by Ted Grossnickle

A few weeks ago we shared a link to a survey conducted by the Nonprofit Research Collaborative.  This survey and the resulting report are produced as a cooperative effort of the Association of Fundraising Professionals, Blackbaud, the Center on Philanthropy at Indiana University, the Giving USA Foundation, Guidestar, and the National Center for Charitable Statistics.

I wanted to share with you the some interesting findings from the resulting “Late Fall 2011 Nonprofit Fundraising Study,” published this month. 

Slow Recovery, Leaves Some Behind

In general the survey appears to suggest that charitable giving is in the midst of a slow recovery, but that the rising tide may not be lifting all ships equally.  A plurality (41 percent) of organizations reported seeing increases in their charitable revenue through the first three quarters of 2011.  In contrast,  28 percent saw their revenues decline and 31 percent reported that charitable revenues had stayed flat compared to 2010.

New Donors are a Bright Spot

Another series of findings of particular interest related to the number of organizations reporting increasing success in acquiring new donors.  Half of organizations reported that they had more success attracting new individual donors in 2011 compared to 2010.

More See Increases in Gift Size, Than Decreases

In addition, many organizations reported increases in the size of average gifts.  Though 46 percent of organizations reported that the average size of gifts from new and renewing donors stayed flat, more organizations reported seeing increases in the average size of gifts. 

More organizations reported increases in gift size from new donors (30 percent) and renewing donors (29 percent), than those reporting decreases in gift size.  Only 24 percent saw decline in average renewal gifts, and only 25 percent reported decreased average gifts from new donors.

Though we are clearly not out of the woods, and continued global economic instability may jeopardize the gains made both economically and in terms of charitable giving in the last two years, we continue to see indications that donors may be starting to reengage and once again expand the circle of causes which they support.   

It is our job as fundraisers and consultants continue to create opportunities that draw donors back into the fold and maintain the connections with existing donors that have weathered the financial storm.

by Melanie Norton

This is the time of year when we stop – if even for a moment – and reflect on those things for which we are most thankful.  At JGA, that reflection leads to our clients and the dozens of charitable organizations we partner with each year.  For those charitable partners, thoughts of thankfulness likely lead to donors and those who selflessly give of their time and talent to help advance the mission.

A recent online article in the Chronicle of Philanthropy gives us yet another reason to be thankful.   In a poll conducted by the American Red Cross, nearly seven out of 10 Americans believe it is important to make giving to charity a holiday priority.  And, 72 percent of those who plan to give also plan to make a contribution that equals or exceeds their gift from last year.

At a time when the economy can still be categorized as challenging, this is encouraging news for charities.  In fact, the same poll indicates that givers plan to cut other expenses before scaling back on their charitable contributions.

Other key findings of the survey are as follows:

• 79% would rather have a charitable donation in their honor than a gift they won’t use
• Four in five Americans agree that helping someone less fortunate is an important part of their holiday tradition
• 68% of Americans believe that it’s important to give to charity because of the economy
• 45% of Americans will cut back their expenditures on travel, and the same percentage on decorations, but only 26% plan to spend less on charitable donations

Amidst the flurry of year-end mailings and appeals, it is especially important for donors and volunteers to feel like their contributions are appreciated.  The good news above lets us know that charitable giving is still a strong priority for Americans and we need to let donors know we don’t take that goodwill for granted. 

Take some time this holiday season to make certain your stakeholders know how thankful you are for their support.  Send a card, write a note, or pick up the phone and share your appreciation.  Despite the fast-paced nature of our society, changes in the economy and also personal priorities, Americans enjoy the opportunity to give to causes they care about.  And we appreciate the opportunity to say “thank you” to those who make a difference.

 by Angela White

This week, more than 125 communities and over 50,000 people will be celebrating National Philanthropy Day (November 15^th).

These celebrations honor the donors who generously give billions of dollars and volunteer hours each year to feed the hungry, clothe the needy, save the environment, cure the sick, and fund systemic and long-lasting change.

You know these donors in your community, and I encourage you to send them a special thank you on National Philanthropy Day to acknowledge the difference they are making in countless lives each day. 

