Category

Fundraising

The Generosity Commission: A National Conversation on Giving and Voluntary Action

By | All Posts, Current Events/News, Fundraising, Giving USA, Insights, Legislative + Advocacy, News You Can Use, The Giving Institute | No Comments

Heather Ehlert
Chief Operating Officer

Americans give and Americans volunteer.  We are a society of generosity – even during times of intensely different perspectives and ideology. Americans gave more than $410 billion to charity and volunteered more than 7.8 billion hours of service in 2017. But we cannot and should not take this generosity for granted. The Generosity Commission, born from an initiative of The Giving Institute, has been created to explore the questions that will help sustain and strengthen the giving, volunteering and civic engagement that brings out the best in America.

The Generosity Commission has been awhile in the making and its concept is not entirely new.   More than 50 years ago, philanthropist John D. Rockefeller formed the Commission on Foundations and Private Philanthropy to research the role of philanthropy in American society. This group evolved into the Commission on Private Philanthropy and Public Needs which subsequently became known as the Filer Commission (named after its Chairman, John Filer, CEO of the then Aetna Life and Casualty Company). The Filer Commission began to explore giving and factors impacting it, such as the Tax Reform Act of 1969.  It was privately initiated and privately funded but benefited from the support of philanthropists and civic and nonprofit leaders.

The Filer Commission’s work resulted in a report published in 1975, Giving in America: Toward a Stronger Voluntary Sector. This 200+ page report of its findings outlined 19 recommendations for the charitable sector, and focused on three main areas: democratizing philanthropy, improving the philanthropic process and establishing a permanent national commission on philanthropy within the federal government. You can review the entire report in the Indiana University Ruth Lilly Special Collections and Archives here.

The Filer Commission was disbanded shortly after the release of its report (President Carter was reluctant to establish executive leadership on the matter) but the subsequent rise in critical analysis and discussion about charitable giving can certainly be linked back to its work.

As part of his leadership of The Giving Institute as Board Chair from 2015-2017, JB+A President + CEO Jeffrey Byrne created a working group, which then became a committee, to facilitate the convening of a major conference of thought leaders, academics, academic institutions, nonprofit organizations, NGOs and leaders of civic engagement and corporate governance, to build upon the work of the Filer Commission and drive a renewed exploration of the critical role of philanthropy in society.

And now, The Generosity Commission is taking shape: an extremely strong, nonpartisan collection of stakeholders and experts working diligently to solidify its vision, structure, timeframe and agenda. Jeffrey Byrne shares his thoughts on The Generosity Commission: “I am very proud of this effort, very supportive of it and very encouraged by the future implications it could hold for our country.”

The philanthropic landscape in America is strong. But as much as it’s tied to who we are, that’s no guarantee it will last forever. Society is changing, and we are beginning to see shifts in charitable giving and volunteering trends. The Generosity Commission will take on tough questions about philanthropy with the objective of advancing it well into the next generation.  Stay tuned.

The Campaign Planning Study:  Putting More Action into your Study

By | All Posts, Campaign Planning + Management, Capacity Building, Fundraising, Insights, Major Gift Solicitation, News You Can Use, Strategic Planning | No Comments

Heather Ehlert
Chief Operating Officer

Whether you call it a “Feasibility Study,” “Campaign Planning Study,” “Campaign Readiness Assessment” or “Oh-My-Gosh-We’re-Actually-Thinking-About-a-CAMPAIGN!” a planning study is critical to laying a solid foundation for a large-scale fundraising effort.  Not only does it help prepare your organization internally, but a (good) planning study also externally tests your project plans and campaign concept. But couldn’t/shouldn’t a planning study also include getting a head start on cultivating and soliciting key leadership and lead gifts for the campaign?

That’s where the JB+A Integrated Campaign Planning Study comes into play.

