Last week I talked about the admirable foresight that transplanted American Lawrence Johnston had in planting a cedar tree in his English garden that he knew he would never see grow to its full glory. As I mentioned, I think of Johnston often when I am planning ahead for what’s to come here at HBG. [Read more…]
Due diligence research is a key part of prospect research in the UK and Europe. All of the prospect researchers at nonprofits that I know there – and not just the ones who work at human-rights or cause-related orgs, but researchers at universities, membership, animal rights, arts organizations, consultants – every kind of organization – they all include due diligence as part of their work. It’s just as important as finding wealth indicators or career history or interest in their organization’s cause.
They’re considering these questions: Do we want our organization to be associated with this person? Or this company? Or this trust/foundation? [Read more…]
Is there a link between income inequality and philanthropic giving stagnation?
Chris Carnie, chair of the UK prospect research firm, Factary, thinks there might be. In his recent blog post, Chris writes about middle donors, the lifeblood of every nonprofit:
It’s an interesting point.
Over here in the United States, the middle class is shrinking to its smallest cohort since 1971. According to the Pew Research Center, that statistic actually carries a small amount of good news in that there has been a greater shift of families moving up economically than down. The down side is that there is less wealth to go around for the 80% left in the middle, lower-middle, and lowest income tiers.
And just like the UK, charitable giving in the United States is also static; here it’s been around 2% of gross domestic product since record-counting began in the 1970s. Is that stagnation related solely to economic factors? Or is there more?
In an opinion piece on the Chronicle of Philanthropy (CoP) website this week, Kevin Murphy, immediate past chair of the board of directors of the Council on Foundations suggests that the problem with stagnation of giving in our sector is simply not reaching high enough. He argues that the philanthropic sector needs to band together in support of a common goal:
“Instead of focusing on narrow tax incentives, it’s time for charities and foundations to set national goals for increasing the amount that Americans give to nonprofit organizations.
For as long as records have been kept, charitable giving has remained stuck at about 2 percent of the gross domestic product. There may be a lot of reasons that we’ve never grown that number, but one surely is that we’ve never set a bigger national goal.
As we open a year of presidential elections — and much deliberation about the state of the country — it’s the right time for nonprofits to decide we will work together to increase charitable giving to at least 3 percent of our gross domestic product in the next three years.”
But who would fund and organize (and run?) that amorphous campaign? And would it work?
History shows that the answer is no.
Suzanne Perry in the CoP article “The Stubborn 2% Giving Rate” writes:
“[E]ven in the best of times, organized efforts to get people to give more have sputtered.
Independent Sector, a coalition of charities and foundations, led a sustained campaign in the late 1980s and early 1990s to get everyone to increase their donations. Known as Give Five, it placed magazine, radio, and television ads urging Americans to donate 5 percent of their gross incomes to charity—up from the average of about 2 percent that its surveys showed individuals were giving then.
The effort attracted millions of dollars in foundation money and spawned dozens of local efforts around the country. The Advertising Council adopted the campaign, soliciting free services from ad agencies. It had a logo (a circle with a small 5-percent wedge highlighted) and slogans like “Give Five: What You Get Back Is Immeasurable.”
But it didn’t work.
“There were a few blips where it went up a little bit, but there was never any real measurable, strong increase,” says John Thomas, who was vice president for communications at Independent Sector at the time. One problem, he suspects: Giving is a “very personal thing,” and some people didn’t like being told how much they should give.”
So what’s the answer?
Jay Love, CEO of Bloomerang and chair of the AFP Ethics Committee argues that there are five pragmatic, fixable factors blocking the growth of charitable giving.
On that last point, Love says:
“[A]s long as the average nonprofit organization has an overall donor retention rate below 50%, the 2% of GDP barrier will not budge.
Just think what an overall rise in the donor retention rate of merely 10-15% would do for overall dollars raised, if all other factors remained constant. We could see the dollars raised percentage of the GDP growing to 3 or 4% over time!”
Naturally, I think prospect development has a large part to play.
There are more than 1.6 million nonprofit organizations in the US and the sector has been growing exponentially (according to the Urban Institute, the number of nonprofits in the United States grew 25 percent between 2001 and 2011).
