The Impact of Year-End Giving

September 15, 2017 | 77 views

Since it was founded in 2012, #GivingTuesday has exploded in popularity. In 2015, $116.7 million were donated in this one day. The next year, that number jumped to $168 million. 2017 is expected to be record-breaking as well. So, what can you do to make sure you get your piece of the giving day pie? Our research here at Network for Good shows that, rather than seeing #GivingTuesday as a single event, it pays to approach this day as the kick-off of a month-long year-end giving campaign. In fact, nonprofits who used #GivingTuesday to launch their year-end campaigns raised, on average, five times more overall during year-end. Not only that, but nonprofits using Donor Management raised more than those without it.

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NONPROFIT MANAGEMENT

Non-Profits Impacting the Economy

Article | July 20, 2022

While it's obvious how non-profits directly improve people's lives, their positive contributions to the US economy are frequently overlooked. A closer examination reveals that non-profit organizations have a large and far-reaching impact on the American economy. Non-profits, in fact, improve and strengthen local, state, and national economies in a variety of ways, including the following: The more than $826 billion spent on salaries, benefits, and payroll taxes by non-profits each year accounts for a sizable portion of their nearly $2 trillion annual budget. Non-profit employees also pay taxes on their salaries, as well as sales taxes and property taxes on what they own. Non-profits that provide care for children or elderly parents allow family members who would otherwise be responsible for providing care to work outside the home. Non-profit organizations also offer job training and placement services to people who would otherwise be unemployed or underemployed. Non-profits spend nearly $1 trillion on goods and services each year, ranging from large expenses like medical equipment for non-profit hospitals to small purchases like office supplies, food, utilities, and rent. Non-profits have an even greater impact because they generate economic activity and jobs that spread throughout the community. Consider arts programming as one example. By attending a play at a local non-profit community theater, you likely helped local businesses as well as the cast, crew, and administrative staff. Have you paid for parking? Did you purchase the appropriate earrings, shoes, or tie for the occasion? Did you eat before the show or meet up with friends afterwards? If this is the case, you have increased the economic impact of that theater by helping to create more jobs in the local economy while also increasing tax revenue for the local government. Have you ever noticed how local non-profits are frequently mentioned in brochures for local chambers of commerce as a top reason for businesses to locate there? Many cities are proud of their beloved cultural amenities, such as non-profit museums and performing arts centres. Non-profit colleges, which demonstrate the value of an educated workforce, and non-profit healthcare facilities, which reinforce a commitment to well-being, are also common features. While these local icons are rarely labelled as "non-profits" in brochures, business leaders intuitively recognize the enormous value that local non-profits contribute to the community's quality of life.

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NONPROFIT MANAGEMENT

4 Challenges that Large Non-profit Organizations Face

Article | July 15, 2022

Large non-profit organisations must frequently overcome extreme challenges in order to stay on track toward achieving their mission and goals. There are currently 1.4 million tax-exempt organisations in the United States alone, so there is no shortage of non-profit organisations competing for resources, financial assistance, and talent. The challenge is exacerbated because a large non-profit (or small non-profit) is expected to make all strategic decisions with its organisational mission in mind. The good news is that a non-profit’s mission can guide them in making the right decisions and overcoming obstacles. Large non-profits face numerous challenges on a daily basis in order to stay on track. These issues include sustainability, donor retention and engagement, finding the right volunteers, and organising internal and external processes. Today, we'll go over these issues in greater depth and offer solutions. How Can Large Non-profits Be Sustainable? Sustainability is critical to a large non-profit’s long-term success. Large non-profit organizations frequently must uphold a recognizable brand and reputation. Developing a strategic plan with sustainability as the foundation starts with an organization's mission and vision. How Can Large Non-profits Keep and Engage Donors? Another issue that large non-profit organizations frequently face is retaining and engaging donors. Did you know that in 2015, 373.25 billion dollars were donated to charitable causes? Large non-profit organizations are tasked with acquiring new donors, engaging their donor base, and retaining valuable relationships. Donor retention rates for offline-only donors are 29%, while online-only donors have a 21% retention rate. Raising these averages by a few percentage points can give a large non-profit organization more reach. How Can a Large Non-profit Find the Right Volunteers? A large non-profit can save a lot of money by identifying and recruiting the right volunteers for the right strategic jobs. According to an Independent Sector study, the average volunteer hour is worth more than $24.00 (2016 data). The value of volunteerism can quickly add up large non-profit organizations that rely heavily on volunteers. Volunteers also provide valuable skill sets to non-profits, which can improve an organization's ability across departments. How Can Large Non-profits Improve Processes? Setting up processes is one of the most important things a large non-profit can do to ensure consistency and control throughout the organization. Every aspect of the organization, including but not limited to fundraising, volunteer coordination, training, strategic engagement, and retention strategies, should have a process in place. Organizations that want to create a road map for success must devote time to strategic planning.