Yes, we need the planning study process to measure internal readiness:

  • Assessing the organization’s infrastructure, giving histories and current/previous activities in fundraising
  • Reviewing the functionality of the Board and other volunteers as related to fundraising
  • Appraising your organization’s financial development strengths
  • Determining what is already in place and what is needed to enhance the overall success of your campaign

Yes, we need to a planning study to test external receptivity and get perspective from top donors, leaders and key influencers:

  • Seeking community feedback about your organization, your programs, your leadership and the specific project within the campaign
  • Gauge the potential for support for the fundraising effort
  • Evaluate the fundraising landscape and market viability (potentially competing efforts)

Then we compile and analyze the findings and develop a final report and campaign action plan containing observations, conclusions and recommendations to serve as a nifty road map for implementing your campaign.

Many times, an organization (the Board) will PAUSE after a planning study final report is presented, to contemplate the findings and recommendations and make its own determination of next steps. Yes, a campaign is serious business – life altering, actually – and the decision to undertake one merits serious reflection.  But too often, an organization is struck by “analysis paralysis” and lets too much time pass before finally deciding to move forward with a campaign.  By then, “real life” is back in full swing, and the project and campaign plan is no longer front and center for staff, volunteers, leadership or prospective donors engaged during the planning study.  A tremendous opportunity is lost.

But wait!  This delay can be avoided, forward energy can be maintained, enthusiasm need not be lost.

A JB+A Integrated Campaign Planning Study also includes critical activities to leverage the awareness and momentum generated during the internal and external assessments:

  • Recruiting campaign leadership (chairs/co-chairs)
  • Organizing and launching the Campaign Steering Committee
  • Appraising and prioritizing your top leadership gifts for the campaign (and that includes strategies for cultivation and solicitation)
  • Soliciting the “Inner Family” (Board members, Campaign Steering Committee and staff)

The JB+A Integrated Campaign Planning Study:  all the tried and true, best practices elements you need from a planning study, PLUS the critical first steps of a campaign.  It’s like having your cake and eating it too.

Is the JB+A Integrated Campaign Planning Study right for your nonprofit?   Give us a call (816-237-1999) or drop us a line (info@fundraisingjba.com) and we’ll help you decide.

Don’t Fear DAFs (Donor-Advised Funds)

By | Annual Giving, Current Events/News, Donor Cultivation, Fiscal Management, Fundraising, Grants, Insights, Major Gift Solicitation, News You Can Use, Stewardship | No Comments

Katie Lord
Vice President

Over the past several months there has been a lot of negative media attention cast upon the nonprofit sector relating to Donor-Advised Funds (DAFs).  But before I dive deeper into my thoughts about the matter, let’s start with the basics.

I have to say you may have your head buried in the sand if you haven’t read something about a DAF, but here’s a refresher.  A Donor-Advised Fund is a philanthropic vehicle established at a public charity.  It allows donors to make a charitable contribution, receive an immediate tax benefit and then recommend grants from the fund over time. Whew! That was a very scholarly explanation from AFP.  In layman’s terms, a DAF is a way for individuals or families to save money or “funds” for philanthropic purposes which they can give out over time.

I know what you’re thinking: “Why don’t they just give all the money to charity now? And better yet, why not give it to my charity?”  As we all know, donor intent can difficult to pinpoint. This vehicle allows donors to give money with the intention of charitable purpose while still researching and identifying the impact they wish to make. It’s far more likely the gift wouldn’t be made at all (to any organization) if the donor is not crystal clear on desired outcomes. As a fundraiser, we know purpose and discovery of desired impact is one of the most special roles we can play in a donor’s journey. The DAF gives time for that process.

While DAFs have gained in popularity, the concept has been around since 1931 when the first DAF was created by New York Community Trust. Over the past few years, with the rise of Community Foundations and organizations such as Fidelity, Schwab and Vanguard Charitable, DAFs have garnered new attention across the philanthropic and financial industries. It’s fair to say we have come a long way!

