Archive for ‘Current Events’

January 20, 2017

Now is the Time to Grow Up and Show Up!

Recently, pollster Frank Luntz, Founder of Luntz Global, said, “Grow up and show up.”

While the phrase has been used in a political context, it certainly applies to the philanthropic world as well.

Luntz was speaking about the nearly 70 (at the time) members of Congress who have decided to boycott the Presidential Inauguration of Donald Trump on January 20, 2017. He suggested that by failing to show up, these members of Congress are breaking with tradition, exacerbating an already divisive atmosphere, and failing to represent the portion of their constituencies who voted for Trump.

Luntz is not the first to use the line “Grow up and show up.” While I don’t know the origin of the phrase, I do know that liberals have used it as well. For example, a number of liberals used the phrase to encourage people to go to the polls and vote for Hillary Clinton.

I find it interesting that both sides of the political spectrum have embraced “Grow up and show up.” Ah, common ground! So, what does this mean for fundraising professionals?:

1.  Sometimes, we need to work with people (e.g., staff, board members, prospects, donors, etc.) we don’t particularly like or agree with. To me, grow up means we need to have the maturity and professionalism to separate our personal selves from our professional selves. We need to do what is best for our organizations and the entire nonprofit sector.

2.  We need to take action. To me, show up means it’s not enough to feel one way or the other; it’s not enough to pay lip-service to an issue or cause; it’s not enough to sign a petition; it’s not enough to participate in a protest. We need to back up our words with substantive action.

Let me share a personal example with you:

Years ago, the CARE Act was under consideration by Congress. The Act bundled a variety of charitable giving incentives including the IRA Charitable Rollover. At the time, I served as a Board Member, and eventually Chair of the Board, of the Association of Fundraising Professionals Political Action Committee.

Sen. Rick Santorum (R-PA) with Michael J. Rosen at CARE Act rally.

Sen. Rick Santorum (R-PA) with Michael J. Rosen at CARE Act rally.

The lead sponsor of the CARE Act was Sen. Rick Santorum (R-PA), He didn’t just lend his name to the Act or pay lip-service to it. He passionately believed in helping the nonprofit sector and, therefore, he actively worked for passage of the bill and partnered with Sen. Joe Lieberman (D-CT) as lead sponsors.

At the time, Santorum was not popular among a large group of AFP members. As a conservative, he was anti-abortion and anti-gay marriage. I was contacted by a number of angry AFP members who did not want the AFP PAC to contribute Santorum’s re-election campaign and who did not want me working with him for passage of the CARE Act.

Despite the objections of some AFP members, the AFP PAC contributed to the Santorum campaign. The AFP PAC also contributed to Lieberman’s campaign although some AFP members objected to that as well. The AFP PAC exists to promote philanthropy, period. In the Senate, Santorum was the most supportive of the nonprofit sector. The contribution was appropriate.

I also continued to work closely with Santorum on advocacy efforts to secure passage of the CARE Act. It was the right thing to do for the nonprofit sector.

January 17, 2017

Philanthropy Will Increase in 2017 and 2018

When it comes to philanthropy, I have some excellent news to share.

In 2017 and 2018, charitable giving will grow faster than the annualized average for the past ten years, according to a new report researched by the Indiana University Lilly Family School of Philanthropy and presented by Marts & Lundy. Based on careful economic modeling, the new study supports the hopeful assessment I made at the close of last year.

The report predicts that overall giving will increase by 3.6 percent in 2017 and 3.8 percent in 2018, when looking at inflation-adjusted dollars.

Amir Pasic, PhD, the Eugene R. Tempel Dean of the School of Philanthropy, says:

philanthropy-outlook-2017-2018Continued growth in the overall economy will lead to a rise in philanthropic giving this year and next. Our research indicates that all types of donors — individuals, foundations, corporations and estates — are likely to increase their giving in each of the next two years. Nonprofit organizations and the people they serve can find encouragement in the anticipated expansion of giving.”

While the report predicts 2017 and 2018 giving will exceed the most recent ten-year annualized average increase in giving of 0.5 percent, the average rate of growth will be below the most recent 25-year (4.4 percent) and 40-year (4.9 percent) annualized averages. So, while the forecast is definitely good, it’s not necessarily great.

