Each month, Family Giving News highlights new articles, studies, and research on emerging trends in family philanthropy. These articles explore options for giving as a family, effective grantmaking strategies, and a variety of key issues and challenges facing today's family philanthropists. If you have a suggestion for a future edition of FGN, please email Kevin Laskowski or contact the National Center at 202.293.3424.
Older Americans Seek New Volunteer Incentives, Report Finds
September 9, 2008, Chronicle of Philanthropy
Seventy-three percent of adults between the ages of 44 and 79 volunteered for an
organization in the past year, but significant barriers remain to tapping the
full potential of these “experienced Americans,” according to a report
commissioned by the AARP. Civic Entreprises, a public-policy consulting firm in
Washington, surveyed more than 1,000 Americans in this age group for the “More
to Give: Tapping the Talents of the Baby Boomer, Silent, and Greatest
Generations” report. Although 41 percent of the survey respondents,
representing 45 million people, said they were very or somewhat likely to
increase the amount of time they spend volunteering in the next few years,
organizing this age group may prove difficult, as more than 70 percent of
respondents said they preferred to volunteer without a regular schedule.
Nonprofit groups turn to survival strategies
September 7, 2008, Providence Journal
Mergers and acquisitions are daily events in the world of for-profit
corporations. Now they are becoming more prevalent among nonprofit organizations
trying to cut overhead costs and attract scarcer contributions in a sagging
economy while continuing to provide important services.
AmeriCorps's Big Future
September 4, 2008, Chronicle of Philanthropy
On September 11, Sens. John McCain and Barack Obama will appear at a gathering
of charity leaders in New York to talk about one issue they more or less agree
on: national service. Both are expected to call for a vast expansion of the
federal government's domestic and international service programs. The appearance
by the Republican and Democratic presidential nominees so close to Election Day
signals a major coup for ServiceNation. The coalition of more than 100
corporations and nonprofit groups that organized the two-day meeting — with
$500,000 from the Carnegie Corporation of New York — hopes the candidates will
mark the seventh anniversary of the 2001 terrorist attacks with a rallying cry
for Americans to give more time to charitable causes.
Current U.S. Economy Causes Seniors to Give Less, the Young to Give More
September 2, 2008, MSN
The Grizzard Communications Group, an industry leader in integrated, direct
response marketing and fundraising, today announced the results of a survey
investigating the effects of current economic conditions on donors to charitable
causes. Survey results indicate that only 13 percent of respondents expect to
increase their giving for the remainder of 2008, while nearly a third (29%)
admit to decrease their giving. Surprisingly, donors aged 25-34 were more likely
to increase their giving in the fall, while those over the age of 65 were more
likely to say they are giving less.
Universities face more pressure on use of endowment cash
August 29, 2008, Financial Times
Measures to make US colleges spend more of their endowments to help poor
students gained momentum this week after two leading politicians announced that
they were holding a high-level discussion on the matter. Senator Charles
Grassley, an Iowa Republican, and Peter Welch, a Democrat representative from
Vermont, will assemble a group of university administrators, education officials
and financial analysts to focus on the relationship between endowments and
college costs. Universities have come under federal scrutiny as members of
Congress have questioned why some have raised tuition charges faster than the
rate of inflation while the value of their endowments has grown.
To Recruit Younger Workers, Charities Must Call Attention to Values, Report Says
August 27, 2008, Chronicle of Philanthropy
Charities should call more attention to their missions and their values to
attract and retain the next generation of employees, according to a new report.
Nonprofit groups should sell not just the job to potential employees but also
the “context of the job,” says the report from the
Johns Hopkins Center for Civil
Society Studies, in Baltimore. Charities, for example, ought to emphasize
that the nonprofit workplace can offer a greater sense of personal fulfillment
and flexibility than many jobs in the business world.
Monkeys experience joy of giving, too, study finds
August 25, 2008, Reuters
Monkeys can experience the joy of giving in much the same way as humans do, U.S.
researchers reported on Monday. Tests in capuchin monkeys showed the animals
consistently chose to share food with another monkey if given the option,
suggesting they are capable of empathy, the team at the Yerkes Research Center
at Emory University in Atlanta found. "They seem to care for the welfare of
those they know," Frans de Waal, director of the Living Links Center at Yerkes,
said in a statement.
U.S.
nonprofit hospitals face mounting pressures: reports
August 25, 2008, Reuters
U.S. nonprofit hospitals face mounting pressures that could adversely affect
their bottomlines, according to reports released on Monday by Moody's Investors
Service and Standard & Poor's Ratings Services. The rating agencies cited
various factors affecting the hospitals, including a weaker economy, increased
debt issuance for capital projects, and higher costs associated with the
collapse of the auction-rate securities market. "We expect the number of
downgrades to exceed upgrades for the rest of 2008 and probably in 2009, as
business and financial challenges squeeze operating margins and weaken balance
sheets," said S&P credit analyst Martin Arrick in a statement.
Charity buoyed by resilience of wealthy donors
August 19, 2008, Financial Times
The economic slump is already causing financially stretched middle-income
Americans to curtail their charitable donations, but philanthropic giving by the
wealthy is likely to remain strong – if not quite as generous – throughout the
rest of the year. The timing of big gifts could be affected, too, as most large
donations tend to be driven by events such as the selling of a piece of
appreciated real estate, or liquidating a family business – occasions that could
be delayed by volatility in the stock market. According to research from Crown
Philanthropic Solutions, a company that specialises in donor-advised fund
technology, giving by high net worth individuals dipped slightly in the first
quarter, but rebounded in the second quarter. Crown predicts that, by year-end,
philanthropic donations from the very wealthy will at least reach parity with
2007 levels.
Charity Sites
That Let Donors Call the Shots
August 12, 2008, Wall Street Journal
Organizations like Charity Navigator and the American Institute of Philanthropy,
both of which scour the tax forms of nonprofit organizations, can help you find
out just how efficient and accountable a charity is with its money. But if you
want to exercise the kind of control that deep-pocketed philanthropists enjoy,
consider donating to one of a new breed of charities that allow donors to browse
descriptions of specific projects online and fund them, in whole or in part.
Among the most well-established in this group are Kiva.org, DonorsChoose.org and
GlobalGiving, according to Rick Cohen, membership and technology director at the
National Council of Nonprofit Associations. The opportunities these
organizations offer run the gamut. GlobalGiving, for example, sponsors projects
ranging from AIDS prevention in India to energy saving in the United States,
while Kiva.org allows philanthropists to finance microloans to entrepreneurs in
poor countries. After putting money toward these organizations' projects, donors
receive updates that track the impact of their contribution.
