119 posts categorized "Giving"

5 ways to use your donor data for #GivingTuesday

September 04, 2020

Donate-now#GivingTuesday is a global day of generosity that usually takes place the Tuesday after Thanksgiving. In 2019, $1.97 billion was raised on that Tuesday alone. And this year, nonprofits have an opportunity to build on that success and generate even more support for their programs and mission.

As you and your colleagues begin to prepare for this year's event and start to brainstorm strategies to maximize your organization's success, consider how donor data can help. From conducting prospect research before the big day to analyzing the data afterwards, there are many ways that donor data can be used to elevate your #GivingTuesday results specifically and overall fundraising results more generally.

Below, we consider in more detail some of the most effective ways to utilize donor data, including:

  1. keeping your data clean
  2. identifying your best prospects
  3. segmenting your donors
  4. optimizing future outreach
  5. looking for opportunities to match gifts

Let's take a closer look at each of our recommendations for putting donor data to good use this #GivingTuesday.

1. Keep your donor data clean. We've found that it's easier to use donor data when that data is clean. Strategizing and designing a #GivingTuesday campaign with incorrect data can negatively impact relationships with donors you've spent so much effort cultivating. If you're looking for an in-depth explanation about the importance of data hygiene, check out this article from AccuData.

The easiest way to create and maintain clean data is to use a CRM (constituent relationship management) database. A CRM compiles information about each of your constituents in individual profiles, enabling you to easily access any donor's giving history, communications activity, and relationship status.

With a CRM, you can also do the following to clean your data:

  • remove duplicate profiles
  • verify that a donor's contact information is up-to-date
  • remove the profiles of donors who haven't given in many years (although you should send a final appeal to them before removing their profiles from the system)
  • search for donors who have passed away since your last communication
  • egment your donors into relevant groupings

Once you've cleaned the data, analyze it for insights that can help you craft an effective outreach strategy. #GivingTuesday only comes around once a year, so make sure your planning for it is based on the best data you can get your hands on.

2. Identify new prospects. After you've cleaned your donor data, take the time to analyze it. Part of that process is what we call prospect research. Simply put, prospect research is the process of researching your would-be supporters to see which of them is most able and willing to donate to your organization. Some of the prospects you identify through the process will become regular supporters of your organization and a few of them could even have a significant impact by contributing a major gift.

Major donors should always be a priority for your organization. Some fundraising professionals even go so far as to say that 89 percent of a nonprofit's fundraising revenue should come from just 14 percent of its donors. That's why it's important to start cultivating these relationships as soon as you can — major donors tend to give their biggest gifts to organizations that consistently and authentically engage with them.

Determining which of your supporters is most likely to be a major donor before #GivingTuesday gives you the chance to approach them ahead of time and see where they stand.

To conduct prospect research efficiently, start by filtering your donor data using wealth and charitable indicators:

  • Wealth indicators. Things like real estate ownership, stock holdings, business affiliations, and so on will give you an idea of an individual's capacity to give.
  • Charitable indicators. A donor's past giving patterns, his or her relationship to your cause, his or her political contributions history, and so on will give you an idea of his or her willingness to give.

While you can conduct prospect research manually, your best bet is to invest in a tool built for the purpose. To learn more about how all these factors can be brought together to create useful profiles of your donors, check out our Essentials for Prospect Research guide.

3. Segment your donors. You can also use donor data to segment your donors. This is a great marketing strategy and is something you should do both before and after #GivingTuesday. Why?

Donor segmentation helps you better communicate and reach out to supporters in ways that are most likely to catch their attention and encourage their engagement.

You already know that donor data is key to beginning and sustaining valuable relationships. And, as we've noted, a good CRM will store and organize all your data for effective management.

Once your data is organized in your CRM, you can start grouping supporters. Segment your database into different lists based on key metrics and then formulate different communication strategies for each one. You can, for instance, segment donors by:

  • donation frequency
  • preferred method of giving
  • engagement preference or history
  • location
  • age
  • business affiliations
  • volunteer history

All of these factors (and more) should influence how you reach out to supporters before #GivingTuesday (and afterwards). For example, you might find that younger people in your audience prefer to be communicated with via social media, whereas older folks prefer email or even direct mail.

4. Optimize future outreach. One of the best ways to increase response rates, build deeper connections, and improve donor retention is to personalize your outreach. Simply sending a thank-you email with a donor's name and the size of her gift size will help her remember you the next time she decides to make a donation.

And after #GivingTuesday is over, you're likely have a whole batch of new donors, as well as data about them that will come in handy for your future fundraising and stewardship efforts.

