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 Do the Latest Giving Trends Mean for Minnesota?

May 15, 2014

afpStaff of foundations and nonprofit organizations alike look to the annual Giving USA report for insights on the latest giving trends and what they mean for Minnesota.

Giving USA 2014 will be released on Tuesday, June 17, and the release will be quickly followed by “first look” events in seven cities — including St. Paul — across the nation.

If you’d like to be among the first to hear expert analysis and local perspectives on the 2014 findings, attend First Look: Giving USA 2014  presented by Campbell & Company in conjunction with the Association of Fundraising Professionals Minnesota (AFPMN).

The event in St. Paul will take place on Thursday, June 19, from 7:30 to 9:30 a.m., at the Town and Country Club, where a presentation of report findings will be followed by a moderated panel of local experts.

Registration is $20 for AFPMN members and $40 for non-members; breakfast is included. See afpminnesota.org/event/first-look-giving-usa-2014/ for details and a link to register.

The report is used by grantmakers and nonprofits to:

  • Benchmark fundraising performance against national data;
  • Plan for the future, based on long-term trends in giving;
  • Educate new staff members and board members in the broad context of philanthropic giving, so they have a better understanding of their organization’s funding patterns; and
  • Strengthen grantmaking and other philanthropic activities.

Giving USA: 2014 was compiled by The Center on Philanthropy at Indiana University for the Giving USA Foundation.

- Susan Stehling, MCF communications associate


Resource-full Nonprofit Revenue Generation

February 3, 2014

resourcefullnesshomebannerToday on the blog we welcome Beth Bird and Kim Hunwardsen of Eide Bailly, to tell us about their organization’s Resourcefullness Award, and the ideas that sprang from it.

What do you get when you offer a $10,000 award for sustainable and creative revenue generation in the nonprofit industry? A flood of inspiring submissions!

Last year, Eide Bailly’s nonprofit services group did something different to encourage conversation and ingenuity around revenue generation – something our clients think about daily. We ended up with 99 submissions for the Eide Bailly Resourcefullness Award, three fantastic winners (video), and a host of creative and sustainable ideas to spark discussion. (Read this article on submission trends.)

Beyond celebrating the winning efforts, we wanted to use the Eide Bailly Resourcefullness Award as a springboard for sharing and collaboration.

The following highlights are from a January seminar that we held in Minneapolis to discuss the best ideas.

Future Trends
Susan Cornell-Wilkes and Brad Brown were judges for the Resourcefullness Award. In January, we asked about the nonprofit revenue generation trends they see gathering strength in the next five years.

- Crowd funding
- Nonprofits creating for-profit entities
- A focus on intergenerational wealth transfer

  • Organizations will be and should be looking for opportunities to involve multiple generations of one family in its endeavors. This will go a long way to creating present buy-in donor stability in the future.

- Moving beyond “Corporate” involvement in campaigns

  • Getting employees involved in the organization, rather than just accepting a corporate donation, will be the key to sustainability in funding from that organization and in growth of individual donors.

- Helping donors “experience” the difference their donations are making

  • Donors, especially younger donors, are looking to “purchase an experience.” They do not just want to hear from nonprofits in letters and email, but rather experience the effects of an organization work.

Our Take-Aways
The Resourcefullness Awards and our January speakers reminded us of two very important things:

  1. Organizations are getting more creative in their approach to revenue generation, but this does not mean an approach must be complex. Sometimes the simplest ideas create the best results.
  2. Well-placed and well-planned partnerships are some of the easiest and most fruitful ventures.

Give To The Max Day Strategies
We also heard from two organizations that employed creative Give to the Max strategies.

Erich Mische, executive director of Spare Key, described its media-grabbing, world-record setting 2012 strategy Pedal to the Max, which had volunteers on a pedal pub for 24 hours. The campaign helped Spare Key reach goals around having fun and grabbing attention while engaging donors, volunteers and partners. Mische said media coverage and social media played a huge role in broadening the reach of the organization’s message. And, Spare Key raised five times its original fundraising goal.

Greater Minneapolis Crisis Nursery’s development and communications director, Joel Bergstrom, shared its 2013 Give to the Max campaign, which used video and social media to draw attention and generate support. A donation of video production helped the organization create a powerful video that then led to media coverage. The organization used a Facebook contest to draw in visitors and donors, and advocates lobbied hard on social media for donations to Crisis Nursery. As a result, followers of the organization have increased and their messages receive greater exposure.