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NONPROFIT MANAGEMENT

What Are the Top Five Lessons for Your Non-Profit This Year?

Article | July 14, 2022

It is crucial to keep a keen eye on what the significant figures imply for NGO’s and how they affect their operations. Learn more in detail in the 5 key lessons! It's alluring to concentrate just on the significant figures that affect the non-profit industry as a whole. However, it's equally crucial to concentrate on what those significant figures imply for certain NGOs and how they may affect your day-to-day operations. The report can be used to learn the following five key lessons. Lesson One: Small-Dollar Donors Are Being Left Behind Around 84.1% of contributors give less than $500 yearly to the organisations they support, and just 19% of new donors are retained over time, according to the most recent Fundraising Effectiveness Project data. This indicates that the great majority of small-dollar donors are leaving non-profit organizations. Lesson Two: There are Winners and Losers by Mission Type Donors change the emphasis they give to certain missions every year. Donors' giving priorities clearly reflect the legacy of COVID-19 as well as the enduring influence of racial and social justice movements. The number of non-profits with missions in the arts, culture, or healthcare increased significantly in 2020. Non-profits with an emphasis on foreign affairs, human services, and education, on the other hand, had slow growth or reductions in 2021. Lesson Three: Corporate Giving is a Distraction It will become more crucial to engage with people instead of concentrating on corporate ties as businesses modify their philanthropic alliances and employees try to support their preferred causes outside of their workplace's giving program. Lesson Four: It’s Time to Modernize Bequest Giving A warning sign that NGOs are not investing in highlighting the opportunities available with legacy gifts is the decline in bequests during 2021. Although any donor can establish a contribution through their estate to a non-profit they are passionate about, there is a frequent misconception that bequests must be customized for significant donors. Lesson Five: Retention and Acquisition Benchmarks Are Critical For its key revenue figures, the Giving USA report heavily depends on IRS 990 information. When examining giving trends throughout the sector, that data is helpful, but it is less helpful when attempting to comprehend the behavior of all donors. It is reassuring to see that when discussing contributors' ongoing support of NGOs, the Fundraising Effectiveness Project's data on acquisition and retention of individual donors was recognised as the primary source. It's crucial to comprehend donor behaviour, and you can achieve this by comparing the donor behaviour of your own organization to benchmarks from the ‘Fundraising Effectiveness Project.’

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NONPROFIT MANAGEMENT

Top 5 Trends for Non-Profits in 2022

Article | July 11, 2022

Non-profits can lead with a data-driven strategy that seamlessly connects staff and volunteers and engages donors if they have the right tools. In the coming year, non-profits will continue to correct course in a still chaotic environment, providing opportunities to rethink strategy with data gathered since transitioning to a digital-first environment. With Dreamforce in the rear-view mirror and the new year fast approaching, our non-profit experts are here to share the top five trends for non-profits in 2022. Non-profits continue to adapt and shift strategies: 89% of non-profit marketers have updated their digital engagement strategy and the ability to pivot to digital-first options. For example, remote fundraising; these are the times when organizations adapt to change and priorities to win the hearts of constituents. Connection and collaboration from anywhere: Getting together, meeting new people, and gathering has changed drastically and will continue to evolve. Hence making remote connections is a key trend for non-profits in 2022. Data-informed decisions: Establishing transparency around your non-profit gives you insights into how your funds are spent. The best way to showcase it is through data-informed decisions. Invest in people: Non-profits use digital platforms and can depend on that data to create meaningful conversations with donors and volunteers to build relationships and also with the staff to ensure what are their needs that requires attention. After two years of going digital, every non-profit’s new year's resolution should be to put data to use. Using data through foundational technology is the best way to connect with constituents while also remaining agile in order to adapt and ensure that teams are working effectively to power your mission. Non-profits must continue to adapt to new ways of fundraising in a hybrid work environment in order to survive and thrive. Furthermore, there is a greater emphasis on finding new ways to connect with donors in an entirely digital environment.

