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Fundraising

Top Five Ways Nonprofits Can Use Giving USA

By | All Posts, Boards + Leadership, Capacity Building, Commentary, Current Events/News, Donor Cultivation, Fundraising, Giving USA, Insights, Stewardship, The Giving Institute | No Comments

Giving USA is a powerful tool:  it is the most trusted annual report on the sources and uses of philanthropy in the U.S., but it’s also a valuable resource in helping us improve philanthropy.  Nonprofit organizations can (and should) use Giving USA to help identify trends as well as opportunities to strengthen resource development efforts.

Here are my Top Five Ways Nonprofits Can Use Giving USA to improve their fundraising:

5. Understand the correlations between giving and economic factors
The stock market, personal wealth, personal income, GDP, corporate pre-tax profits and unemployment rates impact giving by all four sources (individuals, foundations, bequests and corporations). Trends are closely monitored by people “inside” and “outside” the philanthropy sector.
Be aware of changes in these indicators, anticipate how changes will impact donors and adjust fundraising strategies accordingly

4. Confirm or dispel myths about giving
Economic and political scenarios, complex societal issues, diverse giving platforms, wealth and capacity are just some of the drivers behind philanthropy.
Understand the context of these drivers, help manage expectations about giving and set realistic and achievable goals

3. Educate Board members, volunteers, donors and staff about the broad context of philanthropic giving
Help stakeholders better understand your organization’s funding patterns and potential

2. Be nimble in your fundraising and stewardship
Nonprofit fundraising must evolve as philanthropy evolves.  We are seeing an increase in the popularity of non-traditional giving vehicles (such as donor-advised funds and non-cash assets) and donors want more evidence of the impact of their gifts.
Listen to your donors and prospective donors – and tailor your strategies to match their needs and expectations

1. Recognize the “individual giving effect”
An estimated 87% of total giving in 2016 came from individuals, bequests and family foundations.
There are human beings involved in every gift; focus on developing and maintaining meaningful relationships

And remember:

Strengthen your case for support:  the best cases are realistic, relevant and compelling while being supported by the facts and clearly communicating the purpose, programs and financial needs of your organization.

Celebrate your impact: Americans give an average of more than $1 billion a day to help others.  Nonprofits and donors are doing great work.

Giving makes a difference, to both giver and recipient, but we can do more.  So spread the word about the good philanthropy has done – and the good it will continue to do.

I encourage you to download the two traditional pie charts illustrating 2016 source contributions and recipients and share with Board members, your CEO and development staff.

View JB+A’s recap of Giving USA 2017  findings here.

Check out key takeaways from Dr. Rooney’s 2017 Giving USA presentation in Kansas City.

About Giving USA
For over 60 years, Giving USA: The Annual Report on Philanthropy in America, has produced comprehensive charitable giving data that are relied on by donors, fundraisers and nonprofit leaders. The research in this annual report estimates all giving to all charitable organizations across the United States.  Giving USA is a public outreach initiative of Giving USA FoundationTM and is researched and written by the Indiana University Lilly Family School of Philanthropy. Giving USA FoundationTM, established in 1985 by The Giving Institute, endeavors to advance philanthropy through research and education. Explore Giving USA products and resources, including free highlights of each annual report at its online store at www.givingusa.org for more information.

About The Giving Institute
The Giving Institute, the parent organization of Giving USA FoundationTM, consists of member organizations that have embraced and embodied the core values of ethics, excellence and leadership in advancing philanthropy. Serving clients of every size and purpose, from local institutions to international organizations, The Giving Institute member organizations embrace the highest ethical standards and maintain a strict code of fair practices. For information on selecting fundraising counsel, visit www.givinginstitute.org. Jeffrey Byrne has the honor of Chairing The Giving Institute Board of Directors (2015-2017).

Giving USA 2017: An Estimated $390.05 Billion to Charity in 2016

By | All Posts, Annual Giving, Current Events/News, Fundraising, Giving USA, News You Can Use | No Comments

Giving by American Individuals, Foundations, Estates and Corporations Reaches a New High for the Third Straight Year
Giving by individuals drove the rise in total giving; all nine major philanthropy subsectors experienced giving increases–
for the sixth time in the last four decades

Jeffrey Byrne + Associates, Inc., U. S. Trust and Nonprofit Connect recently presented Giving USA 2017: The Annual Report on Philanthropy for the Year 2016 in Kansas City. Special guest Dr. Patrick RooneyAssociate Dean for Academic Affairs and Research and Professor of Economics and Philanthropic Studies at the Indiana University Lilly Family School of Philanthropy shared highlights from the report to a full house at the Ewing Marion Kauffman Foundation Conference Center. 

Americans donated an estimated $390.05 billion to charity in 2016, achieving an all-time high for the third year in a row. This figure also represents a 2.7 percent growth in current dollars (1.4 percent when adjusted for inflation) over the revised estimate of $379.89 billion for total giving in 2015. Total giving cumulatively grew 6.8 percent between 2014 and 2016.

These findings are contained in Giving USA 2017: The Annual Report on Philanthropy for the Year 2016.  The seminal report on charitable giving, Giving USA is the longest-running and most comprehensive evaluation of philanthropic trends in the United States. Giving USA is published by the Giving USA Foundation and is researched and written by the Indiana University Lilly Family School of Philanthropy.

The single largest contributor to the increase in total charitable giving was an increase of $10.53 billion (3.9 percent over 2015) in giving by individuals. “Despite three quarters of stock market volatility in 2016 and a turbulent election season, individual giving continued its incredibly important role in American philanthropy,” said Jeffrey D. Byrne, President + CEO of Jeffrey Byrne + Associates, Inc. “In addition, this strong growth in individual giving appears to be less attributable to ‘mega gifts,’ which were not as robust as in previous years, suggesting more of that growth came from donors in the general population.” Byrne is also Board Chair of The Giving Institute, sister organization to the Giving USA Foundation, a public service and public trust dedicated to providing the highest-quality information about philanthropy.