Seven Predictions for the Future of Philanthropy in Minnesota

January 7, 2014

Road 2014Helping members understand trends that will impact the field is an important role of any membership association. In that spirit, I have developed a list of seven predictions for Minnesota’s philanthropic sector.

I admit that some of these predictions are based on current trends and others are wishful thinking, but I believe the true purpose of futurism isn’t to predict the future but to help shape it by presenting ideas that unstick us from our current realities.

Let me know which ideas you agree with, which you disagree with and what else you would add to the list.

many small light bulbs equal big oneShift to Collective Impact
As foundations become increasingly frustrated by the lack of movement on our communities’ most pressing problems, we will see them working across sectors to achieve large-scale social change. While this will mean many individual foundations putting their theories of change on the back burner for a more collective approach, the results will create a new incentive to be flexible.

Rise of the Funder Collaborative 
As foundations take a more proactive approach to accomplishing their objectives, they increasingly rely on networks to spur the substantial human and financial resources required to move the needle on complex community issues. This encourages innovation, sharing of best practices and a more targeted approach to creating change.

Mission-related Investments Grow
More foundations start intentional conversations about the “other 95%,” the 95 percent of foundation assets not used for grantmaking and typically invested in the stock market. Questions about how to better leverage those dollars lead to foundations putting a growing portion of their assets into mission-related investments that seek to achieve specific social or environmental goals while targeting market-rate returns.

An effort to recognize foundations that incorporate a specific percentage of mission investments into their portfolios is developed and popularized.

givemnGiveMN Gets an Upgrade
After 2013’s Give to the Max Day, which broke state records for online giving despite being fraught with technical glitches, GiveMN works with its website vendor Razoo to ensure site stability and reliability. In 2014, GiveMN reaffirms itself as the go-to place for online giving in Minnesota, and Give to the Max Day 2014 again breaks national fundraising records.

Solving Big Problems with Big Data
Realizing that the disjointed nature of foundation funding gives us only a small picture of what is happening in the nonprofit sector, more foundations pool their data and expertise to analyze nonprofit sector trends. Efforts such as Minnesota Compass and Generation Next are supercharged by foundations sharing proprietary information from grantee reports.

Minnesota Launches a Coalition of Communities of Color
Inspired by a summer 2013 meeting with leaders of a similar effort in Portland, Oregon, Minnesota’s minority-led nonprofits launch a united effort here. The coalition forms to address institutional racism and socioeconomic disparities, but the group gains momentum with their work addressing Minnesota’s persistent education disparities.

disasterPlanning for Disasters Before They Strike
As 100-year weather events and man-made disasters happen more frequently and become increasingly destructive, the current philanthropic strategy of convening funders to develop a plan after disaster hits becomes unworkable. Minnesota foundations team up with elected officials, first responders, the Red Cross, individual donors and nonprofits with deep roots in the community to develop a philanthropic response template that can be adjusted for each disaster.

- Trista Harris, MCF president


Engaging “New” Philanthropists

January 2, 2014
panel

Presenters (clockwise from top left) Kelly Drummer, Noelle Ito, Nareman Taha, Bo Thao-Urabe

Members of communities of color must look to their own communities to find new models of giving that will work there.

That was the overriding message at the “Everyone’s a Philanthropist” session at the 2013 MCF Philanthropy Convening, featuring presenters:

Each is a member of a community with a long tradition of giving coupled with growing assets – defined as skills, community knowledge and finances. Community members also have an increasing awareness of the lack of philanthropic investment in their communities and want to be part of solutions that create greater good. Here’s how they answered a few questions.

Tell us about your “cultures of giving.”

Bo Thao-Urabe: In Asian communities, your personal well-being is judged by the well-being of your family.

Noelle Ito: Don’t assume that donors from our communities are all young and financially strapped; it’s not true. For many of our donors, it’s about more than writing a check. People want to get their hands dirty and learn about issues in their communities. And, just because I’m Asian American, don’t assume I know about all Asian American issues.

Nareman Taha: It’s very much about one-on-one relationships. I recommend that people go into a community, learn about how its members look at donating and see if they can build on that tradition.

We started by doing focus groups in a number of communities and found that Arab Americans were charitable, but they gave as individuals. Many didn’t understand organized philanthropy. Now, as a community foundation, our giving is more visible. We say, “Look we’re an Arab-American organization that is supporting the community.”

