Category

Fundraising

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

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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 abut 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.

Giving USA 2018: Americans gave $410.02 Billion to Charity in 2017

By | All Posts, Current Events/News, Events, Fundraising, Giving USA, News You Can Use, Organizational + Personal Development, The Giving Institute | One Comment

Giving USA 2018: Americans gave $410.02 billion to charity in 2017, crossing the $400 billion mark for the first time
Stock market, economic conditions helped drive solid growth in contributions across the board

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, released today.

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 USA, the longest-running and most comprehensive report of its kind in America, is published by Giving USA Foundation, a public service initiative of The Giving Institute. It is researched and written by the Indiana University Lilly Family School of Philanthropy at IUPUI.

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. While policy developments may have played some role in charitable giving in 2017, most of the effects of the tax policy changes adopted in late December 2017 likely will affect giving in 2018 and beyond.

“Americans continue to give, and they continue to give generously,” says Jeffrey D. Byrne, President + CEO of Jeffrey Byrne + Associates, Inc. “Even during a time of intensely different perspectives and ideology – especially on the political front – people are giving more as they have more resources available and they are giving to a wide-range of causes.”

The increase in giving in 2017 was generated in part by increases in the stock market, as evidenced by 19.4 percent growth in the S&P 500. Investment returns funded multiple very large gifts, most of which were given by individuals to their foundations, including two gifts of $1 billion or more.

In addition to the S&P 500, other economic factors, such as personal income and personal consumption, are associated with households’ long-term financial stability and have historically been correlated with giving by individuals. These factors also experienced strong growth in 2017.

The Numbers for 2017 Charitable Giving by Source
All four sources of giving – individuals (70 percent of the total), foundations (16 percent), bequests (9 percent) and corporations (5 percent) increased their 2017 donations over 2016, according to the report.

  • Giving by individuals totaled an estimated $286.65 billion, rising 5.2 percent in 2017 (3.0 percent, adjusted for inflation). The single largest contributor to the increase in total charitable giving in 2017 was an increase of $14.47 billion in giving by individuals.
  • Giving by foundations increased 6.0 percent, to an estimated $66.90 billion in 2017 (3.8 percent, adjusted for inflation). Grantmaking by community foundations rose 11.0 percent from 2016. Grantmaking by operating foundations and independent foundations also increased, at 6.2 percent and 4.9 percent, respectively. Giving by foundations has seen strong growth for the past seven years; its five-year annualized average growth rate of 7.6 percent far exceeds the 4.3 percent annualized average growth rate for total giving. Data on foundation giving are provided by the Foundation Center.
  • Giving by bequest totaled an estimated $35.70 billion in 2017, increasing 2.3 percent from 2016 (0.2 percent, adjusted for inflation). Gifts from bequests tend to fluctuate year to year, largely due to very large gifts being made in some years and not in others.
  • Giving by corporations is estimated to have increased by 8.0 percent in 2017, totaling $20.77 billion (5.7 percent, adjusted for inflation). Corporate giving includes cash and in-kind contributions made through corporate giving programs, as well as grants and gifts made by corporate foundations. Corporate foundation grantmaking is estimated to have totaled $6.09 billion in 2017, an increase of 4.5 percent (in current dollars) from 2016. Corporate giving was boosted by $405 million in contributions for relief related to natural and manmade disasters.

The Numbers for 2017 Gifts to Charitable Organizations
Giving USA’s research also examines what happens within nine different recipient categories of charities. In 2017, 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.

