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American Morning
Charity Donations Up Despite Sept. 11th Fears
Aired December 24, 2001 - 08:20 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Charities and non-profit organizations set up to help the victims of September 11 have done extremely well over the past several weeks.
But what about all the other organizations that also depend on the generosity of donors? Despite earlier fears they would be forgotten, most report they have seen a significant increase in charitable giving since September 11th.
CNN's Brooks Jackson explains.
(BEGIN VIDEOTAPE)
BROOKS JACKSON, CNN NEWS (voice-over): This is American charity at work.
UNIDENTIFIED HUMOR THERAPIST: Oh, hello, everybody!
JACKSON: A humor therapist, shining a little cheer through the twilight at this not-for-profit home for the elderly in Maryland, supported by donations.
Also supported, this artist. And despite all that's happened this year -- stock market down, unemployment up, and a terrorist attack that hit just one day before the start of this home's annual yearend fund-raising drive -- the money is still there.
UNIDENTIFIED HUMOR THERAPIST: Il s'appelle Pierre!
NICHOLAS SIMMONDS, HEBREW HOME: We set a very ambitious goal, under any circumstances, for this year of $725,000. And I'm very pleased to say, as of today, we were already at $735,000.
UNIDENTIFIED HUMOR THERAPIST: All righty.
JACKSON: That's eight percent more than the same fund raised last year, despite everything.
(on camera): There had been fears that the first recession in a decade would dry up donations, that anthrax would make people afraid to open fund-raising letters, that donations to victims of September 11th would come at the expense of other charities.
Many charities are suffering, and they've gotten lots of media attention, but most say they are not.
PAULETTE MAEHARA, ASSN. OF FUNDRAISING PROFESSIONALS: I can see why people were concerned. We were concerned.
JACKSON (voice-over): The Association of Fundraising Professionals is polling its members, and preliminary results show 60 percent say they are raising as much or more than last year.
That includes 10 percent, who say they're raising 30 percent more.
MAEHARA: So the sky is not falling.
JACKSON: For example, Americans are actually giving more this year, not less, to the March of Dimes Foundation.
JENNIFER L. HOWSE, MARCH OF DIMES FOUNDATION: I'm pleased to say, or maybe relieved is the better word, that we have actually finished in a stronger revenue position this year than last. We'll have about a two percent increase year-over-year.
JACKSON: Even in New York City itself, there's plenty of money to support facilities like this Sports Medicine Research Institute at The Hospital for Special Surgery.
The hospital reached its $20 million goal for this year even earlier than it did last year.
DEBORAH SALE, HOSPITAL FOR SPECIAL SURGERY: I think that September 11th has really made people more generous, because they understand that people need each other in this society, and to live together. And that's really important.
JACKSON: That's been true in the past. The year after Pearl Harbor, total charitable giving surged to 46 percent in the USA.
Fundraisers are also seeing a positive response to September 11th.
MAEHARA: New donors were created, a lot of them. And that's a very good thing for philanthropy. It's a very good thing for non- profit organizations.
HOWSE: At the end of the day, Americans are generous. Americans want the fabric of our communities to be knit together through the work of not-for-profits.
UNIDENTIFIED HUMOR THERAPIST: Hi, Helen.
JACKSON: The peak year-end fundraising season is far from over, and definitive totals won't be available until next June, after not- for-profits have filed their tax returns and an annual study is completed.
But so far, indications are that Americans are giving more than ever. Brooks Jackson, CNN, Washington.
(END VIDEOTAPE)
O'BRIEN: Joining us now to discuss the current state of charities in the United States a little more is Don Sodo, President and CEO of America's Charities. He joins us from Cleveland this morning.
Good to have you with us, Mr. Sodo.
DON SODO, PRESIDENT & CEO, AMERICA'S CHARITIES: Good morning.
O'BRIEN: All right. It's sort of a mixed picture. On the one hand you have a recession, on the other hand you have a tragedy, which prompts people to give. In the end, which wins out?
SODO: Well, the data shows historically that we have done well in terms of giving in America in times of national crisis. The economy's another matter. If the economy does take a turn down, you know, that will typically cause a decline in giving.
Our hope is that the giving heart of Americans that opened up so generously in the aftermath of 9-11 continues. We, at America's Charities, are hoping that folks will recognize that we've been changed, not just for a month or two, but for a lifetime in terms of how we value charity and its value to helping people in need throughout the country.
O'BRIEN: Give us a sense of how the patterns of giving might be changing.
SODO: Well, annually, we typically see an increase in giving by individuals of about six percent a year. Our hope is that, at yearend especially, folks will see that instead of making a donation for $30 to a battered women's shelter, they'll make it for $40.
We're also hoping that first-time givers, who really got engaged after 9-11, especially young people, will continue to give and to volunteer.
The health and human service needs in the country are great. We have two million homeless people. We have 12 million children living in poverty. Seventeen percent of women -- pregnant women -- do not receive prenatal care.
So, as you said earlier, it's a little difficult to assess the patterns. We do know that there's a great opportunity now, and we're starting the America's Caring Heart campaign at America's Charities, to try to promote the idea and the value of people continuing to open up their heart, re-examine what's important to them, and make giving to charity an important part of their lives.
O'BRIEN: Give us a sense of the kinds of charities that are doing well, and some that are not doing as well, post 9-11. SODO: Well, you're going to find typically, charities that depend a lot on direct mail, there are going to be some mixed results. The national charities that depend a lot on direct mail are going to have some questions.
One thing that we have found is that a lot of corporate giving, there is a continuation of their support for charities in addition to what they've done after 9-11. We've found that over 70 percent of people who gave to relief efforts after 9-11 say they're going to continue to support their favorite charity.
Groups at America's Charities, including Make-A-Wish, Habitat for Humanity, NAACP and Ronald McDonald House charities are doing well.
We've also seen in employee payroll deduction giving campaigns some nice increases this year.
So it validates what we heard earlier in the broadcast, that the giving heart of America is big. And our mission is to continue to focus folks' attention on the needs year-round, next year and after that, that are certainly equally important as the very significant relief needs that are being met right now.
O'BRIEN: I suppose there's some people in our audience who might want to give, but are perhaps unclear how to do it, how to identify a charity that matches their goals, their philosophy, and also a charity where a good chunk of the money actually ends up in the hands of the needy people, and not in the carrying fee, if you will, ...
SODO: Sure.
O'BRIEN: ... to hold that charity in place.
SODO: Sure. Yeah, ...
O'BRIEN: What should they do about that?
SODO: Yeah, very important to be careful, first of all. Give to a charity that you know about or that has been endorsed by a friend or family member.
Do a little bit of homework, a little bit of research. Some of the key information that we look for that you can access through simply through a phone call or requesting a financial statement, or going on the Internet at something called GuideStar.org, is the fundraising and administrative percentage of a charity.
We typically look for that percentage to be 30 percent or less of their total revenue. I would avoid giving through telemarketing unless you're very sure about the charity that is being -- that is asking for your support.
Beware of broad e-mail solicitations, as well. Don't give cash through the mail.
Give from your heart. Think about what's important to you or your family. Do a little research. Ask a friend or family member. Make a phone call.
Get engaged a little bit. And think about giving, not only a gift, but a gift of time, as well.
And we'd really encourage people at this time of the year to think about how they can engage children for the first time in giving, and the importance of showing support for people in need in their local community and the country and around the world.
O'BRIEN: Mr. Sodo, thanks for your time. We appreciate it. Happy holidays to you.
Don Sodo is with the -- he's the CEO of America's Charities, joining us from Cleveland this morning. Thanks very much.
SODO: Thank you.
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