Giving to all nine major categories of recipient organizations grew, making 2016 just the sixth time in the past 40 years that this has occurred:  religion, education, human services, giving to foundations, health, public-society benefit, arts/culture/humanities, international affairs and environment/animals. “This growth in every major sector illustrates the resilience of philanthropy and the diversity of donor motivation,” said Byrne. “It also reinforces the importance of getting to know our donors better.”

As has long been demonstrated, there continued to be a link between the economy and charitable giving trends in 2016. National-level economic indicators include personal consumption, disposable personal income and the Standard & Poor’s 500 Index – all of which are associated with households’ permanent and long-term financial stability and affect giving. In 2016, both personal consumption and disposable personal income grew by nearly 4.0 percent over 2015. The S&P 500 finished the year up 9.5 percent after uneven performance for much of 2016 and a mixed economic picture in 2015. Total giving as a percentage of Gross Domestic Product (GDP) continues to hover around 2.0 percent as it has for the last six years.

Download the two traditional pie charts illustrating 2016 source contributions and recipients here.

The Numbers for 2016 Charitable Giving by Source
Three of the four sources that comprise total giving—individuals (72 percent of the total), corporations (5.0 percent) and foundations (15 percent)—increased their 2016 donations to America’s more than 1.2 million charities, according to the report.

 Giving by individuals totaled an estimated $281.86 billion, rising 3.9 percent (2.6 percent adjusted for inflation) in 2016. Giving by individuals grew at a higher rate than the other sources of giving.

  Giving by foundations increased 3.5 percent (2.2 percent adjusted for inflation) to an estimated $59.28 billion in 2016. Giving by foundations rose more slowly in 2016 compared to the stronger increases seen in recent years. Data on foundation giving are provided by Foundation Center.

  Giving by corporations is estimated to have increased by 3.5 percent (2.3 percent adjusted for inflation) in 2016, totaling $18.55 billion. Corporate giving increased modestly in 2016, in the wake of slower GDP growth and little movement in the share of pre-tax profits directed to giving.

 Giving by bequest totaled an estimated $30.36 billion in 2016, declining 9.0 percent (10.1 percent adjusted for inflation) from 2015. Gifts from bequests frequently fluctuate from year to year and are less influenced by economic factors.

The Numbers for 2016 Gifts to Charitable Organizations
Giving USA’s research also examines what happens within nine different recipient categories of charities.  In 2016, giving increased to all subsectors, but there were deviations from patterns seen in recent years. Giving to education saw relatively slower growth than in previous years and giving to international affairs, humans services and public-society benefit organizations grew despite few widely publicized natural disasters, which often drive contributions to these types of organizations. Environment/animal organizations experienced the fastest rate of growth of the nine subsectors in 2016, at 7.2 percent.

 Giving to religion increased 3.0 percent (1.8 percent adjusted for inflation), with an estimated $122.94 billion in contributions.

 

 Giving to education is estimated to have increased 3.6 percent (2.3 percent adjusted for inflation) to $59.77 billion.

 

 Giving to human services increased by an estimated 4.0 percent (2.7 percent adjusted for inflation), totaling $46.80 billion.

 

Giving to foundations is estimated to have increased by 3.1 percent (1.8 percent adjusted for inflation), rising to $40.56 billion.

 

Giving to health organizations is estimated to have increased by 5.7 percent (4.4 percent adjusted for inflation), to $33.14 billion.

 

 Giving to public-society benefit organizations increased by an estimated 3.7 percent (2.5 percent adjusted for inflation) to $29.89 billion.

 

 Giving to arts, culture and humanities is estimated to have increased 6.4 percent (5.1 percent adjusted for inflation) to $18.21 billion.

 

 Giving to international affairs is estimated to be $22.03 billion in 2016, an increase of 5.8 percent (4.6 percent adjusted for inflation).

 

 Giving to environment and animal organizations is estimated to have increased 7.2 percent (5.8 percent adjusted for inflation) to $11.05 billion.

Giving to individuals is estimated to have declined 2.5 percent (3.7 percent in inflation-adjusted dollars) to $7.12 billion. The bulk of these donations are in-kind gifts of medications to patients in need, made through the Patient Assistance Programs (PAPs) of pharmaceutical companies’ operating foundations.

New to this year’s edition of Giving USA is a special section on donor-advised funds, which provides analysis of major trends in both giving to and from these charitable vehicles.  Contributions to national donor-advised funds (such as Fidelity Charitable Fund, Schwab Charitable Fund, Vanguard Charitable Endowment Program and National Philanthropic Trust) are counted in the Public-Society Benefit subsector, and the proportion of giving to these funds as a percentage of giving to Public-Society Benefit has increased dramatically in recent years. Giving to donor-advised funds held in community foundations is counted in the Giving to Foundations subsector. Charitable giving to Foundations recovered in 2016 after a decline in 2015.

“As philanthropy is evolving, so are the tools and platforms through which people give,” says Byrne.  “As giving in America continues to reach new heights, I hope everyone can find ways to give that are meaningful for them, and feel confident that their giving is making a powerful difference and improving the way we all live.”

Explore Giving USA products and resources, including free highlights of each annual report at its online store at www.givingusa.org for more information.

The Giving Institute, the parent organization of Giving USA FoundationTM, consists of member organizations that have embraced and embodied the core values of ethics, excellence and leadership in advancing philanthropy. The Giving Institute member organizations embrace the highest ethical standards and maintain a strict code of fair practices. For information, visit www.givinginstitute.org.

