Philanthropy Front and Center-Atlanta

Ready for America's Giving Challenge?

When the first edition of America's Giving Challenge was launched in late 2007/early 2008, social networks and online giving were a still novelty for most people. Sponsored and widely promoted by the Case Foundation, PARADE Publications, and Causes on Facebook, the challenge did much to change that. Indeed, 71,000 people participated in the month-long campaign, which generated a total of $1.8 million in donations to nearly 700 charities.

Well, the challenge is back and expectations for the new campaign, which runs through November 6 at 3:00 EST, are high. The program has been designed to serve as "an example of how social networking is transforming the way people participate in philanthropy," and this year participants have the opportunity to compete for daily and overall cash awards totaling $170,000 ($150,000 from the Case Foundation and $20,00 from the Program on Philanthropy and Social Innovation at the Aspen Institute).

Nonprofit organizations and individuals who wish to participate can get involved in one of two ways:

Champion a cause. Individuals who are passionate about a specific cause can become "cause champions" and compete to obtain the most donations for their cause through the Causes application.

Promote, donate, or join a cause. All individuals are encouraged to take part in the challenge by joining, promoting, or donating to causes they care about. (Facebook membership is not required to donate to a Giving Challenge cause.)

To learn more, to register to compete, and/or to donate to a cause, visit: http://www.americasgivingchallenge.com/.

This post came from our sister blog PhilanTopic – which will update the results as they are tabulated and released. Good luck to all!

Joanne Kepics, Regional Training Coordinator, Foundation Center-Atlanta

Charitable Donations Exceeded $300 Billion in 2008

The Giving USA Foundation released its annual report on giving – Giving USA – yesterday. Although charitable giving in the US (including giving by individuals, corporations, foundations and bequests)  exceeded $300 billion, these donations were 2% less than 2007. The 2008 figure was the first decline in giving (in current, not inflation adjusted, dollars) since 1987 and only the second since Giving USA began publishing these reports in 1956. But you have to keep things in perspective. If my personal retirement account had dropped only 2% from 2007, I would be overjoyed. $307.65 billion – estimated charitable donations in 2008 – is a lot of money! This is still a very generous country.
 
There are lots of details in the Giving USA Foundation press release. The report will be published in early July and can be pre-ordered now.

Folks in Atlanta were fortunate to be able to hear an in-depth analysis of the data yesterday morning at a program sponsored by Giving USA Foundation and Alexander Haas.  Del Martin, one of the founders of the Alexander Haas consulting firm, is the chair of the Giving USA Foundation.  David King from Alexander Haas made the presentation on the findings; you can download his slide show. The presentation also included highlights from Georgia Gives 2008, a report compiled by the Center on Philanthropy at Indiana University and funded by the Wilbur and Hilda Glenn Foundation. 

For more discussion about Giving USA 2009, see:

• Charitable Donations Fell by Nearly 6% in 2008, the Sharpest Drop in 53 Years from the Chronicle of Philanthropy
• Dissecting Giving USA's 2008 Resultsfrom the Chronicle of Philanthropy
• How Much Did Americans Really Give in 2008? from Tactical Philanthropy blog

Looking for similar information about Canadian philanthropy?  Check out Canada Statistics.

Pattie Johnson, Director, Foundation Center – Atlanta

Georgia Gives 2008

This fall 2008 study by the Center on Philanthropy at Indiana University, a recent addition to our collection at the Foundation Center-Atlanta library, found that Georgia households, foundations, and corporations gave an estimated $6.67 billion to charity in 2007.

Georgia Gives 2008 provides a comparative look at regional differences in charitable giving between the Atlanta Metropolitan Statistical Area (MSA) and other parts of Georgia as well as to national benchmarks.  While 54 percent of the state’s population lives in the Atlanta MSA, Atlanta-area households gave 60 percent of the $5.58 billion donated to charitable organizations by Georgia households ($3.35 billion). Atlanta-area donors also gave more to charity on average ($2,492) than donors in other parts of the state ($2,225) or donors nationally ($2,247).

Georgia’s independent, operating, and community foundations granted an estimated $615.8 million in 2006. More than one third of grant dollars went to educational organizations (35 percent compared to 23 percent nationally). Corporate giving in Georgia is an estimated $503 million, based on a survey of Georgia charities that includes $144 million in grantmaking from corporate foundations.

