Is philanthropy via TXT a fad or a revolution?

January 19, 2010

I heard a “fad vs. revolution” question posed on the radio this morning on the way to work. It was in reference to another topic, but it struck me, because I’ve been thinking this past weekend about all the various ways individuals are donating to the relief efforts in Haiti – via text messaging being the vehicle most prominently publicized.

Two men pause to send text messages on their smartphones.

Fad or future? What's your take on using SMS or texting to make donations?

I’ve been keeping my eyes open for any organization that is asking people to send in checks, but those appeals are almost nonexistent as most organizations are directing donors to their websites. A few are promoting phone numbers that take credit card donations, but these also are rare.

Is appealing for financial support via text messaging a fad or a revolution? How many more people will donate who wouldn’t have given otherwise, because it’s just a quick few punches with the thumbs and $10 is on its way? Preliminary numbers certainly point to the success of this appeal. If people give $10 via texting, but they would like to give more, will they? How?

Charitable giving is a $5.5 billion endeavor in Minnesota, according to MCF’s Giving in Minnesota, 2009 Edition research. Of this, 76 percent or $4.19 billion came from individuals. Over the past decade, charitable giving in Minnesota increased 67 percent, and the number of grantmakers in the state rose by more than 65 percent. In just a year, from 2006 to 2007, foundations and corporate giving programs increased their giving by 10.1 percent to $1.32 billion.

Has innovation or evolution in philanthropy contributed to this increase? What factors – technology, outreach strategies, messaging, donor-advised initiatives to name just a few examples – are redefining how and what we give? Which individuals and organizations are leading the way? These topics and more will be the focus of our spring issue of Giving Forum.

In the meantime, join the conversation on texting to support relief efforts in Haiti by commenting on this entry. I’m interested to hear others’ perspectives.

- Chris Murakami Noonan, MCF communications associate

Image CC Kiwanja

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Posted by Chris Noonan

Media Roundup

January 8, 2010
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Ridin' the range and ropin' the headlines so you don't have to.

Your biweekly roundup of media coverage on the world of nonprofit and philanthropy (yee-ha).

National

Charitable Giving Down In 2009
(National Public Radio) The economy spent much of 2009 in a severe recession. That’s made life difficult for many charities, which saw demand for their services go up while donations fell off. A new national report by The Chronicle of Philanthropy shows a huge drop in the biggest gifts.

Does Service Learning Really Help?
(The New York Times) Is service learning a disservice? Nonprofits, students and colleges struggle to make the best of student volunteer work.

John S. and James L. Knight Foundation to Distribute $70 Million
(The Miami Herald) Over the next seven years, the John S. and James L. Knight Foundation plans to invest $70 million in community foundations serving more than two dozen cities and towns, including Miami, where the Knight brothers owned newspapers.

Local

2010: What’s Ahead for the Arts
(Northfield News) Staff writer David Henke gives an overview of what’s in the cards for Northfield nonprofit art organizations in 2010.

Foundations Expect Little Change In Grantmaking In 2010
(Star Tribune) Minnesota’s nonprofit agencies breathed a sigh of relief when a survey indicated that philanthropic foundations will not significantly cut their grantmaking to agencies in 2010. Overall grantmaking in Minnesota is expected to drop by about 1 percent in 2010, or about $13 million, according to a survey released by the Minnesota Council on Foundations.

Minnesotans Living on Food Stamps — and Nothing Else
(MinnPost) According to a recent report, Minnesota rates among the top five states for rates of individuals living off of food stamps. The rate has risen by an astounding 87 percent in the last two years.

Editorial: Nonprofits Are Hurting, Even Here
(Star Tribune) Minnesotans are understandably proud of the tremendous generosity that was seen on GiveMN’s “Give to the Max Day” in November. But was that outpouring enough to compensate for increased demands for nonprofit services?

Qwest Foundations Teams with Employees to Donate $10.5 Million
(The Daily Tell) Despite the tough times faced by many in 2009 due to the continued economic downturn, Qwest Communications, its employees and the Qwest Foundation increased their commitment to community service by collectively donating more than $10.5 million.

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Media Roundup

December 15, 2009
Photo by Dan..

Ridin' the range and ropin' the headlines so you don't have to.

