What About a Charity’s Impact?

from The Chronicle of Philanthropy: Charities and Watchdog Groups Clash Over Monitoring Systems Battles between charities and the watchdog groups that help donors decide where to give escalated last week when a major trade association released drafts of two reports by scholars who say the watchdogs may do more harm than good. The studies, paid for and released by the Direct Marketing Association’s Nonprofit Federation at a meeting here, charge that the watchdog groups use evaluation systems that are confusing and simplistic. What’s more, they said, because the watchdog groups are influential, charities often take steps that are not smart in the long-term simply to garner high ratings. The watchdog organizations they studied are the American Institute of Philanthropy, Better Business Bureau’s Wise... Continue Reading

Who Gives, Why and How

A new research study was released Tuesday that may change the way many nonprofits approach their fundraising budgets. The report, Heart of the Donor, Insights into Donor Motivation and Behavior for the 21st Century, uncovers valuable insights on donor behavior and preferences as well as insight into age, demographic and other factors. The research was commissioned and created by Russ Reid. As many would expect, the study finds that today’s most valuable donors – boomers and older donors – primarily give through the mail. But those in the 25-54 age range tended to give both online and through the mail. But according to the study, older donors are more generous. “The point is this: if the goal of a nonprofit is to effectively target today’s best donors, then they should... Continue Reading

Philanthropy’s Tipping Point

by Patrick M. Rooney, Ph. D. If I had a crystal ball, I’d say women’s philanthropy is likely to be one of the prevailing issues of the 21st century for the nonprofit sector. Despite greater awareness and the fact that the trajectory of women’s philanthropy is escalating exponentially, we haven’t reached the tipping point or begun to realize the benefits of women’s giving capacity, participation and leadership. The research unquestionably shows that women have the desire, drive and capacity to give, but society and nonprofit professional practice have yet to catch up. Women’s philanthropic clout is clear. Women are driving social change, and changing philanthropy in the process. They’re in a greater position to lead than ever before. Women’s education and income levels are increasing.... Continue Reading

Parental Involvement in Philanthropy Matters

from The Chronicle of Philanthropy: Parents Matter: New Study Shows Influence of Family on Giving Decisions Household income and education levels are usually the key elements fund raisers use to figure out who is most likely to give, but it turns out something else is more important: whether a potential donor’s parents were involved in charitable causes. That is one of the findings of new study of donor attitudes and giving behavior released this week by Russ Reid, a Pasadena, Calif., company that provides direct-marketing services to nonprofits. The study was released here at the Direct Marketing Association New York Nonprofit Conference. Parental involvement in nonprofits increases the odds of a child becoming a donor by more than 80 percent; with parents who don’t, there’s only a 25-percent... Continue Reading

Surprising Facts About the Nonprofit Sector

Many people are surprised to learn of the significant role that nonprofit organizations play in our world. Nonprofits in the U.S. generate $1.1 trillion every year, which is more than the entire economies of Saudi Arabia and Sweden combined. Nonprofits have strong brands and get important work done. Know Your Sector was designed as a free resource for nonprofit employees and donors to help them understand the scope of their sector. [Translate] Bookmark:  Read More →

The Challenging Financial Environment

The Effect of the Economy on the Nonprofit Sector: A June 2010 Survey Public charities and private foundations continued to take a beating during the first five months of 2010. Some 40 percent of participants in GuideStar’s first nonprofit economic survey for 2010 reported that contributions to their organizations dropped between January 1 and May 31, 2010, compared to the same period a year earlier. Another 28 percent said that contributions had stayed about the same, and 30 percent stated contributions had increased. “The Effect of the Economy on the Nonprofit Sector: A June 2010 Survey” presents these results and more. Among the other findings: Eight percent of respondents indicated that their organizations was were in imminent danger of closing. In order to balance budgets,... Continue Reading

Giving USA Methodology Raises Some Questions

by Robert I. Evans and Avrum D. Lapin When The Giving Institute and the Center on Philanthropy at Indiana University announced results for charitable giving for 2009, some people expected less positive news and thus questioned the exciting results. The Giving USA (GUSA) annual report, now in its 55th year, estimated total 2009 U.S. charitable giving at approximately $304 billion, reflecting only a 3.6% decline over record giving in 2008 and the third consecutive year that giving exceeded $300 billion. Those who wondered aloud about the slight decrease in giving tried to point fingers at the methodology employed to develop the announcement. The raised eyebrows focused especially on itemized/non-itemized giving as reported by the IRS since the overwhelming preponderance of giving comes from individuals... Continue Reading

The Fundraising Outlook: What’s Next

The Economy and Fund Raising: What’s Next The Chronicle of Philanthropy‘s Index shows that the economic conditions that most affect fund raising barely improved in the second quarter of 2010, a sign that donations will continue to be hard to attract. [Translate] Bookmark:  Read More →

What Should We Make of the Giving Pledge?

from The New York Times: Pledging Fortunes Takes Extra Effort in Shaky Recovery Warren Buffett and Bill and Melinda Gates gave billionaires a jolt of positive publicity last week with the unveiling of the Giving Pledge – a promise by 40 individuals and couples to donate at least half of their fortunes to charity. Their commitments were outlined in individual letters explaining their reasons. The group’s very public pledge raised several questions, not least about its timing. This is an economic environment in which wealthy donors have grown leery of long-term philanthropic promises. You only have to look at this week’s stock market gyrations to understand why someone might not want to commit. [Translate] Bookmark:  Read More →

Fidelity Charitable Gift Fund Shows Strong Gains

from The Chronicle of Philanthropy: Nation’s Third Largest Charity Sees Revival in Giving More signs that giving is recovering from the downturn: Fidelity Charitable Gift Fund on Wednesday reported that it raised 67 percent more in the first six months of the year than it did in 2009. Donors provided $457-million so for this year. … In the first six months of the year, donors distributed $531-million, or 16 percent more than in the first half of 2009. That was the largest amount ever distributed in the first half of the year by the Fidelity gift fund since it was founded in 1991. [Translate] Bookmark:  Read More →

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