Kelly Drummer: Reciprocity is very important in the Native American culture. The structure of the Tiwahe Foundation – giving from individuals to individuals – grew out of that culture.

We want to be around for a long time, so we knew we had to build our endowment. We are now asking for donations of $1,000 –and spread over five years, that’s just $17 a month.

What’s the best way to engage with new communities and populations?

Thao-Urabe: It’s about relationships. Get to know a community and how they support each other. Work with the community to determine what kind of investment it needs to build its future. Get community members to see themselves as donors. Many of them already give, but they do it without recognition.

Determine how community members can combine their traditional values with the tools of American philanthropy.

Taha: Build relationships with existing religious and social service organizations that are already working in the community. Associating your work with theirs can increase your credibility.

Drummer: It’s about getting people to realize that giving in small amounts matters. You don’t need to have a lot of money to give. I say, “If you think you can’t give $120, how about if you give $10 each month for a year?”

How do your organizations work with foundations?

Ito: Foundations serve as fiscal agents for our giving circles, so they process our checks. Many of our giving circles also have a 50 percent foundation match.

Taha: W.K. Kellogg Foundation and others have lent us their expertise, their research and their support. They have been extremely helpful.

Drummer: The Minneapolis Foundation has provided a home for our endowment. We partner with Blandin Foundation and Bush Foundation on leadership development programs.

- Susan Stehling, MCF communications associate


#GivingTuesday — Giving, Not Shopping, is the Spirit of the Season

November 26, 2013

gtIn America, the next week has, by my count, five named days. Most of them born of our “need” to shop.

Eat
On Thanksgiving, we’ll spend time with family, watch some football, express gratitude for our plenty and eat too much. (We may or may not acknowledge that Native Americans see the day differently than non-natives.)

Shop
Then on Black Friday, Small Business Saturday and Cyber Monday, we’ll spend millions — much of it to buy stuff we don’t need.

Give
That’s why I find #GivingTuesday to be a refreshing change from the three days that proceed it. On #GivingTuesday, we’re asked to share some of our plenty with charitable organizations and nonprofits in our community and across the country. It is a new national fundraising day to remind us that giving — not shopping — is the true spirit of the holiday season.

I’ve just about finished up my 2013 charitable giving — doing much of it on Minnesota’s recent Give to the Max Day. But, that day had its technical difficulties, and maybe you didn’t get around to giving what you had planned. Or maybe you haven’t tried online giving at all. If that’s the case, I urge you to consider participating in #GivingTuesday.

Why #GivingTuesday?
Many Minnesota nonprofits with matching dollars left on the table from Give to the Max Day will make them available on #GivingTuesday. Matching gifts multiply the power of your contribution.

According to The Able Altruist, published by Software Advice, 22% of annual giving to nonprofits comes in on December 30 and 31, which makes nonprofit budgeting awfully difficult. This way you’ll get it done a few weeks before the end of the year.

It’s a well publicized national day of giving with $100,000 in prize grants to the top 50 participating nonprofits from across the country.

And, it’ll be fun — social media will be buzzing with the hashtag #GivingTuesday on Dec. 3.

- Susan Stehling, MCF communications associate


Philanthropy Responds to Typhoon Haiyan

November 13, 2013

typhoon1The Philippines has been devastated by Typhoon Haiyan, with thousands of people dead or missing and millions of lives impacted since it made landfall on Friday.

Minnesota grantmakers have responded quickly to the urgent needs faced by those affected, with many are mobilizing to donate money, supplies, staff time and other resources to assist in the relief efforts. These include:

  • Medtronic Philanthropy giving $100,000 to the Red Cross and matching all employee donations dollar for dollar, up to $50,000 per employee. It will also offer up to 5 days paid time off for employees to volunteer in relief efforts.
  • Ecolab Foundation donating bleach, sanitizers and other needed cleaning supplies.
  • The General Mills Foundation committing $150,000 in disaster relief support to communities affected by Typhoon Haiyan.

MCF is collecting all efforts by Minnesota grantmakers in support of this cause. See our website for the full list and for suggested resources you can use when considering your own response. Individual donors may be especially interested in this list of ways to help from the Star Tribune, and these tips from the Charities Review Council on how to give wisely and confidently.

Are you and your organization helping those affected by Typhoon Haiyan? Let us know in the comments.

Image cc mansunides

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