Trends in Philanthropy

Presented by:Victoria M. Bixel

PresidentSemple Bixel Associates, Inc.

February 6, 2019

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2017 contributions: $410.02 billion by source (in billions of dollars – all figures are rounded)

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2017 contributions: $410.02 billion by type of recipient organization(in billions of dollars – all figures are rounded)

What Did We See In 2018?

TAX REFORM! Impact Investing Crypto Currency Philanthropy Donor Advised Funds BOOMED Blended Gifts - on the tip of our tongues Political Giving Increased End of Year – What were your results?

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What’s the Breakdown?

“Baby Bust” is our new Boom! Corporate Giving – Believe it! Giving Patterns and Online Giving Diversity Disrupter 2016 – The year that prompted…

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A Generation Lost or Right in Front of Us?

65,000,000 Generation X’ers in USA today

Average gift is $932 and represents 23% overall giving

Health, Local Social Service, Animals, Children

WILL INHERIT $40 TRILLION

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We are the “IRONIC” Generation…Don’t ya think?

How to Engage Vicki’s Friends

Personal communication – email, text, social media

Easy volunteer opportunities Impact statements Intimate events Online Giving – Recurring gifts

We research you! 8

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“Think of giving not as a duty but as a privilege. ”

- John D. Rockefeller, Jr.

Corporate Giving…There’s Hope!

Up 15% in 2017 since 2015 - $23.8 Billion Giving priorities: Education, Health and Social

Service, Community and Economic Development Fewer contributions, but larger size gifts Measuring social outcomes Expansion of employee volunteer activities Increase in “open” matching gift programs 78% of Americans want companies to address social

justice issues. (Benevity)

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“Giving in Numbers: 2018 Edition” CECP and Conference Board Report 10/30/2018

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“Life is an echo—what you send out comes back.”

- Unknown

Overview of What Works

68% of donors prefer email thank yous and 20% hard copy letter.

43% gave tribute gifts. 36% gave to crowdfunding for individuals. 20% have charitable giving in their Wills. 50% gave to natural disasters.

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“2018 Global Trends in Giving Report”

Can I Get Your (VISA) Number?

45% of donors are enrolled in monthly giving programs.

60% of American donors prefer giving through cards versus 6% prefer giving cash.

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“2018 Global Trends in Giving Report” and “Tina Jepsen, www.causevox.com”

#WhatsYourHandle?

What platforms inspire giving?

Facebook – 56% Instagram – 20% Twitter – 13%

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Fidelity Charitable received $69 million in cryptocurrency in 2017; only $7 million in 2015 and 2016.

New crowdfunding sites: BitGive, BitHope, Helperbit.

Millennials and Generation Z most likely donors.

Bitcoins… Wait, what?

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Can we trust the Bitcoin?

Between January 2015 and May 2018, the value of a single Bitcoin increased 44-fold.

At its peak in December 2017, the market cap of Bitcoin - the value of a single coin times the number of coins in circulation -was over $325 billion.

Then…

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A thought…

Look at your gift acceptance policies, polish them up and be ready to respond to this new currency.

Donor Advised Funds -Our Newest Friends

Outnumber private foundations by more than 5:1.

Contributions totaled $29.23 Billion in 2017. Community Foundation of New Jersey gave

away $66.7 million in 2018; $17 million increase from 2017.

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“2018 Global Trends in Giving Report”

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Number of DAFs Exceeded 400,000

Total Number of Donor-Advised Funds

Marts & Lundy – Source: National Philanthropic Trust 2018 Donor-Advised Fund Report

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Chart1

2013

2014

2015

2016

2017

Series 1

218613

241507

272845

298478

463622

Sheet1

Series 1

2013218,613

2014241,507

2015272,845

2016298,478

2017463,622

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“If you need to raise funds from donors, you need to study them, respect them, and build everything you do around them.”

- Jeff Brooks

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An Example of Attentive Funding

Backed by $4 million in grants from three foundations (The Andrew W. Mellon Foundation, Alice L. Walton Foundation, and Ford Foundation), “Facing Change: Advancing Museum Board Diversity & Inclusion,” will provide the framework, training, and resources for museum leaders to build inclusive cultures within their institutions that more accurately reflect the communities they serve.

www.mellon.org

Philanthropy Today Looks like the American of 25 Years Ago

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50

60

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United States Population 1990 United States Population 2010 Philanthropy Today United States Population 2030(Projected)

Caucasians African Americans Hispanics Asians

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Source: Pew Research Center, The Next America, America’s Racial Tapestry is Changing –http://pewresearch.org/next-America/#Americas-Racial-Tapestry-Is-Changing

© February 2015 - 800.443.9441 - solutions@blackbaud.com - www.blackbaud.com

Table reflects percentages

http://pewresearch.org/next-America/#Americas-Racial-Tapestry-Is-ChangingChart1

United States Population 1990United States Population 1990United States Population 1990United States Population 1990

United States Population 2010United States Population 2010United States Population 2010United States Population 2010

Philanthropy TodayPhilanthropy TodayPhilanthropy TodayPhilanthropy Today

United States Population 2030 (Projected)United States Population 2030 (Projected)United States Population 2030 (Projected)United States Population 2030 (Projected)

Caucasians

African Americans

Hispanics

Asians

76

12

9

3

64

12

16

5

73

9

11

5

55

13

22

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Sheet1

PercentageCaucasiansAfrican AmericansHispanicsAsians

United States Population 1990761293

United States Population 20106412165

Philanthropy Today739115

United States Population 2030 (Projected)5513226

Women

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Forbes Magazine, Bonnie Chui, “The Rise of Women Philanthropists”

Diversity in Fundraising1. Acknowledge the potential for bias. Recognize that you and your

organization are not above its effects.