According to the most recent data for 2016, it is estimated there were just under 300,0000 DAFs in the United States. Last year alone brought staggering growth.  According to the Giving USA Special Report “The Data on Donor-Advised Funds: New Insights You Need to Know” giving to DAFs made up 8% of annual charitable giving – $23.27 billion 2017.  Of course, this could have been partially due to the new tax legislation, but there has been a consistent rise in DAFs over the last 10 years.

This pales in comparison to foundations, which hold a total of $890,061,214,247 in total assets, according to Foundation Center’s Aggregate Fiscal Data of Foundations in the U.S. 2015 data, which can be viewed here at http://data.foundationcenter.org.

So how do I feel about the DAF and how do I incorporate it into my nonprofit practice?  I’m so glad you asked (well, read this much of my article, anyway…) Due to my love of all things “philanthropy” and my deep belief in donor-centric strategies, I am a strong supporter and advocate for the DAF.  Any vehicle created for the benefit of the nonprofit sector and gives donors and nonprofits alike another funding opportunity is great news for our industry and the overall advancement of philanthropy.  The more options we have and the easier we make it for people to be charitable, the higher the likelihood we move the needle of American philanthropy from 2% of GDP (around which it’s been hovering for close to 40 years) to higher levels.

Let’s also admit the last thing we want our donors or well-meaning individuals to do is start another foundation that only gives out an average 5% each year. DAFs typically grant 24% of their funds annually.

Tools such as a DAF are not inherently good or bad.  Unfortunately, as with everything, I’m afraid, some funds are not created with the best of intentions of the greater good, but rather for the greater tax benefits of the donor.  This does bring up the discussion and conversation about oversight but let’s remember one bad apple doesn’t always have to ruin the bushel.  As we move into the “new era” of DAFs, I do believe there are some tweaks and regulations needed in transparency,  reporting requirements and time limits for fund inactivity – all to ensure DAFs are dispersing gifts for philanthropic support.

On the other side of the coin however, donors who have DAFs should be able to pay pledges and the tax-deductible portion of events out of their funds.  This account was created for a donor’s philanthropic use and as long as no goods, services or other benefit are provided to the donor I don’t see what the point in making a fuss.

We need to remember as fundraisers, we should seize any and all opportunities to build strong relationships with our donors. We shouldn’t be afraid to discuss giving vehicles other than cash  with our donors.  A DAF is simply another tool in the fundraising toolbox to help donors maximize their impact and giving potential to your organization. It’s our responsibility as fundraisers to understand DAFs and discuss them with our donor prospects.

I leave you with a few points to ponder as you explore and integrate a DAFs into your fundraising plan:

  • Do your major donors have DAFs? Would they like to contribute through one?  If you don’t have those answers, there’s one way to find out:  ASK them.
  • Does your organization’s website or donate page have a function through which donors can easily grant you a contribution from their DAF?
  • Do you have an organizational profile on your Community Foundation website? Do you update it annually?
  • Do you sit down with your Community Foundation or National Fund officers on an annual basis and ask for your grant report?

If you have more questions or thoughts about DAFs, I’d be more than happy to visit with you.  You can reach me at klord@fundraisingJBA.com. Don’t fear the DAF. Just put it to work for your organization.

Giving USA 2018: What Did Americans Give to Charity in 2017?

By | All Posts, Annual Giving, Fundraising, Giving USA, Insights, News You Can Use, The Giving Institute | No Comments

Powered by a booming stock market and a strong economy, charitable giving by American individuals, bequests, foundations and corporations to U.S. charities surged to an estimated $410.02 billion in 2017, according to Giving USA 2018: The Annual Report on Philanthropy for the Year 2017.

Giving exceeded $400 billion in a single year for the first time, increasing 5.2 percent (3.0 percent adjusted for inflation) over the revised total of $389.64 contributed in 2016. Giving from all four sources and giving to all but one of the major types of recipient organizations grew in 2017, driven by economic conditions. Giving to eight of the nine major types of recipient organizations significantly increased in 2017. Giving to foundations experienced the largest gain of any subsector (an increase of 15.5 percent), far outpacing the growth in total giving. Arts/culture/humanities was the second-fastest growing subsector.  Giving to international affairs decreased following six consecutive years of growth.

