Connect With Us
YouTube
RSS

217 posts categorized "Fundraising"

Why ‘Crowdfunding’ Government Is a Bad Idea

February 26, 2015

Crowdfunded_dollar_signGovernments at the local, state, and federal level increasingly are competing with charities for private-sector donations using crowdfunding and other individual donor-focused techniques. That's a problem not just for nonprofits, but for all who depend on government to address our shared needs.

Most people would agree that the more each of is willing to do to help those in need, whether with our time or money or both, the better off we all are. That kind of engagement makes for better neighbors and better citizens, both of which are key ingredients of a better society.

So why are we suddenly eager to substitute individual philanthropy for collective public responsibility? Do we really trust people's personal motivations and sometimes impulsive altruism to substitute for government in prioritizing problems and aggregating resources to address those problems over the long haul?

Consider the ALS Association's wildly successful Ice Bucket Challenge, which has raised more than $115 million since its debut in July for the organization's efforts to find a cure for Lou Gehrig's disease (amyotrophic lateral sclerosis) – about six times the association's total revenue from all other sources in 2014. The challenge, which encouraged participants to video themselves having a bucket of ice water poured over their heads and then nominating others to do the same within twenty-four hours or pay a "penalty" in the form of a contribution to the association, also drove worldwide donations for ALS of an additional $100-plus million. No wonder nonprofits and governments at all levels have become interested in crowdfunding and other social-media-driven techniques. Yet, for all its success, the Ice Bucket Challenge also highlights some real issues.

Few would begrudge the ALS Association a penny of those contributions. But one could be forgiven for wondering why the 2.4 million new donors to the organization (triple the number it could boast prior to the challenge) made the decision to contribute.

As Michael Hitzlik notes in the Los Angeles Times, ALS is a rare disease affecting fewer than twelve thousand people in the United States at any one time. Contrast that with the 5.2 million people who suffer from Alzheimer's disease. In the most recent year for which IRS data is available, the Alzheimer's Association raised seven times as much the ALS Association (though with the success of the Ice Bucket Challenge, that advantage assuredly has narrowed) for over 400 times as many ill people. While one can debate whether ALS or Alzheimer's is the more pressing need, my point is simply to suggest that the vast majority of "ice-bucketers" probably didn't consider the question before deciding to donate.

Given that charitable giving in the U.S. has long remained relatively flat at about 2 percent of GDP, that's a concern. Regardless of how much a fundraising campaign generates for a particular cause or issue, it's more than likely those dollars come out of – rather than augment – the pool of money available for charitable causes.

There has been a lot of speculation and some academic analysis about what's behind the astounding success of the Ice Bucket campaign, with a gentle form of peer pressure and the viral, sometimes narcissistic nature of social networking cited by many. Still, the campaign's success was unusual and is not easily replicated. Indeed, there's every reason to believe the ALS Association will not do comparatively better than to retain the 25 percent of donors who typically follow up an initial charitable gift with a gift to the same organization or cause in year two.

That fact hints at what many see as a major problem with the idea of crowdfunding for public sector initiatives. Will donors truly care about the projects and initiatives they are convinced to support? And even if they do, can governments count on their interest, and dollars, over time?

Today's fundraisers and development professionals understand that successful crowdfunding efforts depend in great part on good public relations. One study of support for scientific research – government's share of funding for which has dropped by half since the 1960s – suggests that individual researchers with large followings on Facebook, Twitter, and/or YouTube attract the lion's share of crowdfunded dollars. Government officials have figured this out and now actively promote crowdfunding campaigns for science-related projects using social networks and other online channels. That might be fine for charities, but it raises real and important questions when it comes to public-sector initiatives.

Rather than truly serving the broader common good, such campaigns tend to appeal to the narrower concerns of prospective donors and what is likely to pique their interest at a particular moment. It also means that instead of making policy decisions about how best to allocate public funds in the context of pressing priorities, governments increasingly are looking to promote projects with the potential to catch people's attention.

There's something unsettling about that. Funding for important public initiatives and programs ought not depend on the whims of individual donors and foundations. Such an approach will only serve to distract government officials from the consistent efforts needed to address urgent social problems, instead encouraging them to see such matters as parochial issues of interest to a relatively small number of potentially-engaged citizens. In other words, it will make it much more difficult in the long run for government to adequately support and advance the broad-based efforts necessary to improve our social, political, and economic institutions.