Your biweekly roundup of media coverage on the world of nonprofit and philanthropy (yee-ha).

Bush Foundation Invests In Teacher Prep Programs
(Minnesota Public Radio) This month the Bush Foundation announced a bold, $40 million, 10-year initiative to improve teacher preparation in 14 colleges in Minnesota, North Dakota, and South Dakota.

Opinion: High Demand for Aid Exceeds Folks’ Supply of Empathy
(The Star Tribune) In this powerful and very personal article, columnist Jon Tevlin talks about his own experiences growing up in a family that relied on food stamps for a time to survive, and how he sees troubling stereotypes about the poor that he became familiar with then, playing out in the giving (or sometimes the lack there of) today.

Knight Foundation Grants $1 Million to United States Artists to Support Artists, Art Initiatives
(The Daily Tell) As a part of its ongoing commitment to support the arts, the Knight Foundation has announced a 5-year, $1 million commitment to the grantmaking and advocacy organization United States Artists.

The Minnesota Wild Launches Foundation
(Twin Cities Business Magazine) The Minnesota Wild has launched their own foundation which aims to support educational initiatives, children’s medical support and the advancement of youth hockey in the state of Minnesota.

Northwest Area Foundation Awards $500,000 to Native American Prosperity Building Efforts
(Press Release) The Northwest Area Foundation recently awarded three grants, totally $500,000 to Native American organizations. Intended to support the growth of financial and human assets, the awards are a part of the Foundation’s strategic plan to redress the inequalities and poverty that many Native communities and other minorities are confronted with.

United Way Launches WarmSafeFed.org for Families in Need
(MPP Southwest Journal) The Greater Twin Cities United Way has launched a new website and a new grant to help families in need. The website WarmSafeFed.org has detailed information about the struggle that many families are facing in current economy. The grant money is intended to support area shelters as they assist homeless families in their transition from shelter to stable housing.

Did we leave something out? Please email your Minnesota grantmaker and nonprofit news to Cary Lenore Walski, MCF web communications associate, at cwalski@mcf.org, or leave a comment to this entry below.

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Media Roundup

November 25, 2009
Photo by Dan..

Ridin' the range and ropin' the headlines so you don't have to.

Your biweekly roundup of media coverage on the world of nonprofit and philanthropy (yee-ha).

Local:

Business Forum: Give Thanks and Help
(The Star Tribune) As the holiday season roles in, let’s not forget those Minnesotans in need.

Minnesotans Gave So Much, Now Givemn.org Needs Help
(Kare 11) The success of GiveMN.org’s recent “Give to the Max” day was truly unprecedented. Over 3,500 nonprofits received $13 million in donations through the GiveMN site. The sheer scale of this outpouring of generosity has sent GiveMN funders and staff scrambling to cover all transaction fees.

Northwest Area Foundation Awards $2M in Grants
(Minneapolis St. Paul Business Journal) The Northwest Area Foundation has announced over $2 million in grants awarded to 14 different organizations. The focus of NWAF’s recent grants was on organizations helping reduce poverty and promote prosperity.

Partnerships Are Key in the Economic Recovery
(Albert Lea Tribune) Tim Penny, president and CEO of the Southern Minnesota Initiative Foundation, reflects on the importance of partnerships in fulfilling SMIF’s mission to invest in the region’s future growth.

National:

Opinion: Are Metrics Blinding Our Perception?
(The New York Times) Anand Giridharadas discusses Western society’s preoccupation with metrics to the exclusion of other methods of perceiving, and speculates about the costs of using only numerically quantifiable evidence to guide our decision making about everything from what music to buy, to what charities to give to.

Clicking for a Cause
(The New York Times) Using social media as a tool for increasing engagement and giving has been created a lot of excitement and skepticism in the nonprofit and grantmaking sector. This article has a nice overview of some of the successful efforts, as well as reflections from social media big wigs like Randi Zuckerberg.

Grappling with a Wealth of Guilt
(The Washington Post) Young heirs wrestle with the advantages and responsibilities of their inheritance, and the question of how to use their wealth for the greater good.

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In the Media

November 12, 2009
Photo by Dan..

Ridin' the range and ropin' the headlines so you don't have to.