Disaster giving tied to cause, location
August 7, 2008, Philanthropy Journal
People are more willing to donate money after disasters caused by natural
factors than those that could be avoided, a new study says. Research by Hanna
Zagefka and Masi Noor of Royal Holloway, University of London, found people are
more likely to donate when the victims cannot be blamed for their situation and
if they are perceived to make an effort to improve their own conditions. Also
influencing the desire to donate money to help disaster victims, researchers
found are the belief a donation will make a "real difference," empathy for
victims, and the scale of the disaster.
Uncertain economy casts shadow on fundraising
August 6, 2008, Philanthropy Journal
Nonprofits are somewhat less optimistic about present and future fundraising
than they were six months ago and one year ago, says a new study from the Center
on Philanthropy at Indiana University. "The percentage of fundraisers reporting
a negative impact of the economy on giving has grown significantly," Patrick M.
Rooney, the center's director of research, says in a statement.
Small Boston Nonprofits May Lose Out in Wealth Transfer
August 4, 2008, Philanthropy News Digest
Many of the small nonprofits in the Boston area that stand to gain the most by
tapping into the generational transfer of trillions of dollars of wealth over
the coming decades are the least likely to cash in, the Boston Business Journal
reports. That's because many donors and their foundations do not accept
unsolicited requests for funding, making it difficult for nonprofits with modest
fundraising operations to take full advantage of the expected wealth transfer.
According to projections by the Center on Wealth and Philanthropy at Boston
College, approximately $41 trillion dollars will pass from one generation to the
next by 2055. In the Boston area that translates to a potential $359 billion
windfall for charity, notes the center.
A Circle With a Deep Center
July 31, 2008, Washington Post
About two dozen women, in bright summer dresses and bare feet, formed a circle
around Claudia Thorne's dining table and held hands. They were there to enjoy
fellowship and to feast on Thorne's signature salmon, curried shrimp salad and
mango ginger ale. The women of varied ages and backgrounds make up a sisterhood
of philanthropy working to change the lives of the District's women and girls by
confronting the city's social ills. On a recent Sunday, they gathered to give
back. As members of the African American Women's Giving Circle, they pool their
charitable dollars, debate their passions and award grants. Like a book club,
they meet monthly -- at their homes, in offices and even during yoga classes
held in parks. The circle, founded in 2006 and administered by the Washington
Area Women's Foundation, represents a grass-roots phenomenon in philanthropy.
Across the country, from Idaho to Manhattan, hundreds of giving circles have
formed in recent years. The informal groups -- some of which are composed
entirely of blacks, Asian Americans or Latinos -- are a powerful force in
charitable giving.
Giving a Lot
for Saving a Little
July 31, 2008, Wall Street Journal
The idea that small loans can awaken an entrepreneurial spirit among the world's
poor won a Bangladeshi economist the Nobel Peace Prize in 2006 and released a
flood of money into thousands of "microcredit" programs on the bet that the poor
are good borrowers. Now, the world's largest private philanthropy is betting
that they are also good savers. The Bill and Melinda Gates Foundation plans to
donate hundreds of millions of dollars over the next few years to programs
designed to spur savings in poor countries, officials at the Seattle foundation
say. It is the philanthropy's first focused effort in financial services and is
part of a broader push by the foundation into programs to help improve basic
infrastructure in the neediest regions of developing countries. Some believe
that financial services for the poor should direct any profits back into
services for the needy. The Gates plan is a nod to the other side of the debate,
which holds that commercial enterprises -- banks and other profit-seeking
businesses -- can best serve the broadest swath of people by using tools such as
capital markets to fund expansion. The Gates foundation's decision to enter the
field is an example of what likely will be a range of new programs as Bill Gates
begins working full time at the foundation.
Charities Devote Small Amount of Their Budgets to Lobbying, Report Finds
July 30, 2008, Chronicle of Philanthropy
Nearly three-fourths of charities do some kind of advocacy or lobbying, but the
vast majority of them devote less than 2 percent of their budgets to such
activities, according to results of survey released today. Limited money and
staff time “seriously restrict the depth of involvement in policy work,” says a
report on the survey, which was conducted by the Johns Hopkins University Center
for Civil Society Studies, in Baltimore. Researchers last year received data
from 311 nonprofit organizations about their advocacy and lobbying activities in
2006. Three out of five of those that conducted such efforts did so at least
once a month, and 31 percent did so quarterly. However, the survey found, most
groups relied on the easiest activities, such as signing a letter to a
government official, and rarely got their clients or the general public
involved. “Policy involvement tends to be concentrated in a narrow band of
organizational players — chiefly the executive director,” the report says.
Wealthy women give
to women
July 30, 2008, Christian Science Monitor
Though raised in a family gushing with Texas oil wealth, Helen LaKelly Hunt was
never taught to manage her money. Money was part of the "man's realm." It was
only when she read about a group of California women pooling their money to
create a women's fund that Ms. Hunt broke through the disconnect between herself
and her net worth. That breakthrough has led to two decades of rewarding
philanthropy and a place in the National Women's Hall of Fame. Today, she's
encouraging others to burst through that barrier with a new initiative – Women
Moving Millions. The aim is to inspire high-net-worth women to write checks for
$1 million or more to improve the lives of women and girls – and their
communities – around the world.
MBAs lift non-profit sector
July 28, 2008, Financial Times
When discussing the social sector, Bill Drayton, founder and chief executive of
Ashoka, a non-profit organisation that promotes social entrepreneurs, remembers
the sector 25 years ago. “Salaries were pathetic, smart people would avoid it,
it was disorganised,” he says. “That’s all gone. We’ve been catching up and once
you go from non-competitive to competitive, organisations have to join in the
party or they’ll be eaten alive.” As many non-profit organisations strive
to make their operations more professional, a growing number of their employees
are choosing to take an MBA. “We are definitely seeing more of them in the
part-time MBA programme,” says Liz Livingston Howard, associate director of the
Centre for Non-profit Management at the Kellogg School of Management, at
Northwestern University in the US. “There’s been a statistically significant
increase in the past 10 years.”
Microfinance comes clean with rates
July 28, 2008, Boston Globe
Eleven microfinance groups that together serve nearly 26 million people agreed
Monday to publicly report their annual interest rates, a move many hope will
empower the world's poorest borrowers as the once-charitable sector becomes
increasingly commercialized. "If you are making profits you are moving into the
same mental mind-set as loan sharks," Nobel Peace Prize winner Muhammad Yunus
told The Associated Press in a telephone interview from Bali, Indonesia, where
he is attending the 11th annual Microcredit Summit Campaign conference that
opened Monday. When Yunus began making $27 loans to women in Bangladesh three
decades ago, he hoped to rescue the poor from usury. The new language of
microfinance, which turns on words like "return on equity," today weighs heavily
on his mind. He believes interest rates should be set to cover costs, not
maximize profits.