As an example, take Detroit's James Robertson, whose daily 21-mile roundtrip walking commute to his factory job (where he had a perfect attendance record) was featured on the local news and led to donations of $350,000 and a new car from 13,000+ people who just wanted to help. As the Washington Post's Michelle Singletary notes, however, Robertson's story does nothing to address the lack of public transportation in low-income communities or the inability of working people to earn enough to own and maintain a car. To do so would require government policy changes and a commitment of significant public resources.

Crowdfunding also tends to favor the interests of the economically secure. Over the past three decades, politicians have passed tax cut after tax cut benefiting the wealthy, effectively transferring money from the public fisc to those least in need. And just as President George W. Bush did with our national parks, they are now asking us to voluntarily consider diverting some of our charitable dollars to projects or initiatives that really should be funded by tax dollars in the first place.

That might be a fine way to fund "nice-to-haves" – if governments were meeting the basic needs of every American, maintaining our highways and bridges, providing quality public education in every community, safeguarding our food supply, and so on. But, strapped for revenue, they aren't. Indeed, the federal government has a recent history of cutting spending for many so-called discretionary activities and passing those obligations on to foundations and corporations. And now we see a growing number of state and municipal governments, metaphorical tin cups in hand, reaching out to individuals with the same goal in mind.

The folks at the libertarian Cato Institute can argue until they are blue in the face that "taxes are a form of charity"; most Americans understand that they are not. Discretionary decisions made by individuals, even if aggregated through crowdfunding platforms, are not a substitute for rational, accountable policy making or revenue allocation decisions by democratically elected officials.

Headshot_mark_rosenmanWe all have a personal responsibility to promote the common good, and government is the principal mechanism through which we do that. Do we really want to substitute the fickleness of individual altruism for what is in fact a shared obligation? It's fine to join friends in a good cause, but let's not walk away from the hard and important work of making government accountable to us, and making ourselves accountable to government.

Mark Rosenman is a professor emeritus at the Union Institute & University. In his last post, he explained how the charitable sector keeps us all afloat.

Five Ways to Improve Your Digital Strategy for Older Donors

February 17, 2015

Older-donors-with-computerSome of the biggest nonprofit campaigns of recent years were most notable for how well they mobilized the ever-elusive Gen Y demographic. The ALS Ice Bucket Challenge became a viral sensation, and the It Gets Better Project's successful YouTube videos helped bring light to important issues affecting the LGBT community. But while these efforts certainly have helped to illuminate the future of fundraising, they haven’t been as successful in engaging older people, who consistently give the largest donations year after year. For those hoping to use technology to connect with their older donors, here are five important points to keep in mind as you create your digital plan of attack.

Older donors are much more tech-savvy than many give them credit for

  • Nearly 3 out of 5 donors age 66 and older currently make donations via the web.

With the rise of tablet computing and streamlined mobile UIs, mobile technology is more accessible to different age groups than ever before. Studies show that in recent years, older users have proven to be very adaptable when it comes to new technologies and are just as likely to donate online as their younger counterparts.

Even though older users need a bit of extra care when it comes to accessibility, it's important that you don't view your older donors as technologically illiterate. The tough part is catering to these older audiences while still creating a digital experience that appeals to younger constituents as well.

Making your site more accessible to older donors

When catering to an audience of older constituents, the ideal goal is to strike a happy balance between quality design and carefully considered user-friendliness.

A few design details in particular, like font size and page navigation, are critical for making a site accessible to older visitors. According to Nielsen's usability tests of users aged 65 and over, older citizens require larger typography, with 12-point fonts (and higher) working best. In addition, older users tend to be more frustrated by frequent site and design changes. While this is less of a design detail, it's a good point to note for web designers who like to make tweaks on a regular basis.

When it comes to driving conversions, make sure you're prominently featuring all of your most common actionable functions. If you have a "donate" button, make it clearly visible on every page. By minimizing the number of clicks between your users and the option to donate or volunteer, you create an online presence that is simultaneously accessible and streamlined. For examples of sites that do this well, visit the Sierra Club, New York Road Runners, or the American Cancer Society.