There’s a lot of data that comes with Giving USA.  Check out this fantastic video overview of Giving USA 2018 from The Giving Institute and Giving USA Foundation and use this great resource to strengthen your fundraising.

And be sure to see Jeffrey Byrne’s five ways nonprofits can use Giving USA to improve their fundraising here.

Giving USA: The Annual Report on Philanthropy is the seminal publication reporting on the sources and uses of charitable giving in the United States. The production and release of Giving USA is the result of the collaborative efforts of Giving USA Foundation, a public service initiative of The Giving Institute, and Indiana University Lilly Family School of Philanthropy.

#GivingTuesday: November 27, 2018

By | All Posts, Annual Giving, Current Events/News, Fundraising, Insights, News You Can Use, Nonprofit Marketing, Social Media, Technology, Uncategorized | No Comments

Heather Ehlert
Chief Operating Officer

Social media + celebration = global giving = #GivingTuesday. In 2017, #GivingTuesday raised more than $300 million online through 2.5 million gifts in more than 150 countries around the world.  And for the seventh year in a row, Lamar Advertising is collaborating with JB+A to support this global day of giving, by generously providing pro bono digital billboards throughout the Greater Kansas City Metro.

How will you participate in #GivingTuesday?  It’s not too late to make a plan.  Download your JB+A #GivingTuesday Guide here.

Celebrating its 7th anniversary, #GivingTuesday falls on November 27th this year. November may seem like a long way away with countless other deadlines in between for you and your organization, but there are three important steps you can take now for a successful #GivingTuesday this fall:

  1. Identify your #GivingTuesday Program/Theme Focus

Highlight a specific program or immediate need to create your communications talking points and grab donors’ attention. Setting a fundraising goal that is attainable and clearly ties back to what it will help your organization accomplish increases excitement and participation.

  1. Create your #Hashtag

Identify your unique #hashtag for your #GivingTuesday campaign based on the program or theme you have selected. Be sure to make it short and relevant to your organization and something easy for people to remember.

  1. Alert donors, volunteers and other constituents

Let folks know via email and your website (and in any already scheduled correspondence in your communications plan) about your #GivingTuesday plans and educate them about the social media channels your organization will be using.  Don’t forget to arm them with your #hashtag.

For more tips about ways you can participate in #GivingTuesday, visit https://www.givingtuesday.org/.

Fundraising Fitness Test Guru Led a Workout in KC

By | Annual Giving, Capacity Building, Database Management, Donor Cultivation, Fiscal Management, Fundraising, Insights, Major Gift Solicitation, News You Can Use, Stewardship, Uncategorized | No Comments

Jennifer Studebaker
Coordinator of Administration + Consulting

And oh boy, was it a good one! Erik Daubert, MBA, ACFRE and Chair of the Growth in Giving Initiative and the Fundraising Effectiveness Project came to Kansas City for Nonprofit Connect’s 501(c) Success National Speaker Series on September 11. Erik dived right in with the history, purpose, and goals of the Fundraising Fitness Test. This free tool was developed as part of the Fundraising Effectiveness Project in an effort to help nonprofits understand and evaluate the performance of their development efforts. Requiring only three fields from your database (Donor ID, Donation Amount and Donation Date), the pre-programmed Excel document calculates key performance metrics such as your donor retention, gains and losses, and donor dependency with the Pareto principle.

The Fundraising Effectiveness Project does have reports that you can benchmark your organization against. However, Erik advised that the best organization to compare yourself against is your own. The Fundraising Fitness Test allows you to do this by comparing year over year data, showing your growth in giving over time. The 6 year trend tab lets you to step back and see the impact that known events had on your organization’s giving. The arrival of a new CEO may spark an upward swing, while the loss of a Development Officer may have led to a shortfall from the previous year. This is the type of data that you can take to your Board to celebrate wins and highlight opportunities for growth.