  • Giving to religion increased 2.9 percent (0.7 percent adjusted for inflation) between 2016 and 2017, with an estimated $127.37 billion in contributions.
  • Giving to education is estimated to have increased 6.2 percent (4.0 percent adjusted for inflation) between 2016 and 2017, to $58.90 billion.
  • Giving to human services increased by an estimated 5.1 percent (2.9 percent adjusted for inflation) in 2017, totaling $50.06 billion.
  • Giving to foundations is estimated to have increased by 15.5 percent (13.1 percent adjusted for inflation) in 2017, to $45.89 billion. This growth was driven by extraordinarily large gifts by major philanthropists, such as Michael and Susan Dell and Mark Zuckerberg and Priscilla Chan, to their foundations.
  • Giving to health is estimated to have increased by 7.3 percent (5.1 percent adjusted for inflation) between 2016 and 2017, to $38.27 billion.
  • Giving to public-society benefit organizations increased an estimated 7.8 percent (5.5 percent adjusted for inflation) between 2016 and 2017, to $29.59 billion.
  • Giving to arts, culture, and humanities is estimated to have increased 8.7 percent (6.5 percent adjusted for inflation) between 2016 and 2017, to $19.51 billion.
  • Giving to international affairs is estimated to be $22.97 billion in 2017, a decline of 4.4 percent (6.4 percent adjusted for inflation) from 2016, but still reached its third-highest level ever recorded.
  • Giving to environmental and animal organizations is estimated to have increased 7.2 percent (5.0 percent adjusted for inflation) between 2016 and 2017, to $11.83 billion.

In addition, giving to individuals, which is less than 2 percent of total giving, is estimated to have declined 20.7 percent (22.4 percent in inflation-adjusted dollars) in 2017, to $7.87 billion, primarily as a result of an unusually high increase in 2016. The bulk of these donations are in-kind gifts of medications to patients in need, made through the patient assistance programs of pharmaceutical companies’ operating foundations.

“At $410 billion, giving in the US has reached 41 percent of a trillion dollars,” says Byrne. “There is a heightened interest in the overall economic environment and other factors that contributed to the growth of giving in 2017. This is a very positive sign for the overall outlook of philanthropy. I am optimistic we will reach $1 trillion in charitable giving in the next couple of years.”

Explore Giving USA products and resources, including free highlights of each annual report at its online store at www.givingusa.org for more information. And be sure to check out Jeffrey Byrne’s advice on how nonprofits can use Giving USA to improve fundraising.

Giving USA: Interesting Reading or Fundraising Guide?

By | All Posts, Annual Giving, Capacity Building, Commentary, Current Events/News, Donor Cultivation, Fundraising, Giving USA, News You Can Use, Organizational + Personal Development, The Giving Institute | One Comment

Jeffrey D. Byrne
President + CEO

We’re approaching that most wonderful time of the year: Giving USA 2018: The Annual Report on Philanthropy for the Year 2017 is on the horizon. We’re ready to welcome Dr. Patrick Rooney back to Kansas City as he gives us that coveted first look at giving data for 2017 and provides critical observations and interpretations about the state of philanthropy in the U.S. This will be our 13th year of presenting the report with Dr. Rooney in Kansas City, and I am proud of our partnership and friendship with this nationally-recognized (and fun!) expert on philanthropy.

It’s no secret I’m a fundraising “nerd,” and so many questions come to mind as I eagerly anticipate the release of our most trusted and comprehensive annual giving report: Will charitable giving rise for the fourth straight year? How did rage giving and tax reform affect philanthropy? Will the other recipient sectors continue to close the gap on or even surpass giving to religion? How did the economy impact giving?

But here’s the most important question about Giving USA to consider:  How can nonprofits use the report to improve their fundraising?

Don’t treat Giving USA the way some organizations treat their strategic plan and simply place the report on a shelf as you go about your daily routine. Read the report.  Understand the report.  Share the report.  Refer back to the report.  Make changes to fundraising strategies based on the report.  At JB+A, everyone carries a copy of Giving USA (perhaps my good habits ARE rubbing off on others)and we make notes, discuss the trends, identify nonprofit sector needs, successes and failures, evaluate our clients’ fundraising progress and brainstorm new strategies and tactics to improve fundraising.  Remember that great American Express ad campaign, “Don’t leave home without it”?  The same goes for Giving USA.

