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Recent Trends In Funding

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    Recent Trends In Funding Recent Trends In Funding Presentation Transcript

    • 2013 Indiana Governor’s Conference on Service and Nonprofit Capacity Building October 3, 2013 Indianapolis, IN Kirsten Grønbjerg, Ph.D. Patrick Rooney, Ph.D. Josette C. Rathbun, CFP, MBA Angela White, CFRE Moderator – Katie Prine
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World October 3, 2013 Welcome to the 2013 Indiana Governor's Conference on Service and Nonprofit Capacity Building!
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Phi • lan • thro • py (n.) “voluntary action for the public good” ~ Robert Payton
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Introductions • Kirsten A. Grønbjerg, Efroymson Chair in Philanthropy, Professor of Public and Environmental Affairs at Indiana University, Bloomington • Patrick Rooney, Associate Dean for Academic Affairs and Research at the IU Lilly Family School of Philanthropy • Josette C. Rathbun, CFP, MBA, First Vice President-Wealth Management at Merrill Lynch • Angela White, CFRE, Senior Consultant and CEO at Johnson, Grossnickle, and Associates
    • Nonprofit Employment, Revenues and Funding Streams Kirsten A. Grønbjerg Efroymson Chair in Philanthropy Professor of Philanthropic Studies Professor of Nonprofit Management School of Public & Environmental Affairs Indiana University Bloomington
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Overview • Trends in the Indiana nonprofit sector • Importance of philanthropic funding • Current state of giving
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Indiana Nonprofit Sector: Trends www.indiana.edu/~nonprof
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World The overall pie – our estimate for IN • Indiana Nonprofit Sector project estimate (2011) - 250,000 paid employees - $9.5 billion in payroll (excl. fringes) - $26 billion revenues (rough estimate) Assumes payroll (excl. fringes) ~ 37% of revenues (US estimate) • Nonprofit payroll has grown, even adjusted for inflation - Up by 61% since 1995; by 9% since 2008 • More than the growth in nonprofit paid employees - Up by 34% since 1995; by 5% since 2008
    • -5% Nonprofit www.indiana.edu/~nonprof Government 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 • 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World NP employment is more recession proof Annual % changes in paid employees: 1995-2011 9% 7% 5% 3% 1% -1% -3% For-Profit -7% -9%
    • -5% Nonprofit www.indiana.edu/~nonprof Government 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 • 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World …. so is nonprofit payroll Annual % changes in payroll (infl. adj.): 1995-2011 9% 7% 5% 3% 1% -1% -3% For-Profit -7% -9%
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World But in key industries NPs are loosing ground – in share of total employment 100% % Nonprofit Employees 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1995- 2001- 2007- 1995- 2001- 2007- 1995- 2001- 2007- 1995- 2001- 20072000 2006 2011 2000 2006 2011 2000 2006 2011 2000 2006 2011 Social Assistance www.indiana.edu/~nonprof Health Arts, Entertainment, & Recreation Education
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World …and in share of total payroll 100% % Nonprofit Payroll 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1995- 2001- 2007- 1995- 2001- 2007- 1995- 2001- 2007- 1995- 2001- 20072000 2006 2011 2000 2006 2011 2000 2006 2011 2000 2006 2011 Social Assistance www.indiana.edu/~nonprof Health Arts, Entertainment, & Recreation Education
    • Health -6% -7% www.indiana.edu/~nonprof Arts, Entertainment, & Recreation 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Social Assistance 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 -5% 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World …with real job losses in some industries 7% 6% 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% Education
    • -6% -7% Health www.indiana.edu/~nonprof Arts, Entertainment, & Recreation 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 -4% 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Social Assistance 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 -5% 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World …and in payroll 7% 6% 5% 4% 3% 2% 1% 0% -1% -2% -3% Education
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World So, a mixed message about the Indiana nonprofit sector • Overall growth • Resilience during the two recessions • Some notable growths and areas of strengths • Health • Education • But also decline & growing competition, especially.. • Social assistance • Arts, entertainment and recreation • And trends are worrisome