Your biweekly roundup of media coverage on the world of nonprofit and philanthropy (yee-ha).

Local

Minnesota Charities Spreading the Word
(Star Tribune) In a tight economy, many foundations have found that public advocacy is as critical as the services they provide.

Minnesota Companies Team Up to Fight Hunger
(KARE 11) Some of the biggest Minnesota companies teamed up recenlty night to fight hunger in the Twin Cities. Cargill, General Mills and Land O’ Lakes — along with Greater Twin Cities United Way and the Twin Cities Hunger Initiative — joined forces for a forum called: Hunger is Solvable: Be Part of the Solution.

Viking Spends His Down Time Lifting Others Up
(The Star Tribune) Madieu Williams quietly makes his mark and redefines the notion of giving 100 percent with a $2 million gift to his alma mater for health care research.

Opinion: Street-Level Help for Big Projects
(Twin Cities Pioneer Press) The editors at Twin Cities Pioneer Press salute two new private foundation efforts–The Central Corridor Funders Collaborative and GiveMN.

Problem: Hunger; Recipe: Big Box Retailers
(Star Tribune) Working with the efficiencies of a Fortune 500 company, Second Harvest is getting record-breaking amounts of food to hungry people.

Moroccan Woman Devoted to Helping Unwed Moms Wins $1 Million Opus Prize
(Twin Cities Pioneer Press) 2009 Opus Prize winner Aïcha Ech Channa founded the Association Solidarité Féminine in 1985 in Casablanca, Morocco. The organization now runs three day care centers and training schools, two restaurants, four kiosks and a fitness center/spa to aid unwed mothers and their children.

National

Finding the Silk Purse
(The Wall Street Journal) Many nonprofit organizations have been in survival mode since the economy went sour and donations began shrinking. But some are doing more than just getting by—they’re finding ways to take advantage of the situation.

As Foundations Close, Anxiety for Charities
(The New York Times) Foundations that increase grants to spend down their endowment and then close are proving to be a boon to charities in the short run, but the trend is also causing anxiety among the charities about their future fund-raising.

Outreach in the Age of Pullback
(The New York Times) The Social Innovation Fund has attracted a lot of praise, and also criticism as well. The Fund is poised to start giving out money this summer. Will the government’s plans to take successful nonprofit models to scale be effective?

Same-Sex Couples Make a Statement Through Arts Philanthropy
(The Boston Globe) May lesbian and gay couples are now taking a stand and asking nonprofits to recognize them as partners in their communications.

Opinion: What’s Wrong With Charitable Giving—and How to Fix It
(The Wall Street Journal) Pablo Eisenberg gives a nine point recommendation on how to change giving for the better during the economic downturn.

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In the Media

November 3, 2009
Photo by Dan..

Ridin' the range and ropin' the headlines so you don't have to.

Your biweekly roundup of media coverage on the world of nonprofit and philanthropy (yee-ha).

Local
Hiring, Wage Freezes Starting To Thaw
(Minneapolis-St. Paul Business Journal) According to a new survey, 54% of businesses report planning on “unfreezing” hiring and wage freezes within the next six months.

New Leaders Bring Fresh Focus to Area Foundations
(Minneapolis-St. Paul Business Journal) Five of the largest Twin Cities-based Foundations are headed by recently hired leaders, a rate of turnover rarely seen. They’ve got big plans for finding new ways to collaborate and putting into place more effective grantmaking practices.

Nonprofits Object to Minneapolis’ Streetlight Fees, Feeling ‘Death by A Thousand Cuts’
(MinnPost.com) Nonprofits are being charged more fees for city services and assessments. Troubled by the trend, nonprofit leaders recently spoke out about the issue at a public hearing.

Nonprofits Take Hit in Steele County Budget
(MinnPost.com) Some Steele county nonprofits, including providers of basic needs, are feeling the effects of budget tightening as the county commissioner cuts $100,000 in grants.

Working to Make Sure Businesses Aren’t Derailed
(Star Tribune) A coalition of grantmakers and nonprofits are working together to ensure that local businesses and communities along the University Avenue are not affected negatively by the Central Corridor light rail project.

National
Charitable Gifts to Drop 9% in 2009
(The Wall Street Journal) Charitable giving is projected to take a dip this year, as the full brunt of the economic downturn is finally reflected in the giving habits of donors.

For Executives, Study Shows Foundations Prefer to Hire From Outside
(The Chronicle of Philanthropy) Bad news for those climbing the ladder in the philanthropic world.  A new study reports that the majority of philanthropic executives are hired from outside the organization.

Giving Through Donor-Advised Funds Holds Steady, Despite Fewer Contributions
(PND) Many who use donor-advised funds to contribute to nonprofits are maintaining their giving levels despite the downturn.

U.S. Health-Care Giving Rises Only Slightly in 2008
(The Chronicle of Philanthropy) Donations to US health-care organizations rose by 2.9% in 2008 according to a report released by the Association of Healthcare Philanthropy. However, the Association notes that this bump in giving is likely the result of health-care organizations closing their books before the recession hit.

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In the Media

October 15, 2009
Photo by Dan..

Ridin' the range and ropin' the headlines so you don't have to.

Your biweekly roundup of media coverage on the world of nonprofit and philanthropy (yee-ha.)

Changing a Way of Life
(Star Tribune) With the aid of a grant from United Health Foundation, Albert Lea residents participated in the first round of “Blue Zone” test cities in the US. Blue Zone communities are challenged to help residents create healthier lifestyles to increase longevity. Although Albert Lea did not meet their goal to engage 5,000 residents, city leaders still plan to continue the program beyond the test phase.

Editorial: An Online Boost for Charitable Giving
(Star Tribune) Some of Minnesota’s most influential nonprofits are combining forces to launch a new online giving site called GiveMN. Creators hope to use the site to decrease the amount of time and money nonprofits in Minnesota need to spend on fundraising.

Facing Cost Pressure, Fieldstone Alliance Gets an Overhaul and a Virtual Office
(MinnPost) Leaders at Fieldstone Alliance, a local nonprofit consulting firm, have laid off staff and opted for a virtual office in response to decreased revenue brought on by the current economic crisis.

Give By the Click
(Forbes) A host of new online applications created by social entrepreneurs are allowing people to channel money to their favorite charities without spending a dime of their hard earned cash.

Giving Circles – Like Do-It-Yourself United Ways – Are Expanding Rapidly
(Pioneer Press) Groups of Hmong women of the Twin Cities are gaining a sense of empowerment and joy through participation in giving circles.

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In the Media

September 30, 2009
Photo by Dan..

Ridin' the range and ropin' the headlines so you don't have to.

Your biweekly roundup of media coverage on the world of nonprofit and philanthropy (yee-ha.)

Local

Minnesota Charities Council Revising Its Standards
(Star Tribune) Minnesotans, who donate more than $1 billion a year to charities, soon will have more information before they write checks.

Philanthropy Sector Keeps Giving, Despite Economy
(Business North) Foundations cope with squeeze between falling asset value and higher demand.

Reacting to Race
(Forest Lake Press) The cultural background of the north metro area is changing rapidly, which local officials say can create new challenges for neighbors and classmates.

WomenVenture Opens Minneapolis Office
(Twin Cities Business Journal) WomenVenture now has a Minneapolis office, courtesy of a donation of space from U.S. Bancorp. The St. Paul-based nonprofit, which provides training and loans for women, moved a staff person last week into a U.S. Bank branch on 1030 West Broadway in North Minneapolis.

National
Foundations’ Agenda for Charities Should Include Money, Not Mergers
(The Chronicle of Philanthropy) More and more, foundation leaders are voicing concern that America has too many charities.

Gates Foundation Steps Up PRI’s
(The Chronicle on Philanthropy) The Bill & Melinda Gates Foundation is increasingly making loans, loan guarantees, and equity investments as ways to stretch its philanthropic dollars, The Seattle Times reports.

Less to Give
(Barron’s) Philanthropists hit by the recession face a tough choice as the giving season nears: Reduce all donations, or drop some causes? Smart advice from the field.

Nonprofits Paying Price for Gamble on Finances
(New York Times) Homeowners and businesses were not alone in taking on piles of debt over the last decade. Nonprofits of all sizes did the same, and now they, too, are paying the price.

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