Continue reading »

Nonprofit Sponsorship: 3 Key Questions

February 04, 2015

Sponsorship_keyYou've probably heard the story of legendary criminal Willie Sutton, who, when asked why he robbed banks, responded, "I rob banks because that's where the money is." Now whether Sutton actually said that is debatable, but many fundraisers have picked up on the lesson — and Sutton's grasp of the obvious. You want money? Figure out who has it and who's "giving" it away.

One answer to the "who has the money" question is corporations. Often a nonprofit's first way "in" to a corporation is through its foundation or corporate giving program — philanthropic vehicles with which fundraisers are very familiar. But what about nonprofit sponsorship? About thirty years ago, "cause marketing" became a real avenue for major corporate brands to position themselves in a favorable way with their customers. Suddenly, companies were investing in nonprofits and nonprofit causes — not only to support those organizations, but to help build their own brand loyalty. It was a new way of thinking, a new approach.

Fast-forward to today. In 2014, corporate sponsors were projected to spend over $925 million on the arts alone (IEG Property Sector Spending Report, 2014). And the top three companies sponsoring the arts?

  1. Bank of America
  2. Wells Fargo
  3. JPMorgan Chase

As a result of the astronomical growth in sponsorship and cause marketing, many nonprofits have followed the "money trail" and ramped up their sponsorship efforts. This makes a lot of sense as organizations, no longer able to rely solely on funding from foundations, individual donors, and corporate giving programs, scramble for new sources of revenue.

Continue reading »

Weekend Link Roundup (January 31-February 1, 2015)

February 01, 2015

Winter_precipOur weekly roundup of noteworthy items from and about the social sector...

Children and Youth 

In an op-ed in the Albuquerque Journal, La June Montgomery Tabron, president and CEO of the W.K. Kellogg Foundation, urges legislators in New Mexico, which ranks 48th nationally in child poverty, to expand the state's investment in prenatal and early childhood services. "The path to a healthy and successful future for our kids starts in the earliest years of their lives," writes Tabron. "Research has shown that 90 percent of a child’s brain development occurs before the age of 5, which tells us that a child’s learning begins well before he or she ever sets foot in a kindergarten classroom."

The Economist agrees. In an article from the January 24 issue, the magazine argues that the solution to growing inequality is not "to discourage rich people from investing in their children, but to do a lot more to help clever kids who failed to pick posh parents. The moment to start is in early childhood, when the brain is most malleable and the right kind of stimulation has the largest effect."

Communications/Marketing

Who are the "stakeholders" in social change communications? Andy Burness offers his thoughts on the Frank blog.

Community Development

On the Living Cities blog, Rip Rapson, president and CEO of the Kresge Foundation, shares three lessons from Detroit's recent emergence from bankruptcy.

Fundraising

Investments in online fundraising technology and strategies made by "early adopter" nonprofits are starting to pay off, as these fifteen stats from Nonprofit Tech for Good show.

Continue reading »

The Future of Fundraising Is Peer-to-Peer

January 31, 2015

Headshot_derrick_feldmannWhen I was leading fundraising efforts at a national nonprofit, the focus of everything I did was the individual donor. From coming up with new ways to get donors to give to creating messaging that resonated with their interests, I spent pretty much every minute of every day thinking about how I could gain donors' trust and confidence and persuade them to support our organization.

After a while, I realized our donors had value beyond what they gave (in money or time), that in fact we could use them to introduce us to people who weren't supporting us – although I never would have asked a donor to physically make an ask on our behalf.

A few years have passed, and my thoughts on this score have changed. That has a lot to do with the emergence of social networking and peer-to-peer (P2P) models.

You can see this in our industry, which over the last three years has moved quickly to embrace peer-to-peer fundraising. I know: many nonprofit professionals argue that online giving is the hot thing in the fundraising space. It seems to me, however, that the rapid growth of online giving owes much to the emergence of peer-to-peer tools and platforms that make it easy to find and give to causes or individuals who may be many degrees of separation removed from us.

How has this changed the job of the professional fundraiser? In the past, fundraising was an activity based in part on the willingness of fundraisers to ask for support from friends, family, and deep-pocketed individuals with whom they had a personal connection. Today, in contrast, the professional fundraiser has at his or her disposal a range of options, from social media and dedicated websites to personalized giving pages and text messaging services, that enable him or her to reach many more people, in many more locations, than was possible before.

