The document summarizes a keynote speech given by Steve Gunderson at the 10th Annual National Conference of the American Association of Grant Professionals in October 2008. The keynote addressed the major losses foundations experienced due to the economic crisis of 2008, with foundation endowments declining 30-45% on average. Gunderson and others encouraged philanthropy organizations to support nonprofits facing increased needs with reduced resources. Suggestions included communicating with donors and grantees, collaborating with other organizations, and advocating on issues of poverty and social spending.
According to research of giving patterns since 1966 compiled by the Giving USA Foundation, only bequests averaged an increase during recessionary periods. All
other types of giving either remained static or reported declines.
But is your planned giving program getting its fair share of the marketing budget?
We scoured the internet to find the following awesome information. And, although we can’t take credit for the research, we can take credit for the pretty charts!
So feel free to share this report with colleagues and friends (including your board). And when you’re ready to engage in serious marketing to find hidden gifts, generate
leads and cultivate relationships, we hope you’ll reach out to us: http://imarketsmart.com/contact-us
After all, our mission is to help further your mission.
ENJOY THE REPORT!
Gensler Architectsure public appeal for gifts to their employees exclusively ...Andrew West
Gensler Architecture ($1.4 b revenues) responded to Hurricane by asking the public to make gifts-donations to their employees ONLY and they'd be matched. Instead of encouraging donations to Red Cross and other non profits, they asked the public to provide financial assistance to just their employees. It's a first in charitable efforts. It's inappropriate, deceptive and probably illegal.
These slides are taken from the graduate financial planning course "Introduction to Charitable Planning" at Texas Tech University. Details at www.EncourageGenerosity.com
According to research of giving patterns since 1966 compiled by the Giving USA Foundation, only bequests averaged an increase during recessionary periods. All
other types of giving either remained static or reported declines.
But is your planned giving program getting its fair share of the marketing budget?
We scoured the internet to find the following awesome information. And, although we can’t take credit for the research, we can take credit for the pretty charts!
So feel free to share this report with colleagues and friends (including your board). And when you’re ready to engage in serious marketing to find hidden gifts, generate
leads and cultivate relationships, we hope you’ll reach out to us: http://imarketsmart.com/contact-us
After all, our mission is to help further your mission.
ENJOY THE REPORT!
Gensler Architectsure public appeal for gifts to their employees exclusively ...Andrew West
Gensler Architecture ($1.4 b revenues) responded to Hurricane by asking the public to make gifts-donations to their employees ONLY and they'd be matched. Instead of encouraging donations to Red Cross and other non profits, they asked the public to provide financial assistance to just their employees. It's a first in charitable efforts. It's inappropriate, deceptive and probably illegal.
These slides are taken from the graduate financial planning course "Introduction to Charitable Planning" at Texas Tech University. Details at www.EncourageGenerosity.com
Social capital, micro credit groups and loan repayment among rural household ...Daniel K. Kangogo
Lack of access to credit is a key obstacle for economic development of transitional economies such as Kenya. The underlying problem is related to information asymmetry combined with the lack of collateral by low income households. Microfinance led group lending model offer a new way to deal with this problem without resorting to collateral requirements. The core issue in group lending is that it systematically exploits elements of social capital that inherently exist in groups into an incentive contract that substitutes collateral; A formal bank conventional requirement of lending that is virtually unavailable to the poor. This study sought to ascertain the influence of social capital dimensions on households’ participation and repayment performance in micro-credit groups in the study area.
Makes for interesting reading, whether you are in the industry or a consumer the message is clear: Funeral Planning should be on your list of things to do, whether you are 50 or 75!
Emotionally and financially it makes sense: Visit www.over50choices.co.uk for more.
Addresses US, South Dakota, and Sioux Falls area statistics involving nonprofits and their role in employment and the economy. Regulatory influences and public perception of nonprofits is also addressed.
Presented to the "Leadership Sioux Falls" group of the Sioux Falls Area Chamber of Commerce in April, 2013. This presentation has been made to many audiences in the past ten years, regularly updated.
Designed to give nonprofit professionals, volunteer board members, and community leaders perspective on the importance and reach of the nonprofit sector. Preparation for leaders to consider nonprofit board service in the larger context of economic development, employment, and governance duty.
A short 5-minute presentation on how microfinancing is bringing people out of poverty in the developing world, using Kiva as a case study, written for Ignite Liverpool 15, 15th August 2013
Blake Lapthorn’s green breakfast seminar on Social Finance - 27 March 13Blake Morgan
On Wednesday 27 March 2013, Annika Tverin of Social Finance joined Blake Lapthorn's Climate Change group for a green breakfast seminar on social Finance.
