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Philanthropy is Business…and That’s OK

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As we close out another year with the turn of the calendar to January, many of us spend some time reflecting on the lessons learned over the past 12 months while setting organizational goals for the year ahead.  We need to take the time, not only to do this on a personal and organizational basis, but as a profession.  I think it is important that as a sector we take stock of where we have been, where we are and where we need to go in order to stay nimble – while continuing to increase our meaningful societal significance.  We can all agree that the times they are a changing.

As we continue to march our way through the second decade of the new millennium, the nonprofit sector looks much different than it did even two years ago, let alone in 2000.   Technological tools, data analytics, interpersonal communication options, physical work environments and service delivery are just a few of the ways our work world is rapidly changing. Corporations are now focused on social enterprise; the conversations and perceptions of how they make social impact are changing.  Are we as a sector ready for this?

Unfortunately, the nonprofit sector is not always known for its adaptability or quick response to change.  Misguidedly, we often reject the idea of “running a nonprofit like a business” which causes our sector to be perceived as accepting a “status quo” or “this is the way we have always done it” mentality.  This also reinforces the expectations of “minimal overhead ratios,” “outputs vs. outcomes” and the proverbial misperception that we need to be “saved” by the for-profit sector.  Not surprisingly, this continues to cause tension and maintain an undercurrent of lack of respect and frustration felt by us as the practitioners of social good.

“Failure” is still a bad word among our sector and is not celebrated as a learning experience, as it is with our corporate counterparts, due to how funding for such projects is obtained.  With few dollars available for venture philanthropy, the competition is fierce, limiting the ability for innovative solutions to be discovered and rapidly implemented across subsectors.

My hope for 2018 is that we as a sector begin to be as recognized for our specialties, expertise and impact as our for-profit counterparts. I hope we embrace the fact that at the end of the day, we too are in business – the business of doing good for our community, country and world.  Our work is vital to the economic and social success of our county.  We are the second largest employer behind manufacturing. Our products are safe housing options, research to find cures for disease and hot meals for the homeless.  Our services include removing barriers to education and job skills training, mentorship, mental health programs and youth interventions.

How can this mentality be implemented in our nonprofit organizations this year? Let’s walk before we run.  Invest in team training on business skills, contribute to cross sector conversations, attend networking events, read traditional “best business practices books” and implement key ideas, have a Board focus group to discuss and update strategic plans.  Set one, three- and five-year program and fundraising goals. Seemingly small steps can make big results for our stakeholders and those we serve. Let’s seize the opportunity to do business in 2018, but not as business as usual!

Moving the Needle: What Might Be Possible for Philanthropy in America?

By | All Posts, Commentary, Current Events/News, Fundraising, Giving USA, Legislative + Advocacy, The Giving Institute, Uncategorized | No Comments

Leaders in the nonprofit and fundraising sector are gathering soon, through an effort spearheaded by The Giving Institute, to begin developing a plan to help increase charitable giving in America.

American individuals, estates, foundations and corporations contributed an estimated $390.05 billion to U.S. charities in 2016, according to Giving USA 2017: The Annual Report on Philanthropy for the Year 2016. Total giving rose 2.7 percent in current dollars (1.4 percent adjusted for inflation) over total giving in 2015, and 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.

This growth in giving is good.  Yet 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. So, The Giving Institute is coordinating discussions about a national plan to “move the needle.”

JB+A President + CEO Jeffrey Byrne, who served as Board Chair of The Giving Institute from 2015-2017, is among several nonprofit thought leaders who are part of an initial “working committee” to start dialogue about an examination of giving practices and how to increase giving while incorporating input from several people from several sectors (nonprofit, government, corporate, etc.)

Approximately two dozen people will be meeting in Dallas on February 7 to continue developing components of the plan:  focus of the work, organization as a legal entity, potential leadership and staffing, funding, research, information dissemination, federal recognition, communications and building support.