Continue reading »

A Resolution You Should Keep: Engage Your Donors Differently in 2015

January 13, 2015

New_years_resolutions2Eat better and drink less… Travel to new places… Spend more time on that hobby… Read more and work smarter… We've all got our New Year’s resolutions, and two weeks into 2015 many of us are still full of bright-eyed optimism that we'll stick to 'em!

Have you made any resolutions for your nonprofit? January is a great time to rethink how you work, especially how you communicate with your supporters. Many of you are still feeling the joy of wildly successful year-end fundraising campaigns and a productive #GivingTuesday. Before you dig into your next set of appeals, use these few weeks to take stock and consider what you can do differently in the new year to engage your donors.

Here are three reasons why you should resolve to treat your donors better in 2015:

  1. Communicating with people who already know and support you is less expensive than reaching new prospects and convincing them to donate to your organization. Read more about why donor retention matters.
  2. Doubling your donor retention rate can lead to a six-fold increase in the number of people who give and the amount you raise. Read more about the relationship between gift frequency and donations.
  3. Saying thank you, reporting back, and giving your donors actions they can take beyond making a gift will more deeply connect them to your mission. Read more about ways to show your donors some love.

Headshot_farra_trompeterWant to learn more about how to build better relationships with your donors? Join me on Thursday, January 22, for an interactive Foundation Center webinar in which we’ll talk about how your nonprofit organization can move "From Year-End Fundraising to Year-Round Engagement."

Farra Trompeter is vice president of Big Duck, a Brooklyn-based communications firm that works exclusively with nonprofits.

Weekend Link Roundup (January 10-11, 2015)

January 11, 2015

Nfl-footballOur weekly roundup of noteworthy items from and about the social sector..

Fundraising

Good post on the GrantSpace blog by Carrie Miller, regional training specialist at Foundation Center-Cleveland, on the importance of communicating your impact to donors.

Higher Education

On The Hill's Congress Blog, Jamie Merisotis, president and CEO of the Lumina Foundation, argues that higher education has been slow to catch up to the changing demographics of America's college-going population. By shifting the way we deliver college to help meet the needs of people for whom higher education had been out of reach, Merisotis writes, "we can create a higher education system that works better for everyone – students, educators and employers – and create a populace that is better poised for future success. [And that] is especially important, given that an estimated 65 percent of jobs will require some form of postsecondary education by 2020, and today less than 40 percent of Americans hold two- or four-year degrees...."

In a review for The Nation, the Century Foundation's Rich Kahlenberg finds much to admire in Lani Guinier's latest book, The Tyranny of the Meritocracy: Democratizing Higher Education in America for The Nation. In the book, Guinier, a Yale Law School classmate of Bill Clinton's who had her fifteen minutes in the national spotlight after then-President Clinton nominated her to head the Justice Department's civil rights decision – only to withdraw the nomination under conservative pressure – argues that "the heavy reliance on standardized test scores in college admissions is deeply problematic on many levels." Kahlenberg deftly walks the reader through Guinier's many criticisms of the reigning "testocracy" and seems to agree that "by 'admitting a small opening for a select few students of color', affirmative action policies actually help buttress the larger unfair apparatus...."  A good review of a timely book.

Continue reading »

Weekend Link Roundup (December 27-28, 2014)

December 28, 2014

2015 New Year's Eve_December 2014 Our weekly roundup of noteworthy items from and about the nonprofit sector...

African Americans

In a post on the Open Society Foundation's Voices blog, Ken Zimmerman, director of U.S. Programs at OSF, salutes the achievements of the Campaign for Black Male Achievement as it prepares, under the continued leadership of Shawn Dove and Rashid Shabazz, to become a standalone organization.

Were the deaths of Michael Brown and Eric Garner and the widespread protests that spread across the country in the aftermath of grand-jury decisions finding no negligence on the part of police a "movement moment"? It sure looks that way, writes Alfonso Wenker, manager of diversity, equity and inclusion at the Minnesota Council on Foundations. For grantmakers who are wondering what they can do to help close racial achievement gaps and support the movement for racial equity in the United States, Wenker shares a list of helpful tools and resources.

Communications/Marketing

In a  post on Kivi Leroux Miller's Nonprofit Communications Blog, Sean King, director of marketing and communications for Youth Education in the Arts (YEA!), shares some takeways from a fundraising campaign that saw seven nonprofit arts organizations in Allentown, Pennsylvania, join forces on #GivingTuesday to create some buzz and raise some money in support of their efforts.

