1. 2013 Indiana Governor’s Conference on
Service and Nonprofit Capacity Building
October 3, 2013
Indianapolis, IN
Kirsten Grønbjerg, Ph.D.
Patrick Rooney, Ph.D.
Josette C. Rathbun, CFP, MBA
Angela White, CFRE
Moderator – Katie Prine
2. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
October 3, 2013
Welcome to the 2013 Indiana
Governor's Conference on Service and
Nonprofit Capacity Building!
3. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Phi
•
lan
•
thro
•
py
(n.)
“voluntary action for the public good”
~ Robert Payton
4. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Introductions
•
Kirsten A. Grønbjerg, Efroymson Chair in
Philanthropy, Professor of Public and
Environmental Affairs at Indiana University,
Bloomington
•
Patrick Rooney, Associate Dean for Academic
Affairs and Research at the IU Lilly Family
School of Philanthropy
•
Josette C. Rathbun, CFP, MBA, First Vice
President-Wealth Management at Merrill Lynch
•
Angela White, CFRE, Senior Consultant and
CEO at Johnson, Grossnickle, and Associates
5. Nonprofit Employment, Revenues and Funding
Streams
Kirsten A. Grønbjerg
Efroymson Chair in Philanthropy
Professor of Philanthropic Studies
Professor of Nonprofit Management
School of Public & Environmental Affairs
Indiana University Bloomington
6. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Overview
• Trends in the Indiana nonprofit sector
• Importance of philanthropic funding
• Current state of giving
7. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Indiana Nonprofit Sector:
Trends
www.indiana.edu/~nonprof
8. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
The overall pie – our estimate for IN
• Indiana Nonprofit Sector project estimate (2011)
- 250,000 paid employees
- $9.5 billion in payroll (excl. fringes)
- $26 billion revenues (rough estimate)
Assumes payroll (excl. fringes) ~ 37% of revenues (US estimate)
• Nonprofit payroll has grown, even adjusted for inflation
- Up by 61% since 1995; by 9% since 2008
• More than the growth in nonprofit paid employees
- Up by 34% since 1995; by 5% since 2008
11. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
But in key industries NPs are loosing
ground – in share of total employment
100%
% Nonprofit Employees
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1995- 2001- 2007- 1995- 2001- 2007- 1995- 2001- 2007- 1995- 2001- 20072000 2006 2011 2000 2006 2011 2000 2006 2011 2000 2006 2011
Social Assistance
www.indiana.edu/~nonprof
Health
Arts, Entertainment,
& Recreation
Education
12. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
…and in share of total payroll
100%
% Nonprofit Payroll
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1995- 2001- 2007- 1995- 2001- 2007- 1995- 2001- 2007- 1995- 2001- 20072000 2006 2011 2000 2006 2011 2000 2006 2011 2000 2006 2011
Social Assistance
www.indiana.edu/~nonprof
Health
Arts, Entertainment,
& Recreation
Education
15. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
So, a mixed message about the
Indiana nonprofit sector
• Overall growth
• Resilience during the two recessions
• Some notable growths and areas of strengths
• Health
• Education
• But also decline & growing competition, especially..