10 Ideas For
Mobilizing Change
July 28, 2008, The Nonprofit Times
Some ideas are new, some are old, but all are aimed at strengthening smaller
charities as well as the nonprofit sector as a whole. Released by the Nonprofit
Sector and Philanthropy Program of the Aspen Institute at the recent Nonprofit
Congress in Washington, D.C., “Mobilizing Change: 10 Nonprofit Policy Proposals
to Strengthen Communities,” breaks down 10 ideas aimed at improving the social
sector.
26% of Americans Volunteer, New Study Finds
July 27, 2008, Chronicle of Philanthropy
Charities need to do a better job keeping their volunteers engaged and loyal,
say the authors of a new report released today by the federal government. The
report, from the Corporation for National and Community Service, says that more
than one out of every three people who had volunteered in 2006 had not done so
again in 2007. David Eisner, who heads the Corporation for National and
Community Service, says nonprofit groups ought to be more strategic in the ways
they recruit, manage, and retain volunteers. “We need to dive down into these
numbers and learn why some folks have lower or higher retention and then spread
best practices, like better demonstrating to volunteers the impact of their
service,” Mr. Eisner says.
Giving Trees
July 25, 2008, Wall Street Journal
In charity as in politics, name recognition goes a long way. This is good for
the Jewish National Fund, which is known to generations of American Jews for
planting trees in Israel. Unfortunately, the fund's average donor is now about
65 years old: The name may be fading. To help remedy this problem, the
organization hosted a dinner last month for young professionals in Central
Park's Sheep Meadow. With capacity attendance of 250, a waiting list of 40, and
an average age of about 30, officials considered the night a great success. It
remains to be seen, though, whether the century-old Zionist group will be nimble
enough to sustain the support of this hard-to-get demographic.
Study:
Economy Depressing Fundraising Attitudes
July 24, 2008, The Non Profit Times
With the exception of direct mail, fundraisers in the latest survey experienced
less success with all types of fundraising techniques in the first half of 2008
than they predicted last December. For example, all types of organizations
predicted more success with planned giving and special events (83.3 percent and
71.1 percent respectively) than they reported in Summer 2008 (67.6 percent and
59.4 percent respectively). The new PGI report also shows that respondents
identified the economic environment -- including layoffs, corporate losses,
stock market declines, and rising gas prices -- as a serious factor that impacts
giving.
'Philanthropic Divide' Between States Widens, Report Finds
July 23, 2008, Philanthropy News Digest
The gap between the ten states with the most foundation assets and the ten
states with the least continues to widen, a new report from the Helena-based Big
Sky Institute for the Advancement of Nonprofits finds.
Geezers Doing
Good (Opinion)
July 20, 2008, New York Times
We often think of those trying to save the world as bright-eyed young people,
but Mr. Gates is part of a booming trend: the “encore career” as a substitute
for retirement. Definitions are still in flux, but an encore career typically
aims to provide a dose of personal satisfaction by “giving back.” Some 78
million American baby boomers are now beginning to retire, and one survey this
year by a research institute found that half of boomers are interested in
starting such new careers with a positive social impact. If we boomers decide to
use our retirement to change the world, rather than our golf game, our dodderdom
will have consequences for society every bit as profound as our youth did.
Will Nonprofit Foundations Save Political Journalism?
July 17, 2008, Capitol Weekly (California)
For California political journalism, bad news is everywhere. As newspapers
wrestle with shifting financial realities, papers across California have scaled
back or eliminated their Capitol bureaus. But while for-profit papers are
scaling back their coverage, a number of the state's largest non-profit
foundations are coming together, searching for ways to fill the void left by the
ever-shrinking Capitol press corps. So, how do the simultaneous declines in
traditional Capitol coverage mesh with this growing interest from the non-profit
sector? Will non-profits be part of the new economic picture for journalism?
Charities face more need, fewer resources
July 16, 2008, Providence Journal
As many as 900 people a day have sought help at Amos House this summer, Rhode
Island's largest soup kitchen — compared with 600 people a day last year, said
executive director Eileen Hayes. Hayes is worried her organization’s fundraising
will not keep pace with the increased demand and escalating utility costs.
Charities across the state have sustained a double blow from the region’s
economic downturn — donations are down or stagnant while the need for services
has jumped. Nationally, nonprofit groups large and small have been bracing
themselves for a tough year. The Chronicle of Philanthropy reported that some
savvy nonprofits have offset a decline in donations by starting businesses or
tapping into new potential donors. Larger nonprofits with strong media campaigns
and deep donor pools usually ride out recessions in relatively good shape, but
smaller ones are more vulnerable.
The new philanthropists: Silicon Valley teens
July 14, 2008, San Francisco Chronicle
Meet the new philanthropists - Silicon Valley teens with innate computer
networking skills, affluent family connections and the one-click ability to bear
witness to global poverty. The nature of youth activism is becoming increasingly
global, said Robert Rhoads, who teaches a course in student activism at UCLA.
This generation of high schoolers became painfully aware of global politics as
middle schoolers on 9/11. They are also the first set of students to be taught
by teachers who were required to do community service in order to get a high
school diploma. That lesson of giving back, or paying it forward, is becoming
part of their psyche. From Facebook's "One" clickable charity campaign to Al
Gore's inconvenient truths or U2 frontman Bono's Product Red push for Africa,
this generation is steeped in a popular culture of giving.
Charity Cases
July 14, 2008, Wall Street Journal
For most people, networking on the Web means keeping up with friends or building
business contacts. Now a number of charities -- and thousands of ordinary people
-- are starting to use online networks to reshape the world of philanthropy.
Charities are setting up sites that make it easy for people to pass along
information about causes to their friends and urge them to donate. And people on
traditional networking sites such as Facebook and MySpace are using the sites to
send charitable requests to friends (and friends of friends). Supporters say the
movement has one powerful advantage: the personal appeal. Meanwhile, the ease of
online networking makes it simple to pass along pitches and recruit new donors.
Kevin Bacon, the actor, gave social philanthropy a jump start a year and a half
ago, founding one of the first big charitable-networking sites, SixDegrees.org.
He later joined forces with Network for Good, a nonprofit formed by AOL, Yahoo
Inc. and Cisco Systems Inc. to make it as easy to donate money online as it was
to buy something. SixDegrees is just one of dozens of charity sites that offer
users the chance to recruit friends as donors. The sites have sprung up in the
past few years, and many of them boast fund-raising success stories.
