The Choice of Giving

I was reminded this weekend about one of the greatest attributes of Americans. Americans give more to charities, causes, aid and relief, and non-profits than any other nation in the world. The statistics on this fact are mind boggling, and moreover this high level of giving has been going on for over 60 years. But what makes Americans stand out when it comes to their generosity?

This weekend I was back in Pittsburgh for a number of events that included the wedding of two close friends and the 10^th Anniversary of the non-profit organization I am on the Board of, The Coro Center for Civic Leadership. I also attended a dinner hosted by the McGuire Memorial, a non-profit organization in the Pittsburgh area that I was not familiar with but is well known for its annual golf outing hosted by ex-NFL star Tony Dorsett, quite an event in the Pittsburgh social calendar for the past 15 years. Both the Coro event and the McGuire Memorial dinner really highlighted America’s obsession with helping others who are in need. You can find more information about Coro and the McGuire Memorial Foundation at these links www.coro.org and www.mcguirememorial.org.

What is interesting about America’s culture of generosity is that it is primarily driven by its people not its government. This is a stark difference to the majority of other nations in the world who tend to ‘budget’ for aid and assistance through government organizations. In fact, until ex-President George W. Bush’s second term in office, the US government had one of the lowest rates of aid and assistance records in history. U2 lead singer Bono spearheaded the effort to convince President Bush to change this track record and much to his credit he did. The US government is now one of the largest donors of aid and assistance to the world since 2005 thanks to the work of Bush and Bono. However, no other nation in history has given so much to charities, non-profits and the like than the American people. Why is that?

My firm belief is that it comes down to the freedom to choose to give, supported by a culture of creating wealth and abundance. American people are free to choose to give to any cause they wish, and it is this freedom that drives up the scale of giving. Americans have enjoyed relatively low taxes for the past 25 years, and this policy of low taxes and creation of wealth has left many Americans in a position to give. And give they do. Here are some key stats from the National Philanthropic Trust to ponder:

·      - 89 percent of households give

·      - The average annual contribution for contributors is $1,620.

·      - According to Giving USA, American giving reach a record high in 2007, with donations totaling $314-billion.  Giving has since dropped by 2% to $308 billion in 2008.

       - Charitable giving accounted for 2.2% of gross domestic product.

·      - Historically, charitable giving rises about one-third as fast as the stock market.

·      - 86 percent of wealthy donors said they are most motivated to give by the notion of "meeting critical needs" and 83 percent said "giving back to society" is motivational.

It is this freedom to choose to give that is the key driver behind American generosity. This is very different to many other nations and cultures where giving is a social obligation taught at very young ages, no different than paying taxes or bills. Americans give because they want to, not because they have to, and it is this important nuance that is behind this massive scale of giving.

Sister Mary Thaddeus Markelewicz is the Executive Director of the McGuire Memorial in Western Pennsylvania, and runs a 500-person organization just like a CEO runs a company. Her track record over 21 years of transforming a small non-profit into the magical place that McGuire Memorial is today is frankly remarkable. Sister Thaddeus, as she likes to be referred to, told us a story at Sunday night’s dinner that I think captures the spirit of America’s giving culture. The story goes something like this: one day a man meets God and asks what is the difference between Heaven and Hell, Lord? The Lord shows the man to two doors. He opens the first and motions the man inside. The man sees a room with a big round table. The table has a big pot of delicious smelling stew in the middle. There are a dozen people sitting around the table and they are physically disabled, having short arms and looking very very gaunt and unhealthy. They have long wooden spoons and try to feed themselves the delicious stew but their arms are too short for the long spoons and hence why they look so gaunt and in poor health. The man is very distressed by what he has seen, and the Lord says this is Hell. The man then steps into the second room and the setting is much the same, a big round table, a big bowl of delicious smelling stew and a dozen physically disabled people sitting around the table. But this time the people look very healthy and happy, smiling and laughing with each other unlike the other room. They have the same long wooden spoons and short arms, but it is a very different picture from the previous room. The man steps out and the Lord says this is Heaven. The man says ‘I don’t get it’. The Lord responds that in the first room the people are so preoccupied with feeding themselves that most of the food is wasted because of their short arms and long spoons, resulting in the ‘hell’ we see. But in the other room, the people have focused on feeding each other, using the long spoons to help and care for each other, hence well fed and healthy, resulting in ‘heaven’.

I think the story speaks for itself. Choosing to give is a powerful thing. And giving is not just about your wallet, it can be your time and your intellectual property. Many non-profit organizations need the help experienced people can bring to help them achieve their goals. A few years ago I decided I wanted to give back and chose to focus on three areas – Leadership, Education and Foreign Affairs. They are personal areas of interest. Serving on the Board of Coro fills my Leadership box, I am still looking for the right opportunities to give back in Education and Foreign Affairs. If you have any ideas please give me a call or drop me an e-mail. The goal is to make a difference and with Coro I know we are making a difference. Coro Alumni have gone on to do great things, and there are many examples of these given over 1000 young leaders graduate from the various Coro programs in across the US each year. But the key to me is that I chose to help Coro and that has made all the difference.