by Kris Kindelsperger

In the past few weeks several clients have asked us if we think the November election will significantly impact charitable giving, especially among high net worth individuals. The answer is “yes, and no.”

Clearly there are individuals who are anxious about the outcome of the fall election.  Some see the election as bringing hoped-for clarity regarding the budget, the deficit, tax policy, regulation, the deductibility of charitable gifts, and many other matters.

A healthy political discourse is always good for democracy.  But, we wonder on the day after November 6, if any of these complicated issues will be “solved.”

Barring a major landslide victory by either party (not something predicted in the most recent polling), the more likely scenario is that the long sought “clarity” may be allusive.

In the short term, donors of all types are likely better served by paying attention to their personal financial circumstances, their relationships with specific charitable organizations, and their own heart and mind to guide their philanthropic decisions. 

So, yes we may know more about the political direction of the country after November 6, but no the election is unlikely to bring true “clarity” to many of our most pressing challenges as a country.

by Andy Canada

I had the honor last week of attending my second AHP Midwest Regional Conference. The conference held this year in Cincinnati, Ohio, brought together 120 healthcare development professionals from across the Midwest. 

JGA was the overall conference sponsor and it was great to support this opportunity for professionals to gather, interact, and share ideas. We believe strongly that conferences like AHP are a vital part of our profession. It allows you to take a step back from your daily responsibilities and reflect on what has worked and what hasn’t, hear from your peers about their experiences and learn new ideas.

Angela joined recent JGA client Chris Molloy of the Bloomington Hospital Foundation as they shared lessons learned during a successful campaign to raise funds for Hospice House. Their presentation, Running a Successful Campaign in a Time of Economic Uncertainty, shared best practices from setting the stage to choosing the right volunteer and campaign partners that can help make a campaign a success even in the most trying circumstances.

The conference also offered the opportunity to recognize a truly memorable gift from the past year. Sidney and Lois Eskenazi were the recipients of the AHP Midwest Distinguished Philanthropist Award. The award presentation offered the opportunity to reflect back on their spectacular gift and it was great to be there and see the staff of the Eskenazi Health Foundation receive recognition for the wonderful work they do.

The Eskenazi’s had a dream to give back to the community they love and make an impact and the Wishard Hospital project allowed them to fulfill that dream. New programs can’t be launched, new buildings can’t be built if we all don’t dream big and work together to make the dreams become a reality.  

It was a great lesson for everyone in the room and carried on the theme of the conference introduced in Kay Sprinkle Grace’s keynote address. Her comments and thought provoking discussion set the tone for an outstanding conference.

She asked everyone in the room to dream big with their organization and their donors and find connections to make the dreams come true. Kay got us to stop thinking about just “getting back to zero” when looking at the budget and the role of philanthropy and start dreaming about how to truly have an impact.

Budgets are tighter and there are countless things on all of our to-do lists but I would encourage all of you to find a conference or continuing education opportunity that interests you and make the time to go. We can all learn something new from our friends and colleagues in the development profession and these opportunities present a wealth of knowledge and the opportunity to openly discuss new ideas.

 by Angela White

Amid a slowdown in charitable pledges to hospitals, a study just released by the Association for Healthcare Philanthropy (AHP), indicates health care organizations have increased their reliance on cash-based fundraising, emphasizing annual gifts and special events, such as community runs/walk, golf outings, luncheons/dinners, etc.

However, with an ever-increasing emphasis on cash gifts, I believe that we run the risk of sacrificing our broader donor relationships that culminate in ultimate major and planned gifts.

• Are we focusing on cash gifts to fund immediate needs at the expense of listening to our donors and their desires for longer term philanthropic goals?
• Are we undervaluing planned giving as a charitable gift vehicle?
• Are we sending a signal to our donors that we are more concerned with meeting our annual goals than we are in helping them achieve their philanthropic giving plans?

Of course, all institutions need cash gifts for annual support, yet how we couple immediate gifts with a holistic approach to the donor relationship and giving is critical to the role of philanthropy at each of our institutions. 

The study showed a definite downward trend in securing multi-year pledges in the 2010 fiscal year for major and planned gifts. 

Susan Doliner, FAHP, CFRE, chair, AHP Board of Directors. points to one probable cause for the drop in pledges the report noted. “Philanthropic contributions can make an extraordinary difference in the health of our communities, yet the ongoing debate around health care costs, delivery systems and access combined with economic conditions nationwide have slowed decision-making for major donors considering gifts to health care related organizations,” said Doliner,

Another item of note from the report: “in almost all instances, organizations that devoted more staff and resources to philanthropy did significantly better when compared to benchmarks than did those with less to spend on charity programs and fewer professional fundraisers.”