Erik warmly welcomed up our guest panelists, the true heroes of the day! Megan Sturges Stanfield of Junior Achievement, Cindy Wissinger of St. Paul’s Episcopal Day School, and Laci Maltbie of Sherwood Autism Center braved the stage to share their own experiences taking the Fundraising Fitness Test. They were all surprised to learn how quickly they could complete the test and impressed at the value of the information they received. Laci did run into some roadblocks in getting the data extracted properly from her database, highlighting one challenge that other CEOs and Presidents may encounter. Cindy Wissinger noted that her first run at the test was skewed by their capital campaign donations, and she is looking forward seeing the results with only her annual fund donations. Megan was wowed by the ease of the test, and she could immediately see impact of development decisions her organization has been making over time. All panelists happily endorsed the Fundraising Fitness Test, and Jeffrey Byrne + Associates does as well!

You Can Change Board Conversations Around Philanthropy By Using the Fundraising Fitness Test

By | All Posts, Annual Giving, Boards + Leadership, Campaign Planning + Management, Capacity Building, Database Management, Donor Cultivation, Education, Fiscal Management, Fundraising, Insights, News You Can Use, Organizational + Personal Development, Stewardship, Technology | No Comments

Erik Daubert, MBA, ACFRE

Chair of the Growth in Giving Initiative and the Fundraising Effectiveness Project, Faculty at Lilly Family School of Philanthropy at Indiana University, LaGrange College, and Saint Mary’s University of Minnesota

Originally posted on Nonprofit Connect

I have worked with hundreds of nonprofit organizations who have used the Fundraising Fitness Test (FFT) and I am often asked, “How should I use the Fundraising Fitness Test with my board?” (Available for FREE at www.afpfep.org)

The answer is, “Effectively!”

At the Growth in Giving Initiative and the Fundraising Effectiveness Project, our goal is for fundraising to be more effective, and this is just as true with your board of directors as it is with your overall development program.

So, how can you be most effective at using information from the Fundraising Fitness Test with your board?

The first thing to decide is, “Which data points are right for our organization to share?”  While this answer is not always clear at the onset, you should begin by analyzing your test results.

Once you have run the Fundraising Fitness Test and reviewed your results, you should ask some key questions:

  • What opportunities stand out in our analysis as areas of opportunity?  Some examples of this may be findings related to new donor acquisition, specific donor group retention strategies, Pareto Principle analysis and comprehension, Gain/Loss indicators and more.  Having a good understanding of the information found in the report empowers you to have and lead strategic conversations about how to improve development performance going forward.
  • What does leadership think about how things are going, based on information appropriately shared from the FFT?  One of my favorite quotes in fundraising is, “The best idea is someone else’s!”  By this, I mean, when a board chair or a CEO thinks something such as, “We need more major donors” or “We need to broaden our base of support of donors”, I almost always say, “You are right!” Because these ideas are “theirs”, you don’t have to do the heavy lifting of convincing them to embark on these efforts…that part of the work is already done!  The FFT reveals all kinds of information in the results, and will, perhaps, spark important ideas for your Board on where to spend their energy!  For example, by seeing your organization’s major donor acquisition, upgrades, retention rates, and more, you can have strategic conversations about how to best make more, good results happen in your future fundraising efforts.  You can use your past performance as your “baseline” while also using information available at www.afpfep.org/reports to see what is happening in the broader nonprofit sector.  Nonprofit organizations can compare against themselves (By comparing against previous year’s past performance) and also against other nonprofits in their sector and  region of the country.
  • What is the best use of board member engagement and/or development committee engagement at this time?  If having board members do critical development work like solicitation, recognition, cultivation, stewardship or other activities is the goal, you can use results from the FFT to share why this is a good idea.  By leveraging key data points such as “We are behind the national average for Human Services organizations on repeat donor retention” you can help to shape and guide key conversations around development program improvement.