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Importance of Philanthropic Funding
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World The overall pie – another take • • Nonprofit Almanac 2012: estimate (2010 data) - US: 366,000 “reporting public charities” • $1.5 trillion in total revenues • Excludes private foundations & 614,000 “non-reporting” public charities - Indiana: 7,600 “reporting public charities” • $28.9 billion in total revenues • Excludes private foundations & 15,600 “non-reporting” public charities Very close to our revenue estimate ($26 billion) - Very different methodology - Different year (2010 vs. 2011) - Both are incomplete
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Philanthropy is a fairly small slice (US) Investment, 3% Private contributions, 13% Gov't grants, 8% Gov't fees, 24% Other income, 2% Private fees & sales, 50% Source: Roeger, Blackwood & Pettijohn. Nonprofit Almanac, 2012 (2010 data)
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Percent of Total Revenues by Source ..but slice varies by nonprofit field… 100% 1% 6% 90% 11% 80% 9% 1% 70% 1% 3% 2% 2% 2% 2% 1% 6% 11% 3% 3% 5% 3% 8% 38% 20% 10% 0% 5% 2% 4% 1% 2% 2% 3% 13% 8% 29% 45% 20% 49% 41% 23% 61% 69% 24% 17% 50% 30% 3% 20% 60% 40% 2% 2% 5% 72% 57% Investment Private contributions Gov't grants 12% 1% 56% 41% Other income 34% 14% 1% 25% 30% 28% 19% 5% 27% 26% Gov't fees 3% 4% 50% 19% 1% 8% Private fees & sales Roeger, Blackwood & Pettijohn. Nonprofit Almanac, 2012 (2010 data) with unpublished supplementary details for education, health, and PSB
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Current State of Philanthropy
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Reminder… private gifts are just 13% Gov't grants, 8% Investment, 3% Other income, 2% Gov't fees, 24% Private fees & sales, 50% Private gifts, 13% Source: Roeger, Blackwood & Pettijohn. Nonprofit Almanac, 2012 (2010 data)
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World But private philanthropy is large: $316.2 billion in 2012  One-third goes to religion  Almost half (45%) goes to: Arts, cult. Human, $14.4 , 4%  Education: 13%  Human services: 13%  Foundations: 10%  Health: 9% International , $19.1 , 6% Pub/soc benefit, $21.6 , 7%  The rest: about a quarter (23%)  Most goes to large charities  Top 400 receive ~25% of total  Large capital campaigns (universities) Gifts to Envir., Unallocated, indivduals, animals, $6.8 , 2% $4.0 , 1% $8.3 , 3% Religion, $101.5 , 32% Health, $28.1 , 9% Gifts to foundations, $30.6 , 10% Human services, $40.4 , 13% Source: Giving USA, 2013 Education, $41.3 , 13%
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World A closer look at Philanthropy by source Total : $316.2 billion Corporate $18.2 , 6% Most (79%) come from individuals - Living: 72% - Bequests: 7% Foundations $45.7 , 15% Only 21% from institutional donors - Foundations: 15% - Corporations: 6% Bequest, $23.4 , 7% Individuals, $228.9 , 72% Source: Giving USA 2013 (2012 data) ….and no good data on how philanthropic profiles vary by nonprofit field….
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Percent of aggregate gifts ...although likely to vary greatly… 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2 1 9 4 9 13 14 Dated (2003), but for Indiana; 12 33 9 49 29 Corporations 17 97 87 77 16 77 59 Foundations 36 (combines bequests & current household giving) Households 50 Source: Center on Philanthropy, Indiana Gives, 2003
    • The Role of Universities in The Growth of The Nonprofit Sector Patrick Rooney Associate Dean for Academic Affairs and Research Lilly Family School of Philanthropy at Indiana University
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Creating the Indiana University Lilly Family School of Philanthropy • • In September 2012, Indiana Commission for Higher Education approved proposal to create School of Philanthropy. Inauguration took place in April 2013. Believed to be the world’s first school dedicated to the study and teaching of philanthropy.
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Goals of the Lilly Family School • Attract more top students to choose careers in philanthropy. • Prepare current and aspiring philanthropy and nonprofit professionals with the knowledge to be thoughtful and innovative leaders. • Educate new generations of scholars in a field whose importance is growing rapidly in all aspects of society. • Draw on expansive network of faculty and programs focused on philanthropy and nonprofits. • Expand and enhance actionable research for the sector. • Raise awareness and visibility of philanthropy and nonprofit sector. • Improve philanthropy to help you improve the world.