Here five ways Nonprofits can use Giving USA to improve their fundraising:

  1. 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.
  1. 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 for your fundraising plans.
  1. 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. This isn’t so much about “keeping up with the Joneses of fundraising” but rather, what can we learn from their success and what can (or can’t) we emulate?
  1. 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. What do your donors expect? 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, and unfortunately sometimes, we forget this. Focus on developing and maintaining meaningful relationships with not simply the “concept of donor” but on an individual basis…with Bill and Marcia, with Joe and Liz, with Emma, with Peter and with Shane.

One last thought: Americans give an average of more than $1 billion a day to help others. So, you can also use the report to remind yourself (and others): nonprofits are doing very important work.  Good job.

Be sure to register now for the 501 (c) Success National Speaker Series Giving USA 2018: The Annual Report on Philanthropy for the Year 2017 with Dr. Patrick Rooney.  Details are below.

Friday, June 15, 2018
7:30 – 9:00 AM
7:30 a.m. – Breakfast | 7:50 a.m. – Program
Kauffman Foundation Conference Center
4801 Rockhill Road
Kansas City, MO 64110

Art, Science, Success: Creating Opportunity for Prospect Development in Your Organization

By | All Posts, Database Management, Fundraising, News You Can Use, Planned Giving, Prospect Research | No Comments

JB+A is pleased to welcome guest contributor Marissa Todd, JD, MBA – a prospect development professional and current President of Apra Missouri-Kansas – as she shares her insights and experience on prospect research and development.

Marissa Todd, JD, MBA
JB+A Guest Contributor

How many of us have heard the phrase “the art and science of fundraising”? Probably many of you reading this. It’s quite the popular phrase and is often used to describe the intersection of data and research with the relationship building that takes place across the donor development cycle.

The art part of fundraising is generally the domain of gift officers and senior level administrators whose main role is to meet with donors and prospects in order to cultivate and solicit gifts. The science part, especially in smaller development operations, is often shared by many hands from the gift officers to the database manager to gift processing, and if you are fortunate, a prospect research professional. Having talented professionals to implement and execute both the art and science pieces is critical to a strategic, successful development operation.

However, many organizations do not believe they have the resources to invest in staff for prospect research. If you are one of the organizations who struggle with resources or time for the science of fundraising, fear not! This passionate prospect development professional has some tips that any organization, regardless of size, can try to take steps to integrate prospect research into your organization.

First and foremost, make sure you are collecting information from your prospect interactions. Most fundraising databases have an area for you to capture contact reports from your emails, phone calls and meetings with prospects. Make sure staff utilize this area to capture substantive interactions. These reports can be a wealth of information (pun intended!) on the potential capacity of a prospect, as well as provide historical context during staff transitions. Having a central place for relationship data is key to continuing to build relationships. If you are looking for good prospects, looking at who has historical contacts is a great way to start.

If your database doesn’t have this capability, consider creating a call report form your staff can fill out electronically and save to prospect files on your server. At my first fundraising job, our database was so ancient you couldn’t even click – everything was done using the F keys and commands, so not surprising there was no contact report area. The development used a call form and paper prospect files helped me many a time in connecting dots. When the organization converted to a new CRM, students entered the historical reports of top donors into the new system, so we had a complete picture.

Another great way to ease into some prospect research is by looking at your highest lifetime donors. Although many of these folks may have given their ultimate gift to your organization, many of your top cumulative donors get that way through loyalty and longevity, not a five or six figure gift. Look at the donation history of these donors and you will surely find some prospects who you could be creating more meaningful relationships with and moving to larger annual and major contributions.

Speaking of donations, does your organization produce a periodical donation report (daily, weekly, monthly)? If so, this is an excellent tool to proactively look for new potential prospects. At two of the organizations I have worked, I developed a donation report that also pulled in helpful information like analytical modeling scores, total giving, last two year’s giving totals and engagement information. Using this information, it is easy to scan the report and pick out donors who maybe should be looked at closer, like those who suddenly double their previous gift or make a first-time donation at a certain level ($100, $500, whatever is appropriate for your organization).

