The Changing Faces of Philanthropy

January 17, 2012

A new report, Cultures of Giving, commissioned by MCF member W.K. Kellogg Foundation looks at the recent growth of identity-based philanthropy – defined this way:

A growing movement to spark philanthropic giving from a community on behalf of a community, where “community” is defined by race, ethnicity, gender or sexual orientation.

The U.S. population is changing, with ethnic and racial groups growing faster than the overall population. Not surprisingly, the face of philanthropy is changing along with it.

The report found that 63 percent of Latino households now make charitable donations, and blacks give away 25 percent more of their income per year than whites.

Concurrently the definition of philanthropy is expanding to encompass contributions of any size from people of every income bracket and ethnic background. And, the report shows how these new philanthropists are pooling their money—in increasingly organized ways—for greater impact.

The report challenges funders to consider ways to collaborate:

  • by providing seed support and other forms of assistance,
  • by embracing identity-based funds as critical partners in the sector and forging stronger connections within communities of color,
  • by diversifying the leadership of mainstream philanthropy to reflect changing demographics and
  • by shifting practices to reflect what communities of color are teaching about the future of giving and how funders can positively impact the country’s most vulnerable children and families.

MCF agrees that grantmaking is most effective when grantmakers reflect the diversity of the communities they serve.

For local information on the subject, check out our 2011 Working Towards Diversity IV report, which paints a comprehensive picture of the demographics, policies and practices on diversity and inclusion of Minnesota grantmakers. Review our diversity resources, and visit the websites of our strategic partners:

It’s important work. W.K. Kellogg Foundation president and CEO Sterling Speirn puts it this way, “We believe that understanding and supporting this emerging area of philanthropy is essential for any foundation, funder or donor who wants to drive social change.”

- Susan Stehling, MCF communications associate

CC Photo: KellyCDB

Leave a Comment » | collaboration, diversity, ethnic philanthropy, individual giving, principles for grantmakers, research, social justice | Tagged: , | Permalink
Posted by MCF Webmaster

Top Tips for High-Impact Charitable Giving

December 6, 2011

Here at MCF we advocate for ethical and responsible charitable giving, by grantmakers and individuals alike. Our Giving in Minnesota research shows that individuals contribute 72 percent of charitable giving in our state, and as we approach the holidays many of us are ramping up our giving. To help all of us make better decisions about these gifts, the Chronicle of Philanthropy sponsored a live chat, Smart Tips for Year-End Giving, with a panel of charitable giving experts. Here are their top tips for making your gift have high impact:

  • Start by deciding what issue is most important to you – this is where you should give.  Your next step is to choose an effective organization that works on your chosen issue. Philanthropedia notes, “Choose issues with your heart and choose organizations with your head.”
  • Take the time to research nonprofits to which you are considering giving a gift. The chat panelists suggest several websites where you can research nonprofits, but they note that no site is comprehensive. Many great smaller nonprofits may not be featured on any of these sites, so don’t limit your research to the virtual world. Ask your friends who they support, attend nonprofit meetings, and become involved in the organizations you support.
  • Avoid using some websites’ “efficiency score” ratings to determine how effective a nonprofit is at achieving its mission. One panelist commented, “Anyone who claims zero cost of fundraising is suspect.”
  • Remember, even small sums can add up to make a big difference for nonprofit organizations. And you can support your favorite organization in other ways, too: with volunteering or board service, or by raising money from friends.

Join the conversation: What are your best tips for year-end charitable giving?

-Anne Bauers, research manager

1 Comment | individual giving | Permalink
Posted by abauers

North Minneapolis Recovery Fund to be Honored

November 17, 2011

National Philanthropy Day is being celebrated in Minnesota this Friday, Nov. 18.

I’m thrilled to see that Minnesota Helps – North Minneapolis Recovery Fund will be awarded the “Outstanding Contribution to Philanthropy” award. It’s a well-deserved honor that comes just six months after a tornado slammed into the north side of our city. Thus far, the fund has provided $1,337,160 to assist the residents of North Minneapolis.