Charitable giving is on a roll
July 14, 2008, Los Angeles Times
Giving by small businesses isn't tracked separately but their contributions
helped push total giving in the United States last year to more than $300
billion for the first time, according to estimates from Giving USA 2008. More
small businesses are making charitable giving part of their business strategy
but not all have the know-how to do it effectively. "It's the rage, it's
wonderful, we love it on the one hand," said Jennifer Stapleton, senior manager
for marketing and branding at Washington-based Bread for the World. As with any
business strategy, skimping on planning or the tactical steps probably will
result in disappointment for the small business and the charity.
Amount of giving falls, hits nonprofits
July 7, 2008, Times-Picayune
For nearly three years, local nonprofit organizations have handed out food,
money and basic household supplies to help people rebuild their lives after
Hurricane Katrina. Now it's their turn to ask for help, even for items as basic
as Post-it Notes, tape and paper. When Chevron sent the Louisiana Association of
Nonprofit Organizations a gift of office supplies worth nearly $15,000 last
month, it sent out a blast e-mail to its 1,100 member agencies to see whether
any were interested. The response was overwhelming, said Laura Crochet, an
official whose job is to help these organizations grow.
Charity for all: 'Giving circles' let ordinary people act as philanthropists
July 6, 2008, Baltimore Sun
For some the world of philanthropy has seemed the domain of the moneyed few, a
luxury for "the other half." But a growing development in that arena has taken
hold, opening philanthropy up to the masses in a user-friendly way: giving
circles. A giving circle is a group of people who gather together to pool money
for a common cause. Like a miniature, informal foundation of sorts, the group
members manage the fund and determine how their collections will be spent.
Charities feel drag of fuel prices; Pushing for higher mileage deduction
July 3, 2008, USA Today
Record gasoline prices are forcing volunteers to quit delivering meals to
seniors, taking patients to the doctor and doing other charity work behind the
wheel. Non-profits are pushing Congress to give a bigger tax deduction to those
who drive their own vehicles for charities. Now, volunteers can deduct only 14
cents for every mile, a rate set by Congress. The rate was last raised from 12
to 14 cents in 1998. Unlike the charitable mileage deduction, the Internal
Revenue Service can raise the deduction for business and other travel without
congressional approval. A new business rate took effect Tuesday. Congress hasn't
estimated the cost of boosting the deduction. But it could make a big difference
to volunteers. A volunteer driving 20 miles a week now qualifies for a
$146-per-year tax deduction. At the business rate, the deduction would be $608 a
year.
Economy Slows, Wealthy Giving Grows
July 3, 2008, Forbes
The Police Athletic League. The Alzheimer's Association. The Boy Scouts of
America. The list of charities and other non-profits that John Catsimatidis
supports runs for 57 more names. This year isn't the best one on record to be
sending out 60 checks, even if they are going to worthy causes. The sputtering
economy and soaring food prices are just a couple of concerns for a supermarket
magnate like Catsimatidis. He actually expects to give slightly more this year
than he has previously, and he isn't alone. America's wealthiest are upping
their contributions to charity, even with the country on the brink of recession.
A new survey by the private wealth-research firm Prince & Associates found that
six in 10 Americans with net worths over $30 million intend to give more this
year than they did last. And they're following through with their intentions.
Donors with substantial bank accounts are also giving more as they see
less-wealthy benefactors cut back. Nearly seven in 10 of the rich that are
increasing their philanthropy this year cite others giving less as a motivation.
Altruism
Meets a Weak Job Market
July 3, 2008, Wall Street Journal
Mike Stewart is putting off law school in favor of teaching in Washington, D.C.,
for the next two years. Katherine Atwill, an Ivy League graduate, stopped
interviewing at consulting firms in favor of teaching in the Bronx. Young people
like these are part of the growing ranks of college graduates who, amid a
worsening job market, are contributing to a surge in applications and
enlistments at public-service agencies like Teach for America and the Peace
Corps. But organizations cite another impulse behind this generation's embrace
of nontraditional postgraduate employment: a simple desire to change the world.
Together, the weak economy and increasing civic mindedness are driving grads to
work for social causes.
Nonprofits add jobs; Outpacing for-profit firms in hiring, construction
July 1, 2008, Baltimore Sun
Nonprofits -- especially big ones -- are continuing to drive employment growth
in Maryland, a new report suggests. Nonprofit employment grew almost three times
faster than for-profit employment in 2006, according to a study released
yesterday by the Johns Hopkins Center for Civil Society Studies and the Maryland
Association of Nonprofit Organizations. The charity sector includes small-budget
homeless shelters and soup kitchens but is dominated by big anchors like the
Johns Hopkins University and the National Aquarium in Baltimore. Nonprofits are
responsible for nearly one out of every three private sector jobs in Baltimore,
which has been losing for-profit employment for years.
Arts Patrons, the Next Generation
June 29, 2008, New York Times
Young faces at such events are of course not unusual. Arts institutions have
been cultivating people in their 20s and 30s for years as a way of shoring up
future donors. But Ms. Arison and Ms. Coyne are not merely passing through,
writing a check and dressing up for a night in order to rub the right shoulders.
They are among a small and privileged group who hope, and are being groomed, to
do much more: to take over the family business, so to speak — that business
being arts patronage. Their position is a rare one. Not many people have a
foundation in the family. But the journey ahead of them poses some interesting
questions. It is one thing to pass on a casual appreciation of the arts, but can
one also pass on a lifetime commitment? How does one learn the ropes? And how do
foundations integrate the sometimes different priorities of younger and older
members? “Arts institutions are now seeing more young people who want to be
involved in and respect family histories,” said Virginia M. Esposito, president
of the National Center for Family Philanthropy. She added that such donors “also
want to ensure that those institutions reflect their changing values and
experiences.”
'Voluntourism'
2.0
June 28, 2008, Wall Street Journal
Voluntourism -- a trip to an exotic destination combined with charitable work --
is booming. The group Greenforce offers a $2,150 penguin
rescue-and-rehabilitation program in South Africa with accommodations and a
"meal allowance" during six weeks of catching, feeding and cleaning up after
penguins and other seabirds. But there also are mountain-biking and wine tours
available for visitors' two days off per week. Some first-generation
voluntourism programs were criticized as being less-than-fun for participants.
And organizations such as London watchdog group Tourism Concern question the
wisdom of dispatching unskilled volunteers for stints so short they're just
disorienting. As a result, a growing number of charities and tour groups are
returning to the idea that tourists should just be tourists. Groups that want to
funnel aid to poor communities now are appealing first to visitors' desire for a
good experience, ahead of their work ethic and sense of sympathy. The rationale
is that more tourists doing less produces more sustainable income and aid for
local economies.
