Giving USA Comes Bearing Good News!

June 19, 2014

gusaI attended the St. Paul stop on Giving USA’s 2014 road show this morning. There, Adam Wilhelm of Campbell & Company updated us on 2013 national giving trends, which can be summarized as good news.

According to Wilhelm and Giving USA 2014, total charitable giving in the U.S. rose 3% (adjusted for inflation) between 2012 and 2013 to $335.17 billion. This is an increase of 12% since the start of the Great Recession, and Wilhelm predicts the U.S. will pass the pre-recession high of $350 billion in charitable giving in a year or two.

Wilhelm says, “Wealthy individuals are feeling good about their accumulated wealth, so it is a good time to talk to them about their giving.”

According to Giving USA, wealthy donors are giving to their favorite charities — including universities, hospitals and arts institutions — so overall giving in those areas is up. Meanwhile, giving to social service and church groups — more dependent on the financially squeezed middle-class — is flat.

In 2013:

  • Giving by individuals — the largest slice of the pie at 72% — totaled $240.60 billion, up 2.7% over 2012.
  • Giving by foundations — now 15% of total giving — was up 4.2% to $48.96 billion. This increase was driven in part by a 10.5% increase in giving by community foundations.
  • Giving by bequest through a will or estate plan — 8% of the total — was up 7.2% to $27.73 billion.
  • Only corporate giving — 5% of the total — was down 3.2% to $17.88 billion, the result of a slow rate of growth in pre-tax corporate profits last year. Corporate trends of increased in-kind and global giving continue.

What Organizations are Benefiting?

  1. Religion was the top recipient of gifts, but total giving to religion continues to slide. It went down slightly in 2013 to 31% of the total or $105.5 billion, which represents the lowest percent given to religion in 40 years.
  2. Overall giving to Education increased by 7.4% (2013’s largest increase) to $52.07 billion.
  3. Giving to Human Services was fairly flat, increasing by .7% to $41.51 billion.
  4. Giving to Health was up by 4.5% to $31.86 billion.
  5. Giving to Public Affairs/Society Benefit (which includes giving to donor-advised funds) was up 7% to $23.89 billion.
  6. Giving to Arts, Culture and Humanities was up by 6.3% to $16.66 billion.
  7. Giving to International Affairs fell to $14.93 billion (due to fewer disasters worldwide in 2013).
  8. Giving to Animal Welfare and Environment increased to $9.72 billion (due to larger investments in climate change and anti-fracking initiatives).

Takeaways from event panelists included the following: 

  • Individual giving is a growth market. Giving by other sectors is not growing as quickly.
  • More and more often, individual donors are researching charities and want to see the impact of their gifts.
  • If your organization is not doing planned giving, it should at least be doing bequests. “It’s easy!”

Visit Giving USA for much more information or to purchase Giving USA 2014.

For more information on Minnesota giving, visit mcf.org/research

- Susan Stehling, MCF communications associate

 



What Will It Take to Build a Beloved Community?

May 19, 2014

Screen Shot 2014-05-19 at 1.43.35 PMLast week a report on black male achievement commissioned by the Foundation Center and the Open Society Foundation was released: Building a Beloved Community: Strengthening the Field of Black Male Achievement.

The report builds on the 2012 study Where Do We Go From Here? Philanthropic Support for Black Men and Boysmaps current work in the area of black male achievement and makes recommendations on what it will take to strengthen the field moving forward.

Based on interviews with 50 leaders in the social, academic, government and business sectors, the report takes stock of major sectors engaged in the field and examines opportunities for other constituencies — especially the corporate and faith sectors — to become more involved.

A “Rethink Philanthropy” chapter calls for longer funding commitments, increased general operating support, permanent endowments and other ways of moving beyond traditional philanthropy.

Susan Taylor Batten, CEO of ABFE, characterizes such efforts as transformational philanthropy and says:

“Ultimately, we have to find ways to ‘hard wire’ a race and gender lens into all investments rather than setting up special projects that are time-limited. The latter is important, but one of our goals is to change the sector so investments in black male achievement are not dependent on a particular leader.”

It is a timely release in light of a growing number of national initiatives focused on improving the economic, social and physical well-being of black males, including My Brother’s Keeper and the Executives’ Alliance to Expand Opportunities for Boys and Men of Color.

Beloved Community

The concept of a “Beloved Community” was popularized by Dr. Martin Luther King, Jr., as a core part of his philosophy.

According to The King Center: Dr. King’s Beloved Community is a global vision, in which all people can share in the wealth of the earth. In the Beloved Community, poverty, hunger and homelessness will not be tolerated because international standards of human decency will not allow it. Racism and all forms of discrimination, bigotry and prejudice will be replaced by an all-inclusive spirit of sisterhood and brotherhood. In the Beloved Community, international disputes will be resolved by peaceful conflict-resolution and reconciliation of adversaries, instead of military power. Love and trust will triumph over fear and hatred. Peace with justice will prevail over war and military conflict.

Sounds like a world worth working for.

- Susan Stehling, MCF communications associate

 


Inequities – Experienced by Some – Threaten All

April 23, 2014

FRSeveral days ago I received an email from Marketplace with the subject line: Forget the 1%. The 0.01% owns 12% of all wealth in America. When I clicked through, things got worse: Around 50 percent of the US population has zero net wealth. Their debts, effectively, equal their assets.