2. Remember your parents telling you never judge a book by its cover? The same holds true in nonprofit workplaces. Don’t make too much of first impressions.

3. Learn about stereotypes. What might you not already be aware of and where may stereotyping create challenges for your organization?

4. Broaden your scope. Find ways to go beyond your normal channels and incorporate more diversity into your organization.

5. Expose yourself to foreign experiences. Sometimes, the only way to add diversity to your organization is to experience new things yourself.

The NonProfit Times – 5 Tips for Better Diversity in Fundraising – January 22, 2019

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How do we diversify? Ensure your staff and board reflect the community you want to serve. Craft and publicly post non-discrimination policies, inclusive of sexual

orientation and identity for staff and clients. Make sure imagery and language in your marketing, media materials, and

programs are inclusive. Participate in community events that represent the populations you want

to attract, such as MLK Day or Gay Pride/Coming Out Day. Partner with a membership organization in your area and tap into existing

diverse donors to serve as spokespersons. Actively recruit diverse volunteers to make new supporters feel welcome,

and explicitly state in your campaign that you are seeking certain types of people.

Utilize networks and relationships.

25Abila Blog

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“The essential difference between emotion and reason is that emotion leads to action

while reason leads to conclusions.”- Donald Calne

Giving Responses to 2016

RAGE GIVING [Rage-donation is] “The act of feverishly throwing money at

a cause you believe in because you just don’t know what the hell else to do.” - Ashley Fetters, GQ

EPISODIC GIVING “Episodic donors are people who give to organizations in

response to specific events, such as disasters, headline news, and political actions.” - Annelise Ferry, Galaxy Digital

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http://www.gq.com/story/the-rise-of-the-rage-donation

Giving because of….

ACLU - $285,790,662

Everytown for Gun Safety Action Fund -$50,659,514

National Immigration Law Center -$12,464,927

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The Development Process

Records/Systems

Reference Works

Networking

List CompilationIndividuals

FoundationsCorporations

PROSPECTIDENTIFICATIONAND RESEARCH

Volunteer Opportunities

Newsletters

Face-to-Face

CULTIVATION

Planned Giving

Phone Marketing

Special Events

Direct Mail/EmailMarketing

Face-to-Face

SOLICITATION

Status Reports

Acknowledgements

Receipts

FOLLOW-UP

Periodic Visits

Annual Reports

Similar to cultivationonly takes place

after gift is received

STEWARDSHIP

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Why People Give…..

Personal concern People give to people Belief in institution Confidence in leadership Agree with plans Prospect was asked Tax considerations

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Don’t value mission Don’t believe organization is stable Absence of powerful trustees/volunteers Concerns about management Wrong people solicited Inadequate cultivation or follow up No one asked No one thanked the donor for first or recent

gift or pledge

Why People Don’t Give

“The Wind Up”

The stock market only tells part of the story. Pay attention to individual circumstances for each donor (individual, family, business, foundation.)

Politics are playing a role and will continue to do so for some time.

The fundamentals of giving and fundraising have not changed. But the way we communicate has changed.

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“The Wind Up”

Consider collaborations, where and when appropriate

Don’t chase the money! Remain steadfast in your mission and at all times,

articulate your vision. Most of all, remain optimistic. We owe it to

ourselves, our colleagues and to those we serve.

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“We don’t work in the non-profit sector. We work in the for-change sector!”

- Unknown

Victoria M. BixelPresident

Semple Bixel Associates, Inc.527 Franklin Avenue

Nutley, NJ 07110973-284-0444

vickibixel@semplebixel.comwww.semplebixel.com

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Contact Information:

mailto:vickibixel@semplebixel.com

Trends in Philanthropy2017 contributions: $410.02 billion by source �(in billions of dollars – all figures are rounded)2017 contributions: $410.02 billion by type of recipient organization�(in billions of dollars – all figures are rounded)What Did We See In 2018?What’s the Breakdown?A Generation Lost or �Right in Front of Us?Slide Number 7How to Engage Vicki’s FriendsSlide Number 9Corporate Giving…There’s Hope!Slide Number 11Overview of What WorksCan I Get Your (VISA) Number? #WhatsYourHandle?Bitcoins… Wait, what?Can we trust the Bitcoin?A thought…Donor Advised Funds - �Our Newest FriendsNumber of DAFs �Exceeded 400,000Slide Number 20An Example of Attentive FundingPhilanthropy Today Looks like the American of 25 Years AgoWomenDiversity in FundraisingHow do we diversify?Slide Number 26Giving Responses to 2016Giving because of….Slide Number 29Why People Give…..Slide Number 31“The Wind Up”“The Wind Up”Slide Number 34Slide Number 35