What’s the ultimate goal?
Sustainability of your Mission







Smoothing cash flows through out the year
Managing risk by reducing reliance on ...
Philanthropy Today
2012 Recipients of Contributions
Total = $316.23 Billion

Source: Giving USA FoundationTM / GIVING USA 2012
Sources of Philanthropy
2012 Contributions: $316.23 Billion
Bequests, $22.13 7%

Corporations, $18.97 6%
Foundations, $47....
Philanthropy slowing

Source: Giving USA FoundationTM / GIVING USA 2012
Build on your cultural
strengths.
What’s your culture?





Entrepreneurial
Contractual
Philanthropic
Transactional
Building a Culture of
Philanthropy.
What does that mean?









Philanthropy is celebrated as a driver of your
mission
Volunteer and staff leaders pass...
Giving Pyramid

Planned Giving

Capital Campaigns

Estate
Gifts
Capital
Donor

Personal Solicitation

Project Donor
Annual...
Prospect Migration

Gift

Philanthropic
Capacity

Initial
Relationship

Education

Solicitation
Philanthropy with Planning
Build Philanthropy into your
Planning






Philanthropy will not fill the gap between ideas
and reality
Consider phila...
Sources

Typical RevenueArts Organization
Streams
Typical Revenue Stream for
Earned
Revenue
Ticket Sales
Social
Enterprise...
Areas of Opportunity

Board
Fundraisin
g

Grant
Writing

Boar
d
Givin
g

Personal
Solicitation

Hous
e
Partie
s

Capital
G...
Key Questions










Are leaders willing to make a long-term
investment in a fundraising program?
Will the top dev...
Create the Building Blocks







Build your board’s leadership capacity
Raise your organization’s profile in the sec...
Thank you!
Mark D. Warner, President
MDW Consulting, Inc.
9 West Washington, Suite 400
Chicago, IL 60602
(312) 286-6277
ma...
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Revenue Diversification through Philanthropy

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Here are a few tips before embarking on integrating philanthropy into your nonprofit business model. First take a look at your organization's culture identifying the ideal path for your organization; that could be a particular type of fundraising or even deciding to go another route such as social enterprise.

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  • Total charitable giving by type of recipient is estimated to have increased by 3.8% in 2010.The relative ranking of recipient types remained the same in 2010 compared with 2009.2As has been the case for 56 years, the religion subsector received the largest share of charitable dollars, with an estimated 35% of the total in 2010.Education-related organizations received the second-highest share of charitable dollars in 2010, with an estimated 14% of the total.Charitable gifts to grantmaking independent, community, and operating foundations are estimated to be the third-highest ranking recipient category in 2010, receiving an estimated 11% of all charitable dollars. This share of gifts received was a small decline from 12% in 2009.3The human services subsector includes organizations that received donations in order to respond to those affected by the economic crisis, especially by providing emergency basic needs services. This subsector also includes 75% of the organizations that received donations for relief and support efforts following the Haitian earthquake in January 2010. Despite donations given for these purposes, this subsector is estimated to have received the same share of all donations as in 2009, at 9%.The majority of charitable gifts made to organizations in the public-society benefit subsector go to funds, such as United Ways, Jewish Federations, and freestanding donor-advised funds. This subsector received an estimated 8% of total charitable dollars in 2010.Health organizations received an estimated 8% of charitable dollars given in 2010.Arts, culture, and humanities organizations received an estimated 5% of donations in 2010, a slightly larger share than the 4% received in 2009.Organizations in the international affairs subsector received an estimated 5% of total charitable dollars given in 2010.Environmental and animal organizations received an estimated 2% of charitable dollars given in 2010.Individuals received an estimated 2% of total charitable dollars in 2010. These donations were mostly in the form of medicines provided by operating foundations sponsored by pharmaceutical companies.2Giving USA compares estimates for charitable giving in 2010 with revised estimates for giving in previous years. These revisions can be found in the data table available at the end of the full report.3Estimates for giving to foundations developed jointly by Giving USA and the Foundation Center.
  • Revenue Diversification through Philanthropy

    1. 1. What’s the ultimate goal?
    2. 2. Sustainability of your Mission     Smoothing cash flows through out the year Managing risk by reducing reliance on one source of revenue Diversifying among your fundraising sources for more predictable revenue Building long-term, sustainable revenue streams
    3. 3. Philanthropy Today
    4. 4. 2012 Recipients of Contributions Total = $316.23 Billion Source: Giving USA FoundationTM / GIVING USA 2012
    5. 5. Sources of Philanthropy 2012 Contributions: $316.23 Billion Bequests, $22.13 7% Corporations, $18.97 6% Foundations, $47.43, 15% Individuals Corporations Individuals, $227.68, 72% Foudations Bequests Source: Giving USA
    6. 6. Philanthropy slowing Source: Giving USA FoundationTM / GIVING USA 2012
    7. 7. Build on your cultural strengths.
    8. 8. What’s your culture?     Entrepreneurial Contractual Philanthropic Transactional
    9. 9. Building a Culture of Philanthropy.
    10. 10. What does that mean?      Philanthropy is celebrated as a driver of your mission Volunteer and staff leaders passionately believe in and invest in the mission Donors are seen as a partner in organization’s success CEO is a respected leader in the sector Rigorous evaluation of impact is a key part of your culture
    11. 11. Giving Pyramid Planned Giving Capital Campaigns Estate Gifts Capital Donor Personal Solicitation Project Donor Annual Fund Proposals/Grant Writing Annual Donor Renewal and Event Donors Events & Mail New Donors/Members
    12. 12. Prospect Migration Gift Philanthropic Capacity Initial Relationship Education Solicitation
    13. 13. Philanthropy with Planning
    14. 14. Build Philanthropy into your Planning    Philanthropy will not fill the gap between ideas and reality Consider philanthropy as a mix as you would every revenue stream Philanthropy may not always be the ideal choice depending on your organization’s culture
    15. 15. Sources Typical RevenueArts Organization Streams Typical Revenue Stream for Earned Revenue Ticket Sales Social Enterprises Memberships Classes Annual Giving Contracts Events Major Giving Direct Mail Grant Writing Public Funding Sponsorships Campaign Revenue Current/Former Board Members Foundations Philanthropists Uses General Operating Funds Restricted Funds Salaries Facilities Fundraising and Marketing Construction Endowment Furnishings Campaign Costs
    16. 16. Areas of Opportunity Board Fundraisin g Grant Writing Boar d Givin g Personal Solicitation Hous e Partie s Capital Giving Planne d Giving
    17. 17. Key Questions      Are leaders willing to make a long-term investment in a fundraising program? Will the top development officer be a senior leader in your organization? Do board members consider your organization their top philanthropic priority? Does the board chair understand philanthropy and is an active fundraiser? Are external relations the CEOs top priority?
    18. 18. Create the Building Blocks      Build your board’s leadership capacity Raise your organization’s profile in the sector Build staff leadership team so that CEO can be externally focused Evaluate and document your impact Create compelling messages that resonate with donors and use them
    19. 19. Thank you! Mark D. Warner, President MDW Consulting, Inc. 9 West Washington, Suite 400 Chicago, IL 60602 (312) 286-6277 mark@mdwconsulting.net Twitter: @mdwconsulting

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