Germany and Altruism

Do YOU donate to causes or charitable organizations? How much did you donate last year? How often do you open your wallet to help a person, cause or an organization?

Your answer to those questions depends at least in part on your nationality. International comparisons of charitable giving show a wide disparity among the 126 nations surveyed. But the generosity of donors does not always reflect a country’s GDP or wealth level.

Among the top 10 nations listed in the CAF World Giving Index for the decade prior to 2018, Myanmar, Sri Lanka and Indonesia are all classified by the UN as lower-middle-income countries.

The CAF World Giving Index, published by the Charities Aid Foundation, is available as a PDF file. PHOTO: cafonline.org

Missing entirely from the Top 10 are all three of the major German-speaking countries: Austria, Germany, and Switzerland. However, those three are in the Top 20. Switzerland comes in at 13th place, Austria 15th, and Germany 18th. They rank a little differently using other metrics, but one thing is clear: The German-speaking countries don’t have the same kind of “charity culture” found in the Anglophone nations, or in some Asian nations.

“Germans are not accustomed to donating to anything.”
— John Kornblum, former U.S. ambassador and co-founder of Friends of NPR Berlin

To be fair, Mr. Kornblum was talking about Germans donating to support a public radio station in Berlin (KCRW 104.1 FM, formerly NPR Berlin), something that Germans are accustomed to paying for involuntarily through a tax known euphemistically as the “broadcast contribution” (Rundfunkbeitrag). They are not used to being asked to support public services that they already pay for via taxes.

An Austrian friend who has lived in the United States for more than 40 years refuses to contribute any money to the local PBS television or NPR radio stations that he often watches or listens to – despite their frequent fundraising efforts. The donation attitude from his Austrian homeland seems to remain dominant, leaving him guilt-free while he enjoys programming that is currently funded to the extent of less than 15 percent by federal money paid to the Corporation for Public Broadcasting, which funds PBS stations. (If the Republicans and Trump get their way, that amount could drop to zero.) Most of the funding for the 350 local PBS stations, up to 60 percent, comes from private membership donations and grants. Corporate contributions, with ads before and after programs, make up the difference.

In Europe, public TV and radio broadcasting is funded by the taxpayers. In Germany the Beitragsservice claims its “fees” are not a tax, but for all practical purposes it is a tax. There is nothing voluntary about it. It no longer even matters if you have a radio, TV set, or a computer. Every household in Germany has to pay what amounts to a monthly fee of €17.50 (just under $20), paid quarterly, semi-annually or annually (€210.00, about $234 USD). It’s the same fee for a single person apartment or a home with four or five family members. Austria’s GIS fee is slightly higher than Germany’s, but Switzerland’s broadcast fee is the most expensive, costing 365 Swiss francs (CHF, about $371) per year, which works out to a bit over a dollar a day. The high Swiss fee has been justified by the fact that Switzerland has four languages, which increases the financial need, especially for the two minority languages (Italian and Romansch).

Charitable Contributions by Germans

But what about other charitable giving? How generous are the Germans when it comes to disaster relief, charitable organizations, GoFundMe, or Berlin-based betterplace.org? How do the Germans compare internationally?

The German media likes to promote the idea that Germans are particularly generous, and most Germans would say they rank high in charitable giving, but they actually have a medium rank when compared to some of their European neighbors. Ireland (5), the United Kingdom (7), and the Netherlands (8) are in the CAF Top 10. As we stated above, Germany came in 18th for charitable giving over a ten-year period ending in 2018.

GDP Percentage Rankings
What about other ways of measuring a country’s generosity? In rankings of charitable giving as a percentage of GDP donated to nonprofit organizations by individuals (in 2016), Germany ranks a respectable 13th (0.17%), but still below 4th place UK (0.54%), and 9th/10th place Italy and the Netherlands (both 0.30%). Wealthy Switzerland barely squeaked into the top 20 with a meagre 0.09% of GDP.

Which nations are found in the top three, ranked by percentage of GDP? The USA is by far Nummer eins with 1.44 percent of GDP, far ahead of second place New Zealand (0.79%). Third place Canada is close behind with 0.77%. In almost any way you rank charitable giving by individuals, the United States of America is the leader by a mile. (While still in first place, US giving peaked in 2014 and has been dropping a bit ever since.) The reasons for the US lead are debatable. Is it because Americans are just generous by nature, or does it reflect the fact that there is generally a much lower level of government funding for the social safety net? Or both? That is a question that will have to wait a while for a good answer.

Germany’s Social Safety Net

But Germany’s own social safety net isn’t without a few holes. If you think Germany has no income-inequality problems, no homeless people (Obdachlose), no food banks (Tafeln), and no poverty (Armut), you just haven’t been paying attention. There are over 600,000 charities and nonprofits (gemeinnützige Vereine) in Germany today. The are a little over 940 food banks all across Germany, whose volunteer workers serve an estimated 1.5 million people at least once a week. (A relatively new German development, with the first one established in Berlin in 1993, the food bank concept originated in the US in 1963.)

