Charity: Female Style
Written by Kate A. Lee Wednesday, October 07 2009
Think women don’t donate generously? Think again.
Nearly half of the nation’s top wealth-holders – individuals with more than $1.5 million in assets – are women, according to the IRS. Women under 50 control two-thirds of the $4.6 trillion in assets of this group.
Nonprofits are looking at ways to build relationships and nurture prospective donors, with an eye toward landing major donations.
Research from the Women’s Philanthropy Institute at The Center on Philanthropy at Indiana University demonstrates the potential for nonprofits that develop programs to specifically cultivate and nurture young women as donors. Not only are women in all age groups more likely to donate than men, but as females reach higher income levels, their average donation increases substantially.
The United Way of America, by listening to current donors, found that women were more likely to donate, and at higher levels, if they felt engaged and involved in solving issues that affected their community. The organization saw the potential to drive donation growth by connecting women with the United Way.
“Addressing this need for engagement led to the creation of the Women’s Leadership Council, a program for women giving $1,000 or more each year,” says Linda Paulson, director of strategic markets for United Way of America.
In 2007, The American Red Cross launched the Tiffany Circle: Society of Women Leaders. Asking for $10,000 donations, the Red Cross raised more than $3 million the first year, well beyond the $1-million goal for the eight pilot chapters.
Even better, more than half the initial members were new donors to the American Red Cross. The Tiffany Circle program has been so successful that a new level of giving was established within the circle, for women who commit to 10 years of membership.
These national nonprofit organizations are finding ways to nurture young women as prospective donors. The United Way does it by creating smaller, more focused donor groups, such as the Young Leaders Society.
The Young Leaders Society acts as a building block toward long-term relationships with donors by offering volunteer opportunities, providing education on issues of concern to the community, and networking among donors with similar interests.
Anecdotal evidence shows that targeted programs such as those at United Way and Red Cross are creating stronger ties between female donors and nonprofits. United Way affiliates with Women’s Leadership Council programs grow their donor income at 2.2 percent annually, well above those without the program in place, Paulson says.
Nationally, the Women’s Leadership Council exceeded expectations in terms of income, reaching $105 million in 2007, a figure that United Way hadn’t expected to reach until the end of 2008.
Even more important is that women will shape the philanthropy of the future for both sexes. “Younger men’s demands on nonprofits will begin to look more like what women have requested for the past 20 years,” says Andrea Pactor of the Women’s Philanthropy Institute at The Center on Philanthropy at Indiana University.
The implication for nonprofits is that combining time (volunteer hours), treasure (donations), and talent (volunteer knowledge or specialization) builds the engagement that donors crave. To paraphrase a well-known advertising campaign: Targeting women with a program that incorporates those aspects: Priceless.
Useful Links:
United Way of America: Women’s Leadership Council http://www.liveunited.org/wl/
American Red Cross: Tiffany Circle http://www.redcross.org/tiffanycircle
Women’s Philanthropy Institute http://www.philanthropy.iupui.edu/PhilanthropicServices/WPI/
Kate Lee works with corporations large and small to develop strategic public affairs programs, focusing on increasing value from donations, nonprofit partnerships, sponsorships, and employee volunteer programs. Connecting business and nonprofit organizations for mutual gain is her passion.When not volunteering as a team-parent for her son’s sports events, she can be found in Dunwoody, Ga.