Staying Afloat; With
Economic Questions Looming, Nonprofits Weigh Options
June 27, 2008, The Forward
With food and oil prices skyrocketing, the stock and housing markets in tatters,
and the threat of a recession looming on the horizon, now is not the easiest
time to ask donors to open their checkbooks. Across the country, these economic
ills are being felt not only by individuals and families, but also by a whole
range of Jewish institutions, from synagogues to food banks to social service
not-for-profits that depend upon the generosity of donors to stay afloat. As a
result, not-for-profits are looking for ways to get creative so that they can
make it through the hard times and carry out their missions.
More Georgians give to charity; average gift down
June 26, 2008, Atlanta Journal Constitution
More Georgians are making philanthropic donations, but the amount of their gifts
has gone down. Those are the results of the study Georgia's Giving Trends by the
Atlanta-based Alexander, Haas, Martin & Partners fund-raising firm. Georgia's
charitable contributions by individuals, based on Internal Revenue Service data,
has gone from $2.73 billion in 1996 to $6.61 billion in 2006, the latest year
available. The Georgia survey also listed the top 10 foundations in terms of
their 2006 giving and 2006 assets. The No. 1 foundation in both cases was the
Robert W. Woodruff Foundation, which made grants of $100.3 million in 2006; it
had assets of about $2.25 billion. The Thomas and Hilda Glenn Family Foundation
has given funds for two in-depth philanthropic studies on Georgia that should be
completed by the end of the year. One study will focus on where philanthropic
dollars come from, and the other will look at where philanthropic dollars are
given.
Giving's
Tough Climate
June 26, 2008, Chronicle of Philanthropy
The sluggish economy is showing its effects on charitable donations, which rose
just 1 percent last year after inflation, according to Giving USA, the annual
tally of American philanthropy to be released this week. Americans donated
$306.4-billion in 2007, but fund raising is facing more challenges this year,
especially as the housing and financial-services industries continue to crumble,
fuel and food costs rise, and the stock market's volatility strains individuals
and organizations across the country. Charities report that donors of all types
have recently delayed or reduced gifts — or stopped giving altogether.
Sacramento-area
charities struggle to meet rising needs
June 25, 2008, Sacramento Bee
In 18 years of running Francis House, a C street refuge for the down and out in
Sacramento, director Gregory Bunker has never seen so many desperate people.
They start forming a ragged line around 8 most mornings, 90 minutes or more
before the charity opens its doors. Hammered by $50 fill-ups and $3 gallons of
milk, more and more people classified as "the working poor" are swelling the
ranks of clients at agencies like Francis House. At the same time, charities are
struggling with shrinking budgets, higher food and fuel prices and fewer
donations, according to Bunker and others. Similar scenarios are playing out
across the country, according to Second Harvest, the nation's food bank network.
Soaring food and fuel prices, lost jobs, stagnant wages and the mortgage
meltdown have sent many working families across the country searching for help,
the agency reports. Across Northern California, charities are scheduling extra
fundraisers and using the Internet to reach out to businesses, churches and
individuals for help at a time of year when donations are typically down.
Donors warm up to online giving
June 24, 2008, Christian Science Monitor
The Web has radically changed the way we shop, conduct our finances, get our
news, and participate in politics. And it's changing the way we give. America is
a giving nation: In 2007, for the first time in history, more than $300 billion
dollars went to charities, according to the annual report of Giving USA
Foundation released June 23. While online giving is a small percentage of that
total, many signs suggest that e-philanthropy's time has come. Traditional means
of fundraising - direct mail and telemarketing - are growing less effective and
more expensive each year, according to the Chronicle of Philanthropy. Online
fundraising in the United States has grown rapidly from $250 million in 2000 to
an estimated $6.9 billion in 2006, according to the ePhilanthropy Foundation
($13.2 billion globally).
Despite Economic Dip, Giving Rose in 2007
June 23, 2008, Washington Post
Americans donated $306 billion to charities in 2007, as U.S. philanthropic
giving rose to a record level despite a downturn in the national economy, a
survey being released today has found.
Why the new rich are different: they give away billions to charity
June 22, 2008, The Observer
As Bill Gates, the software entrepreneur, prepares to step down from his
day-to-day role at Microsoft to focus his time and money on fighting diseases in
the developing world, the question is being asked: has philanthropy entered a
second Gilded Age? Are the British giving their share? And why give to charity
instead of their children? The 'new philanthropists' are different from you and
me. Hugely ambitious, they get stuck into big issues, often on an international
scale. They import their strict business discipline to the charitable sector and
demand tangible results, sometimes as a condition of further funding. And
instead of signing a cheque and walking away, they take a hands-on approach,
sometimes exerting direct influence over charities.
New
IRS scrutiny has nonprofits on edge
June 21, 2008, Houston Chronicle
The Internal Revenue Service plans to dig much deeper into the business of
nonprofits. The federal tax agency that is the main regulator of charities has
revised its Form 990, filed every year by organizations exempt from paying
federal income taxes. The new form includes a brand-new page that asks questions
about the organizations' governance, management and financial reporting. That
has nonprofits and the IRS' own advisory committee on nonprofits concerned the
agency may be overstepping its authority.
Baby Boomers Express Strong Interest in Charity-Related Second Careers
June 18, 2008, Chronicle of Philanthropy
At least 6 percent of Americans between the ages of 44 and 70, or 5.3 million
people, are working in
second careers with charities, governments, schools, or other institutions that
benefit society, according
to
a new survey.
And half of the people in that age group who aren’t already involved in
so-called “encore careers” say
they would like to find such employment.
Twain, Wharton homes join others in financial peril
June 17, 2008, New York Times
Mark Twain, Edith Wharton and other boldfaced names among the dead have
something in common with living
Americans in these hard financial times: Their homes are in jeopardy. For scores
of historic house
museums, simply keeping the lights on has become a challenge. Experts say this
summer may make or break
some sites, many of which already have cut their hours and staff and are
struggling for donations in
today's troubled economy.
Chinese immigrants increase philanthropy in their new homeland
June 15, 2008, Los Angeles Times
Chinese immigrants are giving back to their adopted homeland in a new gold rush
of philanthropy that is
bringing hundreds of millions of dollars to U.S. universities, think tanks and
other nonprofit groups.
The Coming Charity Crisis
June 12, 2008, Slate
The latest victims of the sagging economy: charities. Like every other industry,
philanthropy is tethered
directly to the health of the overall economy, and in particular to the health
of the upper-middle-class
consumer. If the past is any guide, it's likely to be a lean year for
nonprofits.