You can use that data to retain some of these new supporters and broaden your donor base in the long run by doing the following:

  • sending personal, targeted appeals asking for a specific contribution amount based on your donor analytics;
  • automating personalized gift receipts and acknowledgments, which can be done by using a mail-merge tool in your CRM;
  • using templated donor letters to explain to supporters how their gifts have advanced your mission and how their future gifts will continue to make an impact.

These and other ideas can help you close out the giving season on a positive note and set up additional donor-cultivation efforts in the new year.

5. Look for opportunities to match gifts. The relationship between nonprofits and for-profit businesses is changing as corporate social responsibility (CSR) policies are adopted by more and more corporations and companies step up to match donations that their employees make to nonprofits.

Unfortunately, many gifts go unmatched simply because donors are unaware that their gifts are match-eligible.

It's estimated that the nonprofit sector misses out on $4 billion to $7 billion in matching funds every year.

This #GivingTuesday, don't leave money on the table. The best ways to incorporate matching gifts into your strategy and ensure you leverage your donors' support to the maximum include:

  • embedding a matching gift database on your donation page that allows donors to look up their company and access any information it may have provided about its matching-gift policies.
  • using software that allows you to automatically look up email address domains provided by donors. If an email address is associated with a company that matches gifts, the donor will be notified of his or her eligibility.

Read more about corporate matching-gift programs and learn how you can maximize your fundraising potential by reviewing Double the Donation's corporate matching gift guide.

There are many ways to analyze and use your donor data. Whether that means identifying prospective donors, segmenting donor profiles, or just keeping your data clean, everything you do with the information you collect will have an impact on your fundraising efforts going forward. But don't take our word for it. Maximize your donation revenue this #GivingTuesday by trying out some or all of these techniques!

Sarah Tedesco_DonorSearch_PhilanTopicSarah Tedesco is executive vice president of DonorSearch, a prospect research and wealth screening company.

Donors have an opportunity to build on last year's strong giving

August 17, 2020

Closed_coronavirus_united_wayAccording to Giving USA 2020: The Annual Report on Philanthropy for the Year 2019, charitable giving increased 4.2 percent in current dollars, to $449.64 billion, in 2019, making it the second highest year for charitable giving (when adjusted for inflation). While it's too soon to tell what that will mean for 2020, such a strong show of support for the charitable sector is an encouraging sign in what otherwise is an uncertain philanthropic environment, thanks to the spread of COVID-19.

Clearly, many Americans view generosity as an important part of their lives. The Giving USA data from 2019 and the philanthropic trends we've seen in past recessions (as reported in Giving USA) can help us understand what we should expect in these uncertain times.

A strong economy in 2019 resulted in more giving by individuals, corporations, and foundations, as well as increases in giving to organizations in all but one of the nine recipient categories tracked by Giving USA — six of which recorded their highest ever giving totals (adjusted for inflation) in 2019. The analysis also found that the growth in giving in 2019 was driven by a jump in giving by individuals, which rose 4.7 percent and logged its second-highest dollar total (adjusted for inflation) ever — and which handily remains the largest single source of charitable giving at 69 percent of total giving. In recent years we've also seen giving by foundations comprising an increasingly larger share of total giving emerge as a trend; in 2019, that share was 17 percent for the second year in a row, the highest on record.

The uncertainty around the COVID-19 situation in the United States makes it almost impossible to predict when and how quickly the economy will fully recover. Giving USA found that in 2007-09, the period immediately preceding and following the financial crisis, foundation giving grew 3 percent, even as overall giving declined 12 percent. And to date in 2020, we've seen foundations increase both the number and dollar amount of the grants they make to help fill gaps created by the virus, as well as accelerated distributions from donor-advised funds.

Dunham + Company's own study found that the oldest donors, regular churchgoers, and self-described conservatives were more likely to say they would maintain their giving at last year's levels or increase it. Many also cited COVID-19 as the main reason they plan to give more. However, the study also found that many donors were anxious about the virus and its impacts, causing a quarter (25 percent) of respondents to say they plan to cut back on their giving. From where we sit, the charitable organizations that have had success since the virus emerged as a public health crisis have pivoted quickly to donor-centric communications that emphasize the challenges donors might be facing while also affirming the relevance of their missions. Indeed, a number of our clients have recorded some of the best daily giving totals in their history over the past few months.

Conversely, the organizations that have struggled are those that have not been able to pivot, for whatever reason, to online giving and/or have not diversified their base of support. I'm particularly concerned for nonprofits in education and the arts, culture, and humanities — organizations that rely on major gifts or do not have large endowments — even though giving to these sectors saw double-digit growth in 2019. If they hope to maintain both their relevancy and viability, it will be important for these organizations, once we're on the other side of the pandemic, to be able to demonstrate that they weathered the storm and are in a good position to continue serving their communities.

Ultimately, donors have an opportunity and a responsibility to make their dollars count on behalf of the organizations and sectors they care about most. We still have time in 2020 to make this a year of solid philanthropic support for the charitable sector.