With all of that growth, there are fewer than 5,000 prospect development professionals in our industry. (I’m counting APRA, AASP and RiF’s membership numbers and guesstimating the number of professionals who aren’t current members). Even if you take away half of the 1.6m number to accommodate for associations and grant-giving organizations, that’s one prospect development professional for every 160 nonprofits.
No wonder we can’t get any traction!
When you consider the huge impact that prospect development has brought to organizations that have invested in it, Jay Love’s arguments 1 through 4 clearly apply. Prospect development is only one piece of the professional fundraising toolkit, but it’s as important as every other necessary cog in the machine.
In fact, I believe that it’s one of the critical pieces that will help the nonprofit industry move forward, because we can help answer those pragmatic needs.
Reading these articles and opinions, it’s clear there are multiple reasons why we’re losing ground on middle donors. But to paraphrase Chris Carnie, there is an increasing number of wealthy people out there, and a lot more people in the world who need their help.
We need to borrow fundraising tactics, like prospect development, from others that are working, be courageous, and forge new paths for others to follow. Maybe if we do, 2016 will be the year we crack the 2% nut.
This month, I’m delighted that HBG Senior Researcher Elizabeth Roma shares her insights on Ultra High Net Worth Individuals (UHNWI) and their potential to affect transformational change in the world through philanthropy. Elizabeth and Kenny Tavares have been studying the infrastructure and impact of HNW Family Offices, and she will present a session on the topic in June at the Mid-Atlantic Researchers Conference in Baltimore. I hope you’ll be able to join her there!
Do you want to hear something that will blow your mind?
In 2010 there were 388 billionaires whose combined wealth was equal to the combined wealth of the poorest 50% of the world’s population.
Amazing, right? But that’s nothing.
In 2014 there were 80 people whose combined wealth equaled that of the poorest 50%. According to a report from Oxfam, the wealth of those 80 people has doubled since 2009. If these trends continue, Oxfam predicts that the richest 1% will have more wealth than the remaining 99% by 2016 (yes, that’s next year).
Things are changing, and not necessarily for the better (at least not for those of us in the 99%). But does this have to be all bad news? [Read more…]
1. Take care of your gold. Chances are that your nonprofit received a larger-than-normal number of gifts last month, and many of them came from new donors. The money that came in will help you do your important work, but the gold I’m talking about is the information that came with each gift. You’ve just started a relationship with someone new that you hope will last a lifetime, right? Here are a few things that your organization should pay attention to:
Because most of us spend our time in the trenches researching, cultivating, asking, stewarding and reporting, it’s nice to spend an afternoon with someone who surveys the landscape from higher terrain and focuses in on objects and trends that we need to know about.
Last week Stacy Palmer, editor of the Chronicle of Philanthropy, spoke at a Women in Development of Greater Boston (WID) event. Palmer gave her picks for the “Top Ten Trends in Philanthropy” and predicted what we’re going to see more of in the months ahead.
Some things that captured my attention and imagination were:
The changing relationship between government and nonprofits regarding taxation…
With the recent strain on the economy coupled with consumers’ growing concern over the efficacy of nonprofit organizations, it was just a matter of time before government officials started debating a larger fee structure for PILOT (Payment In Lieu of Taxes) programs (or changing tax codes to include nonprofits). In Boston, where over half of the land is owned either by nonprofits or the government, PILOT payments are an important source of a struggling city’s tax revenue. There’s a good overview of the discussion here at the Inside Higher Ed site, and Palmer predicted more developments to come on this issue in the months ahead.
… and government investment in programs via social impact bonds.
A recent import from the UK is the creation of social impact bonds (brief article here from the NYT). Social impact bonds work like this: Private investors give the seed funding for a nonprofit organization/venture. If the nonprofit meets its stated goals, the investors get paid back with interest by the government at the end of a designated period. It’s venture funding with a social benefit twist, and it’ll be interesting to see if the program ideas being floated in New York City and Massachusetts get picked up. If you’re interested, there’s more information about social impact funds in a white paper written by Harvard economist Jeffrey Liebman.