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At the Grant Professional, our mission is to provide high quality grant writing, development and grant management to enhance the fundraising options and resources available to organizations seeking to make a difference in the lives of others.

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Women and Men Give Differently, Even during Retirement

Nonprofit Quarterly | August 09, 2018

The latest IUPUI Women’s Philanthropy Institute report, “How Women and Men Give Around Retirement,” discusses four key findings about changes in giving and volunteering throughout retirement. Of the groups studied single men, single women, and married couples single women were the most consistent and stable in their giving, followed by married couples, and then single men. Following gender differences in volunteering for all life stages, single women and married couples were more likely to volunteer and are more stable in their volunteerism than single men. The most volatile group across all factors studied was single men. We see a drop in their likelihood of giving right around the transition event of retirement, but this eventually bounces back up to pre-retirement giving levels shortly afterwards. The same seems to occur for giving amount. With volunteering, however, single men are less likely to volunteer after retirement. Single women, on the other hand, seem to increase their engagement in volunteerism after retirement, with married couples essentially remaining consistent before and after retirement. When looking at this report in totality and stepping back to identify an overall theme, the biggest takeaway seems to be that post-retirement behavior reflects pre-retirement behavior. Those who give both time and money before retirement are going to continue giving into and during retirement. This is great news for nonprofit organizations for several reasons. First, retirement is such a fluid concept these days. Some people choose never to retire, some take small retirements or take on a second career, others plan for it far in advance, and still others are forced to retire before they are ready to do so. But, findings in this report indicate that the event of retirement itself does not seem to have profound impacts on likelihood of giving or giving amount. Even while other discretionary spending and consumption decreases between the ages of 60–70 years, charitable giving remains consistent. Secondly, we know it takes far more effort and money to acquire donors rather than to retain them. This report clarifies that retaining donors is not just good practice in the short term. With people living longer, nonprofits can expect to see larger lifetime values for donors they can retain. Lastly, this report points to women as being important drivers of philanthropy both before and after retirement. We know that women are more likely to live longer than men and are set to inherit funds. The findings of this report indicate that women are also more likely to continue giving and give at higher levels than men. Taken together, this means that nonprofits that can effectively engage women will see a boost in giving of both time and money. While this report offers some great insights into the prosocial behavior of women and men around retirement, there are some unanswered questions. For instance, the findings suggest that nonprofits should absolutely engage both single women and married couples, but the report is less clear on how to engage single men. The volatility in likelihood of giving and giving amount for single men does not appear to be linked to any anxiety surrounding retirement. The report says, “Most of the financial services industry literature finds that men are more confident they will have enough resources to live on during retirement.”

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Chan Zuckerberg, Gates Foundation Award $1.45 Million to EdSurge

Philanthropy News Digest | July 31, 2018

EdSurge, a digital information service focused on the emerging edtech community, has announced grants totaling $1.45 million from the Chan Zuckerberg Initiative and the Bill & Melinda Gates Foundation in support of a number of research and editorial projects. A $700,000 grant from CZI will support EdSurge's efforts to explore how school communities across the United States are changing to meet the needs of all learners. To that end, the organization will convene educators and school leaders from different regions to discuss the challenges they've faced and the practices and strategies they've found to be successful, and will share lessons learned through a series of articles about how school communities interpret and implement "personalized learning," how they are changing teaching and learning practices to support growth for the "whole child," and how they incorporate evidence-based research and learning sciences into their work. In addition, a grant of $750,000 from the Gates Foundation will fund an effort to examine higher education practitioners' understanding of the challenges and opportunities created by digital learning services and courseware. The project will include online convenings of faculty and digital learning leaders and the publication of articles that amplify the voices of people leading innovative teaching practices, especially at institutions serving low-income and historically disadvantaged learners.