Most approve of job charities doing
June 12, 2008, San Diego Union-Tribune
An overwhelming majority of San Diego County residents thinks local charities
deliver quality services, but nonprofits should do a better job explaining how
they work, according to a new study to be released today. Eighty-six percent of
people surveyed in the University of San Diego analysis said they have a “great
deal” or “fair amount” of confidence that the region's charities effectively
provide quality services. The number far exceeds the findings of a national
study released in April, which said 64 percent of Americans share that same
level of confidence in nonprofits.
Why Wait to Give Away Your Money?
June 12, 2008, U.S. News and World Report
Parents and grandparents with money to spare are no longer waiting until death
to pass on their wealth. Instead, they're increasingly handing it over to their
adult kids while they're still around to see how it's spent—and, in some cases,
lend a hand.
Safety nets stretched thin
June 11, 2008, Boston Globe
The nonprofit sector employs almost 14 percent of the working population in
Massachusetts, about twice the national average. But a growing number of the
state's nonprofits, especially charities, and social service groups, face
financial strains from a slowing economy, jeopardizing the safety net they
provide to many citizens. Those are among the findings from a study set to be
released today by the Boston Foundation, the largest funder of nonprofit
organizations in the state. As state government and private donors scale back
their support, and operating costs escalate, smaller nonprofits should pool
their resources, forge alliances, and improve their financial stewardship to
make their programs more sustainable, the study recommends.
Donations From
Hedge Funds Surge
June 11, 2008, Wall Street Journal
As growth in hedge funds soared last year, the top 25 funds' foundations also
grew, expanding 31%, with charities aimed at children, education and health care
getting the most donations, according to Absolute Return magazine. Those
foundations now control $4.6 billion, according to their most-recent federal
filings, which span from the end of calendar year 2005 to fiscal year 2007.
Total giving by the 25 biggest foundations surged 61% to $459 million.
Thanks to Kiva, micro lending is big business
June 8, 2008, News Journal (Wilmington, DE)
Venture capitalists couldn't see how anyone could make big money on loans as
small as a few hundred dollars. And foundations, for their part, wouldn't
support something that they saw as commerce, not charity. "We were in this weird
social entrepreneurship space, trying to fight perceptions," Matt Flannery
recalled. And with it, the Flannerys have managed to merge two recent
socioeconomic trends -- social networking and microfinance. Like a social
networking site, Kiva posts profiles of potential borrowers.
That Spirit of Volunteerism, 60 Million Strong
June 8, 2008, New York Times
Why do people volunteer? Maybe it’s a need to help out, do good and give back.
Maybe it’s boredom, a desire to meet new people or concern that one’s obituary
won’t have much to say. Whatever the reason, volunteering is a real boon to the
organizations that receive that labor free. According to the Bureau of Labor
Statistics, more than 60 million Americans volunteered through or for an
organization between September 2006 and September 2007, and they spent a median
of 52 hours on their volunteer work. People between the ages of 35 and 54 were
the most likely to volunteer.
Tax Laws Popularize the Small Foundation
June 7, 2008, New York Times
The number of smaller foundations and other charities has exploded recently.
According to the Urban Institute’s National Center for Charitable Statistics,
there were 76,849 private foundations — of all sizes — at the end of 2005, the
latest year for which data is available. That represents a 49 percent increase
over the number in 1995. Still, the amount of money in most private foundations
is often minuscule. In fact, at the end of 2005, 67 percent of all private
foundations had assets of less than $1 million and 27 percent had assets of $1
million to $10 million.
Investments in people
June 7, 2008, Financial Times
The next few years could see a shift in emphasis in the non-profit world – at
least, if the work of organizations supporting entrepreneurs is an indication of
the direction the sector is taking. “Philanthropy is one of those wonderfully
antique words that we will stop using in 10 to 15 years,” says Bill Drayton, who
founded Ashoka and pioneered the idea of identifying and investing in
entrepreneurs. “The business/social boundaries are simply collapsing.”
Foundation Investments Grew by Nearly 10% Last Year, Study Finds
June 4, 2008, Chronicle of Philanthropy
Despite a slowing economy, American foundations reported an average annual
return on investments of 9.9 percent for 2007, a rate that was down from the
year before but higher than the average of what foundations said they had hoped
to achieve, according to a report by the Commonfund Institute scheduled for
release today. In 2006, the country’s independent, private, and community
foundations reported an average annual return of 13.7 percent, due in part to
better market conditions then and the organizations’ increasing allocations to
alternative investments.
Companies Predict Strong Giving Patterns, Despite Weak Economy
June 3, 2008, Chronicle of Philanthropy
Despite a weakening economy and growing turmoil in the financial markets related
to the housing slump, corporate giving grew by 5.6 percent last year, according
to preliminary findings of a new report. The Committee Encouraging Corporate
Philanthropy, in New York, based the findings on a survey of 155 companies, 69
of which were on Fortune magazine’s latest ranking of the 100 most-profitable
companies.
A $10 Mosquito Net Is Making Charity Cool
June 2, 2008, New York Times
Donating $10 to buy a mosquito net to save an African child from malaria has
become a hip way to show you
care, especially for teenagers. The movement is like a modern version of the
March of Dimes, created in
1938 to defeat polio, or like collecting pennies for Unicef on Halloween.
A business approach to philanthropy
June 1, 2008, Argus Leader (South Dakota)
When T. Denny Sanford announced a $400 million donation to Sanford Health on
Feb. 3, 2007, he used a business term to describe it. The money, he said, was an
investment. Sanford represents a new trend in charitable giving: Increasingly,
many wealthy donors are applying business principles to charitable donations,
experts say. The trend has been especially noticeable in the past 10 or 20
years, as the wealth of the richest donors soared, experts say. Applying
business principles to philanthropic ventures can produce results. But experts
caution that donations also can be wasted if businesspeople focus too much on
benchmarks and the bottom line to measure success when it comes to charity.
Several factors are driving philanthropists to apply business principles to
their giving, including a belief that successful business practices can lead to
success in bettering society through philanthropy.
Charities brace for pinch of recession: Fundraising field is crowded, costly
June 1, 2008, New Haven Register
People who want to give money to charity have no problem finding worthy causes
in Greater New Haven. The problem is deciding who to give to or which events to
join. Then there are the solicitations in the mail and the phone calls during
dinner, the charity drives at work and the fundraisers for families who are
dealing with serious illnesses or other misfortunes. Almost all are worthy. All
need money. How does a generous person decide, especially in tough economic
times? While giving hasn't dropped significantly, charities are dealing with
higher expenses and reductions in federal grants, among other sources.