Three of the leading economic factors that will influence the rate of growth in charitable giving are:

  1. Stock value growth.
  2. Gross Domestic Product growth.
  3. Household Income growth.

All three of those areas are likely to increase over the next two years. In turn, this will result in an increase of giving across all donor types:

January 13, 2017

The Best #Fundraising Blogs You Should be Reading

Every year, new authors enter the blog-o-sphere. It’s a challenge to keep track of all of the blogs for nonprofit managers and fundraising professionals. It’s even more difficult to determine which blogs are worth dr-seuss-reading-quote-by-linda-jordan-via-flickrvisiting regularly.

If you’re like most folks working in the nonprofit sector, you don’t have a lot of spare time to devote to professional development. You must attend endless meetings, generate reports, cultivate prospects and donors, and raise even more money than you did last year. Ugh!

So, let me help you by sharing two new lists with links to some of the best blogs for you:

100+ Fundraising Blogs You Should Be Reading in 2017” by Kristen Hay, Marketing Coordinator at Bloomerang

50 Must-Read Fundraising Blogs You Should Be Reading” by Anuj Agarwal, Founder of Feedspot.com

As I read the lists, two things struck me:

1.  There are a number of worthwhile blogs with which I was previously unfamiliar. I make an ongoing effort to keep up with the wealth of material in the marketplace, but it’s a challenge. I’m grateful that Bloomerang and Feedspot have pointed me in the direction of blogs worth exploring.

2.  I discovered that my blog made it on to both lists. I’m honored to be included alongside many nonprofit professionals I have long respected. I thank you and all of my readers for inspiring me to blog and helping me receive the recognition I have been given over the years.

To find four great lists of blog sites from last year, along with other valuable resources, checkout my post: “You Don’t Want to Miss These Worthwhile Items from 2016.”

Reading great blogs delivers several benefits:

January 3, 2017

New Year’s Resolutions Worth Making and Keeping

Every year, millions of people around the world make and break New Year’s resolutions. But, it doesn’t need to be that way.

The key to successfully making and keeping resolutions is to set goals worth achieving. This post contains four worthwhile resolutions, most of which I first referenced early in 2015, but they’re worth sharing again. I also provide some important new material including my special recipe for the best hot chocolate ever.

Instead of setting overly challenging goals, I encourage you to adopt the four following, easy-to-keep resolutions. While easy to adhere to, the following resolutions are nevertheless meaningful. You’ll notice that my resolutions include something that will benefit you, something that will benefit others, something that will benefit your organization, and something that will benefit everyone:

1. Resolve to indulge yourself. Yes, you need to take care of yourself by eating right, exercising, and getting an annual medical physical. However, you also need to let yourself be bad occasionally. You need to also take care of your psyche. If that means having a slice of chocolate cake, then go for it! If it means watching old television episodes of Gilligan’s Island, so be it. If it means having your spouse watch the kids so you can enjoy a leisurely bubble bath, make it happen. By being good to yourself, you’ll be better able to be good to other people.

happy-new-year-by-kacey97078-via-flickr2. Resolve to make sure those you love know you love and appreciate them. Don’t assume that those you love know it or know the extent to which you care about them. Tell them. Show them. Don’t just run for the door in the morning to rush off to work; instead, take the time to kiss your spouse good-bye. Don’t just nod when your child comes home with a good test score; instead, take the time to tell him how impressed you are. Make your partner a steaming cup of tea before she asks for it or goes to make it herself. In other words, make the most of the little moments.

3. Resolve to grow professionally. One of the hallmarks of being a professional is ongoing education and sharing knowledge. So, commit to attending seminars and conferences. If time or money are obstacles, participate in a webinar; there are some excellent free webinar programs available throughout the year. Or, read a nonprofit management or fundraising book. There are some terrific books at The Nonprofit Bookstore (powered by Amazon) that will inspire and help you achieve greater results. You’ll find Reader Recommended titles, the complete AFP-Wiley Development Series, and other worthwhile items. If you have found a particular book helpful, consider sharing a copy with a friend, colleague, or your favorite charity. By the way, a portion of the sale of books through The Nonprofit Bookstore will be donated to charity.

4. Resolve to consume more chocolate. I’m not joking. Chocolate can be good for you, provided it’s free of emulsifiers and contains at least 70 percent cacao. Chocolate contains a number of minerals and antioxidants. It also causes the brain to release endorphins, pleasure chemicals. Chocolate is also a mild painkiller. And it tastes good. Just be sure not to overdo it. To help you with this resolution, here’s my special recipe for hot chocolate:

December 23, 2016

Was 2016 a Good Year for #CharitableGiving? Will 2017 be Better?