JGA is pleased to be celebrating National Philanthropy Day in two cities on the same day  — on November 17^th JGA will host a table to celebrate the honorees in Cincinnati, OH at a luncheon and in Indianapolis at a dinner that evening.

Check out the Indianapolis recipients and the Cincinnati recipients.

And, for all of us who try to emulate these philanthropy leaders, check out Change the World with a Giving – and Wise – Heart! and watch the video for tips on giving wisely, including:

• Plan your giving – create a giving plan that details how much you want to give, when you would like to give and what type of charities you want to support.
• Decide when you will give – some charities struggle in Spring and Summer when giving drops significantly.
• So many charities – educate yourself about the many charities looking for support
• Knowledge is power – thoroughly research those charities you identify
• Financial data is important, but doesn’t tell the whole story – review financial data, but don’t use it as the only metric to whether a charity fulfills its mission.
• Know your rights as a donor – review the Donor Bill of Rights and make sure you are treated fairly.
• Give from the heart – give to support those charities you truly believe in.

Happy National Philanthropy Day!

by Dan Schipp

Last week I attended the Ohio Association of Nonprofit Organizations (OANO) and the Ohio Attorney General’s Joint Nonprofit Conference. 

A focus of the conference was the release of OANO’s Nonprofit Sector Report.  The report, based on 2009 data, draws on information compiled by the Urban Institute’s National Center for Charitable Statistics and the Center for Civil Society Studies at John Hopkins University. 

 The purpose of the OANO report is to provide nonprofit leaders with a tool to use to heighten awareness of the economic impact of the nonprofit sector.

According to the OANO report, 14,787 reporting charitable nonprofits in Ohio had $68.3 billion in expenditures in 2009 and contributed more than 13.8% of Ohio’s Gross National Product.  A hefty 9.8% of the total Ohio workforce was employed by nonprofit organizations.  This made the nonprofit sector the fourth largest industry in the state, behind only manufacturing, retail trade, and local government.

OANO urged the boards and staffs of nonprofits to use the report data to educate policymakers and business leaders about the economic impact that the nonprofit sector has at local, state and national levels. 

In this time of increasing pressure on nonprofits to do more with less and amid a growing discussion of reducing tax advantages for those who contribute to nonprofits, it is important to call attention not only to the role of nonprofits in changing, enriching and saving lives through arts and culture, education, healthcare, and social services, but the significant contribution they make to our nation’s economy.

As one conference speaker noted, years ago our governmental leaders wisely acknowledged the importance of the nonprofit sector by establishing the tax deduction for charitable gifts.  Today some are calling for capping the charitable deduction.  The speaker warned that capping the tax deduction would lead to continued chopping away of the deduction and its eventual elimination.

The Joint Nonprofit Conference presentations on the OANO Nonprofit Sector Report reminded me of the “best practice” that some nonprofits have of regularly assessing their economic impact and sharing this information with their boards, civic leaders, and local business community. 

When was the last time your organization looked at the contribution it makes to the local and state economy?  When was the last time you had a discussion with your board about the economic significance of the nonprofit sector?

by Ted Grossnickle

The Center on Philanthropy atIndiana University released their analysis yesterday of the impact the Obama Administration’s proposed tax changes may have on nonprofits.

 In their view, impact of the proposed 7% reduction of the value of charitable deductions allowed for taxpayers with an AGI of more than $250,000 would be relatively small.  More concerning are the estimated impact of proposed higher tax rates for this income bracket.  Though they represent only 3% of all tax returns in 2008, these taxpayers claimed 43.5% of all itemized charitable giving deductions.

 “Our estimates indicate that if the Administration’s proposals had taken effect in 2009 and 2010, total itemized giving would have declined by 0.4 percent in the first year and by 1.3 percent in the second year,” said Patrick M. Rooney, executive director of the Center on Philanthropy. “This suggests a relatively small direct impact, but combined with the weak economic climate, funding reductions and increased demand for services already affecting some nonprofits and their constituents, these changes are likely to have an additional negative effect in the long term.”

As Rooney points out, with the many other stressors weighing on the nonprofit community currently, the impact could likely be magnified and comes at a time when few nonprofits are at the pinnacle of stability.  What nonprofits need and what donors need, is more stability in the overall economy.

