Confidence in Charities Rebounds September 20, 2006
Funding Tips & Trends
Americans have more confidence in charities, but the nonprofit community has not recovered the public standing it enjoyed prior to 9/11, the Chronicle of Philanthropy reported Sept. 14.
The prestige of charitable groups took a major hit in the wake of scandals involving Sept. 11 related organizations, slicing public confidence in nonprofits from 90 percent prior to the terrorist attacks to 60 percent in September 2002. The latest survey, conducted in July 2006, found that the public-confidence level has risen to 69 percent, up from 64 percent in 2005.
Still, 71 percent of survey respondents felt that charities waste a moderate to high amount of the money they receive, up from 66 percent in 2005 and 60 percent in October 2003. And 44 percent believe the leaders of nonprofit groups get paid too much money.
"There's a reservoir of distrust in terms of charitable ability to spend money wisely, and I find that extremely troubling," said Paul C. Light, a founder of the New York University Organizational Performance Initiative, which sponsored the survey. "That acts as a brake on increased confidence and increased giving. If Americans believed that charities did a good job spending money wisely, I think they'd give more."
For a summary of the Confidence in Charitable Organizations 2006 report, see the NYU website.