Michael J. Rosen is President of ML Innovations, Inc., a fundraising and marketing consulting firm serving nonprofit organizations and the companies that assist them. An AFP Certified Master Trainer and winner of the prestigious AFP/Skystone Prize for Research, Michael is the author of the bestselling book "Donor-Centered Planned Gift Marketing."
John Heywood, the 16th century English writer, once stated:
Many hands make light work.”
While Heywood might not have been the one to coin the phrase, he certainly helped preserve and popularize it. It’s a nice bit of common sense that we all need to be reminded of periodically.
For example, we can’t know everything. We can’t research an answer to every question by ourselves. We can’t read all of the professional publications to determine which items are of greatest importance or value.
That’s where LinkedIn Discussion Groups can help. By being part of a network of nonprofit managers and fundraising professionals, we can rely on the assistance of colleagues. In turn, we can also be of help.
Through LinkedIn, I’ve developed my professional relationships, broadened my professional network, made new friends, accessed valuable information I never would have on my own, had some of my questions answered, and much more. I’ve engaged in provocative conversations. I’ve learned a great deal. I’ve been inspired.
While I belong to 45 professional LinkedIn Groups that are excellent, there are only some I engage with regularly. Here are just ten of my favorites:
[Note: You might need to be logged into your LinkedIn account for the above links to work. Even then, if you have any problems with the links, you can simply search on the Group names I’ve listed.]
Now, let me tell you about my absolute favorite Group.
Just days ago, I have created a new LinkedIn Discussion Group:
There is a funding source that donated $12.5 billion to charities last year. Sadly, most nonprofit organizations ignore this massive opportunity for support with only 23 percent saying they are “very familiar” with how this funding source works, according to a report from Vanguard Charitable.
I’m speaking of Donor Advised Funds.
Donors create a DAF by opening an account with charitable organization equipped to manage it. Donors then make irrevocable donations of cash or appreciated assets to their DAF account to receive current year tax benefits and deductions. Donors can choose how their contributions are invested creating the potential for tax-free growth that can fund larger charitable grants. Donors “advise” when and how much to grant and to which organizations.
Unfortunately, many fundraising professionals overlook DAFs. They think DAF donations will either automatically come in or won’t. Some fundraising professionals simply complain about how much money is going into DAFs rather than to charities.
I think there are five myths about DAFs that we need to debunk before we review how you can secure DAF grants for your charity:
Myth 1: DAFs don’t generate enough total contributions to deserve attention.
In 2014, DAFs contributed $12.5 billion to charities, a 27 percent increase over 2013, according to a report issued by The National Philanthropic Trust. That’s 3.5 percent of all charitable giving in 2014!
Myth 2: DAFs might give a lot of money, but there are not that many of them.
The reality is that 238,293 DAF accounts existed in 2014. While some donors have created multiple accounts, the number of DAF donors is nevertheless large and growing. To put this into some perspective, there were just 107,000 Charitable Trusts created in 2014.
Myth 3: The average DAF does not contribute very much money.
The average size of each DAF account grew from $260,626 in 2013 to $296,701 in 2014. DAFs had a payout rate of 21.9 percent. This is much higher than the five percent payout rate required of private foundations.
Vanguard Charitable, one of the largest DAF managers, reports accounts valued at $100,000 or more granted an average of $13,841 while accounts valued at less than $100,000 granted an average of $3,422.
Fidelity Charitable, the country’s largest DAF manager, reports its average DAF account granted $4,138 and the average account made 8.3 grants in 2014.
Myth 4: DAF granters prefer to remain anonymous.
Vanguard Charitable reports that 95 percent of its grantmakers share their name with the charities they support. Schwab Charitable, another large DAF management organization, says that 97 percent of its grantmakers share their name. Fidelity Charitable reports that 92 percent of its grantmakers provide information for nonprofit acknowledgment. This means that charities are able to continue to cultivate and steward these donors.
Myth 5: DAFs can be ignored as a passing fad.
