charitable giving

Americans Expect Developing Nations to Take More Responsibility for Aid to Children

By Cynthia Price, Director of Communications

infographic on foreign aid

Click to view the full infographic.

Yesterday, ChildFund released the results of a survey conducted for us by Ipsos Public Affairs. We were interested in what Americans might say when asked whether the recent payroll tax increase would impact their giving levels.

Because we are an international child development agency, we also wanted to know about Americans’ views on providing aid to developing nations. We found that most do not think that the responsibility lies with individual Americans or the U.S. government.

  • 42 percent say that the governments of nations where children are being affected are most responsible for assisting their poor children.
  • 23 percent say nonprofits or advocacy groups are responsible.
  • 22 percent say individuals in nations where children are being affected are responsible.
  • 7 percent say it’s individual Americans’ responsibility.
  • 5 percent say the U.S. government should provide the aid.

One thing I’ve learned during my tenure with ChildFund is that it really does take a village, and sometimes another nation, to combat poverty. Developing nations around the world have made progress in breaking out of patterns of poverty, but the fact is they cannot do it alone and must continue to rely on other nations. ChildFund works to educate those in a position to help.

The Ipsos survey also asked Americans to estimate the amount of U.S. support to foreign countries, which is around 1 percent of the annual federal budget. Americans drastically overestimate the amount: 55 percent think more than 10 percent of the federal budget is allocated to foreign aid. On the other hand, 39 percent think 10 percent or less of the budget is devoted to foreign aid.

Because children living in poverty need help no matter where they are, ChildFund serves children both abroad and at home in the U.S., in some of the poorest counties in Mississippi, North Dakota, Oklahoma, South Dakota and Texas. Children need and deserve good nutrition, education and protection. When children flourish, the world becomes a better place for all of us.

Payroll Tax Increase Expected to Suppress Charitable Giving

By Cynthia Price, Director of Communications

infographic on charitable giving

Click to view the full graphic.

I’ve noticed my paycheck is a bit smaller with the return of the 6.2 percent payroll tax, a 2 percent increase over the 4.2 percent rate we’ve experienced for the past two years. I’d already identified and committed to my charities this year, so it’s not going to change my giving levels, although I may have to see fewer movies or cut back on my coffee shop visits.

At ChildFund, we were curious as to what Americans might say when asked whether the tax increase would impact their giving. Today, we release a survey conducted for ChildFund by Ipsos Public Affairs.

Here’s what we found:

  • 20 percent will reduce their charitable giving by an average of 29 percent.
  • 21 percent will not give at all to charity in the coming year.
  • 54 percent will continue to make charitable donations at the same level.
  • 6 percent anticipate giving more.

“While there is some good news in these findings, the survey results suggest a challenging year ahead, in what already has been a demanding fundraising climate,” says Tereza Byrne, ChildFund’s chief development officer.

“Nonprofit organizations like ChildFund can take comfort in the fact that six in 10 Americans will either maintain or increase their charitable giving,” she adds. “What is alarming, however, is the anticipated decrease in contributions by as many as one in five givers. If that comes to pass, it will likely have broad-reaching consequences across the nonprofit landscape.”

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