Read More

Top Trends In Charitable Giving For High-Net-Worth Individuals

FA Mag | July 27, 2018

Over the years, charitable giving has run the gamut from simple gifts of cash to the formation of complex charitable trust structures. In difficult times or where the disparity between classes of wealth is particularly in the spotlight, greater pressure is placed on the wealthy to contribute more to charitable causes. Other events, such as the raising or lowering of taxes can affect charitable giving. Most recently, key provisions of the Tax Cuts and Jobs Act of 2017, including the virtual doubling of the standard deduction and estate tax exemption as well as elimination of the phase-out of itemized deductions, will further shift the focus on charitable giving to high-net-worth individuals and reduce the tax incentive for moderately wealthy individuals. The following are a few vehicles and concepts that high-net-worth donors and some moderately wealthy donors should be considering. Because the standard deduction is now $24,000 per couple, many Americans will no longer be itemizing deductions. Accordingly, as the charitable deduction is an itemized deduction, such individuals will be less motivated by tax savings when it comes to charitable giving. One option for individuals who had historically given a certain dollar amount (or percentage of earnings) to charity each year that would now be less than the standard deduction (or otherwise having a reduced benefit) is to give several years worth of payments in a single year. To avoid having to give all of such amount to charity in that particular year, such individual could set up a donor advised fund (“DAF”) either with a local community charity (such as a United Way) or with a financial institution-sponsored fund and give the aggregate amount to the DAF. In this case, the individual would receive a charitable income tax deduction in the year of contribution to the DAF but then have the funds contributed to the DAF distributed to charities in subsequent years in the annual amounts given by the donor in years past. (Although donor advised funds are not required to follow the direction of the donor, they generally will, so long as the recipient fits within the parameters of the DAF sponsor.) Another planning technique designed to generate a substantial charitable income tax deduction for the current year, yet postpone actual distributions to charity, is the grantor charitable lead annuity trust or “CLAT.” In the case of a grantor CLAT, one or more charitable organizations receives a series of periodic payments (generally on an annual basis) for a number of years from a trust, after which time, the remaining amount left in the trust is paid to non-charitable beneficiaries, generally family members or trusts for their benefit, free of gift and estate tax. An income tax deduction for this stream of annuity payments is actuarially determined and taken in the year the CLAT is funded. The grantor CLAT is similar to the gift bunching-DAF technique described above, however an individual or corporate trustee chosen by the donor, and not a public charity, is in charge of actually making the charitable payments as well as managing trust assets. A back-loaded (or accelerating) CLAT annuity, where payments increase by a given percentage each year (up to 20 percent) can potentially be more effective for leveraging gifts to family members because principal is preserved within the trust for a longer period of time, allowing more growth and income to accrue for the remainder beneficiaries.

Read More

Women and Men Give Differently, Even during Retirement

Nonprofit Quarterly | August 09, 2018

The latest IUPUI Women’s Philanthropy Institute report, “How Women and Men Give Around Retirement,” discusses four key findings about changes in giving and volunteering throughout retirement. Of the groups studied single men, single women, and married couples single women were the most consistent and stable in their giving, followed by married couples, and then single men. Following gender differences in volunteering for all life stages, single women and married couples were more likely to volunteer and are more stable in their volunteerism than single men. The most volatile group across all factors studied was single men. We see a drop in their likelihood of giving right around the transition event of retirement, but this eventually bounces back up to pre-retirement giving levels shortly afterwards. The same seems to occur for giving amount. With volunteering, however, single men are less likely to volunteer after retirement. Single women, on the other hand, seem to increase their engagement in volunteerism after retirement, with married couples essentially remaining consistent before and after retirement. When looking at this report in totality and stepping back to identify an overall theme, the biggest takeaway seems to be that post-retirement behavior reflects pre-retirement behavior. Those who give both time and money before retirement are going to continue giving into and during retirement. This is great news for nonprofit organizations for several reasons. First, retirement is such a fluid concept these days. Some people choose never to retire, some take small retirements or take on a second career, others plan for it far in advance, and still others are forced to retire before they are ready to do so. But, findings in this report indicate that the event of retirement itself does not seem to have profound impacts on likelihood of giving or giving amount. Even while other discretionary spending and consumption decreases between the ages of 60–70 years, charitable giving remains consistent. Secondly, we know it takes far more effort and money to acquire donors rather than to retain them. This report clarifies that retaining donors is not just good practice in the short term. With people living longer, nonprofits can expect to see larger lifetime values for donors they can retain. Lastly, this report points to women as being important drivers of philanthropy both before and after retirement. We know that women are more likely to live longer than men and are set to inherit funds. The findings of this report indicate that women are also more likely to continue giving and give at higher levels than men. Taken together, this means that nonprofits that can effectively engage women will see a boost in giving of both time and money. While this report offers some great insights into the prosocial behavior of women and men around retirement, there are some unanswered questions. For instance, the findings suggest that nonprofits should absolutely engage both single women and married couples, but the report is less clear on how to engage single men. The volatility in likelihood of giving and giving amount for single men does not appear to be linked to any anxiety surrounding retirement. The report says, “Most of the financial services industry literature finds that men are more confident they will have enough resources to live on during retirement.”

