Expanding Our Cause: Diverse Community Giving Trends
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The face of philanthropy has changed dramatically over time. What does Diversity and Philanthropy look like today? How can YMCA fundraising programs thrive in our changing communities? In this webinar we will share the latest trends on philanthropy in diverse communities, why these trends are important for the YMCA. We’ll explore how our internal and external dimensions of diversity impact philanthropic behavior, including gender, age, faith, and race and ethnicity.
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Expanding Our Cause: Diverse Community Giving Trends
- 1. EXPANDING OUR CAUSEDIVERSE COMMUNITY GIVING TRENDS PHILANTHROPY IN DIVERSE COMMUNITIES COHORT January 26, 2015 Adam Clevenger, CFRE @adamclevenger © 2014 YMCA of the USA
- 2. AGENDA 2 1. CONTEXT 2. DIMENSIONS OF DIVERSITY – External Dimensions – Internal Dimensions 3. KEY CONSIDERATIONS – Donor-Centered Fundraising – Integrating with current Best Practices 4. Q&A
- 3. CONTEXT • In 2014, $358.38 billion charitable contributions • Highest giving level, topping pre-recession giving • Individuals control 85% of giving • 72% of giving from individual outright gifts • 8% came from bequests • 63% of foundation giving came from private foundations and DAFs • Giving to education, human services and health is $125billion • Diverse donors gaining greater access to economy, without long-term charitable commitments. • 63% Latino households now make charitable donations, as do nearly 2/3s of African-American households, for a total of $11 billion a year • Asian-American households give away a bigger share of their income each year than do whites 3 | Expanding our Cause: Diverse Community Giving Trends – Philanthropy in Diverse Communities Cohort | ©2014 YMCA of the USA
- 4. DIMENSIONS OF DIVERSITY 4 | Expanding our Cause: Diverse Community Giving Trends – Philanthropy in Diverse Communities Cohort | ©2014 YMCA of the USA
- 5. EXTERNAL DIMENSIONS 5 •Wealthier individuals give more in absolute dollars •Lower income donors give more (possibly 2x) as percentage of income than high net worth donors. (4% vs 2%) Income •Historically, greatest predictor of philanthropic interest was based upon religious participation •Continues to receive highest amount of contributions, though declining •Younger generation not engaging in organized religion Religion •Research inconclusive as to how education affects giving •Education and Income are linked, so some research suggests giving increases with education. Education •Utah, followed by 7 Southern states (MS, AL, TN, GA, SC, AK, NC) make up the top ten states with the highest percentage of income, 3.63%-6.56%. •Bottom 7 are all Northeastern states (CT, MA, RI, NJ, VT, ME, NH), 2.43- 1.74% Geographic Location | Expanding our Cause: Diverse Community Giving Trends – Philanthropy in Diverse Communities Cohort | ©2014 YMCA of the USA
- 6. INTERNAL DIMENSIONS 6 •Typically, women are viewed as more philanthropic •8/10 women in heterosexual couples make giving decisions Gender •LGBT donors significantly more active in advocacy & grassroots efforts, even for other causes •Following marriage debate, health primary concern Sexual Orientation •Boomers account for 49% of giving •Gen X and Mature most likely to volunteer •Shift from organization loyalty to cause •Response to relationship-based funding in all groups Age | Expanding our Cause: Diverse Community Giving Trends – Philanthropy in Diverse Communities Cohort | ©2014 YMCA of the USA
- 7. 7 | Expanding our Cause: Diverse Community Giving Trends – Philanthropy in Diverse Communities Cohort | ©2014 YMCA of the USA