The study, funded by the Wilbur and Hilda Glenn Family Foundation, is available at the Center of Philanthropy web site.  Local fundraising firm Alexander Haas assisted in the coordination of the research project.

For additional information about giving in Georgia, check out the FC Stats area of our web site.  There you can find statistical data on U.S. private and community foundations and their funding patterns, including tables listing number of foundations, total giving, and total assets by state and top funders by state. 

Kayron Bearden, Reference Librarian, Foundation Center-Atlanta

To Everything There is a Season

News reports are littered with updates on the economic crisis and how individuals, nonprofits, and foundations are fairing. To provide the nonprofit sector with up-to-date information, The Foundation Center has created a portal to share how present economic conditions are impacting giving.

During this challenging time, let us remember the natural principle in the universe called the law of rhythm. You’ve heard some variation of this principle all of your life in sayings like 'what goes up, must come down'. We observe it in nature through the ebb and flow of tides, the coming and going of the seasons, and each evening when night descends upon day.

Grantmakers and grantseekers alike are asking what they can do to weather economic uncertainty. While that question begs an answer, I’d like all of us to consider reflective questions, such as: How can we make the best of present circumstances? What positive ways are we and our nonprofits changing? How are we growing from this experience?

Teachable moments are present every day, if we are open to learning the lesson(s). These learning opportunities can be the silver linings needed to see the good in circumstances. Nonprofits and foundations are run by people—people who need to communicate hope to themselves, other organizations, and their community. We can voice hope without having our 'heads in the sand,' as expressed by Del Martin, chair of Giving USA Foundation, in Weathering an Uncertain Economy, a report by the Center on Philanthropy at Indiana University.

She goes on to say, "Americans can always be trusted to come through for the neediest in our society. Our reports, which we have been doing for more than 50 years, bear this out over and over."

So, let’s keep our wits, exercise good judgment, and listen to words of wisdom, while navigating this rocky economic terrain. Yes we can!

Asia Hadley, Training Coordinator, Foundation Center-Atlanta

Optimism about Philanthropic Giving?

In this economy, it is hard to find a story with anything other than dire predictions for the days ahead. The Southeastern Council of Foundations, however, recently called our attention to a more optimistic article by Sean Stannard-Stockton that appeared on the Financial Times' web site.

In "The Second Wave of Giving Will Roll On", Stannard-Stockton proposes that philanthropic giving, much like the economy in general, is cyclical in nature. He cites the example of the dot com bubble earlier this decade, when philanthropy faded into the background as other, more pressing financial needs took precedence over charitable giving. Since that time, individual giving and voluntarism have again taken center stage, due in no small part to innovative services like GlobalGiving.org, Facebook Causes, and Change.org.

Stannard-Stockton proposes that in the coming years, the convergence of baby boomer wealth and the social activism of Generation Y will help the nonprofit sector grow even further, becoming stronger and more resilient. U.S. philanthropy, much like the economy, will recover from the current downturn, and with recovery will come a second wave of philanthropy.

For further reading on current issues and emerging trends in philanthropy, we recommend the following titles:

Causewired: Plugging in, Getting Involved, Changing the World, by Tom Watson (Hoboken, NJ: John Wiley & Sons, 2009), describes how the generation known as Millennials, in addition to using sites such as Facebook and MySpace for social networking, are also engaging in philanthropic activities through online means and are actively supporting such causes as DonorsChoose and Kiva. Some other terms that are used to describe the trend are "online social activism" and "peer-to-peer philanthropy." Watson's goal in writing this book is to outline, with examples, the changes that are taking place and that will have an impact on charities and politics.

Momentum: Igniting Social Change in the Connected Age, by Allison Fine (San Francisco, CA: Jossey-Bass, 2006), outlines the online interconnectedness that is possible for organizations seeking to embrace social change in their communities. Using the term "connected activism" to describe the potential of newer technologies, the author provides guidance for fostering social networks.

To find more books, articles, and other resources on the future of philanthropy and trends in giving, you can search our  Catalog of Nonprofit Literature(CNL) for the subjects "Philanthropy--analysis", "Philanthropy--trends", or "Philanthropy--economic aspects".