For more information about the Indiana University Lilly Family School of Philanthropy visit www.philanthropy.iupui.edu.

Just Ask.

By | All Posts, Annual Giving, Donor Cultivation, Fundraising, Major Gift Solicitation, News You Can Use, Prospect Research | No Comments

Saber Hossinei, Coordinator of Administration + Consulting

Have you seen those shirts with JUST DO IT across the front? It certainly makes for a catchy phrase, but the meaning behind it is so much more than that. It’s a message of action. Regardless of one’s condition, level of experience or ability, don’t forget what’s truly necessary: action. And with action, come results.

In my background with sales and sales training, the recurring obstacle for many of the trainees I worked with (rookie and veteran salespeople alike) was “making the ask.” How is it that most folks can be trained to do an excellent job with all aspects of the sales process, yet drop the ball when it comes to asking for the sale? Anecdotally, I can tell you that the best sales reps had the opposite problem. They weren’t great planners or polished presenters, but they asked for a sale with each and every visit, and as the saying goes, even a broken clock is right twice a day.

Recently, I had the privilege to serve on the silent auction subcommittee for a nonprofit’s annual gala fundraiser. It was my first time in such a role, and in fact it was my first time ever asking for donations. Armed with just a letter about the event and a donation request form, I hit the street and went door to door in a shopping center to ask for donations. Of course, I was very excited to receive a nice item from the first business I approached, and by the end of my walk, I had received not only merchandise and gift cards for the silent auction, but also referrals to other businesses to solicit for donations! The bottom line is, I might have felt poorly prepared, but by showing up and asking for donations, I received them.

I am certainly not making a case against proper and thorough preparation for solicitations. The qualification, cultivation and solicitation process with prospective donors is critically important, and today, we have many valuable resources readily available to help us develop strong strategies for relationship-building with our prospects/donors. (Check out Jeffrey’s article “Don’t Commit Fundraising Malpractice” about how nonprofits should “do their “homework” on prospective donors.)

But nonprofits suffer when leadership, staff and volunteers are reluctant to “make the ask,” or want to wait until everything is “perfect.” Don’t get “paralysis by analysis.” Your Boards, staff and volunteers should be taught that making an “ask” is not only the most important element in obtaining donations, but it is also the right thing to do. You owe your supporters action, your potential donors the opportunity to support your cause and you owe those who benefit from your nonprofit your best work! JUST ASK.

What is the Google Ad Grants Program?

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What is the Google Ad Grants Program?

Guest Contributor Stephanie Higinbotham of SH Marketing shares her insight.

 

Let’s start with the basics before jumping into any how-to-get-started guides. Google Ad Grants is a program offered exclusively through Google that provides qualifying 501(c)3 organizations with $10,000 of in-kind spend per month to spend on advertising. Nonprofits enrolled in the program are subsequently eligible to show their ads on the Google Search Network and, given they make at least one change to the account per month, the allowance will continue to renew at the start of each month.

How does this help my nonprofit?

Among the many benefits of using Google to advertise, the most significant benefits are user accessibility and reach. Google processes over 40,000 searches per second all around the world. Imagine having this potential at your fingertips! As daunting as it may be, you can customize your campaigns to reach as far or as near as best fits your organization. Now that millennials are the largest living generation, and given how tech savvy they’ve proven themselves to be, to not take advantage of digital marketing is to largely ignore a very significant volunteer and donation pool.

What types of campaigns can I run?

First and foremost, Google Grants participants are only eligible to run campaigns on the Search Network, so no Display Network, YouTube, e-commerce, etc., but if you set the account to run as such, the possibilities are endless. To get started, I recommend setting up the following before branching out into anything more complicated:

Branded campaign

This is where you can include any search terms related to your organization’s brand name. For example, if I am working on a campaign for the Kansas City Humane Society, I’ll want to include any search terms that include that phrasing. Here are some ideas:

  • Volunteer with Kansas City Humane Society
  • Donate to Humane Society
  • Adopt animals Humane Society
  • …and so on!

Volunteer campaign

  • This is self-explanatory, but you can use your Google Grant to help drive volunteer outreach.

A campaign related to your primary objective

  • If you’re an organization who works to rehabilitate homeless individuals, then include keywords as such. Customize this step to fit your organization’s purpose and needs.

Have more questions? Feel free to contact me! I love making new friends and teaching nonprofit professionals about AdWords. You can reach Stephanie at stephhigmarketing@gmail.com or at 816-787-1941.

Eager to get started with your Google Grant? JB+A and SH Marketing are hosting a Google Ad Words Webinar on June 22 from 12-1 pm.  Register here for the webinar and we’ll send you a free set-up guide for Google Ad Words with simple step-by-step instructions!

Love is in the Air! How Couples Make Philanthropic Decisions

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By Suzanne Dicken, Associate Consultant

Forget the box of chocolates or the candlelit dinner for two this Valentine’s Day. According to Fidelity Charitable’s latest study on how couples give, philanthropy is a great way to bond with your partner. The How Couples Give report is based on a study of 694 Fidelity Charitable® donors who are married or live with a partner. The study explores how couples make giving decisions – from how they approach these choices, to how much they agree on certain aspects of giving, to who takes the lead in deciding.

What did we learn?

The key takeaway from the report is that giving is and will remain a joint decision for the majority of couples and families.