The impact of technology in fundraising
From robot fundraisers on the streets like Don-8er and DONA to the use of Facebook, Twitter and LinkedIn for interacting with our constituencies, there’s going to be a continuing explosion of new tools to engage and motivate donors, from small to large. Think that online giving isn’t going to work for large donors? Stacy Palmer told us that last year there were at least nine gifts of $100,000 made online, and that some high net worth donors she’s spoken with said that the only barrier they find to donating online like that is that most organizations’ websites aren’t equipped to accept large donations! Even if you don’t think it’ll ever happen, doesn’t it make sense to act like it could?
Some of Palmer’s other top trends included:
What trends in philanthropy do you see? What do you think is in store for us?
Blogs and social media are critical communication tools for non-profits. In fact, according to research by the University of Massachusetts, a higher percentage of non-profits have active blogs than any other category. And it makes sense: blogs are a cost-effective way to tell stories and build a consistent emotional connection with constituents. But how are they doing? Which are the best in the world?
So I embarked on an ambitious project in partnership with Mark W. Schaefer, a well known blogger at {grow} and author of The Tao of Twitter. Mark really knows social media and blogs — in fact he teaches a course on the subject at Rutgers University.
Together we examined more than 250 blogs from some of the largest and most important charities in the world (and I mean that literally – we didn’t just look at blogs in the US). We looked for the blogs that were engaging an audience, offering superb content and aligning with the organization’s strategies. Last year, when Mark compiled a list of The Best Company Blogs in the World he noted that it was a depressing experience. He found that most company blogs aren’t that great and I’m sad to say that we struggled similarly to find non-profits communicating and interacting with their constituencies. In fact, we found a lot of dreck.
But we did find some truly inspiring blogs out there. Here, in no particular order, are the best non-profit blogs in the world:
This is simply one of the best blogs you will find anywhere, profit or non-profit. It has it all:
This blog is a role model for any organization.
This is a wonderful, interesting blog. Of course it serves as the place to go in the event of a disaster, but it is also an entertaining read. As a good example, read this post about the historical role of The Salvation Army in the devastating 1906 San Francisco earthquake. Another post features a “fashionista” getting her clothes from a Salvation Army Thrift Shop. Not only is this type of post great story-telling, it connects readers with the history and rock-solid foundation of the organization in an entertaining way that cuts through the noise.
While a good-looking and well-organized blog, inexplicably, it seems to stand alone from the primary Salvation Army site. There is no easy way to connect directly to the organization or donate money right from the blog, which is a missed opportunity.
Holland Bloorview Childrens Rehabilitation Hospital
Mark said that this blog brought tears to his eyes. (He acts all tough on the outside, but I suspect a moosh lies within). Okay, I admit to some mistiness myself – but in a good way. I’m guessing that it will probably have the same effect on you.
Bloom is about parenting special needs kids. It isn’t fancy. In fact it’s just on Blogger. But what it lacks in sophistication it more than makes up in courage and heart. Writer Louise Kinross has something unique and personal going on here. She has nurtured an active, loyal community and with good reason … this is blogging at its best.
Check out this gutsy, effective blog. With My Own Eyes is a firsthand, photo-journalism account offering users the opportunity to see some of the most devastated, disaster-ravaged and previously inaccessible places in the world, as well as a look at Operation Blessing’s efforts to help people that live there.
This multimedia site features video footage, photos and the personal diary entries of some of the team leaders from more than 25 countries including China, India, Indonesia, Mexico, Peru and the U.S. Each blog post provides concrete ideas on how to connect and help.
This effort just began in 2011 so we’ll have to check in later to see if they can sustain what is starting out to be an excellent blog. World Vision works with impoverished children and their families throughout the world and is also effectively using eyewitness accounts to connect to constituents.
Some of the hallmarks of this journal are fantastic, colorful articles that pull you in to the organization and its mission. This blog seems to have jumped out of the starter’s gate quickly — some of its daily posts are already getting more than 1,000 ‘shares’. While the design of the blog is quite busy, check out the beautiful and effective design of the main website while you’re visiting.
Simply put, The Broad Institute is creating methods, tools and massive data sets and makes them available to the general scientific community to rapidly accelerate biomedical advancement.