DAFs have been around for 84 years. Following the creation of the Fidelity Charitable Gift Fund in 1991, DAFs really began to gain popularity. In 2014, DAFs held $70.7 billion in assets, an increase of nearly 24 percent compared with the previous year. DAFs are not a fad; they are a growing form of philanthropy for those interested in endowed giving but who do not have the resources or interest in establishing a private foundation.
So, what can you do to dive into the DAF pool? Here are six tips:
The post came after David Geffen, the billionaire entertainment mogul and philanthropist, announced that he is donating $100 million to the University of California, Los Angeles, to build a private school aimed, in part, at serving the families of UCLA’s faculty and staff, according to a Los Angeles Times article.
Geffen and UCLA Chancellor Gene Block described the new school, in part, as a recruiting and retention tool for faculty and scientists who may be worried about the cost of living in Los Angeles and the quality of the Los Angeles education system, the Times reports.
The gift to create the Geffen Academy was not the philanthropist’s first donation to UCLA. He has already contributed $300 million to what is now UCLA’s David Geffen School of Medicine. Through his gifts to UCLA, Geffen told the Times, he wants to help the medical school “to be competitive with Harvard and Johns Hopkins and the very best in the world.”
While many might think Geffen’s generosity is noble, Matthews clearly feels otherwise:
Music mogul David Geffen is very, very bad at being a philanthropist. His past donations have mostly taken the form of massive gifts to prominent universities and cultural institutions, rather than to poor people or important research or even less famous, more financially desperate universities and arts centers.”
In short, the Vox blogger says that Geffen is a “ very, very bad” philanthropist because he does not give to causes that Matthews believes he should support. This is a perfect illustration of holier-than-thou liberalism (not to be confused with liberalism).
Matthews calls Geffen’s philanthropy a “grotesque waste.” He adds, “This gift is actually worse than no charity.” He disparages Geffen’s desire to have UCLA compete successfully with Harvard and Johns Hopkins. He even insults the students who will be attending the Geffen Academy by dismissing them as “faculty brats.”
Interestingly, I discovered one reason why Matthews might really be opposed to the Geffen gift. Geffen wants UCLA to be able to compete more effectively with Harvard. Well, guess what? Matthews is a Harvard alumnus, something he neglected to point out in his blog post. That conflict of interest aside, I also noticed that most of the charities that Matthews thinks would be worthier of Geffen’s support work in the developing world. Could it be that Matthews believes in white paternalism and/or keeping people of color dependent on white, Western charity? Is Matthews of the belief that there are no needy children in the US or is it that he’s simply anti-American?
So, Mr. Matthews, how do you like having your motives judged and your character impugned? Normally, I wouldn’t have done so, but I decided to take a moment to adopt your writing voice. I also thought it might be interesting for someone to hold a mirror up to you.
I won’t go into why the Geffen donations are beneficial. Suffice to say they will do a great deal of good from creating good paying jobs to enhancing medical education and research. It might not be what you or I would support. It’s certainly not what Matthews would support. But, the fact is, it’s not our money. It’s Geffen’s wallet, and he can empty it however he wishes, or not at all. If Matthews wants $100 million to go to the various causes he listed, let him go out and earn it so he can give away his own money where he sees fit.
The idea of rejecting a major donation usually sends a chill up the spine of nonprofit executives. After all, nonprofit organizations are not in business to return donations. Instead, charities employ hardworking fundraising professionals to bring in contributions. For many nonprofits, donations are the lifeblood of the organization.
However, rejecting a gift can actually help a charity protect its mission. Recently, I reported on two organizations that rejected or returned major gifts:
“When Should You Refuse a Gift?” — tells the story of Lucy the Elephant rejecting a grant offer from People for the Ethical Treatment of Animals
When the Girl Scouts received the $100,000 gift, the staff was understandably thrilled. The money equaled approximately one-third of the organization’s financial assistance program budget for the year. The Girl Scouts offer financial assistance so that any girl can join despite economic obstacles.
Unfortunately, the Girl Scouts quickly learned that the major gift came with a major stipulation: the organization could not use any of the funds to help transgender children.
