NEW YORK — The world is currently grappling with numerous humanitarian issues, from millions displaced by conflicts to communities struggling after severe natural disasters. Additionally, disparities in healthcare are causing significant disruptions in lives. In the midst of these challenges, various established nonprofits, individual donors, and mutual aid groups are actively seeking contributions to support their efforts. However, in a landscape filled with numerous worthy causes and the emergence of innovative donation technologies, potential donors may find themselves unsure of where to direct their financial help.
For many, traditional charities are the go-to option for making a difference, but younger generations—specifically Gen Z and millennials, along with less religious and unmarried individuals—often prefer crowdfunding. Research from the Indiana University Lilly Family School of Philanthropy indicates this trend, which some view as a more modern approach to assisting individuals in urgent need. Both methods reflect different evaluations of authenticity and impact, but they don’t necessarily contradict one another.
Todd Baylis, Chief Customer Officer at Bloomerang, encourages donors to consider what type of support—be it organizational, communal, or personal—will best suit the needs of those they aim to help. He emphasizes the importance of aligning contributions with individual donor objectives, highlighting the spectrum of ways assistance can be deployed effectively.
Determining how to make a meaningful impact begins with assessing one’s own goals. Those wishing to create widespread change may choose to support established nonprofits, as their expertise and networks facilitate large-scale recovery efforts, as noted by Tiltify CEO Michael Wasserman. For instance, if a donor aims to ensure a specific person receives aid, supporting a direct crowdfunding campaign might be more effective than routing contributions through larger organizations.
The nonprofit GiveDirectly provides a model for flexible giving by sending cash directly to recipients, empowering them to make personal decisions about their needs. Senior Program Manager Richard Nkurunziza emphasizes the dignity this approach affords, allowing individuals to invest resources in ways that can ultimately uplift their entire community, such as starting businesses or funding education.
Crowdfunding has also been described as “more democratic” by Claire van Teunenbroek, a professor at the University of Twente. It grants donors control over how their contributions are used, although it can lead to challenges, as those in most need may not be the ones most successful in raising funds. Emotional projects often catch attention, despite evidence showing disparities in crowdfunding efforts among different demographic groups.
Trust plays a crucial role in the donation process. According to Bloomerang’s Generational Giving Report, a significant number of potential donors identify lack of trust in how their contributions are utilized as a primary reason for ceasing donations. Tax-exempt nonprofits are required to disclose financial information, including executive salaries, and watchdog organizations like Charity Navigator aid in identifying trustworthy charities.
In contrast, crowdfunding platforms represent a less regulated space, which heightens the risk of fraud. While many features offer convenience, donors must conduct thorough research to ensure they are supporting legitimate efforts. van Teunenbroek advises that clarity in project descriptions can reduce risks associated with giving.
Rick Shadyac, CEO of ALSAC, which supports St. Jude Children’s Research Hospital, acknowledges the importance of making donors feel secure about where their contributions are directed. He advocates for any form of giving, stressing the value of reputable charities while recognizing that crowdfunding can also fulfill distinct needs. This complementary nature allows for support of both individuals facing hardships and large-scale causes.
As the holidays approach, Shadyac notes that many nonprofits observe a spike in donations, likely due to the season’s spirit of generosity or year-end tax considerations. It’s important to point out, however, that contributions made through crowdfunding do not typically qualify for tax deductions, although their personal and immediate impact can resonate deeply with donors.
Mutual aid networks, characterized by community members helping one another meet urgent needs during systemic failures, embody a form of solidarity rather than traditional charity. In today’s digital landscape, these groups often fundraise online and distribute aid directly to those affected. Tamara Kneese, a director at Data & Society, observes that mutual aid initiatives often arise in response to crises but can face challenges such as resource depletion and burnout among volunteers. Yet, they foster deeper connections, as aid is rooted in community relationships rather than being a discrete transaction.
Ultimately, understanding the various avenues for giving allows potential donors to navigate the often-overwhelming landscape of philanthropy, ensuring that their efforts are aligned with their values and objectives while impacting those who need assistance most.