John W. Hicks, CFRE

President & CEO

J.C. Geever, Inc.

*Eyes on the Dashboard

*The Landscape

*Ahoy! Sea Change

*New kids on the block

*Generational shift in foundation leadership

*Changing needs/opportunities

*The nonprofit landscape

*Globalization of philanthropy

*2013: What We Know

*Foundations are recovering from the Great Recession

Data gathered from 140 private foundations for the 2012 Study show that these organizations’ endowments returned an average of 12.0 percent (net of fees) for the 2012 fiscal year -- a significant improvement over the FY2011 return of less than 0.7 percent.

Source: Commonfund/Council on Foundations

*2013: What We Know

*Foundations are recovering from the Great Recession

*Foundation giving is stable . . . and stagnant

Source: The Foundation Center

*2013: What We Know

*Foundations are still recovering from the Great Recession

*Foundation giving is stable . . . and stagnant

*The largest foundations are still saying that they are wary of planning significant increases

*Small foundations may be more bullish

Private foundations with less than $50 million granted 9.1% more in 2012 than in 2011. These same foundations continue to pay out more than twice their 5% minimum distribution requirement and actually increased their qualifying distributions in 2012 to 11.7% of assets, up from 11.2% in 2011.

Source: Foundation Source Study, March 2013

*Impact

*Reduced giving as a percentage of assets

*Reduced overhead/staffing

*Lengthening the consideration/decision process

*Refocused giving priorities

*Greater discernment about grantees

*Assumptions

*Acquisition is tougher. Foundations are becoming more selective in their choice of grantees.

*Urgent needs will be harder to fund vs. strategic needs.

*Small annual grants appear to be stable.

*Foundations will direct larger grants to strategic priorities.

*The Grants They Are a-Changing

*Sustaining Grants

*Modest gifts to let the recipient know that the donor still cares

*Risk/reward = low/modest

*Global expectations

*Will do good work

*Will sustain change

*Allow the Foundation to maintain its mission and its tax-exempt status

*Investment Grants

*Large grants

*Risk/reward = modest-high/high

*Strategic philanthropy

*Global expectations

*Expansion/enhancement

*Real and positive change/outcomes

*Sustained change

*Allow a foundation to be strategic with its philanthropy

*Oops! Your Paradigm Shift is

Showing

*Old Paradigm

*Cast your net broadly

*Lots of proposals in the pipeline

*Time is on our side

*Foundations in “risk taking” entrepreneurial mode

*We can sustain and grow total from year to year with some predictability

*New Paradigm

*Trade the net for a fishing rod

*Targeted applications/proposals

*Time is against us

*Foundations are entrepreneurial and adverse to risk

*Grantseeking results vary from year to year

*Paradigm by the Dashboard Light

*The Old Dashboard

*The Old Dashboard

*How much money did we raise?

*How many grants did we keep/lose?

*How many grants did we acquire?

*How many proposals are in the pipeline?

*How many calls did we complete?

*The New Dashboard

*The New Dashboard

*How much of the right money did we raise?

*What is the quality of our portfolio?

*How many grants did we maintain?

*How many relationships did we create?

*How many relationships did we sustain?

*How many foundations know more about us?

*Is our message resonating with grantmakers?

*Questions and Discussion