Social capital, micro credit groups and loan repayment among rural household ...Daniel K. Kangogo
Lack of access to credit is a key obstacle for economic development of transitional economies such as Kenya. The underlying problem is related to information asymmetry combined with the lack of collateral by low income households. Microfinance led group lending model offer a new way to deal with this problem without resorting to collateral requirements. The core issue in group lending is that it systematically exploits elements of social capital that inherently exist in groups into an incentive contract that substitutes collateral; A formal bank conventional requirement of lending that is virtually unavailable to the poor. This study sought to ascertain the influence of social capital dimensions on households’ participation and repayment performance in micro-credit groups in the study area.
Makes for interesting reading, whether you are in the industry or a consumer the message is clear: Funeral Planning should be on your list of things to do, whether you are 50 or 75!
Emotionally and financially it makes sense: Visit www.over50choices.co.uk for more.
Addresses US, South Dakota, and Sioux Falls area statistics involving nonprofits and their role in employment and the economy. Regulatory influences and public perception of nonprofits is also addressed.
Presented to the "Leadership Sioux Falls" group of the Sioux Falls Area Chamber of Commerce in April, 2013. This presentation has been made to many audiences in the past ten years, regularly updated.
Designed to give nonprofit professionals, volunteer board members, and community leaders perspective on the importance and reach of the nonprofit sector. Preparation for leaders to consider nonprofit board service in the larger context of economic development, employment, and governance duty.
A short 5-minute presentation on how microfinancing is bringing people out of poverty in the developing world, using Kiva as a case study, written for Ignite Liverpool 15, 15th August 2013
Blake Lapthorn’s green breakfast seminar on Social Finance - 27 March 13Blake Morgan
On Wednesday 27 March 2013, Annika Tverin of Social Finance joined Blake Lapthorn's Climate Change group for a green breakfast seminar on social Finance.
A short presentation of our experience, service offering and clients - very happy to walk you through it so please just shout if needed - best wishes - Jason
Succession “Losers”: What Happens to Executives Passed Over for the CEO Job?
By David F. Larcker, Stephen A. Miles, and Brian Tayan
Stanford Closer Look Series
Overview:
Shareholders pay considerable attention to the choice of executive selected as the new CEO whenever a change in leadership takes place. However, without an inside look at the leading candidates to assume the CEO role, it is difficult for shareholders to tell whether the board has made the correct choice. In this Closer Look, we examine CEO succession events among the largest 100 companies over a ten-year period to determine what happens to the executives who were not selected (i.e., the “succession losers”) and how they perform relative to those who were selected (the “succession winners”).
We ask:
• Are the executives selected for the CEO role really better than those passed over?
• What are the implications for understanding the labor market for executive talent?
• Are differences in performance due to operating conditions or quality of available talent?
• Are boards better at identifying CEO talent than other research generally suggests?
In the past, Canadians relied on governments and non-profits to meet social needs, while leaving markets, private capital and business to deliver financial returns. This binary system is breaking down. Profound societal challenges require us to find new ways to mobilize ingenuity and resources for effective, long-term solutions. A social finance marketplace investing in social, environmental and economic returns.
Working Your Nonprofit With A Corporate Brain Power Pointguest7300929
When funding may appear to be more restricted, nonprofits that embrace a corporate mindset become more poised for sustainability. Any nonprofit, of any size, can re-evaluate their strategy to meet the demands of the current economy, while renewing hope and energy toward their mission.
The Force for Good Initiative's mission is to mobilise the deployment of capital as a force for good in the world at a time of profound and multi-dimensional change in the world. The Force for Good Initiative is a project of the F4G Foundation, a non-profit limited liability company incorporated under the laws of England and Wales.
This was presented at the 2009 National Philanthropy Day Educational Workshops for AFP Northeast Indiana. Topic is how to improve your annual fundraising results by focusing on some basic keys to success, evaluating results and focusing on donor retention.
Financial sustainability of public benefits organizationsTimothy2015
This presentation seeks to help program leaders and managers prioritize financial sustainability and also provides ideas on how to achieve financial sustainability of Public Benefit organizations
"Finding Dollars in a Desert" Fundraising in Tough TimesJim Anderson
People make tough decisions about where they spend their dollars. How does that impact the nonprofit sector? In this interactive presentation we discuss...
-Economic realities for charities nationwide and locally
-What to do (and not do) when a donor says, "I can't contribute now"
-How to find the "oasis in the desert" - 7 practical strategies for successful fundraising
Private Philanthropy: An Overview On Giving in The U.S. and WorldwideAndrew Tulchin
Private philanthropic giving from individuals, corporations and foundations contri-butes a significant proportion to value flows related to development aid and other social change efforts. Private sector actors are important sources of funding to NGOs and multilateral organizations – either working for causes in their home societies or seeking to improve the lives of poorer groups in developing countries. In many cases, they provide occasional donations, and also establish long-term partnerships with non-profits, foundations, and government stakeholders.