So let’s say you implement the donation report and have a good list of potential prospects. You don’t have any paid resources to screen them, so what do you do? There are a plethora of free resources out there to get started with prospect research! A simple search of a county assessor site to verify home ownership and value is a great place to start. Using a search engine to do a quick search of a prospect’s name and location may also open you up to employment information, business associations, etc. The Secretary of State’s office in each state has a business registry you can search to verify business ownership. The list goes on and on. I have numerous bookmarks for free sites, but some of my favorites are sites that themselves are curators of both free and paid resources, like Helen Brown Group or Prospect Research Institute. Most of these sites allow you to sign up for a free account, and then you also receive emails updating you on new resources and other potential services.

Investing a little time and energy in prospect research can make a huge difference in your fundraising efforts. As one of my former gift officer colleagues put it, before she worked with a researcher she felt like she was on a wild safari with no end that often came up totally empty. After research was put in place, she had a map and a plan and was better able to focus her time and effort on the right potential prospects. Don’t leave your gift officers wandering in the wild; invest in some strategic prospecting and keep everyone moving toward fundraising success for your organization.

Marissa Todd has been working in nonprofit and higher education fundraising for over a decade. She found her passion for the prospect development profession at her first Apra conference in 2014. Since then, Marissa has focused on developing and growing small shops, at Stephens College, University of Central Missouri and her next adventure, the Nelson-Atkins Museum of Art. She is very involved with Apra, serving as the President of Apra Missouri-Kansas and on several Apra International committees. She has also presented at Apra and CASE conferences and loves to share her passion for prospect development with anyone who will listen.

Marissa earned her BA and JD from the University of Missouri and her MBA from Stephens College. In her free time, Marissa likes to experiment with cooking and wine, devour books and cheer on her favorite sports teams. She also likes to plan adventures with her husband, Michael, and snuggle up on the couch with their cats, Artie and Faurot.

 

Why Major Gifts? Why Now?

By | All Posts, Capacity Building, Commentary, Database Management, Donor Cultivation, Fundraising, Major Gift Solicitation, Prospect Research | No Comments

How many of us wish there were more hours in the day to focus on our major giving program and donors? Some of us may be one-man teams, but even those of us lucky enough to work in a fully-staffed, robust development office wish we had more time to reach out to more donors and have more meaningful conversations. Some of us don’t work on major gifts because there isn’t time and we don’t really see the need: “Why would I spend the time on major gifts if I’m getting by with annual gifts, grants, earned income, etc.?”

Good question. And below is arguably a good answer.

First, let’s reference GivingUSA: The Annual Report on Philanthropy published by The Giving USA Foundation, an arm of The Giving Institute. Of the approximately $390 Billion dollars given by Americans in 2016, 72% was given by individuals.  Add in the 8% giving through bequests (which are also given by individuals, technically) and the 7% from family foundations and the total is closer to 87% received from individuals.  That leaves only 13% given by foundations and corporations. Also, foundations are only legally required and mostly stick to a 5% mandatory distribution requirement.

Donor-Advised Funds and non-traditional giving methods allow for a myriad of possibilities and vehicles for individuals to use to invest in causes and programs about which they care deeply. It is also easier and a better use of staff resources (including time!) to cultivate and grow donors you already have, than to go out and identify new donors.  This is especially true when you look at the national statistics on donor retention. The 2017 Fundraising Effectiveness Survey Report found donor retention year-over-year averages 45%, meaning more than half of your new donors will not give a gift a second time.

A major giving program gives your donors a path to a deeper relationship with your mission and allows for greater impact through financial investment. With donor acquisition costs on the rise,  spending time examining your current donor base is a better use of time and results in a higher ROI. These individuals have already self-selected and said “yes” to you and your work at least once, but how well do you really “know” them? When was the last time your organization (or have your ever?) conducted a wealth screening? You may know who your top donors are, but do you know who are your most loyal?

To implement a major giving program, organizations should rely on the four pillars of a successful solicitation:

  1. You need a major giving case for support that clearly explains your mission and needs and expresses the impact major giving investments will have on your nonprofit.
  2. It’s imperative that we really “do our homework” and know our donors by understanding their past support, motivations to give and philanthropic goals. This is where the art and science of fundraising converge at the intersection of qualitative and quantitative knowledge.
  3. Utilizing this knowledge, we can develop personalized cultivation strategies, guided by best practices, to present the strongest solicitation possible.
  4. We need to steward our donors by identifying meaningful recognition and continuing communication.

