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The Giving Institute

Join Jeffrey D. Byrne for an expert panel discussion on how public policy and legislative issues are impacting philanthropy

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Over the last few years, the nonprofit sector has seen an increased level of interest on the part of elected officials, particularly on the federal level, in public policy and legislative issues impacting the sector. These issues range from the charitable tax deduction, to foundation and donor-advised fund “pay out” to PILOTs or other use taxes at the state or municipal level.

Join JB+A’s Jeffrey Byrne for a live webcast of an expert panel discussion on these issues that will affect our sector and how we can educate legislators on their impact.

July 14
10:00 a.m.-11:15 a.m. Central Time

Tax Policy and Other Changes in the Political Wind
hosted by The Giving Institute

Register now for this complimentary, live webcast

Panelists:
Suzanne T. Allen, Ph.D., President and CEO of Philanthropy Ohio
Jeffrey D. Byrne, Chair, The Giving Institute
Robert Collier, President & CEO, Michigan Council on Foundations
Sally Ehrenfried, Senior Manager, Philanthropy and Volunteer Engagement, Blackbaud

Moderator:
Jon Biedermann, Vice President, DonorPerfect

Be sure to read Jeffrey’s takeaways from Giving USA 2017: The Annual Report on Philanthropy for the Year 2016 for background on the state of fundraising in the U.S.

As members of The Giving Institute — Jeffrey D. Byrne is the 2015-2017 Chair of its Board of Directors — JB+A is pleased to share this special opportunity with you.

The Giving Institute, since 1935, has championed thought leadership on philanthropy and fundraising in the nonprofit sector. Through the Giving USA Foundation, The Giving Institute produces the Giving USA Annual Report on Philanthropy and other reports and partners with several groups to provide valuable research, data and thought leadership on topics and trends impacting charitable giving.

 

Key Takeaways from Dr. Rooney’s KC Presentation of Giving USA 2017

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JB+A was proud to join U.S. Trust and Nonprofit Connect in hosting Giving USA 2017: The Annual Report on Philanthropy for the Year 2016 in Kansas City on June 16 at the Kauffman Foundation Conference Center.  2017 marked JB+A’s 12th year of bringing Giving USA to Kansas City, and this year’s report was presented by Dr. Patrick Rooney, Associate Dean for Academic Affairs and Research and Professor of Economics and Philanthropic Studies at Indiana University’s Lilly Family School of Philanthropy.

Here are some Key Takeaways from Dr. Rooney’s presentation of the Giving USA 2017 report:

Philanthropy and Politics
“More people donate each year than vote,” explained Dr. Rooney, “and the issues most spoken about in 2016 political dialogue were the recipients of the most giving: arts/culture/humanities, environment/animals, health and international affairs.”  Dr. Rooney stressed this may or may not be a “causal” relationship, but pointed out the correlation was hard to ignore. And we may see more clearly the true impact of this “politically-motivated” type of giving in 2017 data.

Giving by Foundations and the 5% Payout Rate
While giving by all three types of foundations – independent, operating and community – increased, the growth was more moderate in 2016.  “Giving by Foundations is more predictable, because of the 5% payout rate*,” said Dr. Rooney, “And independent foundations provided the majority of grantmaking in both 2015 and 2016.” This moderate rise in giving may be attributable to a two-year lagged effect from S&P 500 performance.

But in the midst of ongoing scrutiny and debate about whether private foundations distribute a big enough portion of their assets, Dr. Rooney shared his analysis on increasing the payout rate: “We ran some numbers, to see if increasing the payout rate to 10% would bankrupt foundations.  It would take more than 100 years for that to happen, so in short, the empirical evidence is that increasing the payout rate would not bankrupt foundations.”

*Refers to the payout requirement that is the minimum amount private foundations must spend each year for charitable purposes. By law, private non-operating foundations must distribute five percent of the value of their net investment assets annually in the form of grants or eligible administrative expenses.