We’re rapidly approaching the close of what has been a tumultuous year. In 2016, the USA experienced an unusually bitter presidential campaign culminating in the unexpected election of Donald Trump. In the UK, voters chose to exit the European Union; the surprise Brexit vote sent shockwaves around the globe. The civil war in Syria continued to spin out of control resulting in a massive wave of refugees. Terrorism continued to be an international problem.

Uncertainty, fear, and stress are all words that one might use to describe the atmosphere in 2016 given much of the news. However, at least for fundraising professionals, there has also been much good news:

total-giving-as-a-percentage-of-gross-domestic• The third-quarter 2016 annualized Gross Domestic Product growth rate is 3.5 percent, according to the US Commerce Department’s Bureau of Economic Analysis. This is important because philanthropy closely correlates to GDP with overall giving being approximately two percent of GDP.

• Personal income has modestly increased in 2016, according to the BEA. Individual giving correlates to personal income at the rate of about two percent.

• The stock market has been achieving new record highs since the election with the Dow approaching 20,000. Increased stock values mean foundations will have more money to grant and individuals will have more appreciated securities they can donate.

• The price of crude oil is the lowest it’s been in more than a decade, according to Macrotrends. This means lower gasoline and heating oil prices for consumers thereby providing them with more disposable income.

• Third-quarter 2016 corporate profits were up, rising to the highest level since the first-quarter of 2015, according to Trading Economics and the US Bureau of Economics Analysis.

• The nonprofit sector saw #GivingTuesday philanthropic support worldwide grow at the rate of 44 percent, reports NonProfitPRO. While this might not reflect an increase in philanthropy, it does reveal the public’s philanthropic spirit at a time of year historically defined by commercialism.

• Blackbaud, which analyzes more than $18 billion in charitable giving, sees a 3.5 percent increase in donations in 2016 compared with 2015, reports MarketWatch. You can read my comments in the article as well as additional information from Blackbaud.

• Some progressive charities have seen dramatic increases in philanthropic support since the election, reports MarketWatch. It remains to be seen whether this represents an increase in philanthropy or merely a shift in giving priorities. In any case, it reveals that contributions are often driven by philanthropic passions.

• In a Harris Poll survey for CARE USA, 15 percent of respondents say they have or will increase their charitable giving in 2016. While I have a number of problems with the survey methodology, the results are nevertheless somewhat hopeful.

Taking all of the positive news together, we can expect to see that philanthropic giving has increased in 2016. To learn how much growth we have experienced, we’ll need to wait until all of the data has been compiled and analyzed. While I don’t expect a massive growth rate, I do expect good growth. Furthermore, I expect the good news to continue into 2017:

December 9, 2016

#GivingTuesday Hits and Misses

I’m not a fan of #GivingTuesday. Don’t get me wrong, though. I do like the idea of it. Promoting philanthropy at a time of year that has become associated with extreme consumerism is a nice concept.

While I have no quarrel with the idea of #GivingTuesday, I do have several problems with the reality of it, including:

It does not inspire much philanthropy. During #GivingTuesday 2016, early reports show that charities raised $168 million … WORLDWIDE. Last year, nonprofit organizations raised $117 million. Assuming all of that money was given in the USA, which was not the case, it would have accounted for just 0.03 percent of overall philanthropy!

We do not know whether #GivingTuesday inspires new and increased giving. While people contributed on #GivingTuesday, we simply do not know whether they would have given those gifts anyway. We also do not know if #GivingTuesday simply shifts when people give.

Well-resourced charities may be siphoning support away from smaller nonprofits. With larger marketing budgets, staff sizes, and brand awareness, it’s entirely possible that big organizations benefit from #GivingTuesday at the expense of smaller ones.

#GivingTuesday growth appears to be slowing. NonprofitPro reports that this year’s growth rate is the lowest in the five-year history of the campaign.

While I recognize that some charities have benefitted from their #GivingTuesday campaigns, I still fail to see how it is a benefit to the nonprofit sector as a whole. (You can read my more detailed critiques of #GivingTuesday by entering that term in my blog’s search box to the right.)

Furthermore, I find that many individual charities do themselves more harm than good by rushing to embrace #GivingTuesday while failing to invest time and money to enhance the fundamental fundraising skills of staff.

Consider the #GivingTuesday appeal initiated by Inis Nua Theatre Company. This small theatre company in Philadelphia produces excellent contemporary, provocative plays from Ireland, England, Scotland, and Wales.