This national examination of giving practices is similar to “The Commission on Private Philanthropy and Public Needs” in 1973-1975, most commonly known as “The Filer Commission.” This historical effort was spearheaded by John Filer, chairman of Aetna Insurance, and initiated by John D. Rockefeller, III, after the Tax Reform Act of 1969 was passed.  The Commission’s report, “Giving in America,”  contained recommendations that fell into three categories: 1) proposals involving taxes and giving, 2) interaction among donors, recipients and the public – those who affect the philanthropic process and 3) a proposal for a permanent commission on the nonprofit sector. The commission scrutinized government inducements to giving and considered alternatives such as tax credits and matching grant systems. Members felt the charitable deduction should be “retained and added on to rather than replaced by another form of governmental encouragement to giving.”

There were six main objectives for the commission’s final report: 1) increase the number of people who contribute significantly to and participate in nonprofit activities, 2) increase the amount of giving, 3) increase inducements to giving by those in low- and middle-income brackets, 4) preserve private choice in giving, 5) minimize income loss of nonprofit organizations that depend on the current pattern of giving and 6) be as efficient as possible (meaning, the new levels of  contributions stimulated should at least approximate the amount of government revenue foregone in order to provide this stimulus.) thought leader and participant in this critical/revolutionary time for philanthropy.

JB+A is excited to be part of this exciting and pivotal time for philanthropy – and discovering what might be possible for philanthropy in America in the years ahead.

*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.

Tax Reform is Here, but without the Universal Charitable Deduction

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Through its membership in The Giving Institute (our President + CEO Jeffrey Byrne served as Board Chair for two years) JB+A is a member of the Charitable Giving Coalition (CGC). Below is the statement from the CGC on the final tax reform bill. Join the CGC in reaching out to your Congressional Representatives and U.S. Senators to let them know of the positive impact the charitable deduction has on philanthropy and your organization. 

12/20/17 – CGC DISAPPOINTED CONGRESS FAILS TO ENACT UNIVERSAL CHARITABLE DEDUCTION IN REFORM; VOWS TO CONTINUE PUSH IN 2018

As Congress moves to enact tax reform legislation, lawmakers are failing America’s charities. Instead of preserving a tax incentive that for the past century has helped build a strong and vibrant charitable sector, the final tax reform bill effectively eliminates the charitable deduction for 95% of all taxpayers, dealing a harsh blow to organizations on the frontlines of serving those most in need.

In real terms, more than 30 million taxpayers will no longer be able to deduct their charitable gifts, which will translate to a decline of more than $13 billion in charitable contributions annually. This decline represents between 4% and 6.5% of contributions according to studies by Lilly Family School of Philanthropy at Indiana University and Tax Policy Center.

Along with leaders from charities across the country, the Charitable Giving Coalition has spent the past year urging members of Congress to address the negative impact on giving that will be triggered by increasing the standard deduction. Several Republican and Democratic lawmakers recognized this reality and its negative consequences. Unfortunately, despite clear and convincing evidence that the plans as introduced will reduce giving, the final tax bill does not include a “fix,” such as a universal charitable deduction for all taxpayers who will take the standard deduction. A universal charitable deduction would not only help recoup the anticipated loss of charitable contributions, but would also promote fairness by allowing all taxpayers to deduct their contributions.

The CGC recognizes that the final tax reform bill maintains the charitable deduction for the limited number of taxpayers who will continue to itemize. The bill also makes two positive adjustments for those taxpayers. First, it allows itemizers to deduct charitable contributions of cash up to 60% of their adjusted gross income (AGI), increasing that limitation from the current 50% level. Second, it repeals the Pease limitation, which had reduced the value of itemized deductions for higher income taxpayers.

While these changes are positive adjustments for the charitable deduction, they will, in no way, make up for the limited availability of the charitable deduction and the loss of billions of dollars in charitable contributions annually.

The stark reality for most charities is that, as government budgets continue to shrink, especially for social services and other programs that benefit communities, charitable contributions are a critical lifeline. Given this reality, it is extraordinarily short-sighted to limit incentives for private contributions to charity. Charitable contributions and the charitable tax deduction are critical for organizations doing vital work in our communities, particularly the small, local charities and congregations already being run on a shoe-string budget that are likely to be hardest-hit by reduced giving. Losing 4-6.5% of their annual budgets will be devastating to these charities and to the vulnerable communities they often serve.