So, how should you use your FFT with your board?

  • Determine which points you should highlight.  Share some points to celebrate (they are there!) and also points to work on and improve.
  • Share these findings with key leaders such as your CEO, Board Chair, Financial Development Committee Chair, or other key leader as appropriate to your organization.  Have conversations about what is working and what can be improved.  Talk strategically about what you might do to make the results better for next year.
  • Mutually decide which points should be shared with the overall board.  Be transparent both in the celebration of great work, and recognition of the work yet to be accomplished.
  • Remember that while the Fundraising Effectiveness Project has information on how other nonprofits are doing with regard to these metrics, the best comparison of all is against your own organization!  Look at how you did last year, two years ago and beyond, and look at what is working and what is not.  These findings can be used as a basis for well- informed conversations – about personnel, budget, strategy, tactics, focus and more – to create a better future for your nonprofit organization and your financial development efforts.

For more information about how to engage your board with data and the Fundraising Fitness Test, check out the tools and resources available at www.afpfep.org.  There you can find tutorials on how to run the Fundraising Fitness Test in addition to key resources and reports outlining findings by our senior research and data compilation teams.

We hope you will find these resources helpful and thank you for raising more funds to make the world a better place!

Written by Erik J. Daubert, MBA, ACFRE Chair, Growth in Giving Initiative/Fundraising Effectiveness Project Work Group.  Erik serves as Faculty at the Lilly Family School of Philanthropy at Indiana University, LaGrange College, and Saint Mary’s University of Minnesota in their various philanthropy programs, in addition to serving as an Affiliated Scholar with the Center on Nonprofits and Philanthropy at the Urban Institute.  He also works as the Director of Financial Development Education at the YMCA of the USA.  Erik may be reached via email at daubert.erik@gmail.com

The Growth in Giving Initiative’s work to date is often recognized by our work on the Fundraising Effectiveness Project (FEP) which includes tools like the Fundraising Fitness Test.  The FEP was launched in 2006 to help nonprofit organizations measure, compare, and maximize their annual growth in giving.  The FEP is focused on “effectiveness” (maximizing growth in giving) rather than “efficiency” (minimizing costs).   Check out FREE resources at www.afpfep.org

Is Your Nonprofit in Shape? Don’t Miss Erik Daubert and The Fundraising Fitness Test in Kansas City

By | All Posts, Annual Giving, Campaign Planning + Management, Capacity Building, Database Management, Donor Cultivation, Education, Events, Fiscal Management, Fundraising, News You Can Use, Organizational + Personal Development, Prospect Research, Stewardship, Strategic Planning | No Comments

How can you put your data to work?

Utilize the Fundraising Effectiveness Project (FEP).

The Fundraising Effectiveness Project has developed a tool kit for nonprofits to harness their fundraising data. One of the largest philanthropic research projects in the world, the FEP was established in 2006 by the Association of Fundraising Professionals and the Center on Nonprofits and Philanthropy at the Urban Institute. Its aim was to conduct research on fundraising effectiveness and help nonprofits increase their fundraising results at a faster pace. FEP provides free tools like the Fundraising Fitness Test for tracking and evaluating an organization’s annual growth in giving. Explore the FEP and Fundraising Fitness Test here.

For those of you in the Greater Kansas City area, join us on Tuesday, September 11 for the 501(c) Success National Speaker Series with Erik Daubert, MBA, ACFRE, Chair of the Growth in Giving Initiative and the Fundraising Effectiveness Project. Erik will demonstrate how nonprofits can use the Fundraising Fitness Test to understand their own financial development data – and ultimately make better fundraising decisions. To reserve your spot now, register here.