Shortly after the tornado hit, local foundations and the Greater Twin Cities United Way joined together to create the fund to quickly assist those directly impacted by the storm.

The effort has been led by the following partners, almost all of them members of MCF (marked with an asterisk).

  • The Minneapolis Foundation*
  • Greater Twin Cities United Way*
  • GiveMN.org
  • Best Buy Corporation*
  • Blue Cross and Blue Shield of Minnesota Foundation*
  • CenturyTel, Inc.
  • Comcast*
  • Cummins Foundation
  • Faegre & Benson Foundation*
  • George Family Foundation*
  • The Grotto Foundation*
  • James R. Thorpe Foundation*
  • Land O’Lakes, Inc.*
  • Lunds and Byerly’s
  • McKnight Foundation*
  • North Star Fund
  • Park Nicollet Foundation*
  • Pohlad Family Foundation
  • The Saint Paul Foundation*
  • TCF Foundation*
  • US Bank – Private Client & Trust Services*
  • Wells Fargo Foundation*

Many of these partners made large donations and also matched contributions from city residents and others who answered the call for assistance. GiveMN.org waived credit card fees on donations, so 100% of every donation went to help those in need.

Thanks to all of the funding partners and to those who contributed to the fund. We all make Minnesota a better place to live.

Funds Still Available
And, funds are still available for nonprofits, faith based organizations and public entities providing support and financial assistance to those most affected by this disaster. Learn more about how to apply for funds.

-Susan Stehling, communications associate

Comments Off | in the news, grantseekers, nonprofits, corporate, individual giving, disasters, community foundations, family foundations, awards, private foundations, collaboration, fundraising | Tagged: , | Permalink
Posted by MCF Webmaster

Go Bold

October 18, 2011

Charlie Rounds

The story of how MCF member Mark and Charlie’s Gay Lesbian Fund for Moral Values came into being can serve as an inspiration to many.

When Minneapolis entrepreneur Charlie Rounds sold his share of the successful RSVP Vacations, he and his husband Mark could have decided to keep the money and never have had to work again. 

Instead, they put the entire amount (60% of their net worth) into a donor-advised fund at The Minneapolis Foundation. The entire balance of their fund will be given away within 15 years to support their chosen causes: economic development in local communities of color, international human rights, and GLBT rights.

A free teleconference on Thursday, October 20, starting at 11 AM, offers those interested a chance to learn more about Charlie and his donor-advised fund. This Bold Conversation series of  discussions, hosted by Bolder Giving, features extraordinary givers who share strategies, challenges and excitement about their giving.

RSVP on Eventbrite now for this free teleconference, and read more about Charlie’s story on the Bolder Giving website.

For those who can’t make the phone discussion, The Chronicle of Philanthropy is hosting an online chat with Charlie on Wednesday, October 19 at 11 AM, which will also be a great chance to learn more.

Comments Off | community foundations, donor-advised funds, individual giving | Permalink
Posted by MCF Webmaster

Results From a Redesigned Marketing Strategy

June 17, 2011

When we originally ran this post (on May 27, 2011) about how the Catholic Community Foundation (CCF) is engaging new donors during the recession, it was still in-process. Now we’ve got results to share.

The Scenario
As marketing manager of a faith-based community foundation, you are charged with generating new donor leads. For years, your predecessor had great success sending direct mail pieces to rented lists of subscribers of Catholic publications. The direct mail pieces focused on Charitable Gift Annuities and Donor Advised Funds, targeted people over age 55, and the typical minimum donation was $10,000.

Now, in the midst of the recession, you’re spending the same amount of money on a direct mail program, using the same list criteria, and getting zero responses. How do you leverage your resources and redesign a marketing strategy that will engage prospects in your foundation?

Catholic Community Foundation’s “Lived” Example
The foundation piloted a Planned Giving Marketing Program with seven participating parishes from November 2010 to March 2011.

