Patrick Dwyer, Merrill Lynch, on Giving Wisely in Florida

Floridians are giving people, particularly to local causes and organizations that help other Florida residents. According to a recently released study on the philanthropic tendencies of Florida residents, nearly 70% of the Sunshine State’s households made charitable donations in 2021. More than half of those gifts were given to nonprofits in Florida. Among the many findings of this study, there are a few particularly important points. The kindness of Florida’s donors is pervasive; all age and demographic categories are active charitable givers. And, their investment in Florida-based NGOs speaks to a commitment to community and civic kinship.

There are several ways to explain this local affinity.

The power of proximity: donors are more willing to support causes close to their home because they believe their donation will be more impactful than funds given to distant causes. It is harder to ignore suffering occurring in your own community. Furthermore, the knowledge that your money is going to help other Floridians—even if you will never meet or know the recipients—is pride inducing.

The element of engagement: Giving to a charity based in your state, city, or community allows you to make all kinds of contributions. If you are the type of donor who likes to get personally involved in a cause, giving locally means you can visit the organization, tour their facilities, volunteer with their team, and contribute far more than just money. you can reach out and see the work they are doing.

The money means more: Local organizations tend to be smaller which means they are likely to have less administrative costs (i.e. overhead) when compared to large international organizations. Giving to a local grassroots effort, you can be sure your donation won’t be used to finance the hefty salary of a CEO or substantial operational costs of big buildings and offices.

The study on Florida’s philanthropy also indicated that nine out of 10 Floridian families made informal contributions like gifts to crowdsource campaigns, donations of tangible items (clothing, food, toys) to food pantries, shelters, and hospitals. Survey respondents also reported giving directly to family and friends who asked for personal contributions related to their own immediate needs.

But even as Floridians have demonstrated their proclivity for giving locally, it is still necessary to be aware of the risks related with nearby giving. A small NGO, one without a robust infrastructure and extensive history, might collapse. If an organization relies solely on local giving, it may not have the resources necessary to sustain itself. Similarly, while local outfits do have reduced overhead expenditures, they tend to struggle to secure the funding necessary to cover those costs. Local causes are less likely to access (or meet the criteria to apply for) large grants designed to balance the administrative budget lines.

As the nonprofit sector begins its recovery from the pandemic’s financial turmoil, Florida is poised to further strengthen its state and local nonprofit sector. What has been gleaned from the aforementioned research, and what fundraising professionals have been ascertaining for some time, gives critical benchmarks for the future of philanthropy in Florida. With all that is now known, it is possible to educate donors, empower NGO administration and leadership, and build engaged board membership to collectively reach new constituents and funders.