  • 81% of the donors surveyed make giving decisions as a couple and they overwhelmingly agree on those decisions
  • The majority of couples support organizations that are important to each other with only 11% saying that, at times, they disagree with their partner on which causes to support
  • 52 percent of couples discuss an overall charitable budget for the year
  • 31 percent of couples discuss what assets to contribute
  • 76 percent of couples discuss which charitable organizations to support
  • 70 percent of couples discuss how much to give to specific charitable organizations

Although most couples feel they are on the same page regarding their charitable giving, the study suggests this isn’t always the case when it comes to the mechanics of giving. Only half the donors surveyed say they discuss an overall charitable budget for the year, and less than one-third discuss what assets to contribute. Couples generally agree upon who and what to support, but not always how.

Fidelity Charitable suggests having a conversation with your significant other about giving – it’s a great way to reaffirm the values you share as a couple. (And what a fantastic way to spend the most romantic day of the year!)  To access the full report, click here.

About Fidelity Charitable

Fidelity Charitable is an independent public charity that has helped donors support more than 219,000 nonprofit organizations with more than $25 billion in grants. Established in 1991, Fidelity Charitable launched the first national donor-advised fund program. The mission of the organization is to further the American tradition of philanthropy by providing programs that make charitable giving simple, effective, and accessible. For more information about Fidelity Charitable, visit https://www.fidelitycharitable.org.

The “Case” for the Case for Support

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By Heather Ehlert, Vice President of Client Services

For most of us, speaking confidently about our organization’s mission comes naturally. But we can best respond to the question “Why should I donate or support your organization?” after we’ve gone through the process of developing a Case for Support.  Good advocates for any organization – Board members, Executive Directors, fundraisers and program and administrative staff – will not only fully understand the Case for their organization, but will be able to eloquently share it.  This is just one reason why a strong, well-developed Case for Support is essential to your organization’s fundraising success.

Case for Support – just what is it?

The Association of Fundraising Professional’s Fundraising Dictionary defines the case for support as “the reason why an organization both needs and merits philanthropic support, usually by outlining the organization’s programs, current needs and plans.”  “Case for Support” is also a broad term, often encompassing many different end uses. Variations of an organizational Case for Support can be developed for specific types of fundraising activities – such as a Fundraising Feasibility Study (concept paper) or Capital Campaign (campaign brochure). These pieces incorporate the general summary of the organization’s activities and purpose plus items that are specific to the fundraising effort in which it will be used.

What’s your “Case” for the Case?  

A Case for Support is much more than an informational brochure that you leave with donors. It should be required reading for every one of your organization’s advocates. This includes your staff, Board members, volunteers and anyone else who could be speaking on behalf of your organization.

Aside from functioning as an educational tool, the Case for Support is the foundation from which all marketing and development collateral is based. It could be used for developing materials for an annual campaign, special event or as supplemental information for government grant and foundation proposals.

The Case for Support should be used as part of the recruitment process for new Board members and other key volunteers, in staff orientations and training events, for internal committees who may be looking at expanding or changing the types of services offered to the community and as part of the strategy when educating public officials about the organization’s role in the community.

These are just a handful of ways that a Case for Support can enhance your organization.

What goes into a Case for Support?

Before you get started, ask yourself  – Why does your organization exist? What do you do? Whom do you serve? What makes your organization unique? Your answers provide the core elements for your Case that will define your role in the community. Some critical elements that should be included in the “Case for Support” include the following:

  • Your mission (or purpose statement) and how it creates passion in your staff, Board members and volunteers
  • Your organization’s vision, values and long-range plans; your goals
  • A history of your organization, including “founding families” and other milestones
  • A listing of programs and services that you provide to the community
  • Descriptions of your programs/services stated in terms of the impact they have had in your community over the last three years, and your projected impact in the near future (number of people served, outcomes achieved, economic impacts or impacts stated in other terms that are consistent with the mission and goals of your organization)
  • Your financial strength, or capacity to do the work you do – this demonstrates your financial stability and good stewardship of donors’ funds
  • A list of board members, other key volunteers, staff and donors

The first of JB+A’s Six Criteria for Success in fundraising is A Case for Support that is Realistic, Relevant and Compelling. A fact-based and compelling story will have urgency, significance and appeal.  An effective Case for Support is specific in scope and will clearly communicate the purpose, programs and financial needs of the organization.  It will explain why the organization seeks funding and will demonstrate potential benefits to stakeholders.

Facts are all well and good, but be sure to use these facts to tell a human story that moves people to get involved. Speak to a supporter of your organization and find out what they love about your mission. Interview an individual served by your organization – what does it mean to them to have this resource in the community?

A short, sweet and compelling Case is your key to success. Put yourself in your prospective donors’ shoes and ask yourself, “What would YOU want to know in order to drop everything and help them make a difference?”

Time, Talent, and Treasure: Part Three of a Three-Part Series

By | Boards + Leadership, Commentary, Donor Cultivation, Fundraising, News You Can Use, Stewardship, Volunteers | No Comments

By Katie Lord, Vice President 

In this series we have examined both “Time and Talent” as it relates to the “Time, Talent, and Treasure” paradigm in nonprofit donor management and cultivation.  This final segment of “Treasure” is often the one that we, as nonprofits, are most interested and influenced by because it affects our pressing financial goals.  It can often be to our detriment to focus too much on “Treasure” and, in so doing, approach our donor’s “treasure” in a transactional way, without respecting and acknowledging generational differences and preferences of how to cultivate the gift of “Treasure.”

When approaching our donors about giving their “treasure,” remember that in order to create lasting bonds and build solid, long-term relationships we must have conversations with our donors about their “time” and “talent,” which they may also be willing to give.  Research has consistently shown that donors who give treasure combined with time or talent are much more engaged for longer periods of time.  Through the combination of treasure, time and talent, it becomes easier to steward our donors through extended communication and demonstrations of their efforts and how it impacts the overall mission of our organizations.

What is Treasure?

