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The Vineyard's Philanthropy Gap

Vineyard Philanthropy: The Ten Year Trend

Summer fundraising events are a fun and important part of island life. The generosity of our seasonal residents is the lifeblood of island non-profits. So before we begin bidding at auctions and running road races again this summer, we should to step back and look at the big picture. Using IRS data from the National Center For Charitable Statistics it becomes clear that our non-profits have a larger need that can’t be met by events alone.

2006 A Record Year

In 2006 a record $28.5 million was contributed to the 91 Dukes County public charities that were large enough to report to the IRS, a 98% increase compared to 1996. Untold millions more were contributed to our smaller non-profits and to all through volunteer and in-kind gifts. Despite the 2006 record, philanthropy on the Vineyard has not kept pace with the mainland and in real dollars, contributions to the average Vineyard non-profit decreased 20% between 1996 and 2006.

The Philanthropy Gap

Our non-profits are suffering from a growing “Philanthropy Gap.” Giving has not kept up with inflation or with the growth in organizations while population and the demand for services have increased; services and programs suffered or are lost. Non-profits need more philanthropy to cover this gap. The pressure is real. Ask any island non-profit; the AIDS Alliance went out of business, Island Food Pantry, VNA and Featherstone all had several years of deficits and Community Services closed its Visiting Nurse Services, a major program for island residents.

There is a delay in obtaining non-profit data but the trend is clear. From 1996 to 2006 for all 501(c)(3) public charities in Dukes County filing with the IRS (which means they have more than $25,000 in total revenue) contributions grew 98% and significantly lagged behind Massachusetts, with a 148% increase, and that other island, Nantucket, which grew 251% (see graph below).

This lag was compounded by    another factor. Following a national trend, the number of island non-profits increased during this period as new ones were created to address important needs and make up for cuts in government funding. Vineyard House, Vineyard Healthcare Access Program, Habitat for Humanity, Island Affordable Housing Fund, Island Housing Trust, The FARM Institute, Polly Hill Arboretum and the Vineyard Energy Project for example were all founded during this period.

In fact the number of public charities in Dukes County reporting to the IRS during this period grew 78%, more than twice the statewide increase of 38% and slightly less than Nantucket’s 85%. This means the Vineyard today has a lot more non-profits competing for a limited supply of funds, volunteers, Board members and managers.

Due to the relatively low growth in contributions and the high growth in the number of organizations, contributions to the average public charity only grew 11% during this period compared to an 80% statewide increase and 90% growth in Nantucket. After adjusting with the national Consumer Price Index, which woefully understates the cost of living on the Vineyard (see box on page 3), the average island charity saw a 21% real dollar decrease in contributions compared to a 48% increase statewide and a 58% increase on Nantucket .

This decrease in contributions comes at a time when many Vineyard non-profits are seeing an increase in the demand for services. Dukes County grew 20% over this period; the second fastest growing county in the state. The Vineyard’s new residents skew toward the old/retired who use more per capita health and human services.

These figures exclude the growth of a large undocumented population which further increases the demand for services. Clearly, if philanthropy isn’t increased significantly the island will lose much of its charm for visitors and homeowners alike.

Why Do We Lag?

It’s not clear why we lag. Some have argued that since Vineyard philanthropy comes primarily from seasonal residents it’s understandable that contributions here lag behind the mainland; people tend to give more to the community they live in or to the schools they attended than to the community where their second or third home is located. We are very different islands, but the figures on the chart for Nantucket don’t bear this theory out. This doesn’t mean life is rosy for Nantucket non-profits (they have their own problems because real estate, construction and other living costs are much higher there) but is there something we can learn from our Nantucket non-profit peers?

As A Community, What Do We Do?

As for the “Philanthropy Gap,” Vineyard non-profits need to learn to do more with the limited resources they have. They must realize that the old laid-back Vineyard way of doing things won’t work in this new competitive environment. There are many organizations with overlapping missions. Perhaps there would be operational savings through mergers, joint ventures and strategic relationships. They could evaluate and improve the effectiveness of their programs and cut those that don’t make sense economically. They need to  move beyond events as their primary source of fundraising and develop grant writing, annual campaign and planned giving capabilities.

For donors, the “Philanthropy Gap” raises a different question; how important is the Vineyard to you and your family and are you giving accordingly?

If you love the island, invest in her future. Have you included the Vineyard in your annual giving and planned giving/estate plans?

So let’s grab our running shoes and auction paddles and enjoy the summer fundraising event circuit but realize that events aren’t enough and  we need to increase our philanthropy to the island if we want to preserve its character and the things we love about it.