Links to additional resources and information on engaging youth in philanthropy can be found in this resource list at our web site.

For more articles and analysis on the current economic crisis and the nonprofit sector, see the Foundation Center's Focus on the Economic Crisis.

Stephen Sherman, Reference Librarian, Foundation Center-Atlanta

2008 Slate 60 List of Top Philanthropists Released

Slate magazine released its annual list of the largest U.S. charitable contributions on Monday.  The Slate 60, now in its thirteenth year, tracks the largest philanthropic donations and pledges from American individuals. This list is compiled each year in cooperation with the Chronicle of Philanthropy. 

Topping the Slate 60 for 2008 were bequests from the late Leona Helmsley ($5.2 billion) and the late James LeVoy Sorenson ($4.5 billion).  Visit the Slate web site to read the full article, to view biographies of the donors, or to see lists for past years.  

Slate's Rachael Larimore will be taking questions about the list today from 2:30 to 3:30pm (EST) on Washingtonpost.com.

Interested in learning how to cultivate individual donors for your organization? See the resources listed in our FAQ on the topic, or check out our Reference Guide for Researching Individual Donors. 

To find books, articles, and other resources on donor cultivation, you can search our Catalog of Nonprofit Literature (CNL) for the subjects "Fundraising--donor relations", "Fundraising--individual solicitation", "Individual giving", or "Philanthropists", or try the term "donor cultivation" in the keyword field.

Stephen Sherman, Reference Librarian, Foundation Center-Atlanta

When Should You Thank Your Donors?

In a recent article in the Nonprofit Times (October 15, 2008), Michele Donohue discusses the “good ‘cents’ or ‘sense’” of deciding who to thank.  She reports on the results of a survey of the Times’ e-letter subscribers concerning whether they had stopped acknowledging direct mail donations at certain levels.  75% responded that they acknowledged every gift; 25% set a limit as to when the gift would be answered.

Of course “small” can vary from organization to organization, and those nonprofits who rely on low-dollar gifts don’t feel they can eliminate the thank you for those donors. And many of the responses noted that you never know where your next big donation may come from—when that large donation may unexpectedly come from your faithful $5 donor.

The article gives a number of examples of organizations who have adopted various strategies to build and maintain a strong bond with their donors, regardless of the size of the gift or the method of the gift (online, mail, in person).

For addition information about writing thank you letters, search our Catalog of Nonprofit Literature using the search terms “Fundraising-Donor relations” or “Fundraising techniques.”

Do you send every donor a thank you?  Have you set a minimum level below which you do not send the donor an acknowledgement?  Let us know what has worked for you.

Kayron Bearden, Reference Librarian, The Foundation Center-Atlanta

Innovations in Holiday Fundraising

As you complete your holiday errands and check off your shopping list this week, chances are you will probably encounter the familiar sound of a Salvation Army bell-ringer. Over the years, the bell-ringers have become synonymous with the holiday season, and they have been a common sight outside department stores and shopping malls. Since the advent of debit cards, however, fewer and fewer people have found themselves carrying cash to drop in the familiar red kettles. 

This year, the Salvation Army is exploring new methods of fundraising in order to meet this growing challenge. Several recent articles in the Atlanta Journal-Constitution have highlighted pilot programs that are currently underway, including one in the metro Atlanta area itself, in which individuals can use their cell phones or mobile devices to text message a donation. Elsewhere, the organization is experimenting with the use of credit/debit machines at collection points to enable donations from those who now carry nothing but plastic. 

Especially in these tough economic times, nonprofit organizations must be flexible and adaptive in their approach to donors and fundraising. To read about more recent innovative fundraising programs, see this article from last week’s Chronicle of Philanthropy (login required).

You can also find books, articles, and other information on fundraising by searching our Catalog of Nonprofit Literature for “fundraising techniques” or “fundraising handbooks”. 

Do you have an innovative fundraising program? Are you changing your approach to fundraising in response to the economic crisis?  Let us know by leaving a comment below.

Stephen Sherman, Reference Librarian, Foundation Center-Atlanta

Editor’s note: Due to the holiday, there will be no posts on Wednesday, December 24, or Friday, December 26.  We will return with a new post on Monday, December 29. 