The CGC is deeply committed to pursuing a universal charitable deduction when Congress reconvenes in 2018. In recent months, a groundswell of support has grown among both Republicans and Democrats in the Senate and House. Several members demonstrated they understood the implications on charitable giving of tax reform proposals. And, they acted, introducing both legislation and amendments during consideration of the tax bill. The CGC is deeply grateful for Members’ outspoken support and will build on this momentum to expand the charitable tax deduction to all American taxpayers.

To learn more about the CGC, visit protectgiving.org

See more analysis of tax reform from Dr. Patrick Rooney with the Lilly Family School of Philanthropy.

Response from the Charitable Giving Coalition to H.R. 1, The Tax Cuts and Jobs Act

By | All Posts, Commentary, Current Events/News, Legislative + Advocacy, The Giving Institute | One Comment

Through its membership in The Giving Institute (our President + CEO Jeffrey Byrne served as Board Chair for two years) JB+A is a member of the Charitable Giving Coalition.  We will continue to carefully monitor the progress of this proposed legislation as it winds its way through the halls of Congress, and will continue to keep you updated. There’s obviously a lot at stake, and we need to stay abreast of these public policy issues.

 Consider sharing these updates with your senior executive team, your entire fundraising staff and your Board of Directors. Reach out to your Congressional Representatives and U. S. Senators to let them know of the positive impact the charitable deduction has on philanthropy and your organization.  Keeping elected officials informed on the positive impact of legislation within their districts is critical to persuading Congress to pass a permanent version of this proven charitable giving incentive. 

As the current Administration and Congress continue to propose various options for tax reform, we know these changes will affect charitable giving and the nonprofit sector. The latest tax reform framework was released last Wednesday, November 1, in H.R. 1, The Tax Cuts and Jobs Act. What are the potential consequences of this proposed legislation on America’s charitable organizations and those they serve?

The Charitable Giving Coalition (CGC), (a group of more than 175 diverse organizations representing private and community foundations, their grantees and independent charities, as well as nonprofit organizations and the associations and umbrella groups) is dedicated to preserving the charitable tax deduction – crucial to ensuring our nation’s charities receive the funds necessary to fulfill their essential philanthropic missions.

The CGC provides a unique and unified voice on Capitol Hill, and recently released a statement outlining its concerns that The Tax Cuts and Jobs Act (H.R. 1) will generate dramatic and negative consequences for America’s nonprofits and their constituents.

This proposed revision to the tax code doubles the standard deduction and shifts millions of taxpayers who currently itemize to taking the standard deduction. As many as 30 million taxpayers who itemized in 2016 would no longer have access to charitable giving incentive and would be taxed on their gifts.

While the CGC is grateful that H.R. 1 retains the charitable tax deduction for those who itemize, it articulates that “the result of this provision alone could be a staggering loss of up to $13.1 billion in contributions annually, undermining America’s charitable organizations and our country’s extraordinary tradition of philanthropy. The charitable deduction would be available to only 5% of all taxpayers – causing this significant drop in contributions. Up to 95% of taxpayers will be taxed on their gifts to charity.”

As an alternative to H.R. 1, the CGC offers a resolution it feels is fair and efficient and will continue to encourage Americans to donate to charities:  a universal charitable deduction available to all taxpayers. The CGC believes that continuing to incentivize the deduction for charitable giving would offset anticipated losses and potentially gain an additional $7billion annually for America’s charitable organizations while encouraging younger taxpayers to begin charitable giving earlier.

Read the full press release from the CGC here.

Click here to learn more about the CGC.

Tax Reform: What’s the Nonprofit Sector Saying?

By | Commentary, Current Events/News, Legislative + Advocacy, News You Can Use, Planned Giving | No Comments

Heather Ehlert, Vice President of Client Services

Whether seeking to end the federal estate tax or adopt a universal charitable deduction – both of which are being discussed by the current Administration and Congress – tax reform is tricky.  While it’s difficult to predict the exact impact these changes would have on charitable giving and nonprofits, we can reasonably conclude they would affect our sector. There’s a lot at stake with tax reform, and nonprofit professionals need to stay abreast of these public policy issues.