This white paper provides an overview on giving practices in the private sector. By summarizing existing literature and drawing on secondary data, it explores the variety of private philanthropy across regions and by donor type. Additionally, it outlines emerging new waves and concerns for private philanthropy.
Alan Barrell, Entrepreneur in Residence at Judge Business School, spoke in the 'Alternative funding strategies' panel at the Cambridge Rare Disease Summit 2015.
3. WORD HAS IT…
2008 Keynote Speaker
10th Annual National Conference
American Association of Grant Professionals
October 23, 2008
Throughout his career, Steve Gunderson has
served three terms in the Wisconsin State
Legislature and 16 years in the U.S. Congress.
Gunderson’s distinguished career included
leadership roles on AIDS policy, modernization
of our nation’s employment policy, lifelong
Steve Gunderson
learning, community learning centers, and job
President and CEO of the
training policies for a global hi-tech economy.
Council on Foundations.
4. KEYNOTE EXCERPTS:
“Of course, for three years I’ve shared with
anyone who would listen that despite my flaws,
I would preside over the greatest growth of
philanthropy in world history!
Never did I realize that I’d also preside over its
greatest evaporation of resources in the
Economic Crisis of 2008.”
- Steve Gunderson
President & CEO
Council on Foundations
5. KEYNOTE EXCERPTS (CONT’D):
On Friday, October 10th, our investment advisor
told us that most foundations had lost between
14% and 30% of their value.
The last couple of weeks have added an additional
15% loss.
Today, most foundations have witnessed a 30-45%
loss in value!
- Steve Gunderson
President & CEO
Council on Foundations
10/23/08
6. KEYNOTE EXCERPTS (CONT’D):
To give you some sense of this, if foundation assets
were $670 billion at the market’s peak in October
of 2007, we have probably witnessed the loss of
$280 billion over the past year!
If we believe, as most do, that philanthropy’s
investment returns are better than the average, we
could project a 30% loss which represents a decline
of $200 billion over the past year.
- Steve Gunderson
President & CEO
Council on Foundations
7. KEYNOTE EXCERPTS (CONT’D):
“Virtually every foundation endowment stands at
considerably less value today than it did only a few
weeks ago, and assuming our institutions meet the
commitments they have previously made, which
most will, there will be dramatically less new
money to give out in the next few years, at least.”
- Gara LaMarche
President & CEO
Atlantic Philanthropies
8. KEYNOTE EXCERPTS (CONT’D):
“Corporate philanthropy will be dramatically
reduced, and among those in the financial services
industries who have kept their jobs – or, indeed,
their firms – most will be much less generous in
their personal giving.”
“Government revenues and social spending will
continue to shrink – the Center on Budget and
Policy Priorities just looked at the budget gaps of
fifteen states, from California to Rhode Island,
reeling from the credit crunch, and found six whose
deficits are ten percent or more of the total budget.”
- Gara LaMarche
9. KEYNOTE EXCERPTS (CONT’D):
“All this will have a sharp effect on the funding and
programs of non-profit organizations, and in what kind
of social climate?
One in which human need – foreclosure, unemployment,
greater health problems even less covered by insurance,
hunger, homelessness, crime and violence -- grows ever
more acute.
What we are facing, then, is a kind of perfect storm.”
-- Gara LaMarche
10. HISTORICAL PERSPECTIVE
On average, recessions occur every 5-10 years
During each of the past four recessionary periods,
inflation-adjusted foundation giving increased
slightly and unadjusted declined less than 3%
Giving by 72,000 foundations rose by 10% in 2007
to a record $42.9 billion
Assets nationally grew by an estimated 9% in 2007
and 11.6% in 2006… in California, assets rose 16%
Nationally: 1400 new foundations…in California: 451
11. 2007 CHARITABLE GIVING
TOTAL = $306.39 BILLION ($ IN BILLIONS)
Corporations
$15.69
Foundations
5.1%
$38.52
12.6%
Individuals
$229.03
74.8%
Bequests
$23.15
7.6%
Source: Giving USA 2008
NorCal Chapter
12. MITIGATING FACTORS
Grant Appropriation process
According to the Foundation Center’s “Foundation Giving Forecast”:
1/2 of all foundations base grant appropriations on
value of prior year’s endowment
1/3 average their endowment value over two years
How will the stock market behave through 2009?
How will Foundation Boards behave in response?
How will your nonprofit behave in response?
13. HOW SHOULD PHILANTHROPY RESPOND?
“I want to start this conversation at its very core.
Those of us in philanthropy believe deeply – that in
good or bad economic times – we must articulate the
distinction between charity and philanthropy.