By now, I hope you you’re thoroughly convinced individual donor prospects and major giving are elements you need in your resource development plan.  But do you still wonder if you have the time and resources to implement a major giving program your own organization?

Well, you can quit wondering.

JB+A is pleased to present a solution, in partnership with Softerware, Inc.: DonorPerfect Consulting Services Powered by Jeffrey Byrne + Associates is a 12-month, one-on-one phone and web-based consulting service that will help your organization institute major giving best practices and will offer advice crafted for each organization’s unique needs.  Expert coaching provided by us (JB+A) while utilizing DonorPerfect software and DonorSearch wealth screenings will help you identify and achieve your organization’s major giving fundraising goals.

Want to learn more?  Give me a call at 816-237-1999 or email me at KLord@FundraisingJBA.com.

Giving USA Special Report: “The Data on Donor-Advised Funds: New Insights You Need to Know.”

By | Fundraising, Giving USA, News You Can Use, The Giving Institute | No Comments

Katie Lord
Vice President

On, Thursday, March 1, The Giving Institute and Giving USA Foundation hosted a webinar to coincide with the release of its latest special report “The Data on Donor-Advised Funds: New Insights You Need to Know.”  A special panel included three industry experts on the subject: Pam Norley – President of Fidelity Charitable; Una Osili – Professor of Economics and Associate Dean for Research and International Programs, Indiana University, Lilly Family School of Philanthropy; Dave Scullin – CEO of the Communities Foundation of Texas and Mike Geary – lawyer and donor-advised fund holder.

This report is the first of its kind, revealing key insights into the creation of and grants from Donor-Advised Funds (DAFs.)  Want to hear the webcast in its entirety?  Click here

DAF Contribution Key Findings

  • DAFs continue to show annual growth – both in new funds being opened and in assets; Growth of assets in these funds is outpacing the growth of overall charitable giving – by three times the rate
  • Organizations most likely to sponsor DAFs have two characteristics: they receive large contributions and have low revenue
  • 15 organizations – consisting of community foundations, single-issue charities and national fund sponsors – hold 60% of DAF assets and make 60% of all grants

DAF Grants Key Findings

  • Education, religion and public-society benefit receive the most grant dollars from DAFs; education receives the most grant dollars
  • Granting patterns from DAFs mirror those of high net worth individuals
  • Grants from DAF are relatively stable from year to year
  • Differences between large and small DAF sponsors are nominal

After the Giving USA Foundation research was presented, Pam Norley, President of Fidelity Charitable, shared insights from the 2017 annual report regarding Fidelity Charitable’s fund holders.  Some of the myth-busting highlights of her presentation are below, including numbers from Fidelity Charitable’s Annual Report about the demographics of fund holders and the amounts of grants made each year.

  • Demographics of DAF holders (Fidelity Charitable 2017)
    • 55 years and older
    • 85% give to more than six (6) nonprofits
    • 79% volunteer with the organization receiving grants
  • DAF Grants by the Numbers (Fidelity Charitable 2017)
    • 60% of a DAF holder’s total giving comes from DAFs versus 40% from traditional assets
    • There are 9.7 grants per account annually
    • Donors grant out 24% of their assets annually from their DAFs versus 5% given from foundations
    • $4,200 is the average grant size
    • $19,000 is the average DAF account balance

In closing, Donor-Advised Funds are here to stay. They’re a great vehicle for both donors and nonprofits in making philanthropic impact.  As more research continues, it will be up to everyone to build relationships with our donors and DAF holders to maximize the benefits of this charitable giving vehicle.

And be sure to check out JB+A’s post on the continued rise of DAFs.

 

A Remarkable Act of Generosity

By | Donor Cultivation, Fundraising, Major Gift Solicitation, News You Can Use, Stewardship | No Comments

John Marshall
Senior Vice President

We have all heard about donors making million-dollar-plus gifts and the impact such generosity had on the recipient charity. Americans are clearly the most generous people on the face of the earth with million dollar gifts occurring annually in the thousands.