Participating Parish Requirements

  • A two-year commitment to the pilot program.
  • Each parish selects up to 600 contacts to receive two different mailings. The lists are slightly different; see notes below in red. The mailing lists are sent directly to the mail processor; CCF does not gain access to the lists unless they convert to leads.
  • Each parish provides their logo, a letterhead sample, and an electronic version of the pastor’s signature.
  • Each parish designates a staff person to accept leads and work with CCF to respond.
  • Each parish runs bulletin announcements (provided) twice monthly from November through March.
  • Because this is a pilot, CCF is paying all associated costs.

Mailing #1

  • Dropped November 8, 2010; focused on promoting Charitable Gift Annuities
  • Mailing lists included consistent, loyal donors* age 65+
  • Follow-up Process: Leads came directly to parish associates who notified CCF. CCF called the leads and sent further info as requested. Parish made a second follow-up call to leads.
  • CCF suggested hosting a Planned Giving Seminar at each parish in May.

Results of Mailing #1

  • 6 leads totaling at least $130,000 in potential gifts
  • 1 closed Charitable Gift Annuity for $10,000; donor plans to establish a second annuity in 2012
  • 5 leads remain pending, one of which is waiting for property to sell before establishing an annuity.

Mailing #2

  • Dropped March 5, 2011; promotes bequests and outright gifts to endowment fund.
  • One of the seven parishes has a $3000 matching gift to apply to new gifts.
  • Mailing list includes consistent, loyal donors* age 50+.
  • Follow-up Process: Parishes will notify CCF as leads come in. Parish will make first follow-up call and involve CCF as needed.
  • CCF suggested hosting a Planned Giving Seminar at each parish in May.
Results of Mailing #2 – NEW
  • 48 leads on potential gifts
  • Outright gifts of $6,925
  • Of 6 leads that remain pending, 2 are possible IRA rollovers and 2 are possible Charitable Gift Annuities

* Consistent loyal donors are those who have made an annual gift in 8 out of the last 10 years, $100 or more per year.

– Anne Rodenberg, Catholic Community Foundation

This is an updated version of the fifth in a series of posts from MCF’s recent ComMotion meeting.

Comments Off | nonprofits, communication, individual giving, community foundations, fundraising | Permalink
Posted by MCF Webmaster

Unassuming — But Not Insignificant — Philanthropy Beyond the Big City

June 1, 2011

While Minnesota’s reputation for philanthropy has been bolstered by celebrated names like Bush, Cargill, Dayton, McKnight and Pohlad, significant generosity among lesser-known central Minnesotans is no small potatoes.

Stories of unassuming farmers who have left thousands – and in some cases, millions – to their hometown schools, churches and favorite charities will become increasingly common, according to the “Minnesota Generational Transfer of Wealth” (TOW) study commissioned by the Minnesota Initiative Foundations. “Farmers and business owners, who retire and sell their assets because their children don’t want to carry on, often find themselves with sizeable estates,” explains Bill King, MCF president.

Between 2011 and 2030, as an entire generation of baby boomers reaches retirement age and beyond, the TOW research estimates that the historic sum of $47.9 billion will be passed on. In 14 central Minnesota counties, that wealth transfer is approximated to be $5.8 billion.

The magnitude of this is illustrated in “The Great Succession” graphics that accompany my article “New Dawn,” which appears in the spring issue of IQ Magazine. IQ is published by the Initiative Foundation, based in Little Falls, Minn.

What does being on the brink of this new horizon mean? Historic windfalls often trigger introspective moments when people consider whether charitable giving is something they value and want to pursue.

“Every person, no matter how much or how little they have, reaches a moment in their lifetime where they consider doing something greater than themselves,” says Matt Kilian, Initiative Foundation’s vice president for external relations.

Although only time will tell if the generational transfer of wealth will inspire increased nonprofit donations or endowed funds in central Minnesota, Kilian envisions the possibilities: “What if a tiny portion of those dollars – say 5 percent – were invested in permanently endowed funds? What a gift from one generation to future generations.”