Public-Society Benefit and Donor-Advised Funds
Dr. Rooney recognized that “not everyone understands the composition of the Public-Society Benefit subsector.” Organizations within this category include those related to voter education, civil rights, civil liberties, consumer rights and community/economic development as well as free-standing research institutions (for the sciences and public policy.)  This subsector also includes organizations that raise funds to distribute to nonprofits, such as the United Way, Combined Federal Campaigns and Jewish Federations.

National donor-advised funds (such as Fidelity, Schwab and Vanguard) are also included in Public-Society Benefit, and Dr. Rooney noted we are seeing strong increases in contributions to these types of giving vehicles.  “For only the second time since The Chronicle of Philanthropy initiated the Philanthropy 400 in 1991, United Way Worldwide was not listed as the top charity,” explained Dr. Rooney. “Fidelity Charitable took the top spot. In 2015, contributions to Fidelity Charitable grew 20% over 2014, while United Way saw a 4% drop in charitable receipts.”

Dr. Rooney offered that being able to continue to disaggregate donor-advised funds data in this category will shed more light on this topic.

Individual Giving and its Share of the Pie
Individual giving has declined from 84% of total giving in the five-year period ending in 1981 to 72% of total giving in the five-year period ending in 2016.  But Dr. Rooney reassured us individuals/households are still giving, they’re just doing so in more formalized ways (such as through private foundations and donor-advised funds) and reminded us that the single largest contributor to the increase in total charitable giving in 2016 was the increase of $10.53 billion in giving by individuals. He also pointed out the “democratization of philanthropy in 2016,” explaining that “The strong growth in individual giving may be less attributable to the largest of the large gifts*, which were not as robust as we have seen in prior years – suggesting this growth may have come from donors among the general population.”

Dr. Rooney stressed the power to increase giving is in our hands: “If every American household reallocated $5 a day of frivolous consumption to philanthropy, that would double household giving overnight.”  Dr. Rooney added, “It’s up to us as donors, but also as nonprofits – we need to make the case for philanthropy.”

*Giving USA refers to very large gifts as “mega-gifts” and sets that threshold every year.  In 2016, gifts of $200 million and above were tracked as mega-gifts.

Be sure to check out Jeffrey Byrne’s Top Five Ways Nonprofits Can Use Giving USA to improve their fundraising and JB+A’s recap of Giving USA 2017  findings.

Download the two traditional pie charts illustrating 2016 source contributions and recipients and share with Board members, your CEO and development staff.

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 and the Golden Years: A Special Report from GUSA

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The JB+A Team was delighted to attend The Giving Institute’s March Meeting in Las Vegas last week for two days of insight, discussion and projection for the philanthropic sector. The Giving Institute is designed to help elevate the fundraising consulting and nonprofit services industry and enhance philanthropy across the United States. JB+A is the only Kansas City firm to be accepted to The Giving Institute and has been a member since 2005.

The March Meeting brings together Giving Institute members from all over the country for governance meetings and engaging educational sessions. This year’s meeting also offered a Mentor Series for professionals new to consulting. The Mentor Series involved a full day of educational sessions and workshops for an intimate group of twenty burgeoning consultants.

As Chair of the Board of Directors for The Giving Institute, Jeffrey Byrne opened and moderated Giving in the Golden Years, a live webcast on philanthropy and aging services. The panel included John Feather, Chief Executive Officer of Grantmakers In Aging, and Tom Hofmann, Ohio Living Chief Foundation Officer. John and Tom discussed and took questions on the Giving USA Special Report, Giving and the Golden Years: The Role of Private Giving in Aging Services Organizations, which provides a first-of-its-kind benchmark of the national aging services landscape, including information on state-by-state coverage and how these critical organizations are supported financially.

Here are a few core takeaways from this fascinating discussion on the future of aging services.

Aging is a Hard Sell

“Children are an investment. Old people are an expense.” This is what a philanthropist told one of our panelists recently. Aging is a reality that we tend to have trouble facing and this tendency to put other social services above aging has left us unprepared for the demand. According to their report, only 3% of American philanthropy goes to aging and only 2% from foundations.

Philanthropy to the Rescue

Twenty-five years ago there was no resource for aging organizations to understand how to lead their organizations into the future, and they have suffered as a result. There has been a lag in understanding that philanthropy can have a huge impact on performance. One of the most compelling findings from the report was the untapped potential for the sector to grow and thrive if only aging organizations and their CEOs engaged philanthropy as a serious component of their strategic plans.