“Treasure,” as it relates to the big three of “Time, Talent and Treasure,” often seems to be the easiest to define and measure by most common practices.  What is treasure, if not the dollars that our donors donate to us and invest in our cause?  Treasure is the easiest to track, as most of us have systems and processes in place to receive, acknowledge and report donations to our organizations and Boards.  It is important to note that the very experience of giving treasure can make or break repeat donations, but that is for another article.  As we take a closer look at “treasure,” the generational differences about how treasure is given are vast.  By acknowledging these differences, we are better able to meet the needs and expectations of all of our donors which ultimately benefits our organizations in the broadest and best possible way.

Generation to Generation: The Boomers

When beginning to examine the generational differences in the giving of “treasure” it is easier to look first at the Baby Boomers.  We have the most experience and data for this generation to date and their giving habits have influenced our sector greatly. However, the giving of this generation, and its long hold as our most generous treasure givers, has not prepared us for the shifts we are seeing in the giving habits of other generations.

Boomers often give their “treasure” first and their “time” and “talent” second.  This post-war generation grew up knowing about the sacrifices their parents made for the war effort.  Sharing their “treasure” with their neighbors and country was ingrained in them from an early age.  Giving was an accepted expectation and giving on any level was appreciated.  This is a generation that does not expect major fanfare for their giving efforts, but who do value the donor acknowledgement in a timely fashion

For many Boomers the motivation to give to organizations that matter to them is “because they always have,” often to the point they may not even know why they continue to donate years later.  A perfect example of this is my own mother.  My mother gives to an organization that was important to her mother and she has kept up the tradition.  When I asked her why she still gives to them, even though her own giving priorities are different, her answer is “because it was important to my parents and I just always have.”

Boomers have been your most loyal annual fund donors by focusing their “treasure” on annual gifts.  Many Boomers are past the prime of their peak giving years, but many continue to work and still have large amounts of “treasure” to give and share.  Boomers appreciate being “cultivated” for their gifts in traditional ways with personal visits, on site tours and communication from staff.  As Boomers are starting to age and to live on fixed incomes post retirement, now is the time to focus on planned giving and legacy contributions with this generation.

The Gen Xers

Gen Xers, on the other hand, are truly in the middle between Baby Boomers and Millennials and exhibit far more balance in their “treasure” giving.  They usually have three to five causes that are important to them based on personal experiences or interests.  They give to organizations not only their “treasure,” but also their “time” and “talent.”  Gen Xers are a generation where all of their treasures and giving work together to make the biggest impact they can in areas of greatest interest and need.  They saw the giving of their parents, but want to be less passive in the giving of their “treasure.”  Therefore, Gen Xers combine their dollars with time and board service; staying longer term with their organizations than the Millennial generation.  Your Gen X givers will want to see their impact of “Time, Talent, and Treasure” in different ways through annual reports, metric measurements against goals and objectives and how it all relates to a long term strategic plan.

The Elusive Millennial

Millennials, on the other hand, give completely differently than Baby Boomers or Gen Xers.  They first like to give their “time” and then, if they see an impact, their “treasure.”  This is partly because Millennials are not currently in their highest earning years, but also because they value their “time” as a commodity and therefore part of their “treasure” to give.  Through stewarding Millennials to give “time” and then a follow-up with a small gift solicitation, you have a better chance of slowly upping their giving over time with incremental moves illustrating their impact and value immediately, while simultaneously capturing their longer-term attention.

Another unique trait of Millennials is that they are very social in their giving; supporting causes of friends and expecting their friends to support them and their causes in a reciprocal way.  Thus, Millennials are perfect for peer-to-peer giving campaigns.  They usually have large social and business networks that they are comfortable tapping into and their competitive nature is a strong incentive.  When soliciting “treasure” from a Millennial, more weight is given by them on who is making the ask of them at the beginning of cultivation and how it makes them feel versus the facts and figures of a campaign.  Due to their lower disposable income at this time and their social giving tendencies, Millennials disperse their “treasure” to many organizations in smaller gifts.

A word of caution when working with Millennials; even though they are not currently in their highest earning years, they will be at some point.  Millennials have a short attention span, but a long memory.  They often devote themselves to organizations for several years and then switch causes.  It is important to show them appreciation through acknowledgement, an opportunity to become more involved through junior board service or the achievement of higher levels of knowledge and responsibility in service to the organization.

Conclusions

In closing, as with “Time” and “Talent,” the giving of “Treasure” differs among the three current generations and each has their own unique nuances.  By understanding and recognizing that solicitations and approach for each generation should be different, you allow your organization to cultivate and steward your donors by meeting them where they are.  Baby Boomers, Gen Xers and Millennials have differing interpretations of the nonprofit paradigm of “Time, Talent, and Treasure.”  We, as fundraising professionals for our organizations, must adapt to the expectations, current economic state, and personal interests of our multi-generational donor base in order to cultivate long-term, consistent donor relationships and financial growth for our organizations.

 

 

 

Essentials to Starting a Planned Giving Program

By | All Posts, Fundraising, News You Can Use, Planned Giving | One Comment

John Marshall
Senior Vice President

Over the years, I have had the opportunity to speak with many organizations about the merits of including Planned Giving as a component of their overall fundraising program. These have been organizations that were primarily in the process of considering the addition of Planned Giving but were somewhat hesitant to “take the plunge” for any number of reasons. Mostly, such hesitancy was due to their lack of understanding about this unique fundraising opportunity as well as their uncertainty about how to get started.

I have always maintained that every nonprofit should include Planned Giving in its fundraising universe in some fashion. It could be as minor as placing the words “Have you considered leaving our organization in your will?” on the bottom of your organization’s letterhead.

If you are at that stage where you believe now is the time to get started, allow me to offer up what I feel are five essentials for you to consider as you start the process.

