urban and Rural Divide.
Record-High Donations Fell Shy of Need (Via East Oregonian)
Fidelity Charitable reported last Wednesday that donations to charities that address food insecurity rocketed up 1,200%, with Feeding America, Meals on Wheels and World Central Kitchen becoming among Fidelity Charitable’s Top 20 most popular charities for the first time. And contributions to the CDC Foundation, which advances the mission of the Centers for Disease Control and Prevention, jumped 9,582%. Yet in contrast to food and medical research, some other sectors of philanthropy, especially those in arts and culture, have not fared so well.
Analysis: Historically, national events tend to drive charitable giving upwards. 2020 proved to be no different with total giving numbers up, but a lot of that was also relocated to COVID related causes. Because of this, many organizations lost critical funding with many donors re-allocating their philanthropic gifts.
Tech Modernization Can't Leave Data Security In The Dust (Via TechRadar)
Over the past year, transformation was seen as a way to survive, but increasingly, it’s helping businesses to thrive. With transformation, though, comes unprecedented risk. Too often, projects are accelerated for the sake of the business while data security is forced to take a backseat. Prioritizing speed over security will come back to haunt organizations, as data is exposed to unsafe levels of risk that could result in fines, reputational damage, and operational disruption.
Analysis: Software vendors have a responsibility to ensure that the service that they are providing is secure so that any organization that wants to technologically innovate can do so without fear of data loss from an external software provider. To ensure safety, nonprofits should look for software providers that are SOC 2 compliant to ensure that their data is safe.
The Urban and Rural Divide (Via Stanford Social Innovation Review)
Poverty is just one of the areas where there is a divide between urban and rural. Rural areas have fewer cultural institutions, fewer colleges and universities, fewer nonprofit organizations, fewer social services, fewer jobs—the list goes on. Given this disparity, you would think that philanthropists would be pouring money into rural areas. Sadly, that’s not the case. In fact, it’s the opposite. Philanthropists have been putting much more money into urban areas.
Analysis: Much like the inequity in giving to non-COVID related causes, the concentration of nonprofits within urban areas is causes rural areas to be shut out from donation dollars. Fundraisers should make sure that they are building relationships with their donors so that they are not forgotten and lose valuable revenue to another cause.
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