Jessica Simkins, General Manager of Inis Nua, told me that the company normally does a year-end fundraising campaign. This year, staff chose to use #GivingTuesday to frame this year’s appeal. Rather than implementing an entirely new appeal for #GivingTuesday as many nonprofits have done, Inis Nua chose to leverage the hype around #GivingTuesday, such as it is, to see if it could boost its year-end fundraising campaign.

Despite my general feelings about #GivingTuesday, I actually like this application of the concept. I consider it a Hit. I also like that they included a challenge grant.

Unfortunately, the appeal letter itself is a big Miss. Here’s the direct mail appeal my wife received:

gt-inis-nua-mail-appeal

The major issue I have with the mailing is that it is very organizational-focused. The author uses the words I, my, our, ourselves, us, we a total of 30 times in a one-page letter. On the other hand, the writer uses the words audiences, donors, patrons, supporters, you and your only eight times.

The letter is a self-congratulatory missive from the Founder and Artistic Director. Donors are never given any credit for helping to make possible Inis Nua’s impressive accomplishments. There are other problems with the appeal, but the organization-centric approach is a giant problem. Piggy-backing on #GivingTuesday won’t offset Inis Nua’s neglect of fundraising fundamentals.

By contrast, my wife received a donor-centered email from Lantern Theater Company that also referenced #GivingTuesday. Lantern Theater is also a small nonprofit in Philadelphia that produces classic and modern plays. Unlike Inis Nua, Lantern’s mission statement actually mentions audiences, audience members, and community. You’ll see the audience/community focus represented in Lantern’s email appeal:

November 23, 2016

Thanksgiving Wishes for You

While I try to regularly show appreciation and express gratitude, I find Thanksgiving (USA) is a particularly good time to do so.

In that spirit, I thank you for the work you do to make the world a better place. I appreciate your commitment to the nonprofit sector and the lives we touch. I also thank you for taking the time to visit my blog to read my posts and share your thoughts.

 

Thank You by woodleywonderworks via Flickr and Wordle.net

 

I wish you a Thanksgiving full of great food.

 

roast-turkey-by-slice-of-chic-via-flickr

 

I wish you a Thanksgiving full of laughter.

 

Thanksgiving Cartoon by Cathy Liu via Flickr

November 18, 2016

How to Avoid a Disastrous Political Debate with Donors

[Publisher’s Note: This is not a political or partisan post. Instead, this post will explore how you can successfully navigate potentially controversial, post-election political debates with your donors. As always, civil and on-topic comments are encouraged, whether or not you agree with the points covered in the post. However, overtly political or partisan comments will not be published nor will the rants of internet trolls.]

 

We have just gone through a long, controversial, historic, passionate election cycle in the USA. People continue to take to the streets to protest. The election continues to be a topic of robust conversation that should make Thanksgiving dinners around the country a bit more interesting this year.

Matt Hugg, of Hugg Dot Net LLC, wrote on LinkedIn:

Okay, I’ll admit it… I’ve now voted in 10 US presidential election cycles. In all of those, I don’t ever remember such post-election discussions (and other means of expression) from both sides, as I do this one.”

megaphones-image-via-shutterstockHugg went on to ask how we should handle conversations with prospects and donors when they bring up the election, especially if they voted for the person you did not support.

Hugg raises an important issue. While I rattled off a quick comment, I’ve since given the issue more thought. Because of the significance of the issue, I’ve put together a list five of points for you to keep in mind when speaking with prospects and donors if you want to avoid problems and raise more money:

●  Remember, no one ever won a debate with a prospect or donor. Even if you technically win the argument, there’s an excellent chance you’ll lose the donation. So, it’s generally a good idea to avoid engaging in controversial conversations.

●  When speaking with donors, it’s important to remember that you do not represent a political cause (unless you actually do). When possible and appropriate you should steer a neutral course that puts the emphasis on organizational mission. There are any number of ways you can avoid engaging in a political conversation started by a donor. For example, you can side-step the discussion by using one of the following phrases or others:

“That’s an interesting point.”

“I’ve heard from a number of other people who have raised the same issue.”

“I suspect I’ll talk with a number of other people who share your view.”

“That’s an important issue. What do you think?”

“That’s an interesting concern. One of the things we’re concerned about is how the new policy agenda will impact those we’re trying to serve.”

The key is to provide a neutral response, and bring the conversation back to the organization’s mission and case for support.

November 15, 2016

Will the Election be Good or Bad for #Fundraising?

[Publisher’s Note: This is not a political or partisan post. Instead, this post will explore the affects the recent presidential election is likely to have on fundraising and philanthropy in the short-term and beyond. As always, civil and on-topic comments are encouraged, whether or not you agree with the points covered in the post. However, overtly political or partisan comments will not be published nor will the rants of internet trolls.]