• Social assistance
• Arts, entertainment and recreation
• And trends are worrisome
16. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Importance of Philanthropic
Funding
17. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
The overall pie – another take
•
•
Nonprofit Almanac 2012: estimate (2010 data)
- US: 366,000 “reporting public charities”
• $1.5 trillion in total revenues
• Excludes private foundations & 614,000 “non-reporting”
public charities
- Indiana: 7,600 “reporting public charities”
• $28.9 billion in total revenues
• Excludes private foundations & 15,600 “non-reporting”
public charities
Very close to our revenue estimate ($26 billion)
- Very different methodology
- Different year (2010 vs. 2011)
- Both are incomplete
18. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Philanthropy is a fairly small slice (US)
Investment, 3%
Private
contributions,
13%
Gov't grants,
8%
Gov't fees, 24%
Other income,
2%
Private fees &
sales, 50%
Source: Roeger, Blackwood & Pettijohn. Nonprofit Almanac, 2012 (2010 data)
19. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Percent of Total Revenues by Source
..but slice varies by nonprofit field…
100%
1%
6%
90%
11%
80%
9%
1%
70%
1%
3%
2%
2% 2% 2%
1% 6%
11%
3%
3%
5%
3%
8%
38%
20%
10%
0%
5%
2%
4%
1%
2%
2%
3%
13%
8%
29%
45%
20%
49%
41%
23%
61%
69%
24%
17%
50%
30%
3%
20%
60%
40%
2%
2%
5%
72%
57%
Investment
Private
contributions
Gov't grants
12%
1%
56%
41%
Other income
34%
14%
1%
25%
30%
28%
19%
5%
27%
26%
Gov't fees
3%
4%
50%
19%
1%
8%
Private fees &
sales
Roeger, Blackwood & Pettijohn. Nonprofit Almanac, 2012 (2010 data) with unpublished supplementary details for education, health,
and PSB
20. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Current State of Philanthropy
21. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Reminder… private gifts are just 13%
Gov't grants, 8%
Investment, 3%
Other income, 2%
Gov't fees, 24%
Private fees &
sales, 50%
Private gifts,
13%
Source: Roeger, Blackwood & Pettijohn. Nonprofit Almanac, 2012 (2010 data)
22. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
But private philanthropy is large: $316.2
billion in 2012
One-third goes to religion
Almost half (45%) goes to:
Arts, cult.
Human,
$14.4 , 4%
Education: 13%
Human services: 13%
Foundations: 10%
Health: 9%
International
, $19.1 , 6%
Pub/soc
benefit,
$21.6 , 7%
The rest: about a quarter (23%)
Most goes to large charities
Top 400 receive ~25% of total
Large capital campaigns
(universities)
Gifts to
Envir., Unallocated,
indivduals,
animals, $6.8 , 2%
$4.0 , 1%
$8.3 , 3%
Religion,
$101.5 , 32%
Health, $28.1
, 9%
Gifts to
foundations,
$30.6 , 10% Human
services,
$40.4 , 13%
Source: Giving USA, 2013
Education,
$41.3 , 13%
23. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
A closer look at Philanthropy by source
Total : $316.2 billion
Corporate
$18.2 , 6%
Most (79%) come from individuals
- Living: 72%
- Bequests: 7%
Foundations
$45.7 , 15%
Only 21% from institutional donors
- Foundations: 15%
- Corporations: 6%
Bequest,
$23.4 , 7%
Individuals,
$228.9 , 72%
Source: Giving USA 2013 (2012 data)
….and no good data
on how philanthropic
profiles vary by
nonprofit field….
24. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Percent of aggregate gifts
...although likely to vary greatly…
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2
1
9
4
9
13
14
Dated (2003), but
for Indiana;
12
33
9
49
29
Corporations
17
97
87
77
16
77
59
Foundations
36
(combines bequests
& current household
giving)
Households
50
Source: Center on Philanthropy,
Indiana Gives, 2003
25. The Role of Universities in The Growth of The
Nonprofit Sector
Patrick Rooney
Associate Dean for Academic Affairs and Research
Lilly Family School of Philanthropy at Indiana University
26. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Creating the Indiana University Lilly
Family School of Philanthropy
•
•
In September 2012, Indiana Commission for Higher Education approved proposal to
create School of Philanthropy.
Inauguration took place in April 2013. Believed to be the world’s first school dedicated
to the study and teaching of philanthropy.
27. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Goals of the Lilly Family School
•
Attract more top students to choose careers in philanthropy.
•
Prepare current and aspiring philanthropy and nonprofit
professionals with the knowledge to be thoughtful and innovative
leaders.
•
Educate new generations of scholars in a field whose importance
is growing rapidly in all aspects of society.
•
Draw on expansive network of faculty and programs focused on
philanthropy and nonprofits.
•
Expand and enhance actionable research for the sector.
•
Raise awareness and visibility of philanthropy and nonprofit sector.
•
Improve philanthropy to help you improve the world.
28. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
About the Lilly Family School
•
Currently 12 core faculty + 40 affiliate faculty in 20+ fields
Strategic partnerships with SPEA ‘s Nonprofit Management
programs at both IUPUI and IUB, as well as Liberal Arts
•
Core program areas
Academic Programs
The Fund Raising School (TFRS)
Lake Institute on Faith & Giving
Women’s Philanthropy Institute
Research
29. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Giving USA
•
Estimates for:
o Sources of giving;
o Amounts received by type of organization
•
Published by the Giving USA Foundation™
•
Made possible by contributions from many
•
Started in 1956 by the American Association of Fundraising
Counsel, now Giving Institute: Leading Consultants to Nonprofits
•
Most comprehensive annual report about U.S. charitable giving
30. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Total Giving in billions of dollars
(1972-2012)
Source: Giving USA 2013.
31. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Total charitable giving graphed
with the S&P500, 1972-2012
Source: Giving USA 2013.
32. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Sources and Uses of Giving in
2012
Source: Giving USA 2013.
Total: $316.23 billion
33. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Total giving as a percentage of GDP 2002-2012
(in inflation-adjusted dollars, 2012=$100)
Source: Giving USA 2013.
34. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Center on Philanthropy Panel
Study
•
Conducted in conjunction with the University
of Michigan’s Panel Study of Income Dynamics
•
Largest and longest running panel study in the
world. Started tracking 5,000 households in ‘68
• Philanthropy module added in 2002
•
Now interview ~8,000 households
•
Expensive research: ~$1,000,000 for the first wave; $700,000 for
current wave. Excludes analysis.
35. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Donor Incidence over Time, 2000-2008
Total
68.5
66.8
55.9
Religious
66.9
57.5
65.4
65.3
56.3
46.5
46.5
46.3
2000
2002
2004
Source: Center on Philanthropy Panel Study.
Secular
55.7
56.5
43.1
42.3
2006
2008
36. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Giving Amount over Time, 2000-2008
Average Total Giving
Average Giving to Religious Purposes
Average Giving to Secular Purposes
1,583
1,564
1,617
970
979
992
942
613
585
625
606
645
2000
2002
2004
2006
2008
Source: Center on Philanthropy Panel Study.
1,546
1,518
873
37. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Mean Income and Wealth by
Persistence of Giving
Type of donor
(mean)
Persistent
(3-yr)
Repeat
(2-yr)
Occasional
(1-yr)
NonDonors
Income
$89,441
$71,155
$43,205
$29,229
Wealth (excluding
home equity)
$344,188
$217,031
$116,625
$43,111
Percentage
56%
Type of donor
Persistent
(3-yr)
Mean
Total
$2,659
Source: Center on Philanthropy Panel Study.
29%
Repeat
(2-yr)
15%
Occasional
(1-yr)
Median Mean Median Mean Median
$1,260 $1,022
$400
$406
$150
NonDonors
-
38. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Examples of Research Based on
COPPS:
Predictors of Giving
•
The intergenerational transmission of
generosity
•
Women Give 2010, 2012
•
Stability of Donors
•
Giving by Various Sources of Income and
Wealth
•
Without COPPS such research would not
be possible!
Source: Picture taken from http://hopkins.typepad.com/.a/
6a00d83451db8d69e2011168646150970c-popup
39. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
The Study of High Net Worth
Philanthropy
•
Sponsored by Bank of America
•
Published in 2006, 2008, 2010, 2012
•
Leading resource on high net-worth households.
• Scientific random sample (in 2012, n= 701)
• Prior research based on client lists
•
Includes any household with an annual income of more than
$200,000 and/or net worth of more than $1,000,000 (excluding
the value of their home). All respondents had to have their
primary residence in the U.S.
40. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
The Study of High Net Worth
Philanthropy
•
Commitment to Nonprofits
o In 2011, 95% of HNW donors gave to a charity
o In 2011, the average amount given by HNW households was
$52,770 (a decrease of 7% from 2009)
•
Focus on major gifts
Disproportionately high share of all individual giving in the U.S.
comes from HNW individuals
o Top 1% gave 37% of all itemized contribution deductions
in 2009
o Top 0.1% gave 18%
41. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Percentage of High Net Worth Households
That Gave to Each Recipient Category in
2011^
Notes: ^Combined organizations include UW, UJA, and CC. “Giving Vehicle” represents
gifts to private foundations, charitable trusts, and donor-advised funds.
*2009 and 2011 results are statistically different (2009 data not shown).
42. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Average Amounts Given by HNW
Households in 2009 and 2011, by
Charitable Category^
Notes: ^Values adjusted to 2011 dollars for the year 2009. This table does not
show outlier data. *2009 and 2011 results are statistically different.
Source: The 2012 Study of High Net Worth Philanthropy.
43. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Values, Motivations and
Expectations
•
33.4% of HNW donors involve
children in grant-making decisions
•
45.5% of respondents from HNW
households made their charitable
giving decisions jointly with their
partner
• 74% of wealthy individuals cited “making an
impact” as a primary motivation for giving (an
increase from 72.4% in 2009)
Source: The 2012 Study of High Net Worth Philanthropy.
44. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
•
Purposes:
• To enhance knowledge about giving at scale.
• To make that knowledge transparent and
widely accessible
•
A unique dataset providing an in-depth view of
HNW giving
•
A total of 67,373 qualifying gifts (of $1 million +) from 2000 to 2011
•
Grants a unique perspective on trends in giving at the highest level by the wealthiest
Americans, successful corporations, foundations, and other grant-making nonprofits
45. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Distribution of Total Dollars
Given by Donor Type
Source: Million Dollar List 2013.
46. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Average Gift Size by Subsector
Gift size in millions
30
25
20
15
10
5
Individuals
Corporate Foundations
Foundations
0
Source: Million Dollar List 2012.
47. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Million-Dollar-Plus Gifts From All Sources
(in Billions of Inflation-Adjusted 2011
Dollars)
Amount
*
Years
Note: * The light blue for 2006 excludes the single gift of $33.47 billion (in 2011 dollars).
Source: Indiana University School of Philanthropy. A Decade of Million-Dollar Gifts: A
Closer Look at Major Gifts by Type of Recipient Organizations, 2000-2011.
48. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
(Billions of InflationAdjusted 2011 Dollars)
Million-Dollar-Plus Gift by Donations
Type, Number of Gifts and Gift Amount
(2000–2011)
Number of gifts
Note: X-axis represents the number of gifts made by each type of donor. Bubble size
represents the dollar amount of gifts from each type of donor.
Source: Indiana University School of Philanthropy. A Decade of Million-Dollar Gifts…
49. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Recipients of Million-Dollar-Plus
Gifts, by Number of Gifts and Gift
Amount (2000–2011)
(Bubble size represents the amount in Billions
of Inflation-Adjusted 2011 Dollars)
Note: X-axis represents the number of gifts made by each type of donor. Bubble size
represents the dollar amount of gifts from each type of donor.
Source: Indiana University School of Philanthropy. A Decade of Million-Dollar Gifts…
50. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Recipients of Million-Dollar-Plus Gifts, 2000–2011
(in Billions of Inflation-Adjusted 2011 dollars)
Source: Indiana University School of Philanthropy. A Decade of Million-Dollar Gifts: A
Closer Look at Major Gifts by Type of Recipient Organizations, 2000-2011.
51. Number Of Million-Dollar-Plus Gifts
From All Sources and S&P500,
2000–2011
Note: Gray bars represent quarters with at least one month of recession.
Source: Indiana University School of Philanthropy. A Decade of Million-Dollar Gifts: A
Closer Look at Major Gifts by Type of Recipient Organizations, 2000-2011.
52. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Mega Gifts as a Share of Million Dollar
List by Donor Type, 2000-2012
Donor
Group
Corporate
Total # of
mega gifts
% of total $ of MDL
gifts, by donor group
Total $ of mega % of total # of
gifts
MDL gifts, by
donor group
72
13,100,000,000
1.14%
37.43%
Foundation
425
50,400,000,000
0.79%
22.11%
Individual
362 136,000,000,000
4.09%
72.73%
Total
859 199,000,000,000
-
-
Source: Yannan "Lukia" Li analysis based on MDL 2012.
53. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
A Local Affair
•
32% of donors give to organizations
within the same city that they call home
•
64% give to organizations within their
state
•
Only 1% of the gifts are made to foreign
and overseas organizations
54. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Resources
•
School of Philanthropy
www.philanthropy.iupui.edu
•
Giving USA
www.givingusareports.org
•
The Million Dollar List
www.milliondollarlist.org
•
Other research including
Center on Philanthropy Panel Study
Bank of America Study on High Net Worth Philanthropy
www.philanthropy.iupui.edu/research-by-category
55. In a World of Numbers, What Makes People
Give?