Charity is a wonderful value. In many ways it defines
Americans across all faith and ideological boundaries.
But, charity is a gift of the heart – a gift of the moment.
Philanthropy is a very different form of giving. It
represents a strategic investment over a significant
length of time.”
- Steve Gunderson
14. HOW SHOULD PHILANTHROPY RESPOND?
“My board chair, Ralph Smith of the Annie E. Casey
Foundation, and I recognize this economic crisis as
a leadership moment for philanthropy. As a result,
we issued an Open Letter to the Field encouraging
each philanthropic organization to carefully reflect
how it could best play a constructive role in this
economic crisis.”
- Steve Gunderson
15. HOW SHOULD PHILANTHROPY RESPOND?
“Specifically, our letter suggested 3 recommendations:
Let’s reach-out to the nonprofit sector, especially those
1.
we currently support – recognizing that the nonprofit
sector will bear the brunt of shrinking resources and
growing need.
Let’s play an active and visible role in helping
2.
communities and regions identify the scope and extent
of the challenges they face – and in finding solutions
that make sense.
Let’s pay special attention to those situations where
3.
the loss of philanthropic resources could be the
unintended consequence of mergers, consolidations, or
government intervention resulting from this economic
crisis.”
- Steve Gunderson
16. HOW SHOULD PHILANTHROPY RESPOND?
Inspired by this challenge of our time, Dr. Bob Ross of the
California Endowment submitted the following…
Board-CEO Principles for Managing thru the Crisis:
1. Re-affirm and stick to our values.
2. Balance “responsiveness” (to communities in need) with
“responsibility” (to prudently steward the assets).
3. Guard against reacting to panic with panic. Take the long
view, and wherever possible, make time our friend rather than
our enemy.
4. Philanthropy is recognized as a voice and advocate for the
underserved; let’s remain cognizant of how our actions may
influence the behavior of others in our field.
17. HOW SHOULD PHILANTHROPY RESPOND?
Board-CEO Principles for Managing thru the Crisis (cont’d):
5. In the months ahead we will face some tough decisions. It’s a
good time to reaffirm the treatment of community, grantee, and
staff with dignity, respect, compassion, and transparency.
6. Recognize that the severity and depth of the economic crisis
represents an entirely new and unanticipated set of realities for
us, and we must be willing to re-examine old assumptions,
suggest and weigh new ideas, and out-of-box thinking is
welcome.
7. Keep in mind: the Chinese translation for crisis includes
the notion of opportunity.
19. TIGHTEN YOUR BELT
Revisit your 2009 budget
Communicate with staff
Conduct cost/benefit analysis
Collaborate
Consider putting new programs on hold
Concentrate on programs serving critical needs
20. DO YOU HAVE AN
INTEGRATED DEVELOPMENT PROGRAM?
Individual Giving > Major Gifts
80/20 rule: 80% of contributions from 20% of donors
Research > Targeting > Communications > Stewardship
Gift Reporting > Segmentation
Board > Strategic Plan > Development Plan > Work Plan
Budget > Sustainability > Cash Flow
Organizational & Development Audits
21. KNOCK ON MORE DOORS
• Turn to your donor database
• Find new prospects by asking old friends
• Use foundation research tools
• Follow philanthropic news sites & blogs
• Build online giving
• Brainstorm with your team
22. COMMUNICATE
• Keep donors informed
• Share your cost-cutting strategies
• Communicate the need
• Talk with your funders about how you can
support their efforts to meet critical needs in
your community
23. “We all need to break down the silos
and address the common, underlying
challenge – which is poverty. For then,
and only then, are we truly engaged in
philanthropy’s best definition.”
Gara LaMarche
President & CEO
Atlantic Philanthropies
24. “We must soon recognize that
philanthropy cannot do this alone. We
need public and private sector partners.
And this is why advocacy is essential for
those organizations committed to
serving the common good!”
- Melinda Gates
25. “The real test is not whether you
avoid this failure, because you won't.
It's whether you let it harden or
shame you into inaction, or whether
you learn from it; whether you choose
to persevere”.
- Barack Obama
26. Thanks for who you are
and all that you do.
-Steve Gunderson
President & CEO
Council on Foundations
THIS WORK WAS CREATED BY MARIE BEICHERT AND IS LICENSED UNDER THE CREATIVE
COMMONS ATTRIBUTION-SHARE ALIKE 3.0 UNITED STATES LICENSE. TO VIEW A COPY OF
THIS LICENSE, VISIT HTTP://CREATIVECOMMONS.ORG/LICENSES/BY-SA/3.0/US/
CREATIVE COMMONS, 171 SECOND STREET, SUITE 300, SAN
OR SEND A LETTER TO
FRANCISCO, CALIFORNIA, 94105, USA.
NorCal Chapter