All About the Pitch

There is little evidence that the baby boomers and established foundations will organically shift their focus to aging services as they themselves age. And the typical sales pitch for aging services organizations isn’t compelling enough. The panelists argue that a better approach is to focus on how your organization has an impact on the community at large. As a CEO or fundraiser, ask yourself: is my aging center part of a broader context that makes the community a better place to live for everyone, not just our residents? If funders can be convinced that you are part of a bigger philanthropic picture, they will be more compelled to give.

Your Own Worst Enemy

So why have aging services organizations lagged in adopting contributed revenue as a business driver? Mainly leaders struggle to view philanthropy as a long-term investment. When money is already short, investing in a strategy that could take years to produce a ROI feels risky to many CEOs.  There is also an ongoing battle to right the mentality that launching a fundraising component is giving up and/or exploiting fragile seniors. If a CEO is ready to implement fundraising, it’s important to educate staff and the Board as to what philanthropy really means and its potential to transform the organization if it has the right buy-in. The panelists are big believers in forming task forces to change the culture of your organization from within. Find a small group of trusted supporters of your fundraising initiative to have an open dialogue with your staff and Board about philanthropy. Institutional commitment to philanthropy is the key to fundraising success!

No Time Like the Present

Uncertainty in federal budget cuts has made foundations more cautious. If major budget cuts are passed, foundations will be called upon for major support from nonprofit organizations who haven’t considered diversified sources of funding. The panelists warn that we will see more hesitation from foundations to fund major projects/programs until there is more clarity from Washington. NOW is the time to talk to all your institutional funders in your local community. But don’t put all your eggs in one basket. The bulk of your fundraising should be cultivating individual donors over a long period of time.

To listen to the recording of the webcast click here and to purchase the full report click here. 

Tax Reform Under President Trump: What’s Next for Nonprofits?

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Jeffrey Byrne + Associates, Inc. is a proud member of The Giving Institute, and as such, we also belong to the Charitable Giving Coalition. Formed in 2009, the Coalition is dedicated to preserving the charitable tax deduction, which is crucial to ensuring our nation’s charities receive the funds necessary to fulfill their essential philanthropic missions.

Firm President + CEO Jeffrey Byrne served as The Giving Institute’s representative to the Charitable Giving Coalition in 2015 and remains actively involved in the Coalition’s mission to ensure that the charitable deduction and other tax provisions retain their positive impact in supporting essential community services. JB+A will continue to monitor situations that could affect charitable giving incentives and update you with developments or when calls to action are encouraged.

With days to go until the Trump administration takes office, The Charitable Giving Coalition is working hard to ensure the future of the nonprofit sector. Over the past few years, our sector has been subject to increasing scrutiny, and with talk of impending tax reform under the new administration, it is crucial that our government representatives understand the impact nonprofits have on people and communities.

What is at stake?

Charitable giving incentives, particularly the charitable deduction. Congress enacted the charitable giving deduction in 1917 and since then, no other tax provision has generated a more positive public impact. It offers a vital and unique incentive to taxpayers that, in 2015, helped generate more than $373 billion (the highest total ever recorded over the past 60 years) to support charitable causes (GivingUSA).

Consider the following:

  • Nonprofits generate $1.1 trillion every year providing human services
  • 1 in 10 Americans work for a nonprofit, providing 13.5 million jobs
  • For every $1 subject to the charitable deduction, communities see $3 in benefits

Still, some politicians have suggested lowering or even eliminating the deduction in order to reduce the federal deficit. Proponents of preserving the deduction feel very strongly that the government cannot and will not find a better way to leverage private investment in nonprofit and worthy causes.

Why now?

All new administrations bring change, but President-elect Trump’s campaign promises suggest a major overhaul to the current tax code is in the works. We know that taxpayers adjust their charitable contributions based on changes in the tax code. As the President-elect’s team considers restrictions on itemized deductions ($100,000 for individuals and $200,000 for couples/families filing jointly), it is vital that charitable giving is exempt from these restrictions. If not, the incentive to give is no longer there and the future of many nonprofits is at risk.

