Archive for November, 2018

November 28, 2018

“Philanthropy” Is NOT What You Think It Is

Do you understand what the word “philanthropy” really means? If you don’t, it could be costing your nonprofit organization a fortune in lost support. Conversely, once you know the true meaning of “philanthropy,” you’ll be better able to relate to prospective donors and inspire them to give. So, what does the word truly mean?

If you’re like most people, you probably think you know what “philanthropy” means. “Philanthropy” involves a large contribution to a nonprofit organization from a wealthy individual, a philanthropist. A recent example of this would be Michael Bloomberg’s recent announcement that he is donating $1.8 billion to Johns Hopkins University, the largest individual donation ever made to a single university.

However, that understanding of “philanthropy” is entirely too narrow. Let me explain by first telling you what “philanthropy” is not. Philanthropy does not necessarily involve:

  • donating vast sums of money;
  • supporting large numbers of charities;
  • sitting on nonprofit boards;
  • only wealthy people.

Coming from the ancient Greek, here is what the word “philanthropy” actually means:

Love of humanity.

Signs of support appeared throughout Pittsburgh following the murders at Tree of Life * Or L’Simcha Congregation.

Think about that. People donate their time and money to nonprofit organizations because of their love of humanity (or animals). They want to solve problems and alleviate suffering. They want to make the world a better place. That’s what motivates people to think philanthropically.

People won’t think philanthropically simply because it’s Giving Tuesday, and you tell them they should. They won’t think philanthropically just because they attended your university and are told they should “give back.” They won’t think philanthropically just because your organization exists and is a household name.

If you tap into a person’s love of humanity, you’ll tap into their philanthropic spirit. That’s how you’ll inspire their support. That’s how you’ll upgrade their support. That’s how you’ll maintain their support.

Charitable giving is an expression of a donor’s love.

I was reminded recently of the true power of the  philanthropic spirit. It wasn’t Bloomberg’s massive gift, though that was definitely amazing. Instead, when I visited Pittsburgh, I was reminded of the power of love to build, and rebuild, strong communities.

Temporary memorial outside of Tree of Life * Or L’Simcha Congregation.

When my wife and I traveled to Pittsburgh a couple of weeks ago, we attended evening Sabbath services with the congregants of the Tree of Life * Or L’Simcha Congregation in their temporary home. This was less than two weeks after a gunman entered the synagogue and horrifically murdered 11 people as they worshiped. Praying with the congregants, talking with them, and meeting Rabbi Hazzan Jeffrey Myers was a profoundly moving experience. Making the evening even more moving was the fact that it fell on the 80th anniversary of Kristallnacht, also known as the Night of Broken Glass. During Kristallnacht in Nazi Germany, Jews were murdered and synagogues and Jewish-owned businesses were vandalized and had their windows smashed.

Support came from around the world.

Rabbi Myers drew a parallel between Kristallnacht and the recent attack that nearly took his life. Both violent attacks were motivated by rabid anti-Semitism, which has been on the rise in America since 2014. However, Rabbi Myers also drew meaningful distinctions between the two events.

During Kristallnacht, officially sanctioned groups along with German civilians attacked the Jewish population. Local authorities did nothing to stop the attacks. The police protected non-Jewish citizens while arresting and imprisoning Jewish victims.

By contrast, American authorities condemned the Pittsburgh attack immediately, and offered comfort to the victims. People throughout Pittsburgh, Pennsylvania, the United States, and the world expressed their sense of horror and grief. They offered words of condolence, and made donations to help the families and to rebuild the badly damaged synagogue. The police in Pittsburgh ran toward the danger, put their own lives at risk, confronted the attacker, and ended what could have been an even more tragic event.

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November 8, 2018

Did the Midterm Elections Help or Hurt Your Nonprofit?

I’m a news junkie. So, I was up very late on election night, actually very early the next morning. Now that I’ve caught up on some sleep, I’ve been thinking about what the midterm election means to charities. In this post, I’ll layout some of my nonpartisan thinking. Just be warned, I’m also going to share some statistics and a bit of history as we consider what the election means for the nonprofit sector.

The midterm elections this week resulted in the Democratic Party regaining control of the US House of Representatives. Let’s put that into a bit of historical perspective. Despite successfully securing a majority in the House, the Democratic Party’s much-hoped-for Blue Wave did not materialize. As I write this post, the Democrats are expected to gain a 27 to 34 seat advantage over Republicans in the House. However, Republicans not only hung on to control of the Senate, they actually enhanced their position by three to five seats.

To put the Federal election results into some context, let’s look at the 2010 midterm elections during President Barack Obama’s second year in office. Going into the 2010 election, Obama’s approval rating was six points higher than Trump’s was prior to the 2018 election. Nevertheless, Democrats lost 63 House seats and lost six Senate seats.

“[The 2018 midterm elections are] only the third time in the past 100 years that the party holding the White House has gained seats in the Senate in a midterm election while losing seats in the House,” according to MarketWatch. “The President’s party has won seats in both the House and Senate just twice in the past century in a midterm election.”

This all means that both Democrats and Republicans can declare success this week. But, what about the nonprofit sector?

While it’s too early to know with any certainty, there are some things we learned on election night and other things we can learn from history:

1. Impact on the Election. In the lead up to the vote, nonprofit organizations flexed their muscle along with their corresponding Political Action Committees. On a variety of issues, the nonprofit sector demonstrated that it could have a profound impact on public policy. Regardless of where you stand on the issues, here are just a few examples to illustrate the point:

In Massachusetts, the American Civil Liberties Union, Human Rights Campaign, MassEquality, Planned Parenthood Advocacy Fund of Massachusetts, The Yes on 3 Campaign, and other organizations joined forces and scored a massive victory on election night when voters, by a two-to-one margin, reaffirmed the rights of transgender people.

In North Carolina, voters approved a measure directing the legislature to amend the state constitution to guarantee the right of citizens to hunt and fish. This was a victory for the Congressional Sportsmen’s Foundation and the National Rifle Association.

In Florida, the Humane Society of the United States and PETA persuaded voters to change the state constitution to ban greyhound racing.

Nonprofit organizations have political power. When nonprofit organizations join forces, they can have a dramatic effect on public policy.

2. Good News for the Stock Market. Historically, Americans prefer divided government, so it’s not surprising that Democrats were able to regain control of the House. Like the populace, the stock market also prefers divided government.

“Here’s what Investor’s Business Daily found, looking at S&P 500 returns during each two-year election cycle, from election day to election day. The best outcome, an average 18.7% two-year return, came when Congress was divided. Unified control of Congress by the same party as the president yielded an average 17.3% two-year gain. When control of Congress was unified under the opposition party, gains averaged 15.7%.”

If the stock market goes up, many donors will own appreciated stocks that they can donate to charities. Foundations will see their stock holdings grow and, therefore, have more money to grant to nonprofits. That would be good news for investors and charities.

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