LATINO PHILANTHROPY IN THE UNITED STATES

By Juan Calixto, CFRE
Mujeres Latinas en Acción

Research firms specializing in the Latino market have been busy since the 2000 United States Census data revealed the Latino population has reached 37.4 million people representing 13.3% of the U.S. population making them the largest minority group in the country. News headlines such as “Gatorade Specially Formulated for Latinos,” on DiversityInc.com demonstrate corporate America’s desire to reach Latino consumers. Currently, Latino purchasing power reached nearly $600 billion in the second quarter of 2003 according to HispanTelligence, a research division of Hispanic Business Inc. It is projected to increase annually faster than all other ethnic groups according to the Association of Hispanic Advertising. This knowledge serves as a wake up call to nonprofits that have yet to consider Latinos as potential donors. Fundraisers can tap this potential resource by following basic prospect research techniques. Know your audience. Get them involved. And, follow through with good stewardship.

Knowing Your Audience

Good prospect research calls for learning about the prospect - where they work, their affiliations, personal history, and financial position. Merrill Lynch’s New York-based Global Private Client Group reports the number of Latino household earning more than $100,000 a year swelled 126%, compared with 77% of the general population between 1991 and 2000. During the research process, nonprofits should also learn how Latino prospects liked to be called and what makes them unique. One of the first questions asked when researching a Latino prospects has been – is the prospect Latino or Hispanic? Hispanic and Latino are terms used interchangeable by the federal government to describe persons living in the United States who themselves or their ancestors were born in a Spanish speaking country. In the Midwest, the term Latino is widely accepted.

In trying to understand why Latinos are unique, nonprofits often mistake Latino stereotypes for facts. This is never a good idea. Latinos in the U.S. come from more than 20 different countries and the diversity among them includes their historical influence that led them to the United States, length of stay in the U.S. and preferred language. While the 2000 census shows 67% of all Latinos in the U.S. are Mexican, some Mexican families can trace their length of stay in the U.S. back 500 years. Puerto Ricans whom are U.S. citizens by birth do not have the same historical perspective as Cuban Americans whom most have been considered political refugees since 1960.

Spanish is the first language for the vast majority of Latino households in the U.S. Second and third generation Latinos accumulating wealth are fully bilingual or English dominant. The Latino middle class increased a whopping 80% over the past 20 years according to a report by the Thomas Rivera Policy Institute. The same study found that their discretionary income almost doubled to $72 billion between 1990-2000. To learn more about your Latino prospects join them: attend their events, visit with them, read their publications and invite them to your events.

Get Them Involved

Matching a Latino prospect to the right project becomes an easier job once you know the audience. Latinos, like most Americans, are interested in making new contacts that will advance their personal and professional goals. Getting involved with your institution may help to achieve that objective. Thoughtful consideration should be given in selecting the right solicitor to offer the Latino prospect the opportunity to join a board, sponsor an event, or join a new campaign committee. This job should not be assigned to the person that can speak Spanish fluently. The right solicitor should be a respected peer to the prospect that believes in your cause and has been well prepared to make the ask. If that person is also fluent in Spanish, then that becomes a bonus.

Showing a link to the Latino community is not always mandatory in recruiting Latinos, but it provides more incentive for a prospect with an interest in Latino affairs. Part of preparing for the solicitation call requires knowing the amount of Latino involvement within your institution. Nonprofits should be prepared to answer the following questions. What percentage of Latinos accesses the institution annually? How many Latinos participate in leadership positions? What percentage of Latino vendors does the institution do business with? Why does the institution have an interest in increasing Latino involvement at this time? Honest answers to these questions quickly help shape a positive image of your institution.

Practice Good Stewardship

Providing timely recognition to Latinos that have become involved with your institution is a small part of exercising good stewardship. Strategically planning to increase Latino participation and demonstrating achievement is key to transforming Latino volunteers into long-term donors. Establishing an advisory board of young Latino professionals, conducting an event during Hispanic Heritage month, ensuring marketing materials include Latino images, contracting a Latin band for a special event or offering Latino art at the next auction are examples of visible steps that demonstrate commitment towards the Latino community.

Conclusion

Latinos have proven to be brand loyal in the commercial market and establishing loyalty to your cause requires knowing your audience, getting them involved and practicing good stewardship. The U.S. census identifies Latinos as a young population indicating the majority has not reached their primary giving years. This is a powerful incentive for nonprofits to strategically target Latinos as donors and volunteers. With this young population there is a learning curve on how to be philanthropic. Include education in your planning efforts and plan for long term investment & cultivation. As long as Latino are valued, treated with respect and can articulate how they are contributing to your cause; they will become a loyal resource helping nonprofits improve the condition of human kind throughout the United States.