  1. Make certain your Board and senior staff understand Planned Giving and are FULLY SUPPORTIVE.

Patience is absolutely required and the organization’s leadership will need to understand that planned gifts do not instantaneously materialize. They take time to be properly cultivated and may not be realized for quite some time. It is important leadership understand that planned gifts are what will help sustain the organization over the long run and can provide the resources required to create the “margin of excellence” every nonprofit desires.

  1. Identify your target audience.

“Aim at nothing and you will hit your target every time” is a phrase that was drilled into my head very early in my career. You must develop a cultivation list of those who are likely to be responsive to your organization through the various opportunities of Planned Giving – usually those who have a history with the organization and who have shown loyal financial support for an extended period of time. Those to consider for your cultivation list should include:

  • Consistent donors. Giving for five or more years or those who have given $1,000 or more at any time
  • Current and former Board members
  • Current and former volunteers
  • Current and former staff

And when considering who to identify, remember the letters F-L-A-G:

  • Frequency
  • Longevity
  • Age
  • Gender (women tend to make more bequests….men make more planned gifts by way of trusts)
  1. Determine which Planned Giving vehicles you can most comfortably offer and manage.

Please don’t promote to your constituents an opportunity you cannot manage/deliver. If you simply want to start by dipping your toe into the pool, encourage participation by way of a bequest. If you wish to take a more proactive approach, then consider the following:

  • Charitable Gift Annuity
  • Charitable Remainder Trusts
  • Life Insurance
  • Charitable Lead Trusts
  • Life Estate Contracts

If you decide to be more comprehensive in what you offer, I heartily recommend that you go to great lengths to enlist the support of professionals who can advise you in any number of ways to ensure that you are providing accurate information to your constituents. I have always recruited what I refer to as a PAC group…..Professional Advisory Committee consisting of those whose expertise relates to the estate planning arena. (Attorneys, Estate Planners, CPAs, Real Estate Agents, Life Underwriters, etc.).

  1. Determine how you will promote Planned Giving.

If you envision promoting your Planned Giving program in more ways than simply including the aforementioned sentence on your letterhead, you might want to create a promotional program which could include:

  • Direct Mail
  • Newsletters – include an article in your main newsletter (possibly with a testimonial from a donor)
  • Seminars – an opportunity to invite the professional community to participate
  • All of the above
  1. Make certain to pay particular attention to internal management issues.

It is essential that you have all your ducks properly lined up, otherwise, unwanted cracks in your Planned Giving program floor may start to appear. Consider the following:

  • Personnel: who will be assigned oversight for the Planned Giving program?
  • Budget: the creation of a separate and appropriate Planned Giving budget
  • Policies and procedures should be created to establish the types of planned gifts that are and are not acceptable, gift limitations, donor confidentiality, etc.
  • Buy-in from the finance department: developing a solid relationship with your finance department in an effort to ensure clarity of understanding on policies and procedures as well as communication and accounting for deferred gifts

Taking the plunge into Planned Giving should be accomplished only after very careful consideration occurs among the organization’s stakeholders/decision makers. Properly orchestrated, the Planned Giving program can provide wonderful benefits to your donors today and to your organization in the future.

John F. Marshall is Senior Vice President with JB+A, Inc. with more than 40 years of fundraising development experience and expertise. You can contact him at jmarshall@fundraisingjba.com or call him at 816.237.1999.

Red Kettle Reflections

By | All Posts, Commentary, Fundraising, Social Services, Stewardship, Volunteers | One Comment

john-marshallJohn F. Marshall
Senior Vice President

Show me an Officer’s son or daughter who has no recollection of experiences with Kettles and I’ll show you someone who has unfortunately lost their memory. Every son or daughter of the regiment could sit down and share an interesting array of stories centering around either ringing a bell or playing a brass instrument on the Red Kettle. That certainly was my experience growing up in an Army home where, once we were done with Thanksgiving, we would find ourselves the very next day standing next to a Red Kettle. I guess you could say that it was just expected. I certainly have a long history of serving on the Red Kettle and take great pleasure in sharing a few favorite recollections with you.

The Very Early Years
I couldn’t have been more than eight when I received my “baptism” into bell ringing. My father was the DYPS (the P has since been dropped) in Pittsburgh and one afternoon he suggested that I come with him downtown where he was going to “man the Kettle.” He brought along his old, beat up cornet and was joined around the Red Kettle by two others. “Here, Johnnie, take this bell and when we are not playing, ring it.” So, not really knowing what was going on, I did. The trio played some pretty interesting renditions of what should have been fairly easy Christmas tunes from the same green book and I got to stand there and watch as people threw coins and stuffed dollar bills into the pot. Now THAT was pretty neat! After we had finished, Dad packed up his cornet and we carried the Red Kettle back to the car where he placed it on my lap for the drive home. It was really heavy!

The Corps Cadet Project
“Now next Saturday kids, we are going to do a special project. So be here at the corps by noon at which time we will travel to our special Corps Cadet Red Kettle location,” stated our leader, Mrs. Mildred Hostettler. “And be sure that you dress warm: it may be cold,” she added. I looked at Don and he looked at me with an expression that said “we are in big trouble.” The next Saturday, we met in the lobby of the old Cincinnati Citadel corps and piled into the corps wagon (back in those days, it actually could hold up to 30 children) and were off to our special spot. Four hours later, and after having endured temperatures which I swear were well below zero, we returned to the corps for hot chocolate and cookies, and with a bulging Red Kettle. “Great job, kids; you have done a wonderful service,” stated the corps officer, Major Allen Weyant. I can’t recall if I had any hot chocolate but I do remember that it wasn’t until two days later that the feeling in my hands returned.

