Giving (sic) in America

We Americans think we are a pretty generous nation. But what we do compared to what we could do is pathetic. Our giving is sick.

I don’t mean to ignore the good things we do around the world as a nation, as individuals and through nonprofit organizations. Helping Japan and Europe to rebuild after World War II was a good thing. The work Greg Mortenson is doing to build schools in Pakistan and Afghanistan is a good thing. Organizations like Heifer International and Habitat for Humanity are doing good things.

These good things are supported by our charitable contributions. If you measure generosity by total dollars given voluntarily, we may be the most generous people on earth. We gave away $260 billion in 2005. We weren’t coerced or strong-armed into giving. It wasn’t taken out of our paychecks like income taxes. Someone asked us to give to a worthwhile cause, and we said “yes.”

Unfortunately, less than one-third of the money Americans gave to nonprofits in 2005 went to help the economically disadvantaged, according to a new study commissioned by Google.org, the philanthropic arm of Google. The study was referenced in the April 4, 2007 Wall Street Journal in an editorial by Sheryl Sandberg, vice president of global online sales & operations at Google Inc. and a board member of Google.org.

“The analysis, carried out by the Center on Philanthropy at Indiana University, concluded that only 8% of donations provide food, shelter or other basic necessities,” Ms. Sandberg wrote. “At most, an additional 23% is directed to the poor -- either providing other direct benefits (such as medical treatment and scholarships) or through initiatives creating opportunity and empowerment (such as literacy and job training programs). It's just not true, in other words, that the major beneficiaries of charity and philanthropy are the disadvantaged.”

Where does the money go? Religious giving dominates, and nearly 20% of every dollar given to religious organizations funds programs for the economically disadvantaged. Education and health care take the next biggest chunks of the philanthropic pie; nearly 9% of education contributions fund scholarships and 10% of healthcare contributions fund programs targeted to the needy. Still, given the percentage of income that we spend on SUVs (and the fuel that powers them), big screen TVs, dining out and other luxuries, we could be doing more. Given that so much of our consumption is financed through credit cards and other forms of consumer debt, we could be doing a hell of a lot more.

In his book, The End Of Poverty, Jeffrey Sachs writes that "on average just $150 billion a year would be enough to get the world on track to ending extreme poverty throughout the world."

As of February 2007, total consumer debt in America has surpassed $2.41 TRILLION. In 2001, Americans paid over $50 billion just in finance charges!

If all we did was live within our means, practicing delayed gratification instead of spanking the credit card every time the urge arises, we could cover 1/3 of the cost of ending worldwide extreme poverty. If we gave up the luxury car and eating lunch out every day, we could foot the whole bill.

It’s not just our giving that is sick. Our whole attitude toward money and material goods is sick. No wonder Americans are hated by so many.

Copyright © 2007 Richard M. Potter. All Rights Reserved.