Titled “Outpourings,” the IQ spring issue looks at the trends and tradition of charitable giving in central Minnesota. Among the features:

  • A profile of four silent, selfless and inspiring givers
  • Charitable giving strategies employed by central Minnesota businesses
  • Creative, win-win philanthropic vehicles for donors
  • How donors and nonprofits click with online giving
  • Young Americans’ belief that giving isn’t a spectator sport
  • How legacies begin
  • Raising kids who give

As the magazine’s subtitle notes, generosity is truly flowing in central Minnesota.

- Chris Murakami Noonan, MCF communications associate

Comments Off | community foundations, fundraising, Greater Minnesota, individual giving, nonprofits, promotion of philanthropy | Tagged: , , , , | Permalink
Posted by Chris Noonan

Creatively Redesigning a Marketing Strategy

May 27, 2011

Here’s an in-process example of how the Catholic Community Foundation (CCF) is engaging new donors during the recession. It’s from “Keep it Creative: Producing Out-of-the-Box Ideas for Run-of-the-Mill Communications Issues.”

The Scenario
As marketing manager of a faith-based community foundation, you are charged with generating new donor leads. For years, your predecessor had great success sending direct mail pieces to rented lists of subscribers of Catholic publications. The direct mail pieces focused on Charitable Gift Annuities and Donor Advised Funds, targeted people over age 55, and the typical minimum donation was $10,000.

Now, in the midst of the recession, you’re spending the same amount of money on a direct mail program, using the same list criteria, and getting zero responses. How do you leverage your resources and redesign a marketing strategy that will engage prospects in your foundation?

Catholic Community Foundation’s “Lived” Example
The foundation piloted a Planned Giving Marketing Program with seven participating parishes from November 2010 to March 2011.

Participating Parish Requirements

  • A two-year commitment to the pilot program.
  • Each parish selects up to 600 contacts to receive two different mailings. The lists are slightly different; see notes below in red. The mailing lists are sent directly to the mail processor; CCF does not gain access to the lists unless they convert to leads.
  • Each parish provides their logo, a letterhead sample, and an electronic version of the pastor’s signature.
  • Each parish designates a staff person to accept leads and work with CCF to respond.
  • Each parish runs bulletin announcements (provided) twice monthly from November through March.
  • Because this is a pilot, CCF is paying all associated costs.

Mailing #1

  • Dropped November 8, 2010; focused on promoting Charitable Gift Annuities
  • Mailing lists included consistent, loyal donors* age 65+
  • Follow-up Process: Leads came directly to parish associates who notified CCF. CCF called the leads and sent further info as requested. Parish made a second follow-up call to leads.
  • CCF suggested hosting a Planned Giving Seminar at each parish in May.

Results of Mailing #1

  • 6 leads totaling at least $130,000 in potential gifts
  • 1 closed Charitable Gift Annuity for $10,000; donor plans to establish a second annuity in 2012
  • 5 leads remain pending, one of which is waiting for property to sell before establishing an annuity.

Mailing #2

  • Dropped March 5, 2011; promotes bequests and outright gifts to endowment fund.
  • One of the seven parishes has a $3000 matching gift to apply to new gifts.
  • Mailing list includes consistent, loyal donors* age 50+.
  • Follow-up Process: Parishes will notify CCF as leads come in. Parish will make first follow-up call and involve CCF as needed.
  • CCF suggested hosting a Planned Giving Seminar at each parish in May.
Results of Mailing #2
Results are not quite in, but we’ll share them in an upcoming post.

* Consistent loyal donors are those who have made an annual gift in 8 out of the last 10 years, $100 or more per year.

– Anne Rodenberg, Catholic Community Foundation

This is the fifth in a series of posts from MCF’s recent ComMotion meeting. Look for the next and last posting on Creative and Strategic Use of Social Media on Friday, June 3.

Comments Off | nonprofits, communication, individual giving, community foundations, fundraising | Permalink
Posted by MCF Webmaster

« Previous Entries
Follow

Get every new post delivered to your Inbox.

Join 1,429 other followers