Tax Exemptions of
Charities Face New Challenges
May 26, 2008, New York Times
Authorities from the local tax assessor to members of Congress are increasingly
challenging the tax-exempt status of nonprofit institutions — ranging from small
group homes to wealthy universities — questioning whether they deserve
special treatment. One issue is the growing confusion over what constitutes a
charity at a time when nonprofit groups look more like businesses, charging fees
and selling products and services to raise money, and state and local
governments are under financial pressure because of lower tax revenues. And
there are others: Does a nonprofit hospital give enough charity care to earn a
tax exemption? Is a wealthy university providing enough financial aid?
IRS Finds Huge Drop in Car Donations Following 2005 Law Change
May 23, 2008, Chronicle of Philanthropy
A new government report shows that a 2005 federal law aimed at stopping donors
from inflating the value of gifts of used cars has had a big effect. In
2005 the number of automobile donations declined 67 percent from the previous
year, from about 900,000 in 2004 to 297,000 in 2005.
Foreclosures mean opportunity for Habitat charity
May 19, 2008, Washington Post
The foreclosure crisis that has forced thousands of families from their homes
has given something good to the nation's best-known housing charity: Cheap
properties for sale in communities around the country. Some Habitat for Humanity
chapters have seized buying opportunities in neighborhoods affected by the
mortgage meltdown, snapping up scores of empty lots and unoccupied homes - some
for as little as half price.
Non-profit group Teach for America sees big growth
May 14, 2008, Washington Post
More than ever, graduating college seniors are signing up to spend two years in
America's poorest communities as part of Teach for America, the nonprofit
organization that recruits and trains top college students for teaching jobs.
The group saw applications jump by more than a third this year from about 18,000
to nearly 25,000.
Colleges Turn
to Donors to Meet Aid Pledge
May 13, 2008, Wall Street Journal
After receiving an anonymous $100 million gift to improve its financial-aid
offerings last May, the University of Chicago launched a major campaign to raise
the additional $300 million it needs to replace loans with scholarships for its
neediest undergraduates. The university isn't alone in asking donors to
help ease current and future students' debt burdens. Dozens of colleges and
universities have announced efforts to overhaul their aid programs, and now
they're working on funding those grand plans. While scholarships have always
been a popular earmark for higher education philanthropists -- more than a third
of restricted donations go to financial aid -- such gifts are being sought even
more as schools ensure they can afford their much-lauded magnanimity.
Seed money
May 12, 2008, Boston Globe
Are young people the future of microfinance? That's the belief of a new
Cambridge-based nonprofit that wants to make microlending, a loan system for
people in developing countries, a classroom staple for students in Boston and
beyond. Through an educational program called Small Change, Big Changes,
MicroLoan Foundation USA plans to create a curriculum for middle schools and
high schools that will teach about poverty in Africa, development efforts in
poor countries, and the use of microlending - in which modest loans help
impoverished people become self-sufficient - as a development tool.
Most Grant Makers Plan to Increase Giving in 2008
May 2, 2008, Chronicle of Philanthropy
Fifty-four percent of foundations expect giving to increase in 2008, while 28
percent project a decrease this year, according to a study released today by the
Foundation Center. The report said the economic turmoil that has caused trouble
for some foundation investments does not appear to have any major effect on
giving plans for this year. The biggest foundations —those that make
grants of $10-million or more — are the most likely to increase giving in 2008,
the report found.
Foundations Step Up Giving to Help Those Harmed by Bad Economy, Study Finds
May 1, 2008, Chronicle of Philanthropy
Almost one-third of foundations say they have stepped up their giving this year
to help families, provide human services, or support economic development — and
37 percent said they planned to increase such grant making next year, according
to a study released today by the Council on Foundations. However, a
substantial minority, 43 percent, said they expected to give less next year
overall because of declines in stock-market values — including 52 percent of
community foundations.
Charities feel Wall Street pain
April 29, 2008, Los Angeles Times
The philanthropy of high-earning New Yorkers constructs hospital wings,
underwrites university research, funds scholarships, enables museums to acquire
new work and stocks soup pantries. For many companies, philanthropy is not just
charity but a strategic investment in the company's image. At some investment
banks in New York, giving is mandatory. Nonprofits target their fundraising
around Wall Street windfalls. But with turmoil on Wall Street and a worsening
national economy, New York charities are beginning to feel the pinch. Officials
at nonprofit organizations are increasingly worried about their financial
future.
Alumni pay a debt of gratitude
April 28, 2008, Financial Times
In October, the Wisconsin School of Business was given an unusual naming gift.
As well as supporting the school and its programmes, the donation of $85m
(£43m)was to guarantee that the name of the school would be unchanged for at
least 20 years. The gift, donated by a small group of alumni calling themselves
the Wisconsin Naming Partnership, is one of a series of large donations that, in
the past couple of years, have been finding their way to US business schools.
Part of the reason behind the increased number of such gifts is the accumulation
of wealth that has taken place in the US, combined with a growing interest in
philanthropy, with prominent business individuals such as Bill Gates and Warren
Buffett leading the way. Yet, although wealthy donors can choose from a
vast range of causes, management education remains a priority. Part of the
reason is that most wealthy donors acquired their money through commerce and,
consequently, often want to be able to help give others the same kind of
education.
IRS to Step Up Efforts to Ensure Charities Are Efficient and Effective
April 24, 2008, Chronicle of Philanthropy
The Internal Revenue Service is stepping up efforts to ensure that the nation’s
charities are not hoarding or wasting money, a top official of the agency said
today. Steven T. Miller, commissioner of the IRS’s tax-exempt and
government-entities division, said the tax agency will be “more aggressive” in
monitoring the “efficiency and effectiveness” of charitable organizations, even
though such monitoring is not expressly within the agency’s jurisdiction.
Companies Report 7% Increase in 2007 Grants
April 24, 2008, Chronicle of Philanthropy
Corporations reported a 7 percent increase in their grant making in 2007, a new
study by the Foundation Center, in New York, concludes. The study reports
that the nearly 2,600 corporate foundations gave an estimated $4.4-billion to
charity in 2007. More than half of these foundations expect giving to increase
in 2008.
Charities Struggle to Respond to Rising Food and Fuel Costs
April 22, 2008, Chronicle of Philanthropy
Charities that work overseas have been battered by a spate of recent economic
troubles, including rising food and oil prices and the weakening dollar.
Nonprofit leaders say they are being pressed to meet growing needs, even as the
costs of doing work are ballooning.