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World About the Lilly Family School • Currently 12 core faculty + 40 affiliate faculty in 20+ fields  Strategic partnerships with SPEA ‘s Nonprofit Management programs at both IUPUI and IUB, as well as Liberal Arts • Core program areas  Academic Programs  The Fund Raising School (TFRS)  Lake Institute on Faith & Giving  Women’s Philanthropy Institute  Research
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Giving USA • Estimates for: o Sources of giving; o Amounts received by type of organization • Published by the Giving USA Foundation™ • Made possible by contributions from many • Started in 1956 by the American Association of Fundraising Counsel, now Giving Institute: Leading Consultants to Nonprofits • Most comprehensive annual report about U.S. charitable giving
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Total Giving in billions of dollars (1972-2012) Source: Giving USA 2013.
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Total charitable giving graphed with the S&P500, 1972-2012 Source: Giving USA 2013.
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Sources and Uses of Giving in 2012 Source: Giving USA 2013. Total: $316.23 billion
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Total giving as a percentage of GDP 2002-2012 (in inflation-adjusted dollars, 2012=$100) Source: Giving USA 2013.
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Center on Philanthropy Panel Study • Conducted in conjunction with the University of Michigan’s Panel Study of Income Dynamics • Largest and longest running panel study in the world. Started tracking 5,000 households in ‘68 • Philanthropy module added in 2002 • Now interview ~8,000 households • Expensive research: ~$1,000,000 for the first wave; $700,000 for current wave. Excludes analysis.
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Donor Incidence over Time, 2000-2008 Total 68.5 66.8 55.9 Religious 66.9 57.5 65.4 65.3 56.3 46.5 46.5 46.3 2000 2002 2004 Source: Center on Philanthropy Panel Study. Secular 55.7 56.5 43.1 42.3 2006 2008
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Giving Amount over Time, 2000-2008 Average Total Giving Average Giving to Religious Purposes Average Giving to Secular Purposes 1,583 1,564 1,617 970 979 992 942 613 585 625 606 645 2000 2002 2004 2006 2008 Source: Center on Philanthropy Panel Study. 1,546 1,518 873
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Mean Income and Wealth by Persistence of Giving Type of donor (mean) Persistent (3-yr) Repeat (2-yr) Occasional (1-yr) NonDonors Income $89,441 $71,155 $43,205 $29,229 Wealth (excluding home equity) $344,188 $217,031 $116,625 $43,111 Percentage 56% Type of donor Persistent (3-yr) Mean Total $2,659 Source: Center on Philanthropy Panel Study. 29% Repeat (2-yr) 15% Occasional (1-yr) Median Mean Median Mean Median $1,260 $1,022 $400 $406 $150 NonDonors -
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Examples of Research Based on COPPS: Predictors of Giving • The intergenerational transmission of generosity • Women Give 2010, 2012 • Stability of Donors • Giving by Various Sources of Income and Wealth • Without COPPS such research would not be possible! Source: Picture taken from http://hopkins.typepad.com/.a/ 6a00d83451db8d69e2011168646150970c-popup
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World The Study of High Net Worth Philanthropy • Sponsored by Bank of America • Published in 2006, 2008, 2010, 2012 • Leading resource on high net-worth households. • Scientific random sample (in 2012, n= 701) • Prior research based on client lists • Includes any household with an annual income of more than $200,000 and/or net worth of more than $1,000,000 (excluding the value of their home). All respondents had to have their primary residence in the U.S.
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World The Study of High Net Worth Philanthropy • Commitment to Nonprofits o In 2011, 95% of HNW donors gave to a charity o In 2011, the average amount given by HNW households was $52,770 (a decrease of 7% from 2009) • Focus on major gifts Disproportionately high share of all individual giving in the U.S. comes from HNW individuals o Top 1% gave 37% of all itemized contribution deductions in 2009 o Top 0.1% gave 18%
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Percentage of High Net Worth Households That Gave to Each Recipient Category in 2011^ Notes: ^Combined organizations include UW, UJA, and CC. “Giving Vehicle” represents gifts to private foundations, charitable trusts, and donor-advised funds. *2009 and 2011 results are statistically different (2009 data not shown).