What can you do?

The Charitable Giving Coalition is already taking action to preserve the charitable giving deduction. You can read their letter to President-elect Trump here. As nonprofit professionals, philanthropic leaders and American citizens it is also our duty (and privilege) to interact with, educate and influence our representatives in government. There are many ways you can advocate for the philanthropic sector. If you’re interested in learning more, check out Jeffrey Byrne’s piece on Advocacy in Philanthropy from the JB+A archives.

Our sector is lucky to have a number of highly competent bodies monitoring situations like this and advocating in support of nonprofits, but it’s up to all of us to make sure they succeed. To learn more about the Charitable Giving Coalition and how you can take action to preserve the charitable giving deduction, visit http://protectgiving.org/.

Giving in America Exhibition at National Museum of American History

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The National Museum of American History is currently featuring an exhibition on the history and evolution of American philanthropy. The exhibition examines how our national ideals of participation, equality, resourcefulness and shared responsibility have shaped a distinctive form of giving that is uniquely American.

deliveryserviceOne of the artifacts on display is a 1960 copy of the Giving USA report on fundraising statistics and trends published by the American Association of Fundraising Counsel (now known as The Giving Institute). As Jeffrey Byrne carries out his duties as Board Chair of The Giving Institute, we are delighted to see the inclusion of this report.

To learn more about the Giving in America exhibition, please click here to visit the Smithsonian’s website.

Jeffrey Byrne Re-Elected Chair of The Giving Institute

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Representing National Consultant Thought Leaders in Philanthropy 

Jeffery ByrneThe JB+A Team is proud to announce Jeffrey D. Byrne, firm President + CEO, has been re-elected to Chair of the Board of Directors of The Giving Institute. The Giving Institute is designed to help elevate the fundraising consulting and nonprofit services industry and enhance the philanthropic sector. JB+A is the only Kansas City firm to be accepted to The Giving Institute and has been a member since 2005.

giving_institute_logoThe Giving Institute was originally founded in 1935, and beyond its original charge of promoting the evolution of a professional and ethical fundraising field, its other commitment is to promoting philanthropy. To this end, in 1955, it first published Giving USA: The Annual Report on Philanthropy and later incorporated the Giving USA Foundation to carry out and expand its public service goals.  Today, Giving USA is the most influential publication reporting on the sources and uses of longitudinal giving data for the past 62 years in the United States.

In his role as Chair of the Board, Jeffrey will continue to serve on the Giving USA Foundation Board. This term marks the 12th year that Jeffrey has served on The Giving Institute Board and his 8th year on the Executive Committee. Jeffrey leverages his position with The Giving Institute to bring more awareness to the field of philanthropy, and has been quoted in the New York Times and numerous television, periodical and radio interviews.

“These next 12 months will continue to be very special to me and JB+A, as I begin my second year in this role. It is an honor and privilege to serve in a leadership capacity for this great organization and for philanthropy,” says Jeffrey. “I am proud to work alongside such committed fellow Board members to elevate the nonprofit services industry and to enhance the impactful work being done through philanthropy.”

For more information about The Giving Institute, visit www.GivingInstitute.org .

For more information about Giving USA FoundationTM visit www.GivingUSA.org.

Giving USA: An Important Resource for the Nonprofit Community

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3D GUSA 2016 coverGiving USA 2016 will be released on June 14, 2016.

On June 21, Giving USA 2016 comes to Kansas City with Dr. Patrick Rooney, Associate Dean for Academic Affairs and Research at the Lilly Family School of Philanthropy at Indiana University.  This program is part of Nonprofit Connect’s 501(c)Success National Speaker Series, and will be held at the Kauffman Foundation Conference Center.  Breakfast begins at 7:30 a.m. and the program runs from 7:50 a.m. – 9:00 a.m.  Register today to reserve your spot.

For more than 60 years, Giving USA: The Annual Report on Philanthropy has been the trusted source for all-encompassing giving data.  Its research estimates all giving to all charitable organizations across the U.S. A public outreach initiative of the Giving USA Foundation, the report is researched and written by the Indiana University Lilly Family School of Philanthropy.