- 8. RACE & ETHNICITY AFFECTS GIVING 8 African-American •Moral conviction; spiritual foundation •Give primarily to church, education basic needs •Historically black institutions/ almae matres •More immediate needs giving •Respond less to traditional approaches Hispanic Latino •Personal Relationships •Giving Reflects values: family, education & religion •Giving lessons learned at Church •Immediate need giving, less structured giving •Spanish- speaking (even non 1st generation) Asian-American •Close family & social circles – personal asks •Health, education, services •Ethic-specific & pan-Asian causes •Remittance to home countries higher proportion of giving •Strong sense of obligation •Cultural heritage is a strong interest Diaspora •$123.2billion in personal remittances sent from US; Mexico, China, India, Philippines & Nigeria as top 5 receiving countries •$4.5billion received in US •Relocation & Newcomer integration is common | Expanding our Cause: Diverse Community Giving Trends – Philanthropy in Diverse Communities Cohort | ©2014 YMCA of the USA
- 9. DEVELOPMENT & DIMENSIONS OF DIVERSITY 9 | Expanding our Cause: Diverse Community Giving Trends – Philanthropy in Diverse Communities Cohort | ©2014 YMCA of the USA • One size does not fit all • Authenticity Matters: be true to our Cause • Language is Essential • Staff, Board and Volunteer Diversity • The Y must be accessible and seen as partner supporting communities • Lifetime Giving Value: Small gifts, over long period of time • Culturally relevant donor engagement • Affinity-based fundraising • Giving Circles • Special Events (Ethnic or religious holiday celebrations)
- 10. Q&A
- 11. THANK YOU Adam Clevenger, CFRE YMCA OF THE USA 800 872 9622 adam.clevenger@ymca.net @adamclevenger
- 12. SOURCES Association of Fundraising Professionals (2013). Diversity & Inclusion summit report. Retrieved from: http://www.afpnet.org/files/ContentDocuments/2013DiversityInclusionSummitReport.pdf. Bekkers, R. & Wiepking, P. (2011). Who gives? A literature review of predictors of charitable giving. Voluntary Sector Review, 2(3), 337-65. Blackbaud (2013). The Next generation of American giving. Retrieved from: https://www.blackbaud.com/nonprofit-resources/generational-giving-report-infographic. Blackbaud (2015). Diversity in giving: The changing landscape of American philanthropy. Retrieved from: www.blackbaud.com/nonprofit-resources/diversity-in-giving-study?utm_expid=9520401- 14.mJZaEZUHQlqEebLLhILF8A.1&utm_source=cop&utm_medium=banner&utm_content=728X90&utm_campa ign=2015dig&utm_referrer=https%3A%2F%2Fphilanthropy.com%2Fsearch%3Fq%3DHow%2BAmerica%2BGi ves%2B%26published_date%3D3_or_more_years%26topics%3Dindividual%2Bgiving Burk, P. (2003). Donor centered fundraising: How to hold onto your donors and raise much more money. Chicago, IL & Hamilton, ON: Cygnus Applied Research, Inc. Chao, J. (1999). Asian-American philanthropy: Expanding circles of participation. Washington: Council on Foundations. Chronicle of Philanthropy (2014). How America gives 2014. Washington: The Chronicle of Philanthropy. DeJesus-Medina, D., Montalvo, D., Rivas-Vazquez, A.G., O’Neil, Megan (2014). How to attract Hispanic donors. Webinar hosted by The Chronicle of Philanthropy. Dimensions (2011). New York: National Catholic Development Conference. Retrieved from: http://www.theagitator.net/wp-content/uploads/Hispanic-Donors-NCDC-Dec11.pdf. Giving USA: The Annual report on philanthropy for the year 2013 (2014). Chicago: Giving USA Foundation. Gow Pettey, J. (2012). Donor diversity. The Non Profit Times. Received from: http://www.thenonprofittimes.com/news-articles/donor-diversity. Jayne, M. & Dipboye, R.(2004). Leveraging diversity to improve business performance: Research findings and recommendation for organizations. Human Resource Management. Retrieved from: http://web.mit.edu/cortiz/www/Diversity/Jayne%20and%20Dipboye%202004.pdf. 12 | Expanding our Cause: Diverse Community Giving Trends – Philanthropy in Diverse Communities Cohort | ©2014 YMCA of the USA