Thank you to the Center on Philanthropy and our respected colleagues at Campbell & Company for supporting this research.

by Melanie Norton

I was fortunate to attend the National Conference on Philanthropic Planning last week inSan Antonio,Texas.  The Partnership for Philanthropic Planning (PPP), formed in 1988 as the National Committee on Planned Giving, hosts this annual conference for the variety of professionals whose work involves charitable gift planning. 

The annual conference is always an energizing opportunity to learn from and network with others who devote their time and energy to making charitable giving more meaningful.  I’m always impressed with the variety of gift planners, major gifts officers, financial planners, attorneys, accountants, consultants and other professionals who attend and make this such a rewarding experience.

There were many common themes among the participants this year, but there remains an overriding desire among professionals to provide solutions that are in the best interests of both the donor and charitable entity, to do so in the highest ethical manner, and to seek closer relationships among all of the parties in the charitable process.  

As uncertainty prospers, planning and staying ahead of the educational curve is becoming increasingly important.  But, in this era of tighter budgets and fewer staff, breaking away to indulge in professional development is difficult at best.  Staying on top of the latest information takes real dedication. 

The PPP website offers helpful tips for those who might need extra support convincing his or her boss that a conference or other educational opportunity is a good investment.  Consider sharing the following benefits:

• The opportunity to learn about new approaches or tactics developing in response to donor demographics, economic conditions and legislative/regulatory developments
• Contact with the nation’s leading experts in the field
• The ability to converse with quality service providers and vendors, as well as solicit feedback on their services from other attendees
• The occasion to dialog with fellow professionals – sometimes before and after the event – who do similar work
• Access to materials, both online and in person, for future reference and sharing with internal staff

Perhaps one or more of the above arguments will help you make the case for your next development opportunity.  Take the time to refresh, learn from the best minds in the business, and form meaningful relationships with your professional colleagues.  These investments of time and resources will serve both you and your constituents well in the future.

by Dan Schipp

When you work in development there are always a few gifts that stand out in your memory.  Often they are the large gifts that involved years of cultivation. 

Not in this case. 

One of the most memorable gifts that Saint Meinrad Archabbey received during my tenure as vice president for development came from a junior high school student. 

The gift of cash — $45 – was accompanied by a handwritten note from John, the young donor.  He explained that he had decided to contribute a tithe of his annual allowance to our $40 million campaign. 

John said his parents encouraged him and his siblings to give a portion of their allowance to charities of their choice.  Thanks to his parents, John was learning to be a philanthropist.

I was reminded of this experience earlier this summer when I read an article in the Wall Street Journal entitled “How to Raise a Philanthropist” (June 20, 2011). 

In the article, Veronica Dagher notes that the great generational transfer of wealth has more and more affluent families taking an active approach to teaching their heirs about philanthropy. 

In addition to leading by example and demonstrating an attitude of gratitude, here are some other practices that she says parents are using to encourage their children to become volunteers and philanthropists:

• Talking with their children about giving and volunteering
• Matching gifts to their children’s charities
• Volunteering with their children (at an animal shelter or soup kitchen, for example)
• Conducting family meetings, often facilitated by an advisor, on individual and collective philanthropic goals
• Asking children to research causes and to “pitch” them at meetings of the family’s foundation board.

Research is showing that the younger generations are philanthropically inclined.  JGA’s and Achieve’s 2011 Millennial Donors research revealed that 93% of the nearly 3000 millennials (ages 20 – 35) who participated in the survey made a gift in 2010.  Nearly eight out of ten volunteered. A nudge from a family member prompted 42% of the millennials to give.

It is encouraging to see that we as a society are becoming more intentional about teaching philanthropy and volunteerism to younger generations.  Families and churches still lead the way in teaching and encouraging giving, but there are more formal efforts underway. 

One remarkable example is the Learning to Give organization, which is working with generationOn to provide high quality K-12 lessons, units, and materials on philanthropy to schools throughout the world. 

With efforts like this, more and more organizations will be counting young philanthropists like John among their donors.

by Angela E. White, CFRE

I often speak passionately about the importance of broadening our philanthropic initiatives to include women philanthropists. I recently recorded a short video interview on the subject and would like to share with you what I think are some very important insights into Women’s Philanthropy.