The charming thing about their blog — Broad Minded — is that it frames complicated subjects in accessible terms. I’m partial to science literature any way so this blog was a delight. I mean how can you miss with a blog post titled “Lifestyles of the Fungal and Famous” or another that explains unraveling mysteries of DNA as a Julia Child recipe?
This is a lively, straight-forward blog that is very well-aligned with the mission of the organization.
Refugees International advocates for lifesaving assistance and protection for displaced people and promotes solutions to displacement crises. This blog achieves story-telling excellence through extraordinary writing, compelling videos and dramatic photography. If you want an example, check out this video on how refugees struggle to find an education. The almost daily blog is unafraid of confronting difficult political issues and take a stand as it boldly raises awareness for its cause. A smart, superb blog.
The Middle East Media Research Institute (MEMRI) explores the region’s media (both print and television), websites, religious sermons and school books. This blog stands out in a special way because essentially, the blog IS the organization.
This respected non-profit scans the Middle East for important news and trends and provides timely translations of Arabic, Farsi, Urdu, Pashtu, Dari, Hindi, and Turkish media in separate blogs. Other sections provide original analysis of political, ideological, intellectual, social, cultural, and religious trends in the Middle East. This series of blogs is the centerpiece of this important effort. Pretty cool.
This blog provides consistently good content mixed with compelling multi-media. It has several nice features like a list of all local Red Cross Chapter blogs, weekly round-ups of disaster relief efforts around the world, and connections to many disaster-response related resources. It also has all-around helpful and targeted information to support the needs of its constituents. I don’t know why this blog is detached from the main Red Cross website – again, it’s a missed opportunity. Also, it is strange that the blog gets no comments when it is such a vital community-focused organization. And in the “maybe we’re picky” category — it seems like they could have come up with a better title for their showcase than “Blog.” : )
BONUS CONTENT!
If you’re interested in non-profit best practices, here is a list of some favorite blogs ABOUT charities and fund-raising (again, in no particular order):
Stanford Social Innovation Review Blog
The SSIR is part of the Stanford University Center on Philanthropy and Civil Society (PACS). Highlighting thought leaders, practitioners and innovative funders and “striking a balance between the pragmatic and the intellectual,” this blog keeps you up-to-date on the issues at the forefront of the third sector. Contributors include Sean Stannard-Stockton, Amy Sample Ward and Peter Sims.
Chronicle of Philanthropy’s Blogs
The Chronicle of Philanthropy site plays host to a number of blogs including those on prospecting, candid conversations about nonprofit boards, international philanthropy and social media for nonprofits. Contributors include staff writers as well as experts and thought leaders on their given topic.
Queer Ideas; a bloody good fundraising blog
Sometimes irreverent, usually cutting-edge, always intelligent and interesting, this blog is written by Mark Phillips, founder and CEO of bluefrog, a fundraising consulting firm in the UK. His observations and links to helpful research and resources make this a good one to expand your mind.
Written by the co-author (with Beth Kanter) of The Networked Nonprofit, Allison Fine’s blog is a combination of acute observation and commentary on articles, videos, campaigns and collateral on fundraising, networking and social media. An extra bonus on her site is links to Allison’s monthly podcast interviews for the Chronicle of Philanthropy.
Written by Allison Fine’s co-author Beth Kanter, Beth’s blog is seen by many (us included) as the go-to blog for nonprofit fitness checks, great ideas, subtle nudges toward excellence and good advice on social media, networking and organizational management you’d do well to take. Beth’s writing style is accessible and friendly, yet the blog is packed with resources, links to scholarly studies and other references that you need to know about.
Philanthropy 2173; The Business of Giving
Authored by Lucy Bernholz, founder and president of Blueprint Research & Design, Inc., Bernholz is to nonprofits what Rachel Maddow is to liberal politics – intelligent and incisive yet accessible, wonky, and (respectfully) pulling no punches. The blog approaches nonprofits and their arena as a third business sector, and Bernholz isn’t sitting behind a desk; very often she’s interviewing some game-changing sector leader and sharing their conversations and her insights.
So there you have it! The best non-profit blogs you’ll find anywhere. Of course there are some good ones out there that we missed. Do you have a favorite? Tell us – we’d love to hear about it! What blogging ideas did you pick up from this list of great blogs?