Like most fundraisers, I think about what truly motivates a person to give that much away and what I can do to secure such a gift for my clients. There is no doubt a worthy organization with a particularly compelling need can be successful in attracting seven-figure gifts. But, I have found over the years, that what is almost as important is taking the time to get to know your donors and paying particular attention to “the little things.”

I’ll never forget a meeting I had very early in my career with Dr. John Hanna, former president with Michigan State University and one of the most beloved figures in the history of that school. After about a 10-minute conversation he concluded our time together by giving me some sage advice: “John, whatever you do while you are here at MSU, don’t ever forget that people always come first. If you pay attention to them and show you care every bit as much about them as you do their philanthropy, well, truly wonderful things can happen.” It was a lesson I have carried with me ever since.

Some time ago, I was reminded of what Dr. Hanna had said while I was working with The Salvation Army in New York City, one of the Army’s largest divisions in the world.

In early December, The Salvation Army’s Greater New York Division holds its Annual Christmas Luncheon. The luncheon attracts a crowd of approximately 1,600 and serves as the official “kick-off” to the Army’s Christmas Campaign in New York City. It also is an event where individuals are publicly recognized for their extraordinary support to The Salvation Army. Since 1948, luminaries such as General Dwight D. Eisenhower, Catherine Marshall, Dr. Billy Graham, Helen Hayes, Bob Hope, Nancy Reagan, Rudolph Giuliani, Yogi Berra and many others have received the Army’s prestigious Pinnacle of Achievement Award.

In 1993, Mr. & Mrs. Smith, an elderly couple who had for years been very generous donors, were chosen to receive the Army’s Community Service Award. Shy of being in the spotlight, Mr. Smith chose not to attend but his wife Lois did and joined a very distinguished group of VIPs including Mrs. Margot Perot, wife of the noted philanthropist. After receiving the award, Lois spoke very humbly about being honored and simply stated that she and her husband dearly loved the Army and its work with the underprivileged.

The following year, one of the worst hurricanes in history struck Florida, precariously near the home where the Smiths spent their winters. Knowing they were in Florida, we decided to have the Divisional Commander (the Army’s equivalent to a CEO) call the Smiths just to say hello and to ask if they were safely weathering the hurricane.

Lois answered the call and was quick to express her appreciation for the Colonel’s call and to say that she was safe. She also shared with him that just two months earlier, her husband had passed away from a heart attack.

Prior to the conclusion of their conversation, the Colonel asked if he could offer a prayer for her during which Lois openly wept. When he concluded, she said “Colonel, when I return to the city could you please visit me in my home?” Of course, he agreed to do so without reservation.

Several weeks later, the Colonel and I were sitting with Lois in her beautiful and very posh Upper East Side penthouse home. In fact, being very private people, this had been the very first time a representative of the Army had been in her home.

“Colonel,” Lois said, “I can’t thank you enough for your phone call. That was a very difficult time for me and it meant so very, very much to me. I would like very much to make a gift in honor of my husband. Can you please give some thought as to how a seven-figure gift might be put to good use? I am particularly interested in something that will benefit children.”

A series of more visits, conversations with her financial advisor and a site visit to two locations in the Bronx followed.  We showed her two daycare centers that were in dire need of significant renovations. She soon became very interested in helping with these particular facilities and asked that we put together a request that would completely cover the cost of the renovations.

Several weeks later, back in her home and in the presence of her financial advisor, the Colonel and me, Lois signed an agreement outlining the specifics of her gift and how it was to be utilized.

Her gift was for $10 million, at that time the largest gift from an individual the Army had ever received in New York City.

Now, I am absolutely certain that honoring Lois and her late husband played a role in her making such an extraordinary gift. But I am just as certain the Colonel’s phone call, reaching out to her in a time of crisis, was even more of a factor.

