A new study, “Pathways for Change: Philanthropy Among African American, Asian American, and Latino Donors in the New York Metropolitan Region” revealed that ethic donors give more than the overall population. 

The study, conducted by the Coalition for New Philanthropy over a three year period (2000-2003), interviewed 150 donors of colour in New York City.  The focus of the study was to understand what motivates African-American, Asian-American and Latino donors and what they hope to achieve with their giving. 

These donors reported annual giving totalling more than $3,000,000 with median household giving of $5,000.  Although they give to community organizations and churches, they are especially interested in educational programs and institutions.  In addition, they are active volunteers and serve as leaders through fundraising and serving on Boards.   

One of the major findings was a generational difference in giving between those born before and after the enactment of the Civil Rights legislation and immigration reform in the mid-1960s.  Donors born before the reforms tend to give to their own ethnic communities, while younger donors give more broadly. 

An Underdeveloped Market

One finding of particular note for planned giving fundraisers is that these donors want to know more about philanthropic vehicles.  There is a large, untapped need for philanthropic advisement. 

Minority Giving Continued  

According to the study, African Americans, Latinos and Asian Americans tend not to ask for advice regarding philanthropic activities.  However, donors said that they would like to know more about giving.  In particular:

• Information about organization mission and focus
• Reports on organization integrity and achievements
• How and how much to give related to what can be accomplished
• Methods and vehicles for giving
• Financial planning advice

Cultivating New Donors 

The study identified two ways of cultivating new donors: 

1. Service Users as “Alumni” Donors.  Many of those interviewed had past involvement with a particular organization when they themselves or a close friend or relative had relied upon the organization during a crisis.  Build future donors by letting users know how the organization supports the community and how those services are financed.

2. Volunteer Programs and Internships.  The study participants stated that they started out volunteering their time and over the years this grew into financial support for the cause.  Volunteer programs and internships are a way to attract young up-and-coming donors who have the potential to remain loyal and long time supporters of the organization.

Interested in reading the study?  An executive summary and the full report, “Pathways for Change:  Philanthropy Among African American, Asian American and Latino Donors in the New York Metropolitan Region,” can be found at www.nyrag.org.