Data

The most popular post on the Markets for Good site in 2014 was this contribution from Scott Harrison, the founder and CEO of charity: water, who used it to explain why the organization's goal of helping 100 million people get access to clean and safe drinking water by 2022 would be impossible without data.

Looking for a good read or two to close out the year? Beth Kanter shares five book recommendations for "the nonprofit networking and data nerd in your life."

Fundraising

The Fundraising Effectiveness Project (FEP), a joint initiative of the Center on Nonprofits and Philanthropy at the Urban Institute and the Association of Fundraising Professionals, has released the 2014 edition of its Fundraising Survey Effectiveness Report (30 pages, PDF). The report, which summarizes data from 3,576 survey respondents covering year-to-year fundraising results for 2012-13, found that gains of $1.334 million in gifts from new, upgraded current, and previously lapsed donors were offset by losses of $1.228 million through reduced gifts and lapsed donors — in other words, 92 percent of gains in giving were offset by losses in giving. The report also found that while the median donor retention rate increased from 39 percent in 2012 to 43 percent in 2013 and the gift or dollar retention rate increased from 40 percent to 46 percent, over the last nine years, donor and gift or dollar retention rates have consistently been weak — averaging below 50 percent.

Continue reading »

How to Improve Your Mediocre Fundraising Copy

December 16, 2014

Headshot_derrick_feldmannFor most of us, the month of December generally means two things: fundraising letters and holiday parties.

Okay, maybe that's just me.

Still, end-of-year gifts and donations account for a substantial amount of the money raised by nonprofit organizations, which, in an effort to capture every bit of potential support before January 1, typically kick off the end-of-year fundraising season with a series of direct-mail appeals and then move on to email solicitations.  

I'm sure you can relate, but at this point in the year, both my mailbox and my email inbox are stuffed with solicitations from nonprofits. But here is where I'm different from most of you: I actually read every letter I get so as to better understand why I should pay attention and why I should (or shouldn't) give to an organization. In other words, the fundraising nerd in me comes alive!

That said, a funny thing happened to me recently: As I was reading through a stack of direct-mail pitches, I began to feel grumpy, agitated, a little Scrooge-like.

I couldn't put my finger on what was bothering me and then it hit me: I've grown impatient with much of the fundraising copy I read. Some of that impatience has to do with all the numbers and statistics I'm asked to process. A few of the letters include language I haven't heard since my high school economics class. I've also noted a growing trend of organizations tossing my name around as if it were a magic incantation. (One solicitation I received included at least ten "Derricks" in the body of the text.) And then there was the solicitation signed by the CEO of the organization which insinuated that only a gift to his organization would make a difference this year and that no organization, anywhere, has the kind of "impact" his does. 

As I was reflecting on the effectiveness of these different approaches, I had an epiphany: there is an alarming amount of bad fundraising copy being written these days. And what's worse, I suspect the people responsible for that copy, and the people in leadership positions who sign off on it, think it's pretty good. 

Why do so many fundraising and development pros write bad copy? And why are so many executives content to let it out into the world? I don't really have answers to either of those questions, but I do have some thoughts about why so many of the fundraising solicitations we receive are just plain bad.

You assume I read your last solicitation. I hate to say it, but there's a good chance I never finished (or even glanced at) your previous solicitation. Fundraising copy writers often make the mistake of assuming that their target audience has read every word they've ever written. As you sit down to finalize your next fundraising appeal, remind yourself that most of the people on your mailing list probably haven't read your previous solicitations, and be sure to remove from your copy any phrase like:

Continue reading »

Weekend Link Roundup (December 13-14, 2014)

December 14, 2014

Nutcrackers-christmasOur weekly roundup of noteworthy items from and about the nonprofit sector....

Agriculture

On the George and Cynthia Mitchell Foundation blog, David Festa, vice president for ecosystems at the Environmental Defense Fund, suggests that if "we're going to meet growing needs for food and water,...[b]usiness as usual just isn’t going to cut it." But, adds Festa, there are reasons for optimism, as retailers, food companies, agribusinesses, farmers, and ranchers all rethink their roles in the food supply chain to do more with less while improving the ecosystems on which they, and all of us, depend.