Macy’s and the World’s Largest Red Kettle
Now, I don’t really know if it was the world’s largest kettle, but we said it was. It was very likely the heaviest one as it was a 2′ high and 3′ wide cast iron monument to Christmas fundraising. It was the property of the New York Metro Division where my father was the DC at the time. It had been in operation for a number of years and every year it would receive a fresh coat of bright red paint in anticipation of being positioned just across from the main entrance of the Macy’s Department store on 34th and Seventh Avenue. It was a terrific place to have such a huge kettle given the enormous volume of shoppers going in and out of Macy’s, especially on a Saturday. That Red Kettle brought in a ton of money (literally!) and became especially full when a brass band was playing.

I was barely fifteen and just starting to get the hang of playing the tuba and my brother Norm, four years older and a trombonist, was also a regular in what was at least a quartette at Macy’s, but usually an octet on Saturdays. What was so great was that the majority of our group was comprised of younger New York Staff Band members, each a “wailer” in his own right. I cannot begin to tell you how awed I was to be a part of this group. And the music! One of the guys had a series of terrific arrangements which we would whip out and entertain the crowd with. Great stuff, but hard to play! I must admit that it was challenging to keep up with the older fellas, but I somehow always seemed to finish when they did. We would be there for eight hours and had so much fun playing and bantering with shoppers that the time just flew by.

Norman and transporting the Red Kettle
I failed to mention that brother Norm was also at that time a seasonal employee for the Division and responsible for seeing that at the end of the day the World’s Largest Kettle was placed into a van and transported the 20 blocks back to 14th Street where it was to be emptied, the money bagged and the pot stored until the next day. Well, one Saturday night, as Macy’s was closing at about 9:30 p.m., Norm was in a particular hurry. “John, help me throw the kettle into the van; I need to get going!” he said. So, we somehow managed to get the kettle into the back of the front-seat-only van and took off for 14th Street, at a pretty rapid pace. Despite my suggestion that he slow down, Norm was not to be deterred. He was in a particular hurry on this Saturday night, for whatever reason I have never learned. So here we are, me riding shotgun and Mario Andretti behind the wheel. The words “Norm, slow down, man” were no sooner out of my mouth than he executed a far-too-fast left hand turn which resulted in the World’s Largest Kettle crashing through the rear doors of the van and bouncing onto the intersection of Seventh and 35th where all of its contents spilled onto the street. I’ll never forget the look of horror on Norm’s face as he was running all over frantically grabbing at flying bills, many of which were already on their way to the Bronx . We retrieved as much as we could and made our way to headquarters, this time at a far more deliberate speed! I never did find out what happened the following Monday when Norm had to explain why Saturday’s proceeds were lower than expected. I suspect that it couldn’t have been good!

Asbury College
My very first fundraising job was with the Development Department within the Metro New York’s Divisional Headquarters. I was 28 at the time and literally started on the bottom rung of the fundraising ladder. Just prior to my first Christmas there, I was assigned the task of traveling to Wilmore, KY in an effort to recruit Asbury College students as bell ringers for the Division. I was fortunate to have Lt. Col. David Moulton at Asbury (he was the ASF coordinator at the time) as my liaison and he was terrific in helping me to meet my recruitment goal of 50 students. While recruiting, I created a special “Kettle Op’s” team, one which I would personally supervise and which would be placed within the borough of Queens. This was to be an elite group, to consist of eight young men who were willing to work very long hours but with the promise of earning a correspondingly handsome level of pay. I interviewed several students, assigned most to corps and recruited what I thought was a terrific group of ambitious and competitive young men. I was able to get them situated in one of the Queens corps and they started the day after Thanksgiving. Two of them actually worked almost until the last possible moment on December 24th. That experience was among the most rewarding of my fundraising career. These young men were tireless and for the most part kept a cheerful and positive experience, despite the fact that Monday – Friday, they began in the subway stations at 6:30 a.m. and concluded at 9:00 p.m.. Like these students, I was exhausted when the experience was over, but felt a tremendous sense of accomplishment and appreciation for a team of truly special young men.

Chicago Staff Band
I had the privilege to play with the CSB 1967 – 1974. It was a wonderful experience and one I shall always cherish. Well, maybe except for one particular experience. You see, every December, the band would choose a Saturday to go caroling within neighborhoods located along Chicago’s Lake Shore Drive, an incredibly wealthy area. Now, this did not involve a Red Kettle, but we did play as we moved outside from one very tall apartment building to another. As you might imagine, the temperature across the street from Lake Michigan in December is anything but temperate. So, here we are a group of about 30-40 uniformed icicles going from one high rise to another. The idea was for people to put cash or a check in an envelope and throw it down to where we were playing and where “gatherers” were awaiting to retrieve the donations. Only one problem: those towards the top of the high rises, some of which were 20 floors high, had to weigh down their envelopes by enclosing a few coins. I was so glad to be playing a tuba when a heavily weighted envelope was descending. At least I had head cover. Those poor cornet players! The other problem was the temperature itself. We would be right in the middle of “O Little Town of Bethlehem” when half the bands valves would freeze up. We actually had one person running around providing valve oil wherever and whenever needed. Honestly, I don’t know if the Band still engages in this activity. If they do, hopefully they have special winter issue steel helmets!