Learn more about the AHP Performance Benchmarking Service, now in its seventh year,  and the FY2010 Performance Benchmarking Service survey.

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 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 Angela White

A colleague recently shared with me a blog post on the Harvard Business Review of an article by Paul Leinwand and Cesare Mainardi entitled The Cure for the Not-for-Profit Crisis.

This is a must read for any of us working with and for not-for-profits in today’s economic times.  Although the issues raised in the article stand the test of time, they are even more important today.

The authors define the crisis before attempting to cure it.  The crisis is not a lack of funding, shrinking donor rolls, or dipping endowments but rather a crisis of coherence.

This is defined as a lack of strategy to connect mission with the ability to deliver/achieve the mission. 

Incoherent organizations lack:  

• distinctiveness,
• reliability in service delivery, and
• focused and cohesive activities that relate to the strategic direction.  

As JGA works with our clients in strategic planning, we focus on these concepts and assist our clients in maintaining their coherence in good and bad economic times. 

Incoherent organizations focus on short-term demands (often proposed by well-meaning donors) and follow growth opportunities that are not linked to strategy and mission. 

Where are you on the coherence/incoherence continuum?

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 Kris Kindelsperger

Unemployment is hovering at more than 9%. Significant layoffs have been seen in recent years in the nonprofit sector.  Many organizations are fighting for their financial lives.  So, how is it possible that some organizations claim that they cannot find qualified candidates for development positions?

The overall turbulence in the economy is causing many good candidates to hold tight and not make any moves at all.  Professional search firms will tell you that two-career couples are reluctant to move for fear that a spouse will be unable to find a job in today’s market.  Candidates who own homes may be underwater in their mortgage or concerned that they will be unable to sell their existing home.  The recession has put downward pressure on salaries making some moves less financially attractive.

As we have worked to help clients fill open development positions, we have seen several visible trends at work in the advancement job market:

A bird in the hand – Many of the best qualified professionals are not “in the market” for positions.  They have a good situation and are sticking with it.

Home Sweet Home – Some qualified candidates are not willing to relocate, especially to smaller communities, even for a significant career advancement.

Great Expectations – The expectations of some presidents/CEOs/boards for quick fundraising results are scaring away the best candidates.

What can you do about this?

• Many organizations are working harder to home-grow their staff.  Forward looking managers are doing more hiring and promoting from within to build future leadership.
• Good major gift officers are hard to find, so some organizations are more willing to experiment with individuals with sales and marketing backgrounds, as long as they embrace the mission of the organization.
• Lots of organizations are finding that their candidate pools are shallow so they have to exercise patience and be prepared to look longer and harder to find the right person.

One benefit of the recession is that new candidates are looking at the nonprofit industry who may not have in the past.  They look to the nonprofit world today as a safe haven from the perils of the economic storm ravishing many for-profit companies.  If they really care and believe in what you do, they may be the right person for the job at the right time.

Whatever your situation, remember three things:

1. Don’t settle for second best hoping that the person will somehow work out, they seldom do.
   
2. Do hire for the personality and work ethic characteristics necessary to do the job.  The resume can’t tell you this part of the human equation.
   
3. Do pay attention to your instincts about fit and dedication to your culture and mission. 

by Kris Kindelsperger

In our discussions with donors and clients in recent months, we’ve observed that some donors are, for lack of a better word – paralyzed – by uncertainty. 

Some are looking for more reliability in the markets, some are looking to the November elections for guidance on economic policy, others are looking at January 1, 2011, wondering what the tax structure will be like. 

Adding to this anxious mix is a flood of conflicting advice obtained through personal research or from those that may be advising them about what might happen in the months to come.

The instinctive reaction for some is to preserve personal resources and avoid – or postpone -philanthropy.  For gift officers this often comes with the message “now is not a good time to make a major gift.”

While those who represent our nonprofit organizations are not financial advisors or financial planners, thoughtful discussion with donors can open opportunities to devise strategies that meet donors’ needs and allay concerns.

Philanthropy is frequently a “win-win” financial situation for both the non-profit and the donor if both can have a frank and open discussion about the outcomes. A carefully planned gift can benefit a donor who is worried about their taxes.  Non profits also offer a number of very attractive income producing financial instruments in today’s market.

So, in these uncertain times, now is a perfect time to move beyond the confines of simple gift discussions and to have conversations with donors about how philanthropy might bring a level of certainty to an uncertain world.  Non profits are in a unique position to have these discussions.

Are there ways that your organization is productively engaging donors in an uncertain world?