Philanthropy in Charleston Faces Funding Decline but Solutions Emerge

Philanthropy Faces Challenges in Charleston, but Hope Remains

Charleston, a vibrant city known for its rich history and community spirit, is witnessing a significant shift in its philanthropic landscape. Recent studies have revealed some concerning trends, particularly a decline in nonprofit fundraising that has many community leaders scratching their heads and looking for solutions. According to a report from The Giving Institute and Giving USA Foundation, the total amount raised by nonprofits dropped by 8.4% in 2022 and fell another 2.1% in 2023. Just like that, the generosity that has long been a hallmark of Charleston seems to be waning.

Understanding the Shift

As we dive deeper, it seems that many donors have made a significant change in how they give. After the COVID-19 pandemic shook the world, many people began to reevaluate their financial support, narrowing the number of nonprofits they help from four or five to just two or three. One prominent figure addressing these concerns is Jim Bush, the CEO of the Winkler Group, a Charleston-based organization that specializes in nonprofit fundraising.

Jim has been in the fundraising field for nearly three decades and has seen firsthand how donation trends have evolved. He points out that “a lot of nonprofits want to do campaigns that are well beyond what their donors are willing to fund.” In short, nonprofit leaders may not realize that donors don’t always feel compelled to give, complicating the already challenging landscape.

The Donor Disconnect

Moreover, many donors have voiced a sense of disconnection from the nonprofits they support. Jim noted that they often feel treated like “an ATM,” while they would prefer to be seen as partners in a mission. This lack of deep connection is contributing to what he calls a “generosity crisis.”

Interestingly, Jim shared that factors like a newfound interest in travel after the pandemic and the growth of individual crowdfunding options have drawn potential donors away from traditional nonprofit giving. The pandemic fundamentally altered how people prioritize their charitable giving, and many organizations are feeling the pinch.

Solutions on the Table

So, how can Charleston’s nonprofits tackle these challenges? Jim believes there are a few viable solutions. First, he suggests changing tax laws that were impacted by the 2017 Tax Cuts and Jobs Act. This legislation made it harder for everyday donors to itemize their charitable contributions, hurting the nonprofit sector.

Additionally, he advocates for nonprofits to make a concentrated effort to build genuine relationships with their donors. “When we really connect with our donors and treat them like investors and partners, amazing things happen,” he explained. It’s all about fostering deep, meaningful relationships, as Jim has seen the long-term benefits when donors feel valued.

Focus on Individual Donors

Organizations like the Sea Island Habitat for Humanity express similar sentiments. According to Emily Speck, the director of development for the nonprofit, individual donors are crucial for cultivating a stable financial future, as they can often provide more reliable funding than grants or foundations, whose priorities may shift.

Emily noted that Sea Island typically receives about $800,000 from donors each year, compared to about $100,000 from grants. She believes that reconnecting that lost passion for giving is essential. “Philanthropy is kind of like riding a bike,” Emily shared. “We lost a lot of people during COVID, and if we can get them either back out volunteer on a job site, or coming to one of our events, or meeting a homeowner and actually seeing our mission in action, it sparks that back up.”

The Future of Giving in Charleston

The future of philanthropy in Charleston may hinge on its ability to inspire a new generation of supporters. Many traditional donors are aging out, and there’s an urgent need to attract younger individuals who feel connected to the community and understand the value of philanthropy.

In the ever-evolving Charleston community, it’s crucial for nonprofits to adapt and innovate. With dedicated leaders like Jim Bush and Emily Speck proactively seeking solutions, there’s hope yet for revitalizing the spirit of giving in Charleston. As they say, teamwork makes the dream work, and with the community’s collective effort, the future of philanthropy can still shine brightly.