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Average Amounts Given by HNW Households in 2009 and 2011, by Charitable Category^ Notes: ^Values adjusted to 2011 dollars for the year 2009. This table does not show outlier data. *2009 and 2011 results are statistically different. Source: The 2012 Study of High Net Worth Philanthropy.
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Values, Motivations and Expectations • 33.4% of HNW donors involve children in grant-making decisions • 45.5% of respondents from HNW households made their charitable giving decisions jointly with their partner • 74% of wealthy individuals cited “making an impact” as a primary motivation for giving (an increase from 72.4% in 2009) Source: The 2012 Study of High Net Worth Philanthropy.
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World • Purposes: • To enhance knowledge about giving at scale. • To make that knowledge transparent and widely accessible • A unique dataset providing an in-depth view of HNW giving • A total of 67,373 qualifying gifts (of $1 million +) from 2000 to 2011 • Grants a unique perspective on trends in giving at the highest level by the wealthiest Americans, successful corporations, foundations, and other grant-making nonprofits
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Distribution of Total Dollars Given by Donor Type Source: Million Dollar List 2013.
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Average Gift Size by Subsector Gift size in millions 30 25 20 15 10 5 Individuals Corporate Foundations Foundations 0 Source: Million Dollar List 2012.
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Million-Dollar-Plus Gifts From All Sources (in Billions of Inflation-Adjusted 2011 Dollars) Amount * Years Note: * The light blue for 2006 excludes the single gift of $33.47 billion (in 2011 dollars). Source: Indiana University School of Philanthropy. A Decade of Million-Dollar Gifts: A Closer Look at Major Gifts by Type of Recipient Organizations, 2000-2011.
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World (Billions of InflationAdjusted 2011 Dollars) Million-Dollar-Plus Gift by Donations Type, Number of Gifts and Gift Amount (2000–2011) Number of gifts Note: X-axis represents the number of gifts made by each type of donor. Bubble size represents the dollar amount of gifts from each type of donor. Source: Indiana University School of Philanthropy. A Decade of Million-Dollar Gifts…
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Recipients of Million-Dollar-Plus Gifts, by Number of Gifts and Gift Amount (2000–2011) (Bubble size represents the amount in Billions of Inflation-Adjusted 2011 Dollars) Note: X-axis represents the number of gifts made by each type of donor. Bubble size represents the dollar amount of gifts from each type of donor. Source: Indiana University School of Philanthropy. A Decade of Million-Dollar Gifts…
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Recipients of Million-Dollar-Plus Gifts, 2000–2011 (in Billions of Inflation-Adjusted 2011 dollars) Source: Indiana University School of Philanthropy. A Decade of Million-Dollar Gifts: A Closer Look at Major Gifts by Type of Recipient Organizations, 2000-2011.
    • Number Of Million-Dollar-Plus Gifts From All Sources and S&P500, 2000–2011 Note: Gray bars represent quarters with at least one month of recession. Source: Indiana University School of Philanthropy. A Decade of Million-Dollar Gifts: A Closer Look at Major Gifts by Type of Recipient Organizations, 2000-2011.
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Mega Gifts as a Share of Million Dollar List by Donor Type, 2000-2012 Donor Group Corporate Total # of mega gifts % of total $ of MDL gifts, by donor group Total $ of mega % of total # of gifts MDL gifts, by donor group 72 13,100,000,000 1.14% 37.43% Foundation 425 50,400,000,000 0.79% 22.11% Individual 362 136,000,000,000 4.09% 72.73% Total 859 199,000,000,000 - - Source: Yannan "Lukia" Li analysis based on MDL 2012.
