San Diego Way
Reprinted with permission from the front page of the “Insight” Section, The San Diego Union-Tribune, Sunday, January 4, 2004.

"The wildfire disaster illuminated the strength and vitality of local philanthropy – but didn't create it. Such generosity was built on a history of caring for, and by, the people of San Diego County."

By Colette Carson Royston and Bob Kelly

The October wildfires revealed a fundamental aspect of San Diego that makes it such a desirable place to live – beyond its climate, natural beauty and distinctive blend of cultures. This defining element is philanthropy – San Diego's tradition of using charitable giving to improve the quality of life for all its residents. Charitable giving is a powerful force here – it's what we call the San Diego Way for everyday citizens to invest personally and liberally in their own communities.

The wildfire disaster illuminated the strength and vitality of local philanthropy – but didn't create it. Such generosity was built on a history of caring for, and by, the people of San Diego County.

As a broad-based community foundation, The San Diego Foundation monitors the health of the charitable sector from a key vantage point. Our job is to help people build charitable assets to benefit San Diego, as we say, "For Good. For Ever." Consequently, we see the power of charitable giving every day.
Charitable giving is on the rise in San Diego County. Thousands of people of different means work quietly, often anonymously, to improve the quality of life for everyone in San Diego, even for people and generations they will never meet.

Along with the desire to do good comes the desire to make it count. Donors today are result-oriented and want charitable institutions to use their contributions effectively. Many donors are fully invested in the causes they help and give not only their time, but also their money, expertise and influence. The challenge for San Diego is how to nurture and harness this vital civic energy.

In the last two years, The San Diego Foundation commissioned three studies of the county's charitable sector. These included a survey of some 300 nonprofits, one-on-one interviews with individuals, and a series of focus groups on the nature of charitable giving in our region.

The surveys showed that San Diego nonprofits accomplish a great deal with few resources. Nearly two-thirds of the survey respondents have institutional budgets of less than $100,000. Seventy-five percent have fewer than 25 employees. Though attention has focused on the mismanagement of one or two nonprofits, the majority has efficient operations that successfully meet a double bottom line: financial performance and mission achievement. These groups attract and retain the support of well-respected and responsible community volunteers with strong leadership and governance skills. We should all appreciate and applaud the nonprofit community for what they do for all of us.

The studies also found that San Diego donors and volunteers don't see themselves as "philanthropists" – a term out of step with today's philanthropic reality. Today's charitable givers, as they want to be known, are personally involved in the work their charities are doing and they want to see results. A charitable contribution today can mean a gift of time, money, leadership, influence, advice or organizational skills. The focus groups showed that the act of charitable giving is a carefully considered family decision based on research and emotional connection. In San Diego, the giver comes with the gift. It's the San Diego Way.

San Diegans give time. More people in the United States volunteered their time to organizations last year, according to a government study. More than 63.8 million Americans (28.8 percent of the civilian population over age 16) volunteered time to nonprofit organizations in the past year. That's up from 59.8 million (27.4 percent) from the previous year.

San Diegans give money. The last few years were challenging for nonprofits with donations up but government assistance down. The American Association of Fundraising Council reports that "charity held its own in tough times" as charitable giving in the United States reached an historic $241 billion in 2002, just one percent above 2001 figures.

However, annual donations made by San Diego residents exceeded the national average. In 2002, San Diegans gave an average of $1,900 a year, which is greater than Los Angeles County at $1,400 and the national average of $1,600.

In 2002, over 73 percent of San Diego households gave financially to charitable causes despite the weak economy. Some 74 percent of the men and 71 percent of the women donated to nonprofit organizations. Over 90 percent of San Diegans earning more than $60,000 contributed to charity. More than 76 percent of people earning between $20,000 and $60,000 gave, while 48 percent of San Diego residents earning under $20,000 helped charities.

Most financial support of charities came from individuals (76.3 percent.) Other funding came from foundations (11.2 percent), bequests (7.5 percent) and corporations (5.1 percent.)

San Diegans give of their talents. New modes of charitable giving require increased personal involvement. For example, San Diego Social Venture Partners (SDSVP) uses a venture capital model, called "venture philanthropy," as a new paradigm for giving. SDSVP members contribute a set amount of money to a grant pool, and then mentor selected nonprofits, much as venture capitalists partner with the high-tech industry. The SDSVP, founded in 2001, currently has 87 dedicated members.

San Diegans care about the future. The endowment funds residing at The San Diego Foundation now top $200 million – or fully half of the total charitable assets held by The Foundation. Endowments benefit San Diego today, yet their true impact will be felt far in the future as they grow and yield grant funding for the needs of coming generations.

Last year, a record number of 118 new funds was established at The San Diego Foundation. Thanks to our donors' generosity, we passed two milestones at the end of our fiscal year: granting $43 million back into the community, as well as distributing a cumulative $251 million in grants to area nonprofits since our founding in 1975.

In this coming year, we encourage people to do three things: continue San Diego's tradition of charitable giving, increase support of local nonprofits, and build a civil society.

The first goal is to grow the special brand of philanthropy long practiced in San Diego County. The ideals of a democratic society offer citizens the opportunity to become active participants in the work of improving the quality of life in all communities. The power of charitable giving is so strong that the American government encourages people to give by offering financial incentives through tax deductions. The United States is one of few countries where the government encourages the protection and growth of the nation's local communities by sheltering charitable giving from taxation.

Second, San Diegans should support and strengthen the nonprofit organizations that are helping its communities, even in challenging circumstances.

According to the IRS, there are more than 9,300 nonprofit organizations serving San Diego residents. This vibrant network cares for community values from health and human concerns, Little League teams and environmental causes to economic development, PTAs and arts programs.

The nonprofit sector must remain strong so that all residents get the aid they need to become fully participating members of San Diegan society. In doing so, nonprofits aid both the individual and the community at large.

The final objective is to use charitable giving as the basis for building a civil society. According to Brian O'Connell, author of "Civil Society, the Underpinnings of American Democracy," "civil society" is a term that describes the point at which "various elements of society (community, volunteerism, government and business) come together to protect and nurture the individual and where the individual operates to provide those same protections and liberating opportunities for others."

Civil society is about building a community that cares. For example, senior citizens might vote for school bond issues even though they do not have children at home to directly benefit. Citizens who evidence such care beyond self-interest give a civil society its strength.

The San Diego Way: From the creation of Balboa Park to the construction of new libraries – visionaries built legacies to enrich all generations of San Diegans. We hope that in 2004 the San Diego community will continue to be courageous, generous and farsighted in order to build its own rich legacies.

In the New Year, we thank those who have given so much to San Diego. We ask all residents to follow The San Diego Way and explore new opportunities to participate in our communities. A high quality of life for all future residents is determined by ordinary people doing extraordinary things for our community – here, now and forever.

Copyright 2004 Union-Tribune Publishing Co.
Image above courtesy of Jennifer Hewitson, illustrator.