Civil Rights

Interesting look by the New York Times  at police shootings in New York City in 2013, the last year of the Blo0mberg administration. According to an annual NYPD report released early in the week, shooting by officers, "whether unintentional or in the course of confrontations with suspects," fell to 40, from 45 in 2012, and were down from an eleven-year high of 61 in 2003.

Communications/Marketing

Guest blogging on Nancy Schwartz' Getting Attention! blog, Allison Fine, author of the recently released Matterness: What Fearless Leaders Know About the Power and Promise of Social Media, suggests that the secret to succeess in today's social media-driven world is to communicate with people instead of at them.

Speaking of a "world gone social," what are the attributes of CEOs who "get" social media? Ted Coiné and Mark Babbitt have the answers in the Harvard Business Review.

Data

On the Markets for Good site, Beth Kanter shares ten ideas about how to find to data-nerd types to help enhance your organization's data collection and analysis capabilities.

Continue reading »

Weekend Link Roundup (December 6-7, 2014)

December 07, 2014

9626_Northern_Cardinal_02-10-2010_2Our weekly roundup of noteworthy items from and about the nonprofit sector....

Communications/Marketing

On Beth Kanter's blog, Jay Geneske of the Rockefeller Foundation announces the launch of Hatch, a digital platform that connects nonprofit practitioners with resources designed to help them "craft, curate and share impactful stories."

Diversity

Writing in the Nonprofit Quarterly, Derwin Dubose, co-founder of New Majority Community Labs, a social venture that works to empower communities of color to identify and solve their own challenges, argues that the nonprofit sector has a "Ferguson problem" of its own: too few people of color in positions of leadership. As a result, writes Dubose, "people of color are relegated to being mere recipients of philanthropy rather than becoming active partners in their communities' success."

Education

NPR, which seems to be doing a lot more reporting on the social sector of late, takes an in-depth look at Teach for America as the controversial organization celebrates its twenty-fifth year.

Giving

Nice piece by Peter Sims, co-founder of Fuse Corps, a social venture that gives up to twenty professionals a year the opportunity to help governors, mayors, and community leaders across the country bring about social change, on the origins and evolution of the #GivingTuesday movement. CauseWired president Tom Watson, who has been a "friendly skeptic" of #GivingTuesday in the past, also has some interesting thoughts about the success of the movement and how that success may portend a major shift in the way we give, volunteer, and organize around social causes.

No matter how you slice it, #GivingTuesday 2014 was a resounding success. If your nonprofit failed to capitalize on the buzz and good feeling surrounding the event, now is the time to start planning for #GivingTuesday 2015, writes Nancy Schwartz on her Getting Attention! blog.

What's driving next-gen giving? On the Forbes site, the Northwestern MutualVoice Team shares some findings from a 2013 survey conducted by 21/64, an organization that studies generational giving, and the Dorothy A. Johnson Center for Philanthropy.

Continue reading »

Weekend Link Roundup (November 29-30, 2014)

November 30, 2014

Advent_wreath2Our weekly roundup of noteworthy items from and about the nonprofit sector....

Civil Society

On her Philanthropy 2173 blog, Lucy Bernholz asks some important questions about the purpose of civil society -- that peculiar space which "stands alongside, interdependent with the private and public sectors" -- in a democracy, and provides some answers of her own.

Fundraising

The December Nonprofit Blog Carnival, which is being hosted by Joe Garecht at the Fundraising Authority, is open for submissions. This month's roundup is dedicated to getting nonprofits (and the people who run and govern them) to think bigger about fundraising. To have your post considered for inclusion, it must be submitted by the end of the day on December 29. Good luck to all!

Writing on the Huffington Post's Impact blog, Ritu Sharma, CEO of Social Media for Nonprofits, argues (unsurprisingly, perhaps) that social media "has democratized fundraising so that deep pockets are no longer required. Anyone with five dollars and a smartphone can be a philanthropist."

With #GivingTuesday right around the corner, it may be too late to take advantage of the fundraising advice Hilary Doe, a vice president at NationBuilder, shares on the Huffington Post, but, as she makes clear in her post, truly effective fundraising is all about year-round engagement with your supporters.

International Affairs/Development

How much of the money pledged by donor governments for Ebola relief efforts has been delivered to date? The answer, according to a report by Abby Haglage on The Daily Beast, is "not much."

A text message about a commercial jetliner hitting a water buffalo on takeoff is the point of departure for Zia Khan, vice president for strategy and evaluation at the Rockefeller Foundation, to reflect on India's past, present, and future.

