The NonProfit Times - July 1, 2008 - (Page 21)

National Benchmarking Continued from page 19 of total giving going to human service organizations saw a big bump after Hurricanes Katrina and Rita but decreased during the following years. How have such events affected your organization? This also indicates that national results might not always be the best measure for any given year but the overall trend can be useful. Conversely, if your organization is facing an unusual set of circumstances, such as a transition in leadership or a particularly difficult local economy, benchmarking can put bad news in context and present some parameters for good news. A 40-year analysis of Giving USA data finds that the best predictor of total performance in a given year is the previous year’s performance. By graphing your nonprofit’s trends versus long-term trends you will begin to understand how your current level of donation dollars is shaped in part by the donor acquisition and retention successes of earlier years. The potential impact of the current economic situation on charitable giving is never far from most nonprofit professionals’ minds. Giving USA’s 53 years of data makes it clear that when the national economy is in recession, charitable giving declines -- but usually by not more than a few percentage points. Since 1967, the average decline in total giving during a recession has been 1 percent. Of course, some charities fare worse and some do better. Examining 40-year and recent trends can help nonprofit professionals estimate how giving to their types of organizations might change during the next five to 10 years. Looking at five-year spans shows that patterns are relatively stable over time, suggesting that planning horizons that extend over several years are appropriate. It’s also important to watch how subsector patterns vary from overall giving trends, as that can give a better idea of what your organization can expect. Health care giving and arts giving, for example, both show frequent shifts up and down, tional patterns. For example, 63 percent of secular charitable giving comes from individuals, while more than 90 percent of religious giving is from individuals. Understanding these differences can help you focus time and resources when soliciting contributions. The data can also be useful in your work with donors, board members and One of the most important take-aways from Giving USA is the importance of diversifying funding sources. whereas education giving has trended up with very few downturns over the years. One of the most important take-aways from Giving USA is the importance of diversifying funding sources. Few organizations can rely indefinitely on a single source for income, whether it is foundation grants, corporate gifts or even government contracts. And yet, not all charitable organizations will have -- or even should have -- a distribution that mirrors the navolunteers. Some donors might find it helpful to identify the types of organizations where their gift will have a large impact. In a subsector in which there are few very large gifts announced, such as human services, a donor wishing to make a bigger impact could be a leader in the field. Since donors often want to give “what others are giving,” seeing those gifts can be a way to show where large gifts go while helping donors make a contribution with greater impact. It is important for board members and staff to understand the importance of individual giving, as many people do not realize that individuals contribute three-quarters or more of total giving each year.While government and foundation grants are major sources of income for many organizations, and corporate gifts and sponsorships often play a huge role in organizations that are heavily event-driven, when board members and other staff understand how important individual giving is in the “big picture,” that knowledge can help diversify organizations’ fundraising efforts for the better. Carefully mixing fundraising strategies, informed by the national trends and based on the characteristics of specific donor or prospective donor groups, can help strengthen fundraising efforts. Studying and understanding the trends, sharing the knowledge with peer networks, and even suggesting topics for further academic research can help all charities approach fundraising effectively and with respect for donors. Finally, incorporating data findings into your internal and external communications will help colleagues, volunteers, donors, constituents, media and others understand up-to-date information about philanthropy overall and how your nonprofit fits into that context.And let us not forget that data powerfully demonstrates the generosity of American donors. NPT Dr. Eugene R. Tempel, CFRE, is executive director of The Center on Philanthropy at Indiana University. Del Martin, CFRE, is chair of Giving USA FoundationTM. From the nonprofit world’s most beloved columnist… Revolutionize your fundraising. Survive and Prosper in the Challenging New World of Twenty-First Century Fundraising . . . 8-1/2 x 11 166 pages paperback $24.95 With expert guidance from the master . . . 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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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