A trend in philanthropy almost feels like it could be a mathematical law: charitable giving increases over time. Since 1967, giving has grown at an average of 6.5% annually (2.6%, adjusted for inflation). But this year, Giving USA’s annual study found a decline in individual year-over-year charitable giving. In the last 40 years, charitable giving has only fallen three times, all in years marred by recession: 1987, 2008, and 2009.
This dip has real implications. Declines in giving have a tangible impact on nonprofit organizations that depend on these funds to sustain their day-to-day operations.
Janine Lowy, a Los Angeles-based philanthropist and founder of the Winkler-Lowy Foundation, explained that, under these circumstances, it is even more critical for donors to follow through to assess the impact of their giving proactively.
“With a decrease in dollars flowing to nonprofits, it’s especially crucial that every gift is maximally effective,” says Lowy. “Donors should monitor and evaluate the impact of their contributions.”
We sat down with Lowy for a conversation about strategies donors can utilize to ensure their efforts are truly impactful. Lowy shared a few factors donors should consider when assessing whether their gifts create the intended impact:
Track, measure, and manage impact: “As a colleague often says, ‘What isn’t measured isn’t managed,’” said Janine Lowy. Talk to your nonprofit partners about their impact measurement strategy. How do they leverage data to improve their work? If they don’t have a clear strategy, consider connecting them with resources that will guide them.
Build relationships with your grantees: Janine Lowy suggests working closely and communicating often with the organizations you’re funding. Lowy explained that she is in constant contact with many of her grantee organizations.
For example, Lowy enjoys receiving updates – especially those that include photos – of the camp activities she underwrites through her foundation’s support of Camp Ramah. “An annual report won’t tell you if your specific gifts are working,” Lowy said. “Personal relationships are critical.”
Go deep with grantees: the more embedded you are with your partner nonprofits, the more likely the work will be impactful, Janine Lowy said. Identify how you can support a cause beyond funds.
Get creative: Consider your time, network, and expertise. “Can you join their board?” asked Lowy, who has served on the board of nearly every organization the Foundation supports at a high level. “What about volunteer opportunities?”
Do whatever it takes to ensure your gifts provide the intended value. If an effort is falling short, partner with the nonprofit team to help the initiative get back on track. Depending on the circumstances, this might mean upping your donation, Janine Lowy said. Maybe you can connect them with someone in your network who can offer expertise.
Spread the word—share best practices to set the bar. If you have a relationship with a grantee you feel is particularly impactful, communicate your learnings with your network and other funders to inspire and guide them to work to maximize their giving.
The Winkler-Lowy Foundation was founded by Janine Winkler Lowy and her four children in 2019 to help ensure that all families can access formative Jewish programming that nourishes young minds, strengthens the future of the Jewish community, and builds bridges between Israel and the Diaspora.
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