- 13. SOURCES Jones, P. (2003). Charities, churches, causes benefit from generosity. Memphis: The Common Appeal. Mottino, F.& Miller, E. (2004). Pathways for change: Philanthropy among African American, Asian American, and Latino donors in New York metropolitan region. New York: Center on Philanthropy and Civil Society. Newman, D. et al (2002). Opening doors: Pathways to diverse donors. San Francisco: John Wiley & Sons, Inc. Newman, D.(2003). Sense and sensitivity: Keys to attracting diverse donors. Washington: American Society of Association Executives. Retrieved from: http://www.asaecenter.org/Resources/EUArticle.cfm?ItemNumber=11788. Pew Research (2014). Remittance flows worldwide in 2012. Pew Research Center. Retrieved from: http://www.pewsocialtrends.org/2014/02/20/remittance-map/. Scanlan, J. (1999). Cultures of caring: Philanthropy in diverse American communities. Washington: Council on Foundations. Taylor, P. (2014). The Next America. Pew Research Center. Retrieved from: http://www.pewresearch.org/next-america/ . W.K. Kellogg Foundation (2012). The Cultures of giving report. Battle Creek, MI: W.K. Kellogg Foundation. Winters, M. (1999). Reflections on endowment building in the African-American community. Washington: Council on Foundations. 13 | Expanding our Cause: Diverse Community Giving Trends – Philanthropy in Diverse Communities Cohort | ©2014 YMCA of the USA
Editor's Notes
- To begin with, I’d like to set a context by looking at total giving in the US. [Review stats] As you can see, individuals play an important role in charitable giving, so they are the focus of our development efforts. It’s worth noting at this point that whenever looking at race/ethnicity and giving stats, that minority donors are likely under-represented. African American and Hispanic donors are less likely to respond to traditional fundraising approaches, so are largely left out of giving reports. However, as cited in the Blackbaud study, if asked, these donors are likely to contribute at greater levels than if ignored.
- Many of you on this call have seen this figure of the Dimensions of Diversity. Financial development are intentional acts to bring donors closer to our cause in order to realize their dreams for their communities. So I think it’s appropriate to use the Dimensions of Diversity as filter to foster intentional inclusion and consideration of multiple dimensions of diversity in our philanthropic efforts. Recently statement by AFP Diversity Summit: “Embracing diversity means having a genuine respect for differing perspectives, so that solutions encompass all diverse views and needs. Diversity increases the wealth of knowledge and ideas available, as long as they all look for creative and mutually satisfactory solutions.” (p. 4)
- •• Wealthier individuals donate more in absolute terms than those with mid-level or lower incomes, however lower-income donors give more as percent of income. •• Religion and faith are both drivers and indicators of giving. Religious organizations capture a significant proportion of all money donated. Moreover, donors who report being actively engaged in a faith community are more likely to give—and to give more—to the full spectrum of nonprofits and causes.
- Transitioning to race and ethnicity factors, this graphic is from a recent donor study conducted by Blackbaud. Though there are some nuances here, all donors typically support places of worship, children’s charities and health organizations.
- For both African-American and Hispanic donors, giving is rooted in faith tradition and is reflected in giving choices. In most cases within these three groups, there is a desire for giving to support and promote community. Most giving by African-American and Hispanic donors done informally, meeting immediate needs. Asian-American donors tend to give within close circles of family and friends, due to strong sense of community obligation. Asian-American respond more to structured fundraising programs are generally more open to planned giving.
- Again, from the Blackbuad study, “The under-representation of African-Americans and Hispanics suggests that organized philanthropy is not doing an adequate job of engaging non-white communities. For instance, African-American and Hispanic donors say they are solicited less frequently. Furthermore, they suggest they would give more if they were asked more often. The goal for all fundraisers must be to meet all donors where they are, as opposed to using an outmoded one-size-fits-all model. That may necessitate shifts in fundraising channels, in messaging and language, and even in governance. Given the pressing social and economic challenges we face, this effort has never been more important.”