Rick Dunham_PhilanTopicRick Dunham is the immediate past chair of the Giving USA Foundation and founder and CEO of Dunham + Company. He has spent more than forty years in marketing, fundraising, and organizational development for nonprofit organizations. Giving USA, the longest-running and most comprehensive report of its kind in America, is published by the Giving USA Foundation and is researched and written by the Indiana University Lilly Family School of Philanthropy.

Women and the changing face of philanthropy

July 29, 2020

Women_high_fives_GettyImages_PhilanTopicAs the current global public health crisis galvanizes people to give, women are well positioned to accelerate changes in the philanthropic landscape that are already in motion.

According to Giving USA's recently published Report on Philanthropy for the Year 2019, charitable giving in America totaled nearly $450 billion in 2019, the second-highest total ever (adjusted for inflation) and a 4.2-percent increase from 2018.

And while conventional wisdom might have predicted a decline in giving over the first three months of 2020 due to COVID-19, the pandemic has actually motivated Americans to give at a rate higher than seen in the wake of the 2008 financial crisis and after the 9/11 attacks. Further evidence of Americans' generosity was provided by Fidelity Charitable, which released a report in June showing that grant awards from its donor-advised funds since the beginning of the year totaled some $3.4 billion, up 28 percent over the six-month period in 2019.

Another survey, this one conducted by the Community Foundations Public Awareness Initiative, found an 80 percent year-over-year increase in gifts to thirty-two community foundations from March to May 2020.

"Before the pandemic started, women were increasing their giving and broadening beyond what they might normally support," Jennifer Alcorn, deputy director of philanthropic partnerships for the Bill & Melinda Gates Foundation, told Forbes. "From research and development, local food banks, giving direct relief to families across the country, to global health — women are a driving force behind the increase in giving we're seeing right now."

This shifting dynamic is best understood as a movement started by women eager to engage in philanthropy that has the potential to benefit women. According to the Boston Consulting Group, private wealth held by women grew from $34 trillion to $51 trillion between 2010 and 2016 — an increase of 50 percent in just six years. It's a trend likely to continue, as a significant amount of the private wealth projected to change hands over the next few decades is likely to be transferred to women.

What's more, it seems that philanthropy comes naturally to women. A 2017 study by the University of Zurich found that women are more likely than men to engage in prosocial behavior (defined as voluntary behavior intended to benefit others), including simple acts of kindness and donating to charity. Indeed, research supported by PayPal found that women give more to charity despite earning 19 percent less than men, and that as they age they become even more generous.

Perhaps most importantly, women are taking control of their own destiny. A study by the Women's Philanthropy Institute at Indiana University-Purdue University Indianapolis found that women increasingly are spearheading efforts focused on addressing women's issues. Specialized women's funds and foundations are going beyond grantmaking to achieve impact, engaging in activities such as relationship-building, partnerships, and policy advocacy to pursue broader social change.

All of this affirms what I have witnessed as a professional philanthropist and social activist: as women secure more power for themselves, the face of philanthropy will continue to change. It is vital that women shape those trends with intention and an eye to strategy.

One way women who engage in philanthropy can be consequential is to encourage increased support for nonprofits working to empower women and girls, including organizations focused on preventing and funding a cure for breast cancer, providing relief for women who are victims of domestic violence, and supporting female entrepreneurs. While women are exceedingly generous when it comes to donating to other important causes, just 1.6 percent of Americans' charitable giving goes toward nonprofits that work to empower and advocate for women and girls. If women better support one another, others will surely follow and increase their support for women who find themselves at risk.

Women also can more effectively support each other by approaching philanthropy strategically and with the goal of maximizing their return on investment. Individually and collectively, we can be more discerning when deciding where to give and using data to shape our decisions. Viewing giving as a business whose ultimate objective is to deliver the best result for the greatest number of girls and women almost always will amplify the impact of one's gift.

At the Ruderman Family Foundation, we use an intersectionality lens to focus our philanthropic investments: empowering marginalized communities and women to take a more active role in shaping their lives. My experience over the last twenty years has taught me that our approach to  managing challenges and creating solutions works. Philanthropy has proved to be one of the best vehicles we have to express our values and put to work our skills and expertise. I know, and my experience has taught me, that women and girls can be powerful agents of change, and it is up to  philanthropy to help them fulfill that destiny in the boldest way possible.

The tangible impact of women's giving will continue to change the world. The COVID-19 pandemic is an opportunity to accelerate this much-needed revolution.

Shira Ruderman_PhilanTopic Shira Ruderman is the executive director of the Ruderman Family Foundation.