Philanthropy, Faith, and Individual Giving

The Foundation Center-Atlanta and The Community Foundation for Greater Atlanta have collaborated this year on Philanthropy and Faith, a four-part series of conversations on the intersection of philanthropy and faith. The final program, “Philanthropy, Faith, and Individual Giving”, will be December 9, beginning at 9:00 a.m. at Georgia Public Broadcasting (GPB). (Coffee and registration begins at 8:30 a.m.)  

Alicia Philipp, president of The Community Foundation for Greater Atlanta, will moderate a discussion among four of its Fund Advisors. These are people who have set up funds at The Community Foundation in order to give back to the community. The panelists include:

• Dorothy Cohen, Community Volunteer
• Dave Markert, CMO, ScreamFree Living, Inc.
• Wendy Moore, Community Volunteer
• Sunny Park, Chief Executive Officer, General Building Maintenance, Inc.

These philanthropists will talk about how their personal religious beliefs have impacted their decisions to give to those in need in our community. We hope you will join us at GPB for this discussion or share below about the intersection of philanthropy and faith in your own lives.  

Seating will be limited for this event. Please register at our web site's Events Calendar.

If you missed our previous Philanthropy and Faith conversations, you can view videos of the first two sessions at the Foundation Center’s Events Archive:

• How Faith Communities Take Care of Those in Need
• Philanthropy, Faith, and the Environment
• Philanthropy, Faith, and Race (coming soon!)

The Georgia Humanities Council helped to underwrite this series, and to them, we say THANK YOU!

I hope to see you on December 9.

Pattie Johnson, Director, Foundation Center-Atlanta

Optimistic Comments About the Credit Crisis and Charitable Giving

News outlets everywhere are not boding good times ahead for charities, given the economic downturn. However, recent public comments based on statistical data from leaders in the field might give some encouragement.

In an Oct. 6 letter to their clients and extended community, David H. King, CFRE, managing partner and president of Alexander Haas Martin & Partners, a long-time Atlanta-based fundraising consulting firm, had this to say:

"It seems logical that losses in the stock market would result in decreased giving. But, as many of you know, what seems logical is not always what is 'correct' in the world of fund raising. So, we contacted our friends at the Indiana University Center on Philanthropy and posed that same question. In return, they used data to create charts for us that illustrate the information in a clear and concise manner.”

Mr. King kindly allowed us to share these two charts, which compare giving, overall and by subject, with the Dow Jones Industrial Average and Standard & Poor (S&P) 500. They show that when the Dow is growing, giving grows (seems logical), but when the Dow starts to decline, giving continues to grow or holds steady. If history repeats itself, nonprofits can take comfort from this analysis.

Giving USA's most recent Spotlight, “Giving During Recessions and Economic Slowdowns”, looks at the subject in terms of historical times of economic distress in the nation’s economy, going back to 1969.

Researched and written on behalf of the Giving USA Foundation by the Center on Philanthropy at Indiana University, it finds that total giving in current dollars in the United States has risen every year except one since recording began. When the economy shows stress, whether it is a recession or not, giving may grow more slowly, but it still grows.

This publication, available to use in our library, states that "the most important step a charitable organization can take to raise funds during a recession or downturn is to ask people for contributions in a clear and focused manner". It includes fundraising advice from Giving Institute members, based on their decades of experience as fundraising professionals and advisors to nonprofits.

George C. Ruotolo Jr., CFRE, chair of Giving Institute: Leading Consultants to Non-Profits and past chair of Giving USA Foundation, stated in the report's press release: “When the economy is uncertain, as it is in 2008, non-profits and others naturally assume the one sector that will be heavily impacted is philanthropy. With history as our guide, we know that’s not true. In fact, while charitable giving is impacted by recessions and/or economic slowdowns, it’s not by nearly as much as one might expect.

"It is important at this juncture for cooler heads to prevail and for non-profits to not listen to those who would claim the sky is falling. Those charities with a clear and compelling case and an established loyal donor constituency will continue to succeed, even in difficult times.

"Let me be clear that if history is our guide, overall giving may once again grow in 2008,” he added.

What does this mean for now? We can't predict the future. As in other times of uncertainty, plan for the worst and hope for the best. What are you doing to "weather-proof" your nonprofit for the economic climate ahead?

Sandy Pon, Reference Librarian, Foundation Center-Atlanta