The research covers 53 million households across the U.S., nearly 16 million corporations claiming charitable deductions, more than one million estates and approximately 82,000 foundations.  Giving USA is very important to the nonprofit community.  Why?

  • it is the longest-running and most comprehensive context for annual giving
  • it identifies trends and opportunities in the nonprofit sector
  • nonprofits can compare their fundraising performance against national data to measure their performance
  • organizations can use it to educate their staff and Board members about the philanthropic sector
  • nonprofits can use the report to help define and refine strategies for their own fundraising success and growth

The full Giving USA 2016 report will be available in hard copy and digital (.pdf) formats on June 14.  Pre-order your copy now and save 10%Click here to get your copy today.

To learn more about the Giving USA Foundation and its sister organization, The Giving Institute, click here.

Nonprofit Research Collaborative Winter 2016 Survey Now Open

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Did you see the recent report by the Nonprofit Research Collaborative (NRC) about fundraising campaigns? It revealed current fundraising trends, reinforcing that campaigns are continuing to have greater fundraising success. Identifying such patterns is critical to understanding our industry and maximizing fundraising efforts. The research behind this report and others like it is essential, which is why we need you and other fundraising experts to share your insights through surveys.

A new study by the NRC is now open and your expertise is needed.

The survey should take less than 15 minutes for someone who is familiar with 2015 results in your organization. Most of the questions are about fundraising methods and results, though some of the questions seek insight into the metrics used. The survey will close on February 5.

Take Winter 2016 Survey Here  

These Surveys are a valuable tool for our industry, and we hope you will take the time to participate. Thank you in advance for your help in developing this ground-breaking research.

You will have the option to see early results when you submit your survey responses. The full report will be released in March. Remember, the deadline to participate in February 5.

You can also view the Special Report on Nonprofit Fundraising Campaigns here, for insights on campaigns and fundraising results in 2015.

giving_institute_logoJB+A is a proud member of The Giving Institute, which, since 1935, has championed thought leadership on philanthropy and fundraising in the nonprofit sector. Through the Giving USA Foundation, The Giving Institute produces the Giving USA Annual Report and partners with other groups such as the National Research Collaborative, to provide valuable research and data about charitable giving.

NRC Survey Reveals More Nonprofits are Conducting Campaigns – with Greater Fundraising Success

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Compared with 2011, significantly more nonprofits are conducting campaigns, and they are more likely to be receiving higher amounts in charitable gifts.  More than half of charities surveyed reported growth in charitable receipts.

NRC logo

These findings are part of several in a special report recently released by the Nonprofit Research Collaborative (NRC). The Special Report on Nonprofit Fundraising Campaigns is based on results from 1,071 nonprofits surveyed during the summer of 2015. The report also shares information obtained about fundraising results and overall charitable receipts in early 2015 with regional, sector and organizational size comparisons.

In the survey, 27 percent of organizations reported being in a capital, comprehensive or combined campaign as of the summer of 2015.  And 19 percent reported being in a special campaign, meaning nearly half of all organizations responding to the survey had a focused effort to raise funds. This compares to just 12 percent from the 2011 study.

Fifty-nine percent of respondents saw fundraising receipts increase from January through June 2015, compared with the same time last year. This is an increase from 52 percent in 2014. Charitable receipts rose at 71 percent of Education organizations, much higher than the 58 percent seeing increases as of mid-2014. This subsector had the highest percentage of survey participants reporting growth in charitable gifts received. Sixty-three percent of Human Services organizations saw charitable receipts increase, much greater than the 48 percent reported in 2014. This is the first time that more than half of Human Services charities have seen an increase as of mid-year since tracking began in 2011.

View the full report here for more insights on campaigns and fundraising results in 2015.

JB+A is a proud member of The Giving Institute, which, since 1935, has championed thought leadership on philanthropy and fundraising in the nonprofit sector. Through the Giving USA Foundation, The Giving Institute produces the Giving USA Annual Report and partners with other groups to provide valuable research and data about charitable giving.