Poor Attendance Increase Giving?

Of all my college courses, I enjoyed economics the most. Admittedly, enjoying the class and getting an “A” on the final exam were two different things for me. I did not fare well on any of my economics exams, particularly when it came to the macro course. If I recall correctly, my grade was only good enough to spare me from having to take the course again. In hindsight, having since gained a sincere appreciation for the social science of supply and demand, it might not have been a bad idea that I retake that class.

Fortunate for many, I did not become an economist but have, instead, committed myself to fundraising  for quite some time. I have raised a great deal of money since embarking on this journey and have, surprisingly, found a great deal of value in my earlier economic studies as I strive to be a better money-raiser. I have commented, on occasion, that fundraising is much more consistent with economics as opposed to other “numbers courses” such as accounting or finance. I have also commented that organizations mistakingly associate fundraising with accounting and finance, preferring to pay attention to counting the numbers as opposed to understanding the relationships. Fundraising, like all social sciences, works toward understanding people, their behaviors, environments, cultures, etc. Fundraising, like economics, aims to understand people’s interactions with money — how it is generated, exchanged, and eventually given away.

This afternoon I was scanning the first several pages of Mal Warwick’s book Fundraising When Money Is Tight , and I sensed Mal might also appreciate the value of economics to the fundraising profession. Mal points out, rather simply, that the overall results of fundraising  roughly correlate with economic conditions, chiefly the trends in personal income and, in the United States, the Standard & Poor’s 500 Stock Index. If the economy is up by these measures, fundraising tends to rise. If it’s down, fundraising revenue slips.  

In short, Mal begins by saying that yes, the recession will have an impact on fundraising; that inflation may be the greatest cause for worry; and that yes, we have hard work ahead of us. He zeros-in on particular areas where fundraising might be difficult; and, without having read much further, I am confident that he will begin to offer a strategic and encouraging plan for those willing to follow his advice. The guy has been one of the profession’s gurus for over 30 years, so I am sure he knows what he is talking about.

I recently read in the New York Times that economist James Andreoni believes that the internal motives for giving are more important than some of us might assume.  Andreoni called his idea  the “warm glow” theory. The warm-glow theory implies that people don’t give merely to save trees, whales, or children; rather they give in order to have the glow that is often associated with such giving. Another economist, Jonathan Gruber, wanted to understand the relationship between religious giving and church attendance. Gruber’s study found that when tax advantages made charitable giving more appealing, churchgoers gave more money yet attended fewer services. Gruber called his paper “Pay or Pray.”

I suppose Warwick, my professors, and the economists who study philanthropy, have all come to appreciate how people interact with and exchange money. I am especially intrigued by the generosity of others – not only  in the interest of the organization I represent, but in the interest of the giver. I want to understand why they give, for what purpose, and to what ends. I encourgae givers to strive to make their giving an expression of faith, a part of the worship experience, and a way to demonstrate gratitude for all that they have been blessed with. I suppose some might give less because times are tough. But they might choose  to continue giving in order to feel warm and fuzzy; and ,certainly, a few of them may give just so they don’t feel guilty for having skipped church last week.

Readers interested in reading the forementioned New York Times article may do so here. 

Readers interested in joining the conversation may do so here.

Readers interested in purchasing Mal Warwick’s book may do so here.