The NonProfit Times - July 1, 2008 - (Page 19)

Guatemala.They have no loyalty to their alma mater and they could care less about namFoundations still accounted for about 9 percent of the total given to groups, or about ing rights, they’re into that social justice focus,” he said. $27.7 billion, based on estimates between the Foundation Center and Giving USA.That Increases in international giving also might be boosted by the activities of the Gates figure is down from about $30 billion the previous year. Foundation and Clinton Foundation, as well as celebrities helping to raise the visibility of As the economy might factor into individual giving, it also might reflect giving to founpoverty and the need in many countries around the world, Boris said. dations as well, according to Boris.When assets go down, foundations might hold off giving International affairs organizations include relief, direct aid, exthem away until they rebound so their value recovers a bit.“We’re probachange, and other programs focused on international issues.The catebly seeing the impact of the economy at the end of the year on that,” she gory received an estimated $13.22 billion, or 4.3 percent of total said, adding that the prospects for 2008 do not look very promising at estimated giving. the end of 2007, though most of the subsectors are holding their own. Environment/animals and human services experienced the next As usual, religious giving was the largest category of charitable conlargest increases last year, up 10.8 percent (7.7 percent for inflation) tributions with an estimated $102.32 billion, or a third of all giving, and and 8.4 percent (5.4 percent), respectively. Making up almost 10 perthe first time it exceeded $100 billion. Giving to religion increased 4.7 cent of all giving, human services charities received almost $30 billion. percent, or 1.8 percent after inflation, and accounted for half of all indiLast year environment/animals was the smallest category, at almost $7 vidual giving, excluding gifts through bequests or family foundations. million, or 2.3 percent. Giving to human services was all the more imInternational affairs experienced the biggest jump in 2007, up 16.1 pressive since last year wasn’t a particular crisis year, Boris said, while percent, or 12.9 percent when adjusted for inflation.“That’s reflective the subsector has been the subject of Senate Finance Committee comof everything we see, which is why there’s no such thing as American ments about why people aren’t donating. philanthropy, it’s global philanthropy,” said the COF’s Gunderson.“You Giving to arts/culture/humanities rose 7.8 percent (4.8 percent for can’t have a global economy without having global philanthropy beinflation) to almost $14 billion, some 4.5 percent of the charitable pie. cause philanthropy is a key element of the market-based economy,” he Education giving continued to be the second-largest category, with said. “Everything I see here, from family foundations to community $43.32 billion, accounting for 14 percent of all giving, and up 6.4 perfoundations to our large, traditional independent foundations to the Elizabeth Boris cent last year, 3.4 percent adjusted for inflation. corporate giving, everybody is so engaged in international.” Health organizations enjoyed a boost of 5.4 percent (2.4 percent for inflation), rising Giving USA cited a recent study by Campbell & Company which shows that Millennito an estimated $23.15 billion, or 7.6 percent of total giving. Estimated giving in the pubals (those born after 1981) are more concerned with causes that make the world a better lic-society benefit subsector was $22.65 billion, or 7.4 percent of all giving last year, a place while those born before that time look to give their philanthropic dollars closer to jump of 5.8 percent, and 2.9 percent when adjusted for inflation. NPT home. Gunderson said this is especially true in the generational transfer of family foundations.“Our grandparents would give that money to name a building after them at the university, their alma mater. The grandkids would give the money to healthcare in Staff Writer Don McNamara contributed to this report. Commentary National giving data in your work Benchmarking How to use EUGENE R. TEMPEL AND DEL MARTIN lthough national estimates can sometimes seem far removed from local work, the data in the recently released by Giving USA can help nonprofits successfully benchmark their work, plan fundraising strategies and understand trends that might affect them. Whether an organization seeks to end homelessness, support the arts or improve education, knowing how to apply trending data can help nonprofits advance their missions. Giving USA, from Giving USA Foundation and researched and written by the Center on Philanthropy at Indiana University, simultaneously estimates how much money is given by all sources of philanthropy and how much is received by all the types of recipients in a given year. It permits fundraising professionals, nonprofit managers, chief executive officers, volunteers, scholars, donors and others to see trends, discern patterns, and identify new questions for research and practice. Such research builds on the long practical experience of nonprofit professionals to better understand the fundraising environment, how organizations of all sizes fit into it and how to maximize results and best serve donors and the causes they care about. First and foremost, national data allow nonprofit professionals to watch fundraising trends that can affect their organizations.Because the data has been consistently recorded for more than 50 years, it is easy to see trends as they emerge. For example, during the past 40 years the share of total giving made by individuals during their lifetime is decreasing, while giving through foundations and bequests is increasing. This means that donors have shifted their preferred giving vehicles, including into foundation grantmaking and planned gifts.Annual gifts now might come from a personal foundation instead of a personal checkbook. Professionals might need to is, giving to both health and human services is still increasing, but the share for health goes down because other subsectors see a faster rate of growth. Giving data for each subsector during five-year spans shows changing donor preferences. Growth in education observed over time reflects increased foundation grantmaking to education, for example.The data also shows the percentage of gifts to religious causes has de- giving in recent years going to the “publicsociety benefit” subsector is the contributions made to commercially sponsored donor-advised funds that are part of this subsector. Fundraising professionals should be aware of these trends and their implications, but should not shift their cases just because a neighboring slice of the “giving pie” appears to get a higher share. If your organization doesn’t always look like the national averages, try to un- shape different types of appeals to accommodate these giving vehicles. They must also learn to recognize when a personal foundation is not an “institutional donor” but merely the way some individuals or families choose to give. Shifts among subsectors are also evident. For example, the health category has declined as a share of total giving while human services has grown. Increases in one subsector affect the percentage of total giving, but not necessarily the amounts given, of other subsectors. That creased during the past few decades. Even as giving to religion has increased, other types of giving have grown more quickly. The shifts seen between subsectors might reflect the changing configuration of the nonprofit sector. For example, the trend toward fewer nonprofit hospitals has corresponded with the decline in health giving. A growth in the number of organizations working internationally has corresponded with an increase in giving for international affairs. One reason for the increased share of derstand the reasons why. Perhaps it’s a geographic factor, the age of the organization, or even differences in donor demographics. However, if your nonprofit is consistently below the averages for its subsector, you might want to recommend changes in strategy, more clearly stating the case, or investing in more volunteer resources and additional fundraising. National events also impact yearly giving trends, and Giving USA recognizes their effects. For example, the percentage National Benchmarking, page 21 JULY 1, 2008 THE NONPROFIT TIMES www.nptimes.com http://www.nptimes.com

Table of Contents Feed for the Digital Edition of The NonProfit Times - July 1, 2008

The NonProfit Times - July 1, 2008 Time to Let GO Sparks Flying From Blackbaud's Bid For Kintera Holiday Jeer Contents Who...When...Where...How...What? The Wrong Arguments Calendar Measure the Unmeasureable Getting Good Advice We Barely Got to Know You Special Report: Giving USA Shows Bequests, Foundations Boosted Otherwise Flat Giving to 306 Billion Dollars National Benchmarking Nothing Is Forever Diversified Planet Business Briefs NPT Jobs Resource Directory Bridge Map Insert

The NonProfit Times - July 1, 2008

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