Our sector is fortunate to have a number of highly competent bodies monitoring situations like this and advocating in support of nonprofits. For example, Dr. Patrick Rooney, Executive Associate Dean for Academic Programs, Professor of Economics and Philanthropic Studies at the Indiana University Lilly Family School of Philanthropy and a key participant in the research and writing of Giving USA: The Annual Report on Philanthropy, wrote an article that was recently published on The Conversation.

In his piece, “How closing the door on the estate tax could reduce American giving,” Dr. Rooney illustrates how the estate tax is a significant revenue generator for the U.S. government and the charitable sector – specifically bequests, which accounted for 8% ($30.36 billion) of total giving in the United States in 2016 (according to Giving USA 2017: The Annual Report on Philanthropy for the Year 2016.) He provides an analysis of what could happen after a repeal of the “death tax” and notes the fiscal consequences to federal revenue (a reduction by nearly $270 billion within a decade, according to a bipartisan congressional committee) and the estimated ranges of decline in charitable giving (both bequest and non-bequest giving.)

The Congressional Business Office estimated a 6% decline in charitable giving if the estate tax was repealed.  But that analysis was way back in 2004, and a much different scenario exists today.  Other studies estimate a decline of between 12% and 37%, but Dr. Rooney feels these figures probably underestimate the actual effects of a repeal, and walks us through what actually happened in 2010 when the estate tax was temporarily paused to support his hypothesis.  He concludes that if the estate tax was eliminated, giving to charity would be negatively impacted – by reducing giving both during and after donors’ lifetimes. Be sure to check out Dr. Rooney’s full article on The Conversation.

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.

Leadership is Fundraising, Says the Philanthropy Professor

By | Commentary, Fundraising, Organizational + Personal Development, Uncategorized | No Comments

JB+A is pleased to share this blog from Dr. Amir Pasic, our friend and colleague.  Dr. Pasic, the Eugene R. Tempel Dean and Professor of Philanthropic Studies at the Indiana University Lilly Family School of Philanthropy, joined us in Kansas City on September 14 for a special presentation on the value of research and how it informs leadership and fundraising success.

I like to praise the virtues of excellent fundraising in pursuit of a great mission conducted ethically by leaders of exemplary integrity. Seasoned fundraisers, wherever they sit within an organization or in its supporting environment, understand the virtuous cycle that appears with a successful fundraising program. There is focus on strategic priorities, buy-in from inside the organization and throughout the community of supporters, clear plans for interacting with donors and friends across all segments and phases of engagement, and there is celebration of the people who provide the resources that enable progress in pursuit of the organization’s vital vision.

I often wonder if leadership that does not emulate the process of fundraising even makes sense. When does a leader not ask others to do things differently, or to stop doing certain things, or to let go of possessions or practices, which they then do willingly and happily? And not only do I like to think of leadership and fundraising as synonyms in many ways, but as fundraising practitioners well know, your title or your position does not necessarily reflect your ability to succeed. Indeed, virtuosos of leadership and fundraising manage to make a difference regardless of their official position.

In such challenging and often ambiguous situations how does one grasp what to focus on and decide where to direct one’s activity? One key resource that any leader needs is research. How do we know what works, and just as importantly, what does not? How can we understand the complexity of what motivates a donor? How can we assess the impact of our efforts? And, in the bigger picture, how can we hope to address societal problems or develop effective strategies unless we have reliable insight into new developments in our field and into the patterns and trends that help us understand the ever-changing context within which we work. Rigorous, high quality research is an important component in virtually all aspects of the work of philanthropy, and it is through better research that we will achieve even better results.

Check out a recap of Dr. Pasic’s presentation in Kansas City.