Nonprofits and COVID-19: No Money – No Mission

April 09, 2020

Foodbank_feeding_americaWith more than 12.5 million employees and over 1.3 million organizations, the nonprofit sector is the third largest private-sector employer in the United States, after retail and manufacturing. Nonprofits touch the lives of one in five Americans, helping to feed, heal, shelter, educate, nurture, and inspire them. 

Over the last month or so, however, COVID-19 has laid bare the reality of the nonprofit mantra "No Money – No Mission." In our current volatile environment, some nonprofits will thrive, some will be forced to close, and some — with the help of smart, speedy planning — will survive.  

Nonprofits on the front lines of the coronavirus response, including nonprofit hospitals, social service providers, and food banks, need immediate funds to scale their operations. The good news is that many of these nonprofits will come out of the crisis stronger than ever. 

Other nonprofits are at real risk. Smaller, local nonprofits that have meager or nonexistent reserves are already feeling the strain — especially museums, performing arts groups, botanical gardens, and other cultural organizations that depend on ticket sales and walk-in donations for revenue. Meanwhile, nonprofits that rely on galas, special dinners, and events such as walkathons, bikeathons, "mudfests," and other large-scale gatherings are in trouble. 

Even before the emergence and spread of COVID-19, the situation for most nonprofits was fairly dire. In 2019, the vast majority (92 percent) of nonprofits in the U.S. had revenues of less than $1 million, while approximately half (50 percent) had operating reserves of less than a month. These small and often local nonprofits are especially vulnerable to the lockdowns and shelter-in-place orders that have been imposed by governors and mayors across the country — and the deep recession  likely headed our way.

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Global Philanthropic Response to COVID-19 Approaches $3 Billion

March 31, 2020

On March 3, Candid identified almost $1 billion in pledges and donations in support of global relief efforts focused on mitigating the impacts of the novel coronavirus (COVID-19). In the weeks since, the virus has infected 719,758 people worldwide and resulted in the deaths of more than 33,673. As the relatively localized outbreak in Wuhan, China, rapidly morphed into a global pandemic, the philanthropic community stepped up to meet the challenge, with pledges and donations in support of relief efforts almost tripling, to $2.6 billion, by March 23.

As was the case during the first two months of the crisis, overall giving for COVID-19 relief in March mirrored historical patterns of disaster giving in every way except total dollar amount (i.e., giving in response to COVID-19 has been much higher). What has changed over the last couple of weeks is funding by country, which has closely tracked migration of the disease.

Fig.1.1Together, the United States and China (including Hong Kong and Macao, China’s Special Administrative Regions) continue to account for 87 percent of pledges and 83 percent of total dollar amount, but the U.S. total has increased almost 700 percent since March 3 and now accounts for more than two-thirds of pledges and almost half the dollars pledged globally for COVID-19 relief. Italy, where the philanthropic response was almost nonexistent two weeks ago, now accounts for 11 percent of total dollar value.

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Weekend Link Roundup (March 21-22, 2020)

March 22, 2020

Coronavirus-times-square-subway-06There's no other way to put it: we've just experienced one of the most extraordinary weeks in our lifetimes. On the off-chance you were rafting the Grand Canyon, here's our weekly roundup of noteworthy items from and about the social sector — and, yes, it's heavy on coronavirus-related items. For more links to great content, follow us on Twitter at @pndblog....

Economy

"This is not a hoax. Repeat, this is not a hoax." Multinational investment bank Morgan Stanley sees the U.S. economy falling into a deep recession in the second quarter, with GDP plunging 30 percent and unemployment spiking to nearly 13 percent. "Economic activity has come to a near standstill in March," the bank's economists said in a report to clients on Sunday. "As social distancing measures increase in a greater number of areas and as financial conditions tighten further, the negative effects on near-term GDP growth become that much greater." 

Education

On the Brookings site, Nicol Turner Lee, a governance studies fellow in the Center for Technology Innovation, notes that "[w]ith a disproportionate number of school-age children lacking home broadband access, the breadth of the U.S. digital divide has been revealed [by the pandemic] as schools struggle to substitute in-school resources with online instruction, electronic libraries, streaming videos, and other online tutorials."

Philanthropy

More than 200 (and counting) foundations — private, community, and public — have signed a pledge spearheaded by the Ford Foundation in partnership with the Council on Foundations to take urgent action "over the days, weeks, and months ahead" to help people and communities hit hardest by the impacts of COVID-19, including loosening or eliminating restrictions on current grants; reducing reporting requirements, site visits, and other demands; contributing to community-based emergency response funds and other efforts to address the health and economic impact on those most affected; communicating proactively and regularly about decision-making and response efforts; and committing to listening to  partners and, especially, to those communities whose voices are least heard.

Foundations and other endowed institutions tend to be quite protective of their corpora, thinking that they need to be saved for a rainy day. Nonprofit AF's Vu Le has a message for those institutions: This is your rainy day.