With My Wife and Children
In 1984 I was recruited to the Michigan Tech Fund in Houghton, MI located in the beautiful Upper Peninsula. When I arrived, I was quite surprised to find out that there was an Army Corps in the little town of Hancock located across the Portage Lake from Houghton. I was introduced to Major Mary Postma who wondered if I would be willing to become a member of the advisory board, which I was only too happy to do. As a board member, we were expected to do our part as bell ringers during the Christmas season. I signed up for four hours on a Saturday afternoon and thought I would see if I could entice my wife Gwen and our three children to share in the experience. Gwen was happy to join in, but my kids were initially a bit skeptical. They had placed coins in the Red Kettle before but had never been on the receiving end of the experience. With a bit of prompting, all five of us arrived en masse at the Red Kettle located smack dab in the middle of the small shopping mall in Houghton. Our kids started off a bit timidly, but once they saw how sharing people were, they quickly got into the spirit of things. Our three-year old became our most demonstrative “thank-you-er” and relished the role. It was a wonderful experience, so much so, that for each of the four years we were in the UP, we made it a family tradition to spend at least half a day each Christmas Season ringing bells.

JB+A Senior Vice President John Marshall has more than 40 years of experience in the nonprofit sector — almost as much experience as he does serving on the Red Kettle. You can reach John at jmarshall@fundraisingjba.com or at 816.914.3780.

The Results Are In: 2016 U.S. Trust Study of High Net Worth Philanthropy

By | All Posts, Annual Giving, Commentary, Donor Cultivation, Education, Fundraising, Insights, Major Gift Solicitation, News You Can Use | No Comments

ustrust_bulletinlogo_140820Editor’s Note:  The 2016 U.S. Trust® Study of High Net Worth Philanthropy, in partnership with the Indiana University Lilly Family School of Philanthropy, reports the giving patterns and priorities of America’s wealthiest donors and provides valuable insights into the strategies, vehicles and approaches that can make giving more effective. This Study is a continuation of the 2006, 2008, 2010, 2012 and 2014 reports. 

Results are based on a nationwide sample of 1,435 responding households with a net worth of $1 million or more and/or an annual household income of $200,000 or more. For the first time, the study includes a deeper analysis based on age, gender, sexual orientation and race.  The Study offers comprehensive information on the charitable giving and volunteering activities of high net worth households that will apply directly to our Kansas City philanthropic endeavors. 

This past June, JB+A partnered with U.S. Trust and the Indiana University Lilly Family School of Philanthropy to present Giving USA 2016:The Annual Report on Philanthropy for the Year 2015.  We are pleased to continue to share valuable information that complements Giving USA data and can be used by nonprofit professionals, donors, volunteers and others interested in promoting philanthropy.

What did we learn?
The Study reveals that giving levels remain high and the future looks bright, supported by several findings:

  • The vast majority are giving: Last year, 91% of high net worth households donated to charity compared to 59% of the general population of U.S. households.
  • They are spreading the wealth around: on average, wealthy donors gave to eight different nonprofits last year with donors over the age of 70 giving to an average of 11 organizations.
  • These households plan to give as much or more in the future: 83% of wealthy donors are planning to give as much (55%) or more (28%) in the next three years than they have in the past.
  • Time is also treasure: these high net worth households also demonstrated their commitment to charitable causes through volunteering.  50% of wealthy individuals volunteered their time to charities they support. This is twice the rate of the general population (25%).

Motivations to Give
While there is an assortment of reasons motivating high net worth philanthropy, the following were cited as the top motivators for giving in 2015:

  • Believing in the mission of the organization – 54%
  • Believing that their gift can make a difference – 44%
  • Experiencing personal satisfaction, enjoyment or fulfillment – 39%
  • Supporting the same causes annually – 36%
  • Giving back to the community – 27%

Only 18% of the respondents cited tax advantages among their top motivations for giving compared with 34% who cited this as a motivation in 2013.

What do high net worth donors want?
Donors have strong feelings about how their donation should be used. They feel that nonprofit organizations should:

  • Limit the amount of the individual’s donation that is spent on general administrative and fundraising expenses – 89%
  • Demonstrate sound business and operational practices – 89%
  • Acknowledge donations by providing a receipt for tax purposes – 88%
  • Not distribute their names to others – 84%
  • Send a thank you note – 61%

“This year’s Study reinforces that our wealthiest donors are engaged, willing and eager to give,” says Jeffrey Byrne, President + CEO of Jeffrey Byrne + Associates, Inc.  “with nearly half the wealthy individuals surveyed indicating that charitable giving has the greatest potential for impact on society, it is up to us – the fundraisers and nonprofit professionals – to connect, cultivate and steward these individuals.”

The study also highlighted several key findings regarding volunteerism amongst high net worth individuals.

“A significant finding from this year’s study is the correlation between volunteerism and giving” said Lewis Gregory, CAP, Senior Vice President, Institutional and Private Client Advisor for U.S. Trust in Kansas City.  “A high percentage of wealthy individuals give financially to the organizations with which they volunteer. They also give 56% more on average than those who do not volunteer. I hope this inspires nonprofits to appreciate and cultivate their volunteers on a whole new level.”

Other Key Takeaways
And the winner is:  basic needs organizations.  While many of the nonprofit subsectors benefited from increased contributions from high net worth donors in 2015, basic needs was the clear front runner.

  • 63% of high net worth households gave to basic needs organizations
  • Religion received the largest share of dollars (36%) – more than basic needs (28%), higher education (8%), health (7%) or the arts (5%).
  • The highest share of high net worth households also prioritized education as the most important current policy issue (56%) ahead of poverty (34.6%) and healthcare (33.8%).
  • New research: There’s no better time than election season to study the political giving behavior of high net worth individuals.  The study found:
    • One out of four wealthy individuals contributed to a political candidate in 2015 or planned to do so in the 2016 election cycle
    • Donors over the age of 70 (40%) and LGBT individuals (38%) were more likely to give to a political candidate or campaign
    • The top three public policy issues that matter most to wealthy individuals are health care (29%), education (28%) and national security (27%), closely followed by the economy (26%)

To access the full 90-page report, visit www.ustrust.com/philanthropy.