The current logo of the nonprofit Tafel Deutschland e.V., the umbrella organization for food banks in Germany. PHOTO: Wikimedia Commons

Although German food banks are largely supported by grocery store and supermarket chains, they also ask for monetary donations from individuals. Tafel Deutschland displays the DZI Spenden Siegel, the donation seal of approval from the Deutsches Zentralinstitut für soziale Fragen (DZI). About 230 charities have earned the right to display the DZI seal that verifies that the charity meets the high fundraising standards. DZI also does research on charitable giving in Germany.

DZI director Burkhard Wilke confirms that Germans can be particularly generous donors right after floods, earthquakes or other disasters: “With such natural disasters, when the media is reporting that there are so many victims, the willingness to donate is usually very high.” But, according to Wilke, “The majority of donations come from unspectacular sponsoring partnerships with smaller organizations,” including regular donations to smaller organizations, churches, and charities. Germans donated some 4.2 billion euros as cash, goods, and time in 2012, according to the German Donations Council and market researcher GfK.

As in many countries, German tax law allows taxpayers to deduct up to 20 percent (the so-called Spendenabzug) of their annual income for verified charitable contributions. If donations exceed 20 percent, that amount can be carried over to the following year. Meanwhile, recent tax policy in the US has gone in the opposite direction, making it more difficult for average earners to deduct charitable contributions.

Charitable Christmas Giving
Germans, like other nationalities, tend to be even more generous during the Christmas season. The Sternsinger custom, found in both Austria and Germany, is an annual fundraising event that supports various Roman Catholic Church projects, ranging from renovating churches to helping refugees. It runs roughly during the 12 days of Christmas (Dreikönigszeit), ending on Epiphany, January 6. Austria’s 64th “Sternsingeraktion” raised 17.5 million euros in 2018. (Austria is about 57% Catholic.) In much larger Germany (30% Catholic), the Sternsinger brought in 76.6 million euros to support over 1,800 projects in 111 countries. The German Sternsinger website also displays the DZI seal because it conforms to good fundraising practices.

“Charity Culture” Around the Globe

Countries around the world have varying degrees of what has been termed “charity culture.” The US scores highly in that regard, but even there the level of altruism varies by state and region within the USA.

Per Capita Giving Rankings
In 2004 and 2005, following the tsunami disaster in the Indian Ocean, Germans took pride in the fact that they collected some 670 million euros for that cause. But countries such as Norway, Switzerland, and the Netherlands actually donated two or three times as much per capita.

A few Germany facts on the GoFundMe website. IMAGE: GoFundMe

Another way to measure the level of giving is to count the number of donations per capita rather than the amount. GoFundMe, which is also present in Germany and 18 other nations, used that criterion for comparing the donations given in each of the countries where it offers its services. (Note: Berlin-based betterplace.org claims to be “Germany’s largest donation platform.”) The following statement comes from the GoFundMe website:

From Berlin to Beaverton millions of people across the globe have used our platform to do good – and our donors are at the heart of it all. While many of them reside in different cities, countries, or continents, their generosity knows no borders. Our donors make up a worldwide network of community activists – people who give whatever they can to help others in need. Together, they have the power to effect real change in the world and build a brighter future for generations to come.

GoFundMe – Top 10 Most Generous Countries
(Number of donations per capita, 2019)

1. Ireland
2. United States
3. Australia
4. Canada
5. United Kingdom
6. Switzerland
7. Luxembourg
8. Netherlands
9. Denmark
10. Norway

GoFundMe – Most Generous Cities in Germany
(Number of donations per capita, pop. >50,000)

1. Berlin
2. Münster
3. Mainz

Source: gofundme.com

More Donation Factors

Age is another factor in who is most likely to be a charitable donor. Seniors, retirees, and those over 60 tend to be the most generous donors in Germany and elsewhere. Another universal is the fact that the winter holiday season is when donors contribute the most for humanitarian causes. Many charities earn up to 60 percent of their total revenue during the 45-day Christmas season.

In Germany potential donors are increasingly concerned about where their money actually goes. They want to have as little as possible go to overhead costs, and as much as possible go towards actually helping people. In addition to DZI mentioned above, donors can also consult the Deutscher Spenderat about dependable, thrifty charities in Germany. Most people already know not to just donate to any cause without verifying the authenticity of an organization or cause. It’s better to go with established, reputable platforms – and to do a little homework before digging into your pockets.

So, as we end our look at German altruism, here’s one last thought in German: Geben ist seliger denn Nehmen. (“It is more blessed to give than receive.”) Please consider making a donation to a charity or cause that matters to you. Just writing this blog post has left me with warm, generous feelings. I hope you feel the same way after reading this.

– HF