Tomorrow’s Forcast is cloudy with a 95% chance of economic crisis and unemployment moving in by late afternoon.  Are predictions dark and gloomy for nonprofits or will the sun poke its rays through the gloom?

2009 may be shaping up to be the perfect time for people to give to their favorite cause.  While money is in short supply, the stock market is proving to be a fatal investment option, and businesses are laying-off employees, nonprofit organizations are proving their ability to weather the storm. 

Baby boomer and Huffington Post retirement expert Mark Miller wrote last month, “The business world is crumbling all around us, but non-profits have been growing faster than either the business or government sector–and they’re facing a shortage of talent. Best of all, the non-profit sector is gradually waking up to the potential of encore career switchers–people who want to move into new lines of work with meaning in the second half of life.”

Not only are nonprofits recruiting young talent, the outlook for giving might not be as stormy as predicted.  In a survey conducted by Dini Partners, 34 individual major donors, 14 foundations, and 6 philantrhipic corporations were surveyed about their giving to nonprofits in 2009. 

• 64% indicate they will be motivated by the existing relationship with the paritcular institution
• 33% responded that their giving will focus soley on programs that help the poor and those in need
• 50% said that they will limit their giving to fewer projects 

When asked what single factor will have the greatest wieght in their giving decisions in 2009, the  majority again confirmed that an existing relationship with the agency or institution will be of singular importance.  The second and third factors respectively  include the economic or social need of the asking agency or institution and the vision of the agency. 

The money hasn’t dried-up or blown away – nonprofits will just need to spend a little more time developing relationships with donors and supporters.  34% said their giving will be the same as 2008 giving and 5% said their giving will increase.  At least that’s partly sunny…

Kiva is a website that provides loans to entrepreneurs in developing nations.  Anyone can give these people loans, and they make a huge difference for these people and their economy. Some people ask “why should i loan money to these people in developing nations when i can put it in the bank where it is safe and even make interest?”  

When you put your money in the bank or even invest it in “safe” federal bonds, you are recieving miniscule and even decimal amounts of return for your investment.  you wont “make” any money if you loan it to an entrepreneur on Kiva, but you will be making a big difference to them. A woman named Rose Atheino said “Today I’m a very respected women in the community. I have come out of the crowd of women who are looked down upon. Due to the loan that I received… you have made me to be a champion out of nobody.”  your loan makes a big difference in the life of someone who needs the money.

Kiva is not the answer for developing nations to get out of poverty, but by funding individual entrepreneurs, anyone can help make a difference in the lives of these people trying to get thier small business’ runnining.  Kiva- Loans that change lives.

Please select the best answer for the following question. What pattern in fundraising is adding up to the biggest gains for philanthropic organizations?
a) Big donors contributing $1K or more
b) E-enabled micro-philanthropy,
c) Robin Hood and his band of Merry Men

The correct answer is b. E-enabled micro-philanthropy is a technical term  that simply means online giving by many people in small amounts.  For example, the Obama campaign raised 150 million last September, but the average contribution amount was $86 according to Obama aid, Dan Pfeiffer.

One way that e-enabled micro-philanthropy is conducted is through person-to-person fundraising. “Person-to-person fundraising” refers to the social media tools that permit individuals to raise money on behalf of nonprofits, independent projects or specific outcomes. Some examples of this include:

1) fundraising pages – FirstGiving

2) fundraising widgets – ChipIn or SixDegrees

3) fundraising applications for social networks – Causes or Change.org on Facebook

After the NonProfit Technology Conference in New Orleans, there has been debate as to whether peer-to-peer fundraising is dead or not.  Much of this dissension is due to the failure of fundraising applications for social networks, namely the Causes application on Facebook.  Its not all bad news though, and the numbers are adding up for those organizations that choose to use the e-enabled micro-philanthropy.  According to ePhilanthropy Foundation, a Washington, D.C.-based, nonprofit research and education organization, online giving has increased to more than $4.5 billion in 2005 from $250 million in 2000.   Since 2003 the charitable flow in Great Britain, due to JustGiving’s online donation site, has increased from approximately £2 million to an expected level of over £70 million in 2006.

In response to a blog entitled “A Fortelling of the Birth of Peer-to-Peer Fundraising”, a woman named Stacey Monk tells a story that demonstrates that e-enabled micro-philanthropy is adding up in a big way.

“I too have read of the supposed demise of peer-to-peer fundraising and, from where I sit, it couldn’t be more clear: e-enabled micro-philanthropy works. So far, fundraising primarily through online tools has enabled Epic Change, my very new organization, to raise nearly $40,000. While we’ve had about five “outlier” gifts over $1K from founders and ardent supporters, we’ve also had over 350 individuals from various economic backgrounds “pitch in” smaller contributions. During America’s Giving Challenge, for example, our average gift was $25.34.”

Online giving has made its mark.  Is micro-philanthropy changing the rules of fundraising once again?