Dr. Amir Pasic, the Eugene R. Tempel Dean and Professor of Philanthropic Studies at the Indiana University Lilly Family School of Philanthropy Joined us in Kansas City

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Dr. Pasic spoke to a captive audience at the Kauffman Foundation Conference Center on September 14 as part of Nonprofit Connect’s 501(c)Success National Speaker Series.  Dr. Pasic, the Eugene R. Tempel Dean and Professor of Philanthropic Studies at the Indiana University Lilly Family School of Philanthropy, shared his expertise and experience in the value of research, and how we can use this valuable tool to improve fundraising and philanthropy.

Dr. Pasic reminded us that essentially, leadership is fundraising, and asked the poignant question, “If a leader isn’t fundraising, is he really a leader?” Dr. Pasic pointed out leadership and fundraising both involve 1) building relationships, 2) engaging, asking and recognizing and 3) creating vision and buy-in. Check out Dr. Pasic’s blog on this very topic.

Key highlights from Dr. Pasic’s presentation included some great examples of people putting research into action:

  • Jane Chu, PhD, Chairman of the National Endowment for the Arts (Rockhurst grad, Lilly Family School of Philanthropy alum and previous director of the Kauffman Center for the Performing Arts Center) and how she used research to illustrate the impact of the arts and cultural industries on the nation’s gross domestic product.
  • Giving USA: The Annual Report on Philanthropy, measures the financial scope of philanthropy in the U.S. and is fundamental to fundraising. 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.

Dr. Pasic also pointed out that in addition to utilizing research for evaluation or benchmarking purposes, we can also use research to help identify impact, areas needing funding and other issues in our sector, such as recruiting and retaining talent.

Jeffrey Byrne (JB+A), Dr. Amir Pasic and Lewis Gregory (US Trust)

Dr. Pasic also address some of the “hot topics” in fundraising research now, such as Crowdfunding, Donor-Advised Funds and disaster giving. Crowdfunding is on the rise, and in 2015, $34.44 billion was generated in Crowdfunding, with $2.8 billion of that total raised for formal charitable purposes.

The prevalence of Donor-Advised Funds is increasing as well, both in the number of funds and the total assets held within them:  in 2006, there were 140,000 DAFs holding assets of $33.6 billion.  By 2016, those figures had grown to 269,000 and $78.6 billion respectively.  And in 2015, Fidelity Charitable Gift Fund unseated United Way Worldwide as the largest fundraising charity, having collected $4.6 billion. And three of the Top 10 largest fundraising charities on the list are commercial DAFs: Fidelity Charitable Gift Fund, Schwab Charitable Fund and National Christian Foundation. More than half of all DAFs are held in commercial funds and this hot topic is raising questions about their usage: what are the benefits versus the costs to society and the nonprofit sector?  What is the overall impact?  Are DAFS displacing other forms of giving?

The Lilly Family School of Philanthropy has been tracking disaster giving since the attacks of 9/11.  Typically following a disaster, we see a sharp uptick in donations in the first six weeks, with continued moderate growth through six months then finally leveling out.  Celebrities are very prominent in disaster giving (J.J. Watt raised more than $30 million for Hurricane Harvey relief) and the key element in disaster giving is mass participation.  And in times of disaster, we overcome our differences and unite as one force to help those in need.

Dr. Pasic discussed the different types of research:

  • quantitative studies (such as Giving USA, Million Dollar List and The Salvation Army Human Needs Index)
  • experiments (take us away from our “rules of thumb” and comfort zones, but help us discover more effective ways of doing things)
  • humanities (qualitative exploration – such as the Smithsonian Exhibit on Philanthropy (Giving in America is a permanent exhibit that looks at the historical role of philanthropy in shaping the United States)
  • studies of the profession (gender composition of the field, diversity in the field and other issues like compensation and tenure
  • public policy (tax reform, regulations, ethical guidelines for dealing with grateful patients and better educating legislators about our field)

Research asks the questions, in a variety of ways, “Why do things fail? Why do things succeed?”  Bottom line, research helps us cultivate judgement, create communities of discovery and develop leaders – all of which will help us strengthen philanthropy and our world.

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

By | All Posts, Commentary, Current Events/News, Giving USA, Insights, The Giving Institute | No Comments

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).