Over the years, my colleagues and I at JGA have developed significant expertise in Women’s Philanthropy issues through our work with the Women’s Philanthropy Institute at the Center on Philanthropy at Indiana University, my work with Women’s Fund of Central Indiana and previously as the VP of Institutional Advancement for Saint Mary of the Woods College, in addition to our extensive work with clients at JGA for the last 15 years.

We know through our experience that the ability of women to contribute and make a lasting impact in philanthropic campaigns is often over looked and under-utilized. 

After examining the results of the Women Give 2010 report, it is evident that in truth, women are driving many of the philanthropic decisions in this country.

I’d like to share with you 10 helpful insights gleaned from this report and my own experience in Women’s Philanthropy that can help engage women in your cause:

1.  Women are responsible for 84% of household’s consumer purchasing decisions – they are not a niche market, but are the market.

2.  Forty-three percent of the nation’s top wealth holders are women.

3.  Women’s median income has increased more than 60% over the past 30 years.

4.  Married men and women are more likely to make larger gifts than single men.

5.  Single women are more likely to give than single men.

6.  When it comes to approaching a couple about making a donation, make sure that the woman in the couple is also engaged in the process and their input is equally valued.

7.  Never overlook or underestimate the philanthropic potential of female CEOs and small business owner’s.

8.  Remember, women’s philanthropic involvement does not mean to exclude men, but rather include women.

9.  Women are drawn to causes where they feel a personal connection or in support of those causes that their family or friends are involved. Find ways to enhance the social aspects of giving with women and involve their social networks.

10. Women want to establish a relationship with organizations they give to, it means more to them than just a business transaction.  Make sure you take the time to foster that donor relationship.

Too often women are an untapped resource in philanthropy.  It is time nonprofits accept that they simply cannot afford to ignore this influential audience. I hope you will use these tips to better engage women to help you advance your mission.

By Kris Kindelsperger

August marks the practical beginning of the fundraising year for education institutions and others that are on a fiscal year beginning in June or July.

So what does the coming year look like from a fundraising perspective?

We don’t hear many development staff believing that 2011-2012 is going to be dramatically better. A slower than expected economic recovery, continued high unemployment, and the remaining uncertainty around a whole range of fiscal policy issues don’t do much to suggest that this will be a banner year in fundraising, at least based on donor confidence.

In our observation many annual fund programs have been holding their own and, in some cases, growing modestly.

Donors are not abandoning the organizations that they have funded over time.

Attracting new donors is a challenge, and our research on millennial donors suggests ever more sophisticated strategies will be required to secure them as donors.

Designated giving continues to be popular. Giving online, and the use of social media are all growing though not at the rate some had projected just a few years ago. Most institutions find they need to “do it all” – mail, phonathon, social media, online giving, and personal visitation to get the job done.

Major gifts are a bit trickier. Donor confidence continues to wax and wane, and a gift officers continue to hear some variance of:  “I’m not sure this is the best time; I’m waiting to see if my business recovers; I’m waiting to see what the market will do, My broker is cautioning me to go slow.”

I’m not sure you would define this phenomenon as exactly “stalling techniques” but the decision making that goes into making major gifts -particularly lead and large major gifts – is definitely impacting the timelines of campaigns and other time-sensitive fundraising projects.

Capital fundraising, especially for new buildings, seems to have lost much of its luster with more and more individuals and foundations focusing on programs and endowment.

Planned gifts are an increasing part of the mix of larger commitments.  Extended payment schedules (up to 10 years or more) as well as structured gifts that don’t mature until the donor’s death are frequently negotiated to reach high 6 figure and 7 figure gifts.

These realities do not seem to be dampening the expectations of nonprofit leaders or boards.  The pressure to raise more and more remains strong. 

Our advice is to take a deep breath, plan well, be assertive, try new techniques, and continue to build personal relationships with your organization. 

People and organizations are still giving and still giving generously.  But staff and volunteers alike need to be prepared that minus a “lightening strike,” geometric growth in fundraising results may not be in the cards for 2011-12.