 

Donald J. Trump appears to have secured enough electoral votes to become the USA’s 45th president. His election will become official when the Electoral College votes on Dec. 19, 2016.

After a bruising, though not unprecedented, election cycle, the nation remains deeply divided and emotionally raw. What does this mean for fundraising and philanthropy?

Impact of Election Donations on Charitable Giving:

At the 2016 Association of Fundraising Professionals International Fundraising Conference, research from Blackbaud was presented that looked at the impact of political giving on charitable donations in the 2012 election cycle.

Chuck Longfield, Senior Vice President and Chief Scientist at Blackbaud, observes:

Fundraisers have long debated whether or not political fundraising affects charitable giving and, for decades, important fundraising decisions in election years have been based largely on the conventional belief of a fixed giving pie. The study’s overall assertion is that political giving during the 2012 election did not, in fact, suppress charitable giving. Donors to political campaigns continued their support of charitable causes.”

According to the study, donors who gave to federal political campaigns in 2012 gave 0.9 percent more to charitable organizations in 2012 compared to 2011. By contrast, donors who did not give to political campaigns reduced their giving to charities in 2012 by 2.1 percent. These data findings held true across all sub-sectors as well as the demographic segments of age range, household income, and head of household gender.

The research only provides us with a snapshot. It is not predictive. More research will need to be done to identify whether or not the results will be consistent over multiple election cycles. However, based on the analysis of the 2012 campaign cycle, we certainly have room to be cautiously optimistic about 2016.

Year-End Giving:

If history is an indicator, the 2016 election will have little or no impact on overall year-end philanthropy, according to Patrick Rooney, Ph.D., Associate Dean for Academic Affairs and Research at the Indiana University Lilly Family School of Philanthropy.

voting-by-becky-mccray-via-flickrAt times, elections have had an effect on the giving of some individuals. For example, in 2008 when Barack Obama was elected, some major donors feared that he would secure a 28 percent cap on tax deductions.

Out of fear that the cost of giving would, in effect, be going up in 2009, some of these individuals front-loaded their 2009 philanthropic support to 2008 year-end. Nevertheless, the impact on overall giving was modest.

While Trump has promised major tax reform, it’s doubtful that donors will expect significant changes to the tax code to be enacted and go into effect in 2017. Therefore, it’s equally doubtful that major donors will shift 2017 giving into 2016.

Given that the 2016 election was unusual in many ways, it is certainly possible that year-end giving will deviate from the historical norm. For example, the stock market reached a record level following the election. If stock values continue to grow, we could see an increase in year-end gifts of appreciated securities. However, regarding overall philanthropy, I think the smart bet is on history.

Giving to Individual Charities:

It is very likely that certain individual charities will see an uptick in donations as a result of the election outcome.

Many years ago, Richard Viguerie, a pioneer of conservative direct response fundraising and Chairman of ConservativeHQ.com, said that people would rather fight against something than for something. We’ve seen it before; we’re seeing it now.

For example, when Obama was elected, the National Rifle Association received significantly more contributions as some feared that the new president would impose more stringent gun control measures.

Now, Kari Paul, of MarketWatch, reports:

October 28, 2016

Get a Free Halloween Treat for Fundraisers

If you’re like most fundraising professionals, you’re not optimally asking donors to include your nonprofit organization in their will.

You’re probably not driving as much traffic to your planned giving webpage as you could.

You’re also probably less successful at closing Charitable Gift Annuities than you could be.

lone-ranger-and-silver-via-melocuentas-flickr

The Lone Ranger and Silver.

I know. You decided to read this post to discover how you can get a free Halloween treat. Instead, you’re probably starting to feel tricked. But, fear not! Russell James, JD, PhD, CFP, the Texas Tech University professor and philanthropy researcher, along with the good folks at MarketSmart, are riding in to save the day.

Last summer, James conducted a webinar hosted by MarketSmart. During his presentation, James unveiled his latest, powerful research findings along with research insights from others. You can learn more about the webinar and get some great tips by clicking here.

Now, for your treat, MarketSmart has distilled James’ webinar into a free, 22-page e-book that will help you raise millions of dollars more. For example, here’s just one simple, yet valuable tip:

When you want to engage people in a conversation about Charitable Gift Annuities, what is the best way to describe this giving vehicle to make folks want to learn more?

James tested five phrases. Among the 2,550 respondents, he discovered the percentage interested in learning more:

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