Oil Spill Fallout is Constricting a 2010 Charitable Giving Resurgence

July 12, 2010 - PRLog -- Nonprofits in the U.S. received charitable contributions of $159.64 billion between January and May 2010, an increase of 8.3 percent over the same period in 2009.  The current PhilanthroDEX forecast for 2010 charitable giving is $315.92 billion – a 4.0% increase over 2009.

The gulf states are beginning to feel the economic effects of the spill ,” said Rob Mitchell, CEO of Philanthromax, the company which owns PhilanthroDEX, and the former President of the American Cancer Society Foundation.

“Charities need to be aggressive in pursuing claims against BP for lost income, and the quantification of the spill’s impact on giving is the critical first step in that process,” said Stephen Nill, Founder and CEO of CharityChannel.com.

According to PhilanthroDEX, an online charitable giving index and forecasting service, the loss of charitable gifts will be $200 to $300 million in 2010 and as much as $600 million in 2011. However, the total effect on giving will depend on the number of states directly impacted by the oil spill and its subsequent ripple effect on the U.S. economy.
Several nonprofits, including at least one New Orleans area church, have already filed claims in response to the release of data by PhilanthroDEX.  Gulf coast charities and churches are already experiencing the constricting effect of the spill on donations, but the larger impact on these and national nonprofits is just beginning.

Organizations filing claims related to the spill will need to quantify lost income as part of the claims process. PhilanthroDEX expects to assist charities in measuring and documenting their lost revenue claims.  Prior to the development of PhilanthroDEX, a timely analysis of the spill’s impact would have been impossible.

“What PhilanthroDEX has accomplished in terms of providing charitable giving data to charities in real time represents a major innovation,” said Nill. “PhilanthroDEX is a game-changer for nonprofits, not just in dealing with events like the oil spill, but in terms of day to day management of operations related to gift income.”

PhilanthroDEX was created by a team of 25 PhD mathematicians, analysts, and statisticians who evaluated more than 50 possible variables to create the PhilanthroDEX charitable giving measurement algorithm. The PhilanthroDEX measurement formula correlates to 41 years of publish giving history by 99.5 percent.

“For the first time, the nonprofit sector has access to real-time accurate historical and forecast information on giving in the United States,” Mitchell said. “This will be vital information for any organization that relies on charitable giving for a significant portion of its income.”

A recorded interview with Mitchell about the charitable giving impact of the oil spill is currently available at Charitychannel.com.  The interviewer is Stephen Nill, CharityChannel Founder and CEO. Permission is granted to the media to quote from the recorded interview, with suitable attribution.

CharityChannel was founded in 1992 as a place where nonprofit professionals can learn from each other, share information and work together to advance the cause of philanthropy. It is the online professional home of more than 30,000 subscribed members, and serves more than 140,000 nonprofit professionals through its CharityUniversity online education system, its just-launched book publishing arm, its electronic publications, and its annual conference.  For more information, visit www.CharityChannel.com.

PhilanthroDEX (pat. pending) is a membership-based product combining an accurate charitable giving forecast with a report of monthly, quarterly, and annual aggregate charitable giving. Each month it provides real-time reports that take the guesswork out of budgeting and monitoring performance. PhilanthroDEX provides current data and forecasts that are vital to the effective and efficient operation of any organization that relies on charitable giving for its success. For more information, visit www.philanthroDEX.com.

Philanthromax LLC designs and provides innovative technology and business solutions that maximize the revenue, reputation, and effectiveness of America’s nonprofits. Philanthromax delivers one-of-a-kind solutions that provide organizations with effective, accountable and successful fundraising and giving outcomes. For more information, visit www.philanthromax.com.

BP Claims Information: http://www.deepwaterhorizonresponse.com/go/doc/2931/588263/

Contacts

CharityChannel
Stephen Nill, J.D., GPC, 949-589-5938
Stephen_nill@CharityChannel.com

Philanthromax
Hank Zachry, 877-414-0078
hank@philanthromax.com
Or
Media inquiries:
PE Maynard & Associates
Paul Maynard, 817-891-1167
paul@paulemaynard.com

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About Philanthromax: Our mission is to improve the revenue, reputation, and effectiveness of Americas charities and churches.