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Weekend Link Roundup (February 15-16, 2020)

February 16, 2020

Diamond princessOur weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Fundraising

Everything in the world of fundraising is based on relationships, or should be, right? Well, sort of, writes Vu Le on his Nonprofit AF blog. "[O]ur reliance on relationships is...problematic, as it often creates and enhances inequity and thus undermines many of the problems we as a sector are trying to address" — for example, by further marginalizing people and communities that don't have the same access to relationships as better-resourced communities and nonprofits, or by reinforcing our natural bias toward people who look, think, and act like us. 

Giving

On the Alliance magazine blog, Alisha Miranda, chief executive of I.G. advisors, considers the pros and cons of curated approaches to giving.

Grantmaking

PEAK Grantmaking has released a set of resources designed to help grantmakers operationalize the second of its five Principles for Peak Grantmaking: Narrow the Power Gap. Within that frame, the organization has three very specific recommendations: build strong and trusting relationships with your grantees; rightsize the grantmaking process and implement flexible practices that reduce the burden on your grantees; and structure grant awards to be more responsive to grantee needs. Elly Davis, a program manager at the organization, shares more here.

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Addressing Student Debt Through Philanthropy

February 04, 2020

GettyImages-1042539442_student_debt_piggybankIn an age of mega-donors and flashy facilities, higher education philanthropy increasingly is about bigness. Philanthropists and foundations scramble to put their names on buildings, endow chairs in popular departments, and fund the next scientific breakthrough.

Investing in higher education often is a great use of philanthropic dollars. But high-dollar gifts aren't the only big figures in higher education. These days, too many college students are burdened by the millstone of unconscionable debt. Indeed, as we begin a new decade, cumulative student debt in the United States has reached $1.6 trillion.

And debt is not the only financial challenge college students face. Once you factor in the supplementary or "incidental" costs of attending college, today's college students face a kind of death by a thousand cuts. Textbook costs are up 87 percent since 2006 — more than any other college-related expense. The cost of essentials like laptops, transportation, and living expenses often outstrip students' ability to meet them. Students are encouraged to prepare for the real world after graduation by taking low- or unpaid summer internships — another expense many simply cannot afford. As higher ed technology and course software changes, the costs add up.

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Weekend Link Roundup (January 25-26, 2020)

January 26, 2020

Trump_Impeachment___Roberts.7Our weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Fundraising

It's the end of the world as we know it...and most of us feel fine. "Starting this year," writes Jeff Brooks on his Future Fundraising Now blog, "there will be no new Boomers entering the most-likely-to-donate stage of life. Now, they can only leave that stage...the hard way."

Giving

Did you get a few fundraising solicitations over the holidays? Looking for a way to cut back on all the mail/email you receive from charities at the end of the year? Charity Navigator's Kevin Scally and Ashley Post share a few tips designed to help you regain control of your mailboxes.

Health

Writing on the Robert Wood Johnson Foundation's Culture of Health blog, Dolores Acevedo-Garcia, professor and director of the Institute for Child, Youth and Family Policy at the Heller School for Social Policy and Management at Brandeis University, looks at how the latest iteration of the Child Opportunity Index, which she and her team at Brandeis first developed in 2014, can be used to help researchers and policy makers understand how children are growing up today in any neighborhood in the United States.

On the Commonwealth Fund's To the Point blog, Los Angeles Times reporter Noam Levey movingly describes the "lightbulb" moment that happens for people who experience a strong, patient-centered health system.

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How Philanthropy Can Benefit From Tapping Into Instagram Communities

January 13, 2020

Instagram_logoJudging from media coverage and online conversations, it's clear we're living in a time of heightened social consciousness ("wokeness"). Whether that sentiment is driven by genuine concern for the fate of the planet and the welfare of others or a simple desire to be part of a collective is unimportant: people being willing to live less selfishly is a good thing.

That said, changing attitudes and ways of seeing the world don't automatically translate into economic or cultural impact. If we hope to drive meaningful action and change the world, this emerging way of seeing things needs to be broadened, deepened, and communicated as widely as possible. And the key to all that is social media.

When you strike the right tone and activate the right influencers, social media can transform a disparate group of strangers into a unified force for good. And if you were asked to pick one social media platform to focus your organization's resources on, it would have to be Instagram. While the image-friendly platform doesn't have the broad reach of Facebook, it's a powerful platform in its own right and has been growing in popularity, especially among millennials and their younger siblings.