Out of the City, into Africa as rich at last start giving
April 20, 2008, The Sunday Times (London)
A new breed of philanthropists pouring their fortunes into the developing world
are behind a doubling of charitable giving by Britain’s rich. The new Giving
List, tied to The Sunday Times Rich List, shows tycoons using their profits to
fund teachers in Rwanda, Aids treatment in Mozambique and the purchase of
swathes of Amazon rainforest the size of London to save from loggers. The
projects have contributed to a 97% increase in the donations from the leading 30
philanthropists among the richest 1,000 people.
Worried about gossip? It could influence generosity
April 16, 2008, Reuters
Worried about what people are saying about you? Concerns about gossip could
influence behavior, including generosity, researchers said. "As it turns
out, the act of gossip can indeed be quite powerful," said Jared Piazza of
Queen's University in Belfast, Northern Ireland. Piazza and Jesse M.
Beringa studied the reactions of 72 college students who were asked to
distribute tokens with a monetary value between themselves and someone else.
"Participants who were told that the receiver would be communicating their
economic decision with the third party were significantly more generous in their
allocations of the tokens than participants who were not led to believe that
their decisions would be discussed," Piazza and Beringa said in the study
published in the journal Human Behavior.
Young Workers Seek Ways to Improve Nonprofit Work Force
April 14, 2008, Chronicle of Philanthropy
As nonprofit groups increasingly compete with business and government employers
to attract young workers, many people in their 20s and 30s are pressing
charities to improve salaries, offer greater opportunities for career
development, and do more to promote the diversity of their work forces. In
follow-up conversation to a survey of 1,650 released by the Young Nonprofit
Professionals Network last year, which found burnout and low salaries
threatening to drive young charity workers away, members of the group held a
conference here to discuss how they can bring about changes that will reshape
nonprofit organizations in ways that make them more inclusive and give greater
opportunities to emerging leaders.
When Tech
Innovation Has a Social Mission
April 13, 2008, New York Times
For decades, Silicon Valley has been defined by the tension between the
technologist’s urge to share information and the industrialist’s incentive to
profit. Now a new style of “hybrid” technology organization is emerging that is
trying to define a path between the nonprofit world and traditional for-profit
ventures. They’re often referred to as “social enterprises” because they pursue
social missions instead of profits. But unlike most nonprofit groups, these
organizations generate a sustainable source of revenue and do not rely on
philanthropy. Earnings are retained and reinvested rather than being distributed
to shareholders.
When Strings
Are Attached, Quirky Gifts Can Limit Universities
April 13, 2008, New York Times
As the nation’s wealthiest colleges and universities report on their finances to
Congress, seeking to head off federal requirements that they spend at least 5
percent of their endowment assets each year, new attention is being paid to how
endowments are structured, and on the restrictions imposed by donors.
Aides to the Senate Finance Committee, which sent out a query in January about
endowment practices to the 136 wealthiest colleges and universities, say they
have received 131 responses and have begun to scrutinize them. The responses,
some of which universities have made public, show that at some, including
Harvard and the University of Texas, 80 percent or more of the endowment is
constrained by donors’ wishes. But the responses do not begin to detail the
variety of these restrictions.
More than a helping hand for charities
April 12, 2008, Boston Globe
"Skills-based volunteering" is attracting growing attention in the corporate and
nonprofit sectors nationwide. Also called "smart volunteer ism," skills-based
volunteering has its roots in the legal profession, which has long embraced pro
bono work as part of its culture. It matches a volunteer's corporate skills or
educational experience to the needs of a nonprofit organization, particularly in
areas like technology, financial services, marketing, and human resources. A
personnel officer might fact-check a charity's employee handbook, an architect
might draft blueprints for a nonprofit's new building, or a technology expert
might design a community group's website.
Charities Seek
Donors to Replace Wall Street
April 12, 2008, New York Times
Charities that benefit from the largess of Wall Street, law firms and
corporations in New York have begun defensive planning for the end of this
social season and next year. Many fortunes have been wiped out at Bear Stearns,
and the rest of the financial world is bracing for more bad news and layoffs, a
harbinger of tougher times for fund-raising. Having come off a stellar
year for donations, the charities seem to have adopted a mood more cautionary
than dire. But they are looking at ways to put pressure on longtime donors and
reach out to new ones even as they brace for fewer contributions directly from
corporations.
Direct-Marketing Appeals Produced Sluggish Results Last Year, Study Finds
April 7, 2008, Chronicle of Philanthropy
The signs of an economic downturn continue as a new study shows that donations
made in response to direct-marketing appeals are growing at a considerably
slower rate than in past years, according to a new study of many of the nation’s
biggest charities.
Microfinance’s Success Sets Off a Debate in Mexico
April 5, 2008, New York Times
Carlos Danel and Carlos Labarthe turned a nonprofit that lent money to Mexico’s
poor into one of the country’s most profitable banks. But not all of their
colleagues in the world of microlending — so named for the tiny loans it grants
— are heaping praise on the co-executives of Compartamos. Some are vilifying
them as “pawnbrokers” and “money lenders.” They are the center of a fractious
debate: how far should microfinance go toward becoming big business?
Nonprofit
Hospitals, Once For the Poor, Strike It Rich
April 4, 2008, Wall Street Journal
Nonprofit hospitals, originally set up to serve the poor, have transformed
themselves into profit machines. And as the money rolls in, the large tax breaks
they receive are drawing fire. Riding gains from investment portfolios and
enjoying the pricing power that came from a decade of mergers, many nonprofit
hospitals have seen earnings soar in recent years. The combined net income of
the 50 largest nonprofit hospitals jumped nearly eight-fold to $4.27 billion
between 2001 and 2006, according to a Wall Street Journal analysis of data from
the American Hospital Directory. AHD, an information-service company, compiles
data that hospitals report to the federal government.
Giving by U.S.
Family Foundations Jumped 13 Percent
March 2008, Foundation Center
America's family foundations gave $16 billion in 2006, a 13 percent increase
over 2005, according to the Foundation Center's new report,
Key Facts on Family Foundations (2008 Edition). Since 1998 — the first year
for which statistics on family foundations are available — giving by these
grantmakers has more than doubled. The report identified 37,800 independent
foundations with measurable donor or donor-family involvement.
50% of Nonprofit Leaders Have Witnessed Ethical Fund-Raising Lapses, Study Finds
March 31, 2008, Chronicle of Philanthropy
More than half of nonprofit executives say they have observed unethical
fund-raising behavior, a new survey has found. The most common concern raised by
executives: use of percentage-based compensation to pay fund raisers. The
research, released at the annual meeting of the Association of Fundraising
Professionals, was conducted by the Giving Institute, a Glenview, Ill.,
organization that represents fund-raising consulting firