As governments around the world pull back, the philanthropic sector will be a critical force in meeting global needs. In what is called the “Giving Pledge”, 81 billionaires have committed to give more than half of their wealth to charitable organizations. This level of philanthropy, over $37 billion by Warren Buffett alone, is historically unprecedented.
Warren Buffett most lasting contribution will not be his money; rather that he has successfully leveraged his social network and the media to inspire other billionaires to give extraordinary wealth for charitable good. He is reshaping the way the rich think about money and giving.
And in the same way Warren Buffett has used media to get other billionaires to pledge their fortune to charity, people all over the world have used social media to raise money and inspire their network to join them in giving.
Indeed, according to Blackbaud, people are 200 times more likely to donate to a cause if their friends ask them to support a charity, in comparison to receiving an e-mail solicitation from the organization. This is part of a distinct cultural shift – you no longer have to be a professional to be a fundraiser.
With the rise in connected giving will come the use of social data for fundraising. Seventy percent of Millennials ages 20-35 report they prefer to give online, making online giving as the #1 preferred method of giving.
The IDC, a technology research firm, estimates that the total amount of data doubles every two years. Social media data is a major part of this growth. Marketers are interested in the “social network value” of a customer– how one person’s purchase influences others to buy a product. Similarly, nonprofits are becoming aware how a donation can have a ripple effect in the donor’s network.
–Matt Bishop, founder and CEO of iGiveMore