Economic Trends, Philanthropy and Civil Society: Dr. Patrick Rooney and Giving USA 2018 in Kansas City

By | All Posts, Annual Giving, Capacity Building, Commentary, Current Events/News, Donor Cultivation, Fundraising, Giving USA, News You Can Use | No Comments

Dr. Patrick Rooney
Executive Associate Dean for Academic Programs and Professor of Economics and Philanthropic Studies at the Indiana University Lilly Family School of Philanthropy

On June 15, JB+A welcomed Dr. Patrick Rooney, Executive Associate Dean for Academic Programs and Professor of Economics and Philanthropic Studies at the Indiana University Lilly Family School of Philanthropy, back to Kansas City for his 13th year of presenting Giving USA.  This year’s report was presented as part of the 501(c)Success National Speaker Series program of Nonprofit Connect, sponsored by Jeffrey Byrne + Associates and U.S. Trust.

Powered by a booming stock market and a strong economy, charitable giving by American individuals, bequests, foundations and corporations to U.S. charities surged to an estimated $410.02 billion in 2017, according to Giving USA 2018: The Annual Report on Philanthropy for the Year 2017. In addition to his presentation covering the sources and recipients of giving (check out the 2017 charitable giving numbers here). Dr. Rooney provided insights about five key areas that impact philanthropy:

  1. Civil Society
  2. Tax Policies
  3. Disaster Giving
  4. Donor-Advised Funds
  5. Generational Giving
  1. Civil Society
    We’ve heard it before from Dr. Rooney:  more people give than vote, and that trend hasn’t changed. A study found that in every presidential election year (for which there is data), more Americans have donated than voted!  As the world of politics becomes more and more turbulent, don’t lose sight of the role charitable giving plays. In some cases, changes in public policy or budgets actually drive giving (think ACLU for example, or “rage giving”.)  But these reactionary gifts haven’t quite “moved the charitable giving needle” overall.
  2. Tax Policies
    Dr. Rooney addressed the misperception that people donate because of a tax deduction. He pointed out the irrationality of that behavior (if someone only cared about himself he would never give, because one is always in a better fiscal position by NOT giving away money). BUT, theoretically anyway, a tax deduction lowers the “cost” of giving (the after-tax price) and consequently, eliminating the tax deduction increases the cost of giving.  Dr. Rooney’s research concluded a 35% tax rate and an increased standard deduction would reduce charitable giving by more than $13 billion, and that didn’t include impact from dropping corporate tax rates or doubling the exemption for the estate tax. The research also noted that adding an expanded charitable deduction would increase charitable giving by $4.8 billion. Bottom line, tax and fiscal policy decisions impact charitable giving and the nonprofit sector.
  3. Disaster Giving
    Does giving to disasters usurp giving to other sectors? This is an understandable concern, given the phenomenal response we’ve seen over recent years to both domestic and international disasters.  But Dr. Rooney reassures us that research indicates there’s not significant displacement: gifts to disaster response average $50 and are in high quantity immediately following a disaster but tend to (but not always) taper off with time and as media coverage shifts away from the disaster. Studies support that there are no permanent effects on giving – to either disaster relief organizations or other charities.
  4. Donor-Advised Funds
    The dialogue and debates surrounding Donor-Advised Funds (DAFs) seem endless – but for better or worse, DAFs are here to stay (DAF asset values have more than doubled between 2010 and 2015, from $33.6 billion to $78.6 billion) and are likely to become even more popular with the doubling of the standard deduction, given they are a useful way to “bunch” gifts in a year and maximize tax deductibility. DAFs are often the recipients of “liquidity moments” – meaning, donors can easily place their resources into a DAF and then allocate gifts through the DAF to charities over a period of time.Dr. Rooney cautioned against assuming all gifts to DAFs would have been made directly to either public charities or private foundations if DAFs were not available.  He reminded us all DAFs end up in charities eventually (for example, commercial holders of DAFs have policies in place to ensure funds are donated from “dormant” accounts after a set period of time) and are really permanent commitments to philanthropy.  It’s still unclear if/the extent to which DAFs cause displacement or reallocation of giving.
  5. Generational Giving
    Dr. Rooney shared observations on generational succession in American giving and stressed the importance of understanding differences by generation.  The Greatest and Silent generations (born before 1945) had a sense of common purpose, a high confidence in institutions and were active in civic participation. They overcame the Great Depression and World War II and created Social Security. These generations had a larger percentage of families who gave large amounts than later generations.Boomers, GenXers and Millennials (all born after 1946) place a higher emphasis on autonomy, have a lower confidence in institutions and demonstrate less empathy.  These generations also participate less in formal religion and experienced more political and economic scandals.  These generations have a smaller percentage of families giving large amounts than the Greatest and Silent generations, but among these generational families who do give large amounts, the level of giving is higher than or similar to the level of previous generations. Dr. Rooney stated a critical statistic is that donors are down, and dollars per donor are up but starting to slip. He stressed it seemed unlikely we would increase total giving by applying more pressure to existing donors – rather, we need to have a clearer understanding of why donors are down and better grasp gender differences by generation.