Read More

Chan Zuckerberg, Gates Foundation Award $1.45 Million to EdSurge

Philanthropy News Digest | July 31, 2018

EdSurge, a digital information service focused on the emerging edtech community, has announced grants totaling $1.45 million from the Chan Zuckerberg Initiative and the Bill & Melinda Gates Foundation in support of a number of research and editorial projects. A $700,000 grant from CZI will support EdSurge's efforts to explore how school communities across the United States are changing to meet the needs of all learners. To that end, the organization will convene educators and school leaders from different regions to discuss the challenges they've faced and the practices and strategies they've found to be successful, and will share lessons learned through a series of articles about how school communities interpret and implement "personalized learning," how they are changing teaching and learning practices to support growth for the "whole child," and how they incorporate evidence-based research and learning sciences into their work. In addition, a grant of $750,000 from the Gates Foundation will fund an effort to examine higher education practitioners' understanding of the challenges and opportunities created by digital learning services and courseware. The project will include online convenings of faculty and digital learning leaders and the publication of articles that amplify the voices of people leading innovative teaching practices, especially at institutions serving low-income and historically disadvantaged learners.

Read More

Top Trends In Charitable Giving For High-Net-Worth Individuals

FA Mag | July 27, 2018

Over the years, charitable giving has run the gamut from simple gifts of cash to the formation of complex charitable trust structures. In difficult times or where the disparity between classes of wealth is particularly in the spotlight, greater pressure is placed on the wealthy to contribute more to charitable causes. Other events, such as the raising or lowering of taxes can affect charitable giving. Most recently, key provisions of the Tax Cuts and Jobs Act of 2017, including the virtual doubling of the standard deduction and estate tax exemption as well as elimination of the phase-out of itemized deductions, will further shift the focus on charitable giving to high-net-worth individuals and reduce the tax incentive for moderately wealthy individuals. The following are a few vehicles and concepts that high-net-worth donors and some moderately wealthy donors should be considering. Because the standard deduction is now $24,000 per couple, many Americans will no longer be itemizing deductions. Accordingly, as the charitable deduction is an itemized deduction, such individuals will be less motivated by tax savings when it comes to charitable giving. One option for individuals who had historically given a certain dollar amount (or percentage of earnings) to charity each year that would now be less than the standard deduction (or otherwise having a reduced benefit) is to give several years worth of payments in a single year. To avoid having to give all of such amount to charity in that particular year, such individual could set up a donor advised fund (“DAF”) either with a local community charity (such as a United Way) or with a financial institution-sponsored fund and give the aggregate amount to the DAF. In this case, the individual would receive a charitable income tax deduction in the year of contribution to the DAF but then have the funds contributed to the DAF distributed to charities in subsequent years in the annual amounts given by the donor in years past. (Although donor advised funds are not required to follow the direction of the donor, they generally will, so long as the recipient fits within the parameters of the DAF sponsor.) Another planning technique designed to generate a substantial charitable income tax deduction for the current year, yet postpone actual distributions to charity, is the grantor charitable lead annuity trust or “CLAT.” In the case of a grantor CLAT, one or more charitable organizations receives a series of periodic payments (generally on an annual basis) for a number of years from a trust, after which time, the remaining amount left in the trust is paid to non-charitable beneficiaries, generally family members or trusts for their benefit, free of gift and estate tax. An income tax deduction for this stream of annuity payments is actuarially determined and taken in the year the CLAT is funded. The grantor CLAT is similar to the gift bunching-DAF technique described above, however an individual or corporate trustee chosen by the donor, and not a public charity, is in charge of actually making the charitable payments as well as managing trust assets. A back-loaded (or accelerating) CLAT annuity, where payments increase by a given percentage each year (up to 20 percent) can potentially be more effective for leveraging gifts to family members because principal is preserved within the trust for a longer period of time, allowing more growth and income to accrue for the remainder beneficiaries.

Read More

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