Making a Small City Smaller: Giving in A Small City
How Erie's unique giving culture sustains a robust nonprofit sector
Erie has a unique giving culture. Despite having a median household income lower than the national average, Erie has maintained a much higher density of nonprofit organizations relative to our population. A report from the Chronicle of Philanthropy shared in the Erie Times-News attributed this sustained support to a grassroots system of backing for the area's many nonprofits that often transcends income level, with the lowest-earning demographic households giving more than 7 percent of their income to charity against a national average across all income levels at around 3 percent. Part of this can be explained by the fact that nonprofit organizations have cropped up to fill gaps in services due to a shrinking tax base. As industry left Erie, the population dwindled – nonprofits were created by necessity to supplement the things our municipality could no longer provide. Perhaps, as the public received services from these charities and saw the impact of their work in the community, they saw it necessary to sustain them with yearly donations. Giving at an income level below $30,000 a year is almost never done for a tax benefit, as someone making that little could never give the amount that would exceed the standard deduction. Instead, giving by lower income tax brackets should be seen as an indicator of the trust, dependence, and faith in the charitable ecosystem here in Erie.
I think at least part of our healthy giving culture in Erie is also due to some careful cultivation and facilitation. The Erie Community Foundation (ECF) and partner organization the Nonprofit Partnership have been guiding the community through the giving process for decades, creating a framework for participation that is easy to navigate in the form of Erie Gives. The ECF also continues to innovate with the establishment of their collective giving groups, also known as Affinity Funds. The Erie Women's Fund, the LGBT Fund, and the Emerging Erie Fund of the ECF offer a chance for interested philanthropists to pay nominal yearly membership dues and vote on a grant to a local nonprofit who will receive the group's pooled contributions, significantly increasing the impact of each individual donation. I have the pleasure of serving on the advisory board of the Emerging Erie Fund, a collection of young "emerging" professionals who award a $100,000 grant yearly to a deserving nonprofit with yearly dues of only $100. These funds take the process of giving major awards, traditionally seen as very opaque processes with decisions made by an exclusive group of old white men in smoke-filled rooms, into a vibrant and participatory discussion by those whose children will grow up in this community and be affected by the health of our services sector. It may be one of the closest things we have to true, direct democracy regarding the distribution of some of the wealth and resources in our community, and ECF works every year to make participation in these affinity funds more accessible.
We have established that it's relatively easy to give in Erie compared to other similarly sized communities, but that is not the whole picture. ECF may lead our proverbial horse to the water, but why that horse continues to drink is influenced by other factors, I believe. I think being a small city works to our advantage when it comes to ensuring the effectiveness of these organizations. It is very easy to directly encounter the impact an organization has in a smaller community and to know that the money we are giving is truly making a difference. We understand the scope of the work done by our charities because there are fewer barriers between the results of that work and our everyday lives. This could go both ways: the trust built between the community and the nonprofits in Erie can swiftly be broken if a nonprofit is mishandling money or engaging in corruption or embezzlement. While it doesn't happen often, it becomes widespread news very quickly when an organization is not being responsible or accountable to its funders, and the consequences of the court of public opinion are quick and harsh. This high standard of ethics and demand for transparency benefits both donors and the populations served by nonprofits.
We also have a few very high-profile philanthropists that set a community-wide example for how to give generously. Our local billionaire Tom Hagen has made an entire brand out of giving to causes that preserve and restore Erie's historic building stock. We may take it for granted, but other cities with a billionaire (or multiple) are not always so lucky as to have the bulk of that individual's charitable giving remain in the city limits. Tom Hagen and Erie Insurance see a benefit in investing within the city where their headquarters still resides. When many Fortune 500 companies opted for tax breaks, cheap land, and outsourced labor, they have remained within the city limits and continue to be an active participant (and driver) in our giving ecosystem and community development. Their actions send a message to the rest of their wealthy peers that Erie is worth it. That is a powerful message to convey to a community that can, at times, feel defeated by our limited resources compared to larger cities in the region like Pittsburgh, Buffalo, and Cleveland. While a system this large is bound to be imperfect, we can zoom out and see the larger picture: that the giving culture we've fostered and sustained in Erie is comparatively equitable, accessible, and impactful. And that notion, that what we have all built here is still worth our collective time, effort, money, and trust to maintain it, is what keeps the spirit of generosity alive and thriving in Erie.
Dave Tamulonis is an educator and musician living in Erie. He is the director of grants at the City of Erie and lives in the West Bayfront with his wife Marissa, dog Esthera Minerva, and cat Cherry Blossom.