Josette C. Rathbun, CFP, MBA
First Vice President – Wealth Management
Wealth Management Advisor
The Rathbun Group
Merrill Lynch
56. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Donor Motivation
My Experiences in the World of
Philanthropy
57. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Bank of America 2012 Study of
High Net Worth Philanthropy
58. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Primary Motivations of Large
Gifts
59. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Marianne Tobias and the
Indianapolis Symphony
Orchestra
60. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Marianne
Glick
Eugene & Marilyn Glick
61. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Glick Eye Institute
62. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Gene and Marilyn Glick Cultural
Trail
63. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Sid and Lois Eskenazi
64. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Eskenazi Health Foundation
65. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Dan Elsener and Dr. Michael
Evans – Marian College of
Osteopathic Medicine
66. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
IUPUI IMPACT Campaign
• $1.39 billion over the course of the past
7 years
• Lead to the creation of:
• Richard M. Fairbanks School of
Public Health
• Eugene and Marilyn Glick Eye
Institute
• Lilly Family School of Philanthropy.
• Promoted academia as well:
• 64 RISE scholarships
• 20 Endowed Chairs
67. Putting the Pieces Together: What does all of
this mean for your work with donors?
Angela E. White, CFRE
Senior Consultant and CEO
Johnson, Grossnickle and Associates
68. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
1. Examine the effectiveness of your current major gift
program.
• How do you currently engage with your donors and prospects?
• Do you have an emphasis on building personal relationships?
• Do you have systematic approach to the discipline of
donor/prospect contact?
• Are there written plans for the engagement of each top
donor/prospect with your organization?
• Do you communicate the impact of charitable giving on the
implementation of your mission?
69. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
2. Understand that the engagement of major gift prospects
takes time and the involvement of your senior leadership.
• Are you thinking long-term when creating engagement plans for
your major gift prospects?
• Do your prospects build personal relationships with multiple
people at your organization?
• Are you creating meaningful volunteer opportunities for major gift
prospects and donors?
• Are you soliciting a major gift when the time is right for the
prospect and the relationship and not solely according to your
internal schedule or plans?
70. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
3. Know your prospect!
• Do you know the charitable giving strategies of your major gift
prospects?
• Are you engaging both the husband and wife or life partner in
your discussions?
• Are you focused on the right giving vehicle?
• Do you know the extent to which the major donor prospect wants
her/his children involved in any charitable giving?
• Do you know the unique motivators and de-motivators of your
major gift prospects?
71. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
4. Match the right project with the right prospect and giving
vehicle.
• Are you soliciting major gift commitments for the operational
needs of your organization?
• Do you know the desired giving vehicles for each prospect and
are you able to match those vehicles to your funding needs?
• Are you focused on the right giving vehicle?
• Are you effectively communicating your philanthropic needs in a
way that will elicit a prompt and meaningful response?
• Are you working with professional advisors and community
foundation leaders to educate them on your mission and needs?
72. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
5. Practice excellent donor stewardship.
• Does your focus on your major gift prospects end when a gift is
made?
• Are you continuing to grow the relationship beyond the signing of
a gift agreement or cashing of a check?
• Are you preparing your current major gift donors for the next
area of interest and for increasing their charitable support of your
organization?
• Do you know the issues that are important to your major gift
donors and continue to make the connections between these
issues and your mission?
73. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Concluding Thoughts
•
It is important to understand the trends and research findings
regarding high net worth individuals. However, we must avoid
the tendency to make generalizations about our prospects and
use this research in place of getting to know each major gift
prospect and donor.
74. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Resources
•
Giving USA; 2012 Edition. This is the annual report on philanthropy,
covering 2011.
•
The School of Philanthropy at Indiana University COPPS Study.
COPPS is the most accurate resource for measuring giving and
volunteering in the United States. COPPS follows a large number of the
same families for long periods of time and gathers detailed information
about their lives to identify emerging trends in philanthropy.
•
Women Give 2010. This study utilizes the COPPS data from 2007 to
research single-headed households and giving.
•
The 2012 Bank of America Study of High Net Worth Philanthropy.
This research is based on 700 respondents throughout the U.S. with
household income greater than $200,000 and/or net worth (excluding
value of residence) of $1M+.
•
Indiana Nonprofit Sector. This is the most comprehensive source of
information on Indiana nonprofits: www.indiana.edu/~nonprof
75. IU LILLY FAMILY SCHOOL OF PHILANTHROPY Improving Philanthropy to Improve the World
Questions? Comments?