Remaining aware of the deeper variables that impact giving will help us understand our donors and prospective donors better, and enable us to build stronger relationships with them – ultimately improving the overall outcomes of philanthropy, and most importantly, improving our communities.

Fundraising Big Data with DonorPerfect Online

By | All Posts, Annual Giving, Capacity Building, Database Management, Fundraising, News You Can Use, Prospect Research, Technology | No Comments

Jennifer Studebaker
Coordinator of Administration + Consulting

DonorPerfect Online (DPO) Vice President Jon Biedermann and Dr. Nathan Dietz, a published scholar and experienced practitioner of quantitative and qualitative social science research, recently led a webinar analyzing the results of 2.24 million transactions and 427,000 donors over a period of years. So what did these numbers reveal about fundraising behavior?

Demographic data showed most 2017 gifts were to human services at 23%, followed by health and religious organizations. Offline donations remained the most common way to give, though online donations have increased from 4% in 2014 to almost 8% in 2017. First time givers declined from 2015-2017, but Jon noted that the recent declines in first time donors points to increased donor retention.

Not all of these findings may be surprising for the experienced nonprofit professional. However, one of the key parts of data-based decision making is allowing the data to speak. Your assumptions may be correct, but actually testing your assumptions is vital.

The most compelling insights were around the importance of thanking donors and multichannel giving. The DPO data showed only 48.5% of the donors in the data reviewed were thanked for their gifts. Over half of donors in 2017 were not thanked! The impact of thanking showed in the transaction data. While they waited longer to give again, their donations ($50 on average) were higher than non-thanked donors ($35 on average).

Here are some key steps to turn this insight into action:

  1. If you do not currently have a standard protocol for thanking donors within 72 hours of receipt, establish one now.
  2. If you have an acknowledgement process, review any messages that donors receive through your website or other channels, since this may be an opportunity to improve the impact of your messaging through customization. Ensure that the thank you message, whether mailed or email, is properly addressed and matches the campaign or fund to which they are donating.

Multichannel donors gave over twice as much as other donors over the course of their lifetime, and their annual giving average was $325, opposed to $75 offline only and $100 online only. Multichannel includes solicitation via direct mail, telephone, email, face to face, text, social media, events, flyers and newsletters. Knowing this, consider the following:

  1. Donors want to give, so make it as easy as possible for them to donate. I know from my user experience research that hard to navigate websites or poorly organized information will result in people abandoning their efforts, even when highly motivated. If you are able, invite a volunteer to do a test run of completing your donation form or donating online. Ask for their feedback, but while they complete the task, observe where they hesitate or take more time than expected. This combination of feedback and observation will help you identify the pain points your donors may be experiencing. Removing those will help guarantee that giving to your organization is a positive experience that donors will wish to repeat.

Also think about the value of wealth screening in prospecting major donors and cultivating monthly donors.

Click here to view the full webinar.