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World A Local Affair • 32% of donors give to organizations within the same city that they call home • 64% give to organizations within their state • Only 1% of the gifts are made to foreign and overseas organizations
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Resources • School of Philanthropy www.philanthropy.iupui.edu • Giving USA www.givingusareports.org • The Million Dollar List www.milliondollarlist.org • Other research including Center on Philanthropy Panel Study Bank of America Study on High Net Worth Philanthropy www.philanthropy.iupui.edu/research-by-category
    • In a World of Numbers, What Makes People Give? Josette C. Rathbun, CFP, MBA First Vice President – Wealth Management Wealth Management Advisor The Rathbun Group Merrill Lynch
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Donor Motivation My Experiences in the World of Philanthropy
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Bank of America 2012 Study of High Net Worth Philanthropy
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Primary Motivations of Large Gifts
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Marianne Tobias and the Indianapolis Symphony Orchestra
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Marianne Glick Eugene & Marilyn Glick
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Glick Eye Institute
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Gene and Marilyn Glick Cultural Trail
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Sid and Lois Eskenazi
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Eskenazi Health Foundation
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Dan Elsener and Dr. Michael Evans – Marian College of Osteopathic Medicine
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World IUPUI IMPACT Campaign • $1.39 billion over the course of the past 7 years • Lead to the creation of: • Richard M. Fairbanks School of Public Health • Eugene and Marilyn Glick Eye Institute • Lilly Family School of Philanthropy. • Promoted academia as well: • 64 RISE scholarships • 20 Endowed Chairs
    • Putting the Pieces Together: What does all of this mean for your work with donors? Angela E. White, CFRE Senior Consultant and CEO Johnson, Grossnickle and Associates
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World 1. Examine the effectiveness of your current major gift program. • How do you currently engage with your donors and prospects? • Do you have an emphasis on building personal relationships? • Do you have systematic approach to the discipline of donor/prospect contact? • Are there written plans for the engagement of each top donor/prospect with your organization? • Do you communicate the impact of charitable giving on the implementation of your mission?
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World 2. Understand that the engagement of major gift prospects takes time and the involvement of your senior leadership. • Are you thinking long-term when creating engagement plans for your major gift prospects? • Do your prospects build personal relationships with multiple people at your organization? • Are you creating meaningful volunteer opportunities for major gift prospects and donors? • Are you soliciting a major gift when the time is right for the prospect and the relationship and not solely according to your internal schedule or plans?
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World 3. Know your prospect! • Do you know the charitable giving strategies of your major gift prospects? • Are you engaging both the husband and wife or life partner in your discussions? • Are you focused on the right giving vehicle? • Do you know the extent to which the major donor prospect wants her/his children involved in any charitable giving? • Do you know the unique motivators and de-motivators of your major gift prospects?
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World 4. Match the right project with the right prospect and giving vehicle. • Are you soliciting major gift commitments for the operational needs of your organization? • Do you know the desired giving vehicles for each prospect and are you able to match those vehicles to your funding needs? • Are you focused on the right giving vehicle? • Are you effectively communicating your philanthropic needs in a way that will elicit a prompt and meaningful response? • Are you working with professional advisors and community foundation leaders to educate them on your mission and needs?
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World 5. Practice excellent donor stewardship. • Does your focus on your major gift prospects end when a gift is made? • Are you continuing to grow the relationship beyond the signing of a gift agreement or cashing of a check? • Are you preparing your current major gift donors for the next area of interest and for increasing their charitable support of your organization? • Do you know the issues that are important to your major gift donors and continue to make the connections between these issues and your mission?
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Concluding Thoughts • It is important to understand the trends and research findings regarding high net worth individuals. However, we must avoid the tendency to make generalizations about our prospects and use this research in place of getting to know each major gift prospect and donor.
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Resources • Giving USA; 2012 Edition. This is the annual report on philanthropy, covering 2011. • The School of Philanthropy at Indiana University COPPS Study. COPPS is the most accurate resource for measuring giving and volunteering in the United States. COPPS follows a large number of the same families for long periods of time and gathers detailed information about their lives to identify emerging trends in philanthropy. • Women Give 2010. This study utilizes the COPPS data from 2007 to research single-headed households and giving. • The 2012 Bank of America Study of High Net Worth Philanthropy. This research is based on 700 respondents throughout the U.S. with household income greater than $200,000 and/or net worth (excluding value of residence) of $1M+. • Indiana Nonprofit Sector. This is the most comprehensive source of information on Indiana nonprofits: www.indiana.edu/~nonprof
    • IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World Questions? Comments?