Philanthropists are concerned about the effect of the Covid-19 pandemic on small nonprofit organizations and entities such as homeless shelters and food banks, according to a Fidelity Charitable survey released today.
In response, many donors said they are giving substantially more money to charities this year, according to the “A Year Unlike Any Other” survey based on responses from 491 Fidelity donors.
“The events of this year dramatically changed how people give to philanthropic causes,” said Fidelity Charitable, a donor-advised fund. “Very little about 2020 has followed usual patterns.”
The survey showed that 64% of donors are very concerned about small and community-based nonprofits, and an additional 20% are somewhat concerned. Likewise, 60% of donors are very concerned about human resources organizations that provide shelter or food for the poor, and an additional 22% are somewhat concerned. Conversely, the majority of donors (57%) have little or no concern about large nonprofits.
The concern may be what has prompted 46% of donors to say they will give notably more to charity this year, with 37% saying they have changed the organizations they give to because of Covid-19 and 36% saying they have given to the same charities. Almost all (92%) of those who gave to different organizations said they also gave to their usual charities.
Forty percent of donors said the pandemic influenced the way they thought about giving. Most said their goals are to help people or nonprofits suffering from the economic impacts of the pandemic. Others said they want to help people whose health has been harmed, and more than one-quarter said they are helping individuals in their communities who are in need.
Amy Pirozzolo, head of donor engagement for Fidelity Charitable, said in a statement: “An earlier Fidelity Charitable study, ‘Communities in Crisis,’ showed that while granting to human services charities grew during the pandemic, granting to other sectors was stable, and according to this study, almost every donor who gave to a different charity also continued granting to all or most of the organizations they regularly supported.
“Donors understand that all charities face unprecedented demands,” she continued, “and giving strategies meaningfully changed with 30% more grants this year” through Fidelity Charitable.
When asked about their personal circumstances, 46% of respondents said they are very concerned about their health, but only 10% said they are concerned about their long-term financial security, the study said.
Projecting into the future, 22% of donors said the pandemic will influence the way they give in 2021 and over the next five years. Twenty-six percent said the pandemic will have little or no influence next year, and 37% said it will have little or no influence over the next five years.