Despite some familiarity with income inequality and persistent poverty in the U.S., the reality of so much being owned by so few and of so many owning nothing at all hit hard.

Even with the Great Recession behind us, numbers that reinforce the harsh realities of racial and economic disparity are released daily. “The Urgency of Now: Foundations’ Role in Ending Racial Inequity” in the latest issue of The Foundation Review presents many of the issues and the depth of the challenge we find ourselves in. It surveys philanthropy’s evolution in addressing poverty and traces a long history of the racialization of institutions and systems.

But the article, by Gary Cunningham, Northwest Area Foundation; Marcia Avner, University of Minnesota — Duluth; and Romilda Justilien, BCT Partners also explores multiple approaches that foundations can use to advance racial equity and prosperity. And it offers specific approaches used by the Northwest Area Foundation, an MCF member, that others working for equity could also employ.

MCF and many of its members work in multiple ways to advance equity. By equity, we mean the conditions that will exist when factors such as racial, ethnic, economic and geographic differences are no longer predictors of life outcomes. We believe it’s important because inequities experienced by some threaten the future prosperity of all.

- Susan Stehling, MCF communications associate


Getting Minority Businesses Into the Stadium Game

March 4, 2014

4464678203_396bf92f19_nToday we welcome Teresa Morrow, vice president of external relations and marketing at The Minneapolis Foundation, to share how the foundation’s Working Capital Loan Fund, a $1.5 million Program Related Investment (PRI), is helping minority businesses get into the game of building the new Vikings stadium.

In late 2012, a Minnesota legislative appropriation and the investment of the Vikings football organization launched plans for a billion dollar sports facility in Minneapolis. Many supporters of the new stadium project heavily promoted the economic activity that would result from the construction of this new facility.

Access to Working Capital is Large Barrier
However, without intentional efforts to level the playing field in terms of access to financing, the stadium will not be the inclusive project that the Legislature envisioned. The goal of The Minneapolis Foundation’s Working Capital Loan Fund is to eliminate the single largest barrier to the inclusion of Minority Business Enterprise (MBE) contractors in this project: access to working capital.

Due to shorter business histories, narrower asset bases and limited access to conventional financing, the only sources of working capital for MBEs are expensive ones. Providing working capital at a more reasonable cost to these MBEs leverages the stadium’s benefit to the entire community by developing long term quality employers, new skills, and capacity—not only for the MBE but also for its employees.

The Working Capital Loan Fund
The Working Capital Loan Fund is a $1 million, 3-year Program Related Investment of The Minneapolis Foundation. The investment is a loan to Meda (Metropolitan Economic Development Association), which is an experienced Community Development Financial Institution. The fund takes a ‘reuse and recycle approach’ with 75% of the fund deployed at any given time. These funds are expected to revolve four times annually, providing up to $12 million in short-term loans to participating MBEs.

Enthusiastic Donor Response!
Donors to The Minneapolis Foundation were invited to participate in this PRI by investing a limited share of capital from their Donor Advised Funds, resulting in a loan pool of $500,000. The Minneapolis Foundation matched the Donor Advised Fund investments to create the $1 million PRI. The Foundation (and the Donor Advised Funds) will earn a modest annual return, and at the end of three years the principal will be returned by Meda.

The response on the part of donors was enthusiastic, with full funding provided in just a matter of weeks. While the support of donors has been gratifying, the interest by potential borrowers is equally satisfying. Small business owners are now receiving tools that will truly help them ‘get in the game!’

Related: For more on the topic, see Mission Investing Gaining Minnesota Momentum, a post by Wendy Wehr, MCF’s vice president of communications and information services.

Photo cc MoDOT

This post was updated with additional information from The Minneapolis Foundation clarifying its PRI.



President Obama Announces “My Brother’s Keeper” and Philanthropy Investment

February 28, 2014

obama9Boys and young men of color too often face disproportionate challenges and obstacles to success in our society.

Today in the U.S., if you are African-American, there’s a 50-50 chance that you’ll grow up without a father at home, and you’re more likely to be poor, to not read well, to be expelled from school and eventually to end up incarcerated.

And, as President Obama stressed yesterday, “The worst part is we’ve become numb to these statistics. We pretend this is a normal part of American life instead of the outrage that it is. These statistics should break our hearts and compel us to act.”

Act is what the President did Thursday as he signed a Presidential Memorandum establishing the “My Brother’s Keeper” Task Force, an interagency initiative to determine what public and private efforts are working for young men and boys of color and how to expand upon them.

The President has built a broad coalition of backers to help break down barriers, clear pathways to opportunity and reverse troubling trends that show too many boys and young men of color slipping through the cracks.

For yesterday’s announcement, he was joined by philanthropic leaders — including MCF President Trista Harris and David Nicholson, executive director of the Headwaters Foundation for Justice — and representatives from communities, business, government and faith groups.

Foundations have already made extensive investments in support of boys and young men of color. Building on that, yesterday 10 foundations (including MCF members The John S. and James L. Knight Foundation and W.K. Kellogg Foundation) announced additional commitments of at least $200 million over the next five years to find and rapidly spread solutions that have the highest potential for positive impact in the lives of boys and young men of color.

Look for more next week on Trista Harris’ D.C. experience.

- Susan Stehling, MCF communications associate


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