Intrigued? Here are some things to keep in mind as your organization starts to think about using  Instagram to bolster its social-change efforts:

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Weekend Link Roundup (November 23-24, 2019)

November 24, 2019

Cornucopia-166186079-592c3f2b3df78cbe7e6c4135And...(long pause)...we're back with our weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Democracy

It’s been thirty years since the Berlin Wall fell, inspiring a democratic awakening across Central and Eastern Europe. What lessons does the end of the Cold War offer for the next generation of reformers? On the Open Society Foundation's Voices blog, Tim Judah reflects on his own experience and talks to activists in Hungary, Romania, Slovakia, and the Czech Republic about where they were in 1989 and their hopes for the future

Diversity

What is "equity offset" and why should you care? Nonprofit AF's Vu Le explains.

Education

On the GrantCraft blog, Anne Campbell, an assistant professor at the Middlebury Institute of International Studies, finds lots to like about Scholarships for Change, a new online resource created by our talented colleagues here at Candid.

Fundraising

If you're still fundraising on bended knee — well, stop it. Social Velocity's Nell Edgington explains why in the new year you need to think about "making your ask from a place of true worthiness, true value, and true equality."

Giving

Effective altruism site GiveWell is offering matching funds to any donor who hears about the organization's work via a podcast ad campaign it is running. Learn more here.

Grantmaking

As she prepares for the next stage of her career in philanthropy, Michelle Greanias, who recently ended her tenure as executive director of PEAK Grantmaking, reflects on what she has learned over the last eleven years.

On the Transparency Talk (Glasspockets) blog, Claire Peeps, executive director of the Los Angeles-based Durfee Foundation, explains why its important for a foundation, even a leanly staffed foundation like hers, to keep the door open to all kinds of nonprofits.

Health

Citing research and resources that demonstrate the critical connection between health and rural economic development, Katrina Badger, MPH, MSW, a program officer at the Robert Wood Johnson Foundation, and Katherine Ferguson, MPA, associate director of the Aspen Institute Community Strategies Group (CSG), argue that we need to rethink how we invest in rural America and the way we approach health and equity across its diverse communities.

Nonprofits

Is your nonprofit measuring the things it should be measuring? Is it measuring anything at all? On the Candid blog, Steven Shattuck, chief engagement officer at Bloomerang and executive director of Launch Cause, walks readers through the five key performance indicators that every nonprofit should be measuring.

Over the last three weeks or so, the National Committee for Responsive Philanthropy has been announcing the winners of its 2019 Impact Awards. Check out these links to learn more about the Emergent Fund, Unbound Philanthropy, the Libra Foundation, and the Marguerite Casey Foundation. And congrats to all!

Philanthropy

On the Center for Effective Philanthropy blog, Dawn Franks, CEO of Your Philanthropy and the author of Giving Fingerprints, regrets the fact that too many donors seem not to understand the importance of the relationships they have (or don't) with the nonprofit organizations they support.

Science/Technology

On the Ford Foundation's Equal Change blog, technology fellow Michelle Shevin and Michael Brennan, a program officer in the foundation's Technology and Society program, explain why this is a critical moment for open-source digital infrastructure.

Social Good

Did you know that by 2025, millennials will comprise three-quarters of the American workforce? What are the implications of that for capital providers, asset managers, social enterprise founders, foundations, corporations, and impact funds looking to leverage their assets for social good? On the Alliance magazine blog, Christina Wu, community and impact measurement manager at European Venture Philanthropy Association, shares some thoughts.

That's it for now. Drop us a line at Mitch.Nauffts@Candid.org if you have something you'd like to share. And Happy Thanksgiving to all! We'll be next Sunday with another roundup.

Charitable Gift or Bribe? Lori Loughlin's Legal Case Rests on Dubious Claim

September 04, 2019

USC_gateLast week, Lori Loughlin, the actress, and her husband, the designer Mossimo Giannulli, may have provided a glimpse of their defense strategy when they appear in court in October in connection with payments they made, say prosecutors, to help their daughters gain entrance to the University of Southern California. Their likely argument: the money wasn't a bribe; it was an act of altruism.

Loughlin's case is part of a larger — and by now, infamous — scandal involving thirty-four parents who were charged last March with paying money to a third party to "facilitate" their kids' admission to elite universities. Fifteen of those parents have pleaded guilty to fraud. One of them, actress Felicity Huffman, has pleaded guilty to paying $15,000 to have her daughter's SAT exam score artificially inflated and is scheduled to be sentenced on September 13. Unlike Huffman, Loughlin and Giannulli, who parted with $500,000, are planning to fight it out in court.

Loughlin's attorney, William Trach of Latham & Watkins, contends the money the government calls a bribe was really a charitable donation. "Checks were made out to USC Athletics and to a fund at USC," he says. "Those checks were cashed by USC." Trach’s logic, apparently: the money was sent to a tax-exempt charitable organization, and the organization put the money into its bank account; therefore, it was a charitable contribution. (Yes, the University of Southern California, with its $5.5 billion endowment, is a tax-exempt charitable organization.)

