Why giving to local charities makes all the difference in your community

Saturday, January 22, 2011

Small Nonprofits May Mean More Value for Your Ten Bucks

Did you know that there are 6,000 nonprofits incorporated in Delaware? Believe it or not, in a state with a population of less than 900,000 people, the nonprofit field represents an enormous percentage of our workforce. More than likely, your life has been touched in major ways by the efforts of nonprofits and you may not even know it. Nonprofits are so deeply ingrained in our current world culture that many operate under our very noses, completely undetected by their own constituents.

According to the Nonprofit Career Guide, http://www.nonprofitcareerguide.org/fact_sheet-scope.php, "The [nonprofit] sector accounts for 5 percent of gross domestic product (GDP) of the U.S. economy, 8 percent of wages and salaries, and 10 percent of employment. In addition, 29 percent of Americans volunteer through formal organizations." That means that 1 in 10 individuals are employed by, and therefore depend on, the public's continued support of their local nonprofits.

I myself am employed by a nonprofit. As the Executive Director of the Brain Injury Association of Delaware (BIAD), my job depends on the contributions of our valuable members, individual contributions, and sponsorships. Check us out at http://www.biade.org/. I'm very lucky that my salary is my family's secondary source of income, but I'm sure that my case is not typical.

There's a reason why people work in nonprofits. Their reward is not just monetary, it is based on knowing they are part of something greater than themselves. Many of them are operating their own lives at or below the poverty level. Imagine the personal sacrifices they have made to serve others.

Of course, there are exceptions to the rule, such as the $531,924 salary paid to Halla G. Modelmog, CEO of Susan G. Komen, and then of course, the other 17 executives who are paid six figures, some up to $400,000 per year. Check out their 2009 990 - or IRS tax statement - page 41 - at http://www.guidestar.org/FinDocuments//2009/751/835/2009-751835298-05c074f1-9A.pdf. This particular nonprofit has come under fire recently for filing lawsuits against people using the term "the cure" in their fundraising efforts. Talk about losing your focus. http://www.huffingtonpost.com/2010/12/07/komen-foundation-charities-cure_n_793176.html?view=print.

I am passionate about supporting small, local nonprofits because I have found that they are small enough to be more closely connected to the population they serve. For example, I am one of just two people responsible for handling calls from people who need help. Personally handling a phone call from someone who can't afford to stock his own fridge discourages me from spending the organization's money frivolously. Being connected to my own cause is the greatest possible strength I can cultivate. I never want to lose sight of that goal.

In no way am I inferring that larger nonprofits can't do good in our communities. In fact, I find that Habitat for Humanity, the Salvation Army, and Goodwill have their priorities in order. They show ingenuity in programs and are constantly changing and shifting their purpose within the community. They also provide many different ways for people to contribute to their missions.

Consider your donations as investments in your local community, rather than just a tax write-off. Not only does your donation make a positive impact on your neighborhood, but it may keep your own neighbor employed, thus building your own local economy. It's a win-win-win-win situation.

I'm challenging you to look up your own state's listing of nonprofits and find one that you can support with your ten bucks. The IRS has a nonprofit search engine at http://www.irs.gov/app/pub-78/ and you can select your state on the "Location" drop down box. (The lists have been substantially narrowed due to the IRS's 2009 decision to cut nonprofits that weren't filing regular 990s.)

And if you can't donate, volunteer! Did you know the IRS values volunteer time at $20.85 an hour? Check out this article from the Independent Sector. http://www.independentsector.org/volunteer_time

Whatever you do, do something to support your local nonprofits. Because whether you know it or not, they are supporting you.

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