GETTING TO THE CORE OF THE MATTER
Today, Giving USA reported charitable giving statistics for 2008. Not to anyone’s surprise, donations to charitable organizations fell by 5.7 percent (after adjustment for inflation).
The release was heralded in by a webinar hosted by the Chronicle of Philanthropy.
Does the decline in funding surprise you?
Of course not!
Those of us in the fundraising trenches fully comprehend the difficulties facing nonprofit organizations today….
But wait a minute here….Americans still contributed $307.7 billion to charities last year.
What does $300 billion look at?
Not until America started discussing the $700 billion bailout did we all start contemplating the enormity of billions and billions of dollars. In short order, $300 billion of dollars could make every resident in Buffalo, New York a millionaire; it also equals 40 years of profit for Exxon. It is a lot of money!
The Sky Is Not Falling…..
Yes, it is true that we have a struggling nonprofit sector. However, there are organizations making money. They are the nonprofit organizations that have integrated annual campaign plans, a fully engaged board of directors, and a compelling case for philanthropic support.
I posted a comment on the webinar stating the following:
“I am a consultant to several organizations. What I am seeing is that compelling issues ARE being funded. If the case for support is articulated well, and the campaign is integrated, the organizations are being funded. Those that are not being funded are those who had poor campaign plans in the first place. Are we not seeing a “weeding out” of the weakest organizations as a result of this recession?”
The Moderator Responded:
“Yes, I agree with you. Over the last few years, many other nonprofit organizations have adopted the fund raising practices of the more sophisticated and celebrated universities, hospitals, and UJA-Federations. They have made the investment and now they are able to use their cases, integrated campaigns, and management practices to their benefit. Also, organizations with strong and engaged boards are also doing well.”
Getting to the core of the matter…
If an organization has one funding stream, it will not be able to withstand an economic tsunami. If the organization has been dependent on foundation funding, and does not have a cadre of financially invested donors, it will have difficulty withstanding the recession. If an organization has a board of directors that comes to meetings, votes, and leaves without giving a charitable gift and not getting a charitable gift, it will be feeling the pain of this recession.
We heard today that foundation funding declined by 66% in 2008; however, foundations will continue funding their existing projects. This is very good news.
The decrease in overall giving for 2008, much less than some experts had expected.
Key Finding Include:
· Individuals donated $229.3-billion last year; $22.7-billion was contributed through people’s wills (a 6.4 percent decline).
· Corporate donations totaled $14.5-billion
· Foundation grants declined only slightly, 0.8 percent.
Regardless of what is reported as a decline in giving, Americans dug deep into their pockets and funded urgent needs to the tune of $229.3-billion as individuals.
Thank you, America!
We are the land of the free, the home of the brave, and the source of comfort to millions of Americans in need.
We can be proud of ourselves.
For more information on integrated campaign development, board enhancement strategies and annual campaign implementation, please contact me.
Lisa E. Benson
President, Picasso Strategic Solutions, LLC
www.picassostrategicsolutions.com
602-790-6418
Today, Giving USA reported charitable giving statistics for 2008. Not to anyone’s surprise, donations to charitable organizations fell by 5.7 percent (after adjustment for inflation).
The release was heralded in by a webinar hosted by the Chronicle of Philanthropy.
Does the decline in funding surprise you?
Of course not!
Those of us in the fundraising trenches fully comprehend the difficulties facing nonprofit organizations today….
But wait a minute here….Americans still contributed $307.7 billion to charities last year.
What does $300 billion look at?
Not until America started discussing the $700 billion bailout did we all start contemplating the enormity of billions and billions of dollars. In short order, $300 billion of dollars could make every resident in Buffalo, New York a millionaire; it also equals 40 years of profit for Exxon. It is a lot of money!
The Sky Is Not Falling…..
Yes, it is true that we have a struggling nonprofit sector. However, there are organizations making money. They are the nonprofit organizations that have integrated annual campaign plans, a fully engaged board of directors, and a compelling case for philanthropic support.
I posted a comment on the webinar stating the following:
“I am a consultant to several organizations. What I am seeing is that compelling issues ARE being funded. If the case for support is articulated well, and the campaign is integrated, the organizations are being funded. Those that are not being funded are those who had poor campaign plans in the first place. Are we not seeing a “weeding out” of the weakest organizations as a result of this recession?”
The Moderator Responded:
“Yes, I agree with you. Over the last few years, many other nonprofit organizations have adopted the fund raising practices of the more sophisticated and celebrated universities, hospitals, and UJA-Federations. They have made the investment and now they are able to use their cases, integrated campaigns, and management practices to their benefit. Also, organizations with strong and engaged boards are also doing well.”
Getting to the core of the matter…
If an organization has one funding stream, it will not be able to withstand an economic tsunami. If the organization has been dependent on foundation funding, and does not have a cadre of financially invested donors, it will have difficulty withstanding the recession. If an organization has a board of directors that comes to meetings, votes, and leaves without giving a charitable gift and not getting a charitable gift, it will be feeling the pain of this recession.
We heard today that foundation funding declined by 66% in 2008; however, foundations will continue funding their existing projects. This is very good news.
The decrease in overall giving for 2008, much less than some experts had expected.
Key Finding Include:
· Individuals donated $229.3-billion last year; $22.7-billion was contributed through people’s wills (a 6.4 percent decline).
· Corporate donations totaled $14.5-billion
· Foundation grants declined only slightly, 0.8 percent.
Regardless of what is reported as a decline in giving, Americans dug deep into their pockets and funded urgent needs to the tune of $229.3-billion as individuals.
Thank you, America!
We are the land of the free, the home of the brave, and the source of comfort to millions of Americans in need.
We can be proud of ourselves.
For more information on integrated campaign development, board enhancement strategies and annual campaign implementation, please contact me.
Lisa E. Benson
President, Picasso Strategic Solutions, LLC
www.picassostrategicsolutions.com
602-790-6418
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