Megan Ferland, CEO of the Girl Scouts of Western Washington told Seattle Metropolitan magazine:
Girl Scouts is for every girl. And every girl should have the opportunity to be a Girl Scout if she wants to.”
In other words, accepting the donor’s terms for the gift would have violated the organization’s mission. So, the Girl Scouts made the only decision they could; they returned the gift.
Then, the organization tried to turn a lemon into lemonade. The Girls Scouts launched an Indiegogo crowd-funding campaign to try to recoup the funds. In the campaign, the Girl Scouts explained the situation. However, the organization correctly protected the privacy of the donor by not revealing the donor’s name.
Halloween has passed, but zombies are still with us!
While checking my email Inbox recently, one subject line in particular caught my eye:
Zombie overpopulation video for Halloween by Population Matters.”
Halloween season or not, I like zombie films and television shows. For example, my favorite TV show of the moment is iZombie. If you haven’t seen iZombie, don’t judge me; instead, checkout an episode. Then, thank me.
Anyway, I quickly opened the email from a fundraising professional who I respect greatly. Her message piqued my interest even more:
I can’t believe that any communications or development department ok’d this! Horrible.”
Normally, “horrible” might be a good word to describe a zombie video, but that clearly was not the case in this situation. My fellow fundraiser believes that the video is problematic for the charity even if, on a superficial level, it might be mildly entertaining. So, doubly intrigued, I clicked on the link to the video by the UK charity Population Matters. You can watch it here:
On a superficial level, I kind of like the video. It isn’t great, but it is a bit fun while raising awareness about an important issue. I also acknowledge a few key points:
1. The video is a British production for primarily (though not exclusively) a British audience. The British sense of humor and use of humor is very different from the American. What works in one country might not be appropriate in the other.
2. Adults are not the primary target audience. The organization says “young people” are. I can understand how a zombie-themed video could capture the attention of the intended target audience.
3. The video is bound to attract plenty of eyeballs that will achieve the objective of creating awareness for the issue of over population.
It was not until I thought about the video more deeply, viewed it again, and discussed it with colleagues that I began to see the problems with it.
Racism. At worst, the video is seen by some as racist. At best, it’s considered racially insensitive. The problem is that when mentioning the explosive population growth, only children of color are shown. No white babies or children are shown to illustrate the growth in population. Here’s what one colleague at an international social-service agency had to say about the video:
From our perspective, when people talk about overpopulation, they are often referring to black/brown folks in the global south and Africa. There can be a strong undercurrent of racism there, so connecting ‘too many black and brown people’ with zombies has an extremely negative connotation. In the human rights world, this kind of video is considered to be pretty racist. It got a uniformly negative response from the folks here in our office. So, even if millennials would like it, it’s very much out of step with the way family planning/population issues are framed in the human rights world, and makes it harder for groups like ours to even approach the overpopulation issue without being called racist.”
Overwhelming Use of Statistics. The video provided a number of interesting statistics. The trouble is, the use of statistics was overwhelming and abstract. As a result, even after watching the video three times, I cannot remember a single statistic cited. I suspect casual viewers will experience the same thing.
No Emotional Pull. While the video is somewhat fun, it lacks emotional pull. Greg Warner, of MarketSmart, pointed that out to me along with the next two points.
So What? This is one of my favorite questions when evaluating something. As Greg told me, “There’s nothing to answer the question any individual would ask while viewing it: ‘What’s in it for me?’” Yes, the video attempts to point out how the world and our species would be better off by reducing population growth. However, those “benefits” are abstract, particularly to young people who have some sense of immortality and narcissism.
Weak Call to Action. There are two calls to action in the video. Neither is compelling. First, viewers are encouraged to have smaller families. This is not immediately relevant to the target audience of teenagers. The second call to action is to go to the organization’s website for more information. As Greg mentioned to me, “[The call to action] is not all that exciting.”
Given my own thoughts about the video and the comments I received, I had questions about the production. So, I emailed Population Matters. I received a quick response from Simon Ross, the organization’s Chief Executive: