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Home » U.S. tied for fifth in world giving index

U.S. tied for fifth in world giving index

Australia, New Zealand ranked first and second in 153-country study

October 21, 2010

The U.S. has tied for fifth place, with Switzerland, in the new World Giving Index 2010 report issued recently by the Charities Aid Foundation America. The report reviews the state of giving in 153 countries representing 95 percent of the globe's population.

The World Giving Index is the first survey on a large scale to capture information about charitable behavior in 153 countries, including many nations that haven't been included in previous surveys on giving. The index, compiled from data from an ongoing international Gallup survey, ranked the U.S. along with other countries in three categories: what percentage of the population donated to a charity; what percentage of the population volunteered time to an organization; and what percentage of the population helped a complete stranger or someone whom they didn't know needed help.

The U.S. posted impressive numbers in all three of the report's categories—with 60 percent of people in the U.S. giving to an organization, 39 percent volunteering time, and 65 percent willing to help a complete stranger. The index ranked Australia and New Zealand as the most charitable nations in the world, followed by Ireland and Canada.

First-place ranks in the individual categories of the index went to Malta, with 83 percent of its population giving money; Turkmenistan, with 61 percent volunteering time to a charity; and Liberia, with 76 percent of its population willing to help a stranger.

"The World Giving Index is a broad-based survey, and it provides a unique overview of global philanthropy. It will give many governments a means to set benchmarks for giving and define areas where improvement is needed," says Susan Saxon-Harrold, the foundation's CEO. "Many countries at the bottom of the list benefit enormously from U.S. philanthropy. Our organization is helping U.S. donors give to some of those countries, and it's important that Americans continue to build up indigenous philanthropy in countries such as China, Russia, and India."

Says Richard Harrison, the foundation's director of research, "The World Giving Index is the first time that the world has been able to have a view about how generous it is and the first time we can see truly global patterns of charitable behavior. We hope that the index can be used to progress philanthropy worldwide, providing a benchmark for governments to compare their country with peers and act as a tool to aid the development of civil society in countries where a culture of giving is not well developed."

Adds foundation President Janet Boyd, "When it comes to philanthropy, Americans do a lot ... and can always do more. This survey highlights the need to engage workers in volunteering via the corporate sector, young people by new social media channels, and older Americans by means that are both comfortable and familiar to them. In my view, no one should take a critical view of the U.S. fifth-place rank in this report for a variety of reasons, but that also does not mean that we should be complacent as a nation when there is so much more that can be done."

The foundation suggests these tips for Americans who are interested in becoming first-time or more-active givers:

•Focus on a charity that makes sense for you. Charities have an obligation to provide detailed information to interested donors. Never give to a charity you know nothing about. You may wish to pick a charity or an initiative in one field of interest and in one geographic area and then stick to it.

•Consider giving more to fewer charities. If you do give to many nonprofits, consider donating larger sums to single organizations. In the world of small- and medium-size charities, a $1,000 donation to one charity may achieve a much bigger impact than $100 given to each of 10 different charities.

This is not to say that someone has to give more than $100 to make a difference, and there is no right or wrong answer about which charity you should give to and at what level.

•Do your homework. There is no substitute for due diligence when it comes to charitable giving. Ask the charity in which you are interested and find out more about it. Talk to friends, family, and neighbors, and use the Internet to learn more about a charity or issue that interests you. Ask the charity about its achievements, what has failed, and how it is financed. If they are being transparent they will tell you.

•Focus on sustainability, rather than "one shot" giving. If you are considering a larger donation, it's important to think about what happens after your money is spent by a charity. Do the services offered decline? Do programs get dismantled? This is why "sustainability" is increasingly an important issue for donors who don't want to see their gift go to waste. Think about the long term, but ask the charity how they spent your gift and what was achieved by it.

•Review your giving plan regularly. Look back over the past year. Did you fulfill your goals for cross-border giving? Do you need to make changes? Do you need more help in establishing your goals?

If so, what worked and what will you change for next year? It's important to avoid the "check off the box" syndrome of charitable giving, where you simply go back each holiday season to the same charities and write them the same check as the previous year.

Charities Aid Foundation America was founded in 1992 and is a member of the United Kingdom based Charities Aid Foundation international network of offices, which provides charitable financial services to individuals, global corporations, charities, and foundations.

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