The truly successful charities in the world are those which understand that stewardship is far, far more than just sending out a timely thank you letter. As Dr. Hanna said, “Don’t forget that people come first.”  It can make a huge difference – just ask The Salvation Army in New York City.

 

Fundraising for your Botanical Gardens: If I Can Do It…

By | All Posts, Boards + Leadership, Campaign Planning + Management, Capacity Building, Fundraising, Grants, Major Gift Solicitation, Planned Giving, Stewardship | No Comments

Eric Tschanz
Senior Consultant

When I arrived at Powell Gardens, I told the Board I could build their garden, but I was NOT a fundraiser.  As President and Executive Director, I soon realized the need for outside funding if the Gardens were going to grow and prosper. Membership programs were started, earned income streams were developed, capital campaigns were initiated and finally, endowment campaigns were begun.

Now, 30 years later, the Gardens have been built and are thriving – and I am not only Director Emeritus, I am also a fundraiser.

None of this happened overnight, and my evolution to a successful fundraiser took time, practice and guidance from other knowledgeable professionals. It started out as a task of which I wasn’t too sure and is now one with which I am not only comfortable but enjoy. So how does this fundraising success start?

Two traits you must have before worrying about the mechanics of ‘how to ask’ are 1) a passion for the project and 2) the ability to form nurturing relationships with your donors.  We shouldn’t be in this business if we didn’t have a passion for public horticulture, but it goes further with a complete knowledge and understanding of the project – whether plants, design or programming – and the ability to articulate what the result will mean for the community and the donor.

We often talk about cultivation and donor relations, but I believe it goes deeper: forming a nurturing relationship with the donor.  Although I am Director Emeritus of Powell Gardens and no longer participate in direct fundraising for the Gardens, I have past donors that still call me and invite me for coffee or lunch.  These are nurtured donors and true friends.

Yes, there are tips and tricks (if we must call it that) to the trade.  Over the years I had the great fortune to work with Jeffrey Byrne + Associates (JB+A) and hone my skills. Together we completed two successful capital campaigns for Powell Gardens.  Now, as a fundraiser I never thought I’d be, I work with JB+A in supporting public horticulture professionals like you.

Whether you are a seasoned veteran in fundraising, or just starting out, JB+A and I can help you achieve fundraising success for your gardens. You can benefit from our experience and expertise – and have fun along the way.

Want to learn more about JB+A and our fundraising services specifically for botanical gardens? Contact me here.  You can also give me a call or email me. I’d be happy to visit with you.

Eric Tschanz
Senior Consultant, JB+A
Director Emeritus, Powell Gardens
Past President, current member of the American Public Gardens Association

816.237.1999
Email Eric

Check out Eric’s credentials.

 

Questions about Donor-Advised Funds? Get them Answered Here: The Giving Institute Webcast on Donor-Advised Funds

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

Until this Giving USA Special Report, there has been little aggregate information available about the granting side of the donor-advised fund equation. How much do donor-advised funds give to nonprofits annually? Which types of nonprofits do donor-advised funds support, and which types receive the most and the least from donor-advised fund grants? How have these trends changed over time?

Register now for “The Data on Donor-Advised Funds: New Insights You Need to Know,” The Giving Institute’s complimentary webcast exploring donor-advised funds – one of today’s hottest topics with donors, nonprofits and public policy experts.

Thursday, March 1
1:00-2:30pm Central

Register Here 

Expert panelists will discuss the latest Giving USA Special Report on donor-advised funds (DAFs), taking a rigorous, new and in-depth look at where DAF money goes. The webcast will address these pressing questions and offer guidance on how to incorporate this giving vehicle into your fundraising plans.

Panelists include:

  • Mike Geary, Attorney at Law, LLC, at Geary, Porter & Donovan, P.C.
  • Pam Norley, President of Fidelity Charitable
  • Una Osili, Professor of Economics and Associate Dean for Research and International Programs, Indiana University, Lilly Family School of Philanthropy
  • Dave Scullin, CEO of the Communities Foundation of Texas

The Giving Institute webcasts always include time for questions from the audience, so don’t miss out on your chance to have your most burning questions about DAFs answered!