Continue reading »

Tips for End-of-Year Foundation Fundraising

November 18, 2014

End_of_year_fundraisingThis is the time of year when every nonprofit CEO sinks or swims. Either you secure the last of the grants needed to balance your organization's budget or risk running a deficit and ruining its balance sheet. But while you might think it's too late to save 2014, the last six weeks of the year are actually an excellent time to pursue foundation grants. Here are a few tips to help you do so:

Foundations are like people. At the end of the day, whether it's a small family foundation or a large independent foundation,
it takes people to make a grant, and, when it comes to deadlines, most people procrastinate. In other words, an awful lot of grants get made in the last quarter of the year, and a surprising number of those grants are made in December.

Meeting the payout requirement is trickier than you think. Foundations are required by law to spend 5 percent of their assets annually for charitable purposes. This can include a portion of their own operating costs, but most of it tends to be paid out in grants. Many foundations base this 5 percent minimum on a rolling three-year average of the value of their investments. With the fairly constant oscillations of the stock market, you can imagine this is something of a moving target for most foundations. Add to that the fact that grants sometimes don't materialize, organizations implode, and stuff happens, and foundations often have to scramble to make last-minute grants to achieve their mandated 5 percent payout.

The stock market is on a tear. Though 2014 has been a bit bumpy, the markets are up and have been very good to foundations over the past three years. This means that foundations will be calculating their 5 percent payout on an asset base that is larger than at any time since before the Great Recession. It's the reason why U.S. foundations will pay out nearly $60 billion in grants in 2014.

Continue reading »

Weekend Link Roundup (November 8-9, 2014)

November 08, 2014

GOP_waveOur (slightly abbreviated) weekly roundup of noteworthy items from and about the nonprofit sector....

Civil Society

Pooja Gupta, a writer at Harvard's Shorenstein Center on Media, Politics and Public Policy, reviews the findings of a 2014 study published in Psychological Science which found that Americans' trust in each other and their institutions (the military excepted) has hit all-time lows in recent years. According to the authors of the study, "Trust in others and confidence in institutions [are] key indicators of social capital," but that kind of "capital"

was lower in recent years than during the Watergate scandal of the early 1970s; the Iran hostage crisis and "national malaise" of the late 1970s and early 1980s; the height of the crime wave in the early 1990s; the Clinton impeachment of the late 1990s; the September 11, 2001, terrorist attacks; and the financial crisis and recession of the late 2000s....

Climate Change

Not that the new Congress will have any interest, but here are ten facts about climate change from the UN's new climate report that should give everyone pause.

Fundraising

The host of this month's Nonprofit Blog Carnival, fundraising consultant Pamela Grow, has issued a call for submissions. As has been the case for the past few years, this month's roundup is looking for submissions that detail how nonprofit organizations around the world are creating an "attitude of gratitude" (i.e., celebrate the donors who make their work possible). Here's how to submit:

  1. Write a blog post, or choose a recent post that fits the theme.
  2. Submit the post via email to: nonprofitcarnival@gmail.com – be sure to include your name, your blog's name and the URL of the post (not your blog homepage).
  3. Get your post in by the end of day on Sunday, November 23. You can check back on Monday, November 24, to see if your post made the cut!

Global Health

The hysteria around Ebola in the U.S. may be fading, but the ignorance and misconceptions that fueled it in the first place are still very much with us, Angélique Kidjo, a singer and songwriter from Benin, reminds us in in an op-ed in the New York Times.

Continue reading »

Most Popular PhilanTopic Posts (October 2014)

November 01, 2014

Lots of good posts here on PhilanTopic in October. Didn't catch them all? No worries. Here's a look back at the posts that were especially popular during the month. Have a post you'd like to share? Drop us a line at mfn@foundationcenter.org.

What have you read/watched/listened to lately that surprised, delighted you, or made you think? Share your finds in the comments section below....

Contributors

Quote of the Week

  • " I have decided to stick with love. Hate is too great a burden to bear...."

    Martin Luther King, Jr.

Subscribe to Philantopic

Contributors

Guest Contributors

  • Laura Cronin
  • Derrick Feldmann
  • Thaler Pekar
  • Kathryn Pyle
  • Nick Scott
  • Allison Shirk

Tweets from @PNDBLOG

Follow us »

Tags

Other Blogs