Money also traveled through another charity, Key Worldwide Foundation (KWF), which was established by William "Rick" Singer, the man behind the admissions scheme. Singer has pleaded guilty to racketeering charges and is now cooperating with prosecutors. We will likely hear more about KWF during the trial, but one question the prosecution should ask is how much Loughlin and her husband donated to entities not caught up in the scandal. Since their lawyer contends that their donations — that's plural — were in support of opportunities for underprivileged students, it might be helpful to know if the couple supported other, similar causes. In fact, it would provide context for their claim of generosity to know how charitable in general the couple has been over the years.

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5 Questions for...Kashif Shaikh, Co-Founder and Executive Director, Pillars Fund

August 27, 2019

Kashif Shaikh is co-founder and executive director of the Chicago-based Pillars Fund, a grantmaking organization that invests in American Muslim organizations, leaders, and storytellers in order to advance equity and inclusion. Established in 2010 as a donor-advised fund at the Chicago Community Trust with investments of $25,000 each from five Muslim-American philanthropists, the fund became an independent organization in 2016 with seed funding from the W.K. Kellogg Foundation. To date, the fund has awarded $4 million in grants to small and midsize nonprofits to help ensure that American Muslims are able to thrive and live with dignity — and continue to have opportunities to contribute to civil society and public discourse.

PND asked Shaikh about the role of Muslim philanthropy in American society, the importance of supporting "culture work," and the fund’s current priorities.

Kashif_Shaikh_pillars_fundPhilanthropy News Digest: Your website states that the fund’s grantmaking "is inspired by Muslim tradition, which includes respect, conviction, sacrifice, action, and generosity." Why don't Muslim philanthropies and charities have a higher profile in the United States?

Kashif Shaikh: Giving of one's wealth, time, or effort is deeply embedded in the Muslim tradition. And in the United States, the earliest recorded example of Muslim giving was by enslaved Muslims, who in the nineteenth century distributed saraka in the form of small cakes to children on plantations off the coast of Georgia, continuing a tradition from West Africa. The word saraka is closely related to the word sadaqah, the Arabic word for "charity." This is important to acknowledge as we try to build on what generations of Muslims have already done in this land.

Three-quarters of Muslims in the United States today are immigrants or children of immigrants, and half of all U.S. Muslims arrived after 1970. Over the last fifty years Muslim communities put a lot of resources into building mosques and other communal spaces as they put down new roots here. A significant portion of this giving happened through informal networks rather than through established foundations and funds.

More recently, Muslim giving has been gaining greater visibility for a number of reasons. Many of our philanthropic and nonprofit institutions are relatively new to the scene. Among our grant applicants, 20 percent of the Muslim, Arab, and South Asian-led organizations were founded before September 11 and 80 percent were established on or after September 12, 2001. This tells us that many charitable efforts in our communities have been launched in response to the crises we faced. And, we've seen another burst of need  — as well as innovation — since the 2016 general election, which signaled another moment of crisis and "profiling" of our communities.

Unfortunately, many philanthropic efforts led by people of color have been historically overlooked and undervalued in this country. "Our issues" have not been seen as relevant to American society overall. More recently, however, attacks on the civil and human rights of Muslims in the U.S. have signaled a broader erosion of rights across communities. It has become increasingly clear to us that Muslim communities are going to have to coordinate our efforts to defend ourselves against these threats and work more closely with other impacted communities to protect ourselves.

At Pillars, we've recognized the need to target our resources, which includes funding those who are at the forefront of some of these challenges. As Muslims have entered more civic spaces and joined more networks and coalitions — and have been recognized for our work in doing so — our profile has been rising. We are intentional about raising our visibility because it is important for everyone to understand the role Muslims have played, and continue to play, in bettering society, whether through our philanthropic, cultural, or civic contributions.

PND: The fund works to achieve its goals through three program areas — grantmaking in support of "rights, wellness, and understanding"; empowering American Muslims to tell their own stories and ensure more accurate and authentic representations of Muslims in the media and culture; and providing thought leadership to foundations, think tanks, media, and civic leaders. Why is culture-focused work — for example, the multiyear public arts and oral history project you funded at Brooklyn Historical Society — so central to your efforts?

KS: Culture plays a tremendous role in shaping our beliefs about ourselves and others. Unfortunately, many people in the U.S. still hold a low opinion of Muslims, and much of that is rooted in the damaging narratives we’ve all been exposed to through popular culture, especially film and television, over many decades. If we want to shift how people perceive Muslims, we can't afford to ignore culture. Brooklyn Historical Society’s Muslims in Brooklyn oral history project, led by historian Zaheer Ali, empowers the borough’s Muslim communities to narrate a piece of New York City history. By listening to their stories, told in their own words, anyone can learn how Muslims have helped shape one of the world's most influential metropolises.

There is so much power in crafting and sharing your own story, which is why we are inspired by the oral history project. There is also a vast untapped reservoir of Muslim storytellers that we want to help organize and nurture. Muslims are one of the most racially and ethnically diverse faith communities in the U.S., and only when we appreciate the many perspectives within our community will we begin to understand what it means to be a Muslim in America. For example, the perspective of a newly arrived Syrian refugee could not be more different from the perspective of a fourth-generation African-American Muslim. We want to help create space to honor and share all of these stories.

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A Tale of Two Donations

August 15, 2019

Charitable-giftEarlier this year, I made a $15 donation to a small nonprofit and also pledged a planned gift, potentially worth six figures, to a huge charity. Guess which organization did a better job of followup?

Prompted by one of those "Thanks to a generous donor, all donations made TODAY will be matched!" appeals, I made the $15 donation online. As with most online donations, within minutes of pressing the "Donate" button I received an acknowledgment of my support.

But what was truly astonishing was what happened over the next two weeks: not only did I receive a written thank-you personally signed by the executive director by regular mail, I also received a phone call from a staffer thanking me for my generosity.

The potential six-figure planned gift was made in person, in the charity's office. I was there for a meeting and learned by happenstance that every time the organization was mentioned in a will or named as a beneficiary of a retirement fund, an anonymous donor would make a substantial gift to the group. I had long admired the charity's work, had made numerous gifts in support of its efforts in the past, and years ago had designated a percentage of my retirement account, upon my death, to its cause. With pleasure, I signed the pledge card, knowing that my potential future gift would also have an immediate impact on the organization's bottom line. I was thanked in person for my gift and was told I'd be invited to an event for those who had committed to making similar gifts.

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5 Questions for...Jane Wales, Co-Founder/CEO, Global Philanthropy Forum

April 25, 2019

As she was nearing the end of her fourth five-year term heading up the World Affairs Councils, Jane Wales decided it was time to let someone else run the show — an effort that includes organizing the annual Global Philanthropy Forum, which she co-founded in 2001 and which has evolved into a platform where philanthropic practitioners can share their knowledge and learnings with social investors, donors, and funders in other sectors.

PND caught up with Wales, who continues to serve as vice president and executive director of the Program on Philanthropy and Social Innovation at the Aspen Institute, during the recently concluded eighteenth annual Global Philanthropy Forum conference and spoke with her about the challenges confronting liberal democracy in an era of rising populism, the alarming decline in the public's trust of institutions, and her hopes for the philanthropic sector going forward.

Headshot_jane_walesPhilanthropy News Digest: You and your colleagues chose to organize this year's Global Philanthropy Forum conference around the theme "Reclaiming Democracy." Why?

Jane Wales: We're seeing a concerning trend of liberal democracies around the world shifting to illiberalism. These are places in which the vote remains sacrosanct — where citizens have the right to vote — but the protection of individual civil liberties is not. We see this is happening in the Philippines, in Turkey, in Poland and Hungary, South Africa, Venezuela, Brazil, and the United States. And you can't say it's all due to a cultural shift or particular event. Clearly, there are underlying trends affecting us all. The question then becomes: How do you push back on those trends? What is the role of philanthropy in building social capital and citizen agency? And what are the most important ingredients of a successful democracy? The theme of the conference is about identifying a big problem, but it’s a problem for which civil society has solutions.

PND: What are those solutions?

JW: The underlying trends being discussed here have to do with the confluence of the information revolution and globalization, as well as the major demographic changes we're seeing in many countries. Conference attendees are looking at each of these powerful trends and trying to figure out what are the upsides, what are the downsides, and how can we mitigate the danger they pose?

When it comes to the information revolution, we're looking at the role of digital media and social media in sowing division. When it comes to globalization, the upside is that it has lifted millions of people out of poverty and created great wealth — and a considerable amount of that wealth has been directed to the public good. But globalization has also created a situation in which the standard of living for the middle class in many countries is declining, and that has contributed to divisions — not just along political and economic lines, but also along educational lines, because the opportunities and outcomes for college graduates and high school graduates are significantly different. Inequity results.

In terms of demographic change, the most powerful concerns are mass migration in the face of deadly conflict or natural disasters on the one hand and normal immigration flows on the other. That begs the question not only of what needs to be done to prevent crises but also what is needed to forge a comprehensive immigration policy that the majority of Americans and other publics will support. We also need to think through what can and should be done to help newly arrived people integrate into the society that will be their new home. Nonprofits are already doing exceptional work in this area.

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Quote of the Week

  • "[L]et me assert my firm belief that the only thing we have to fear is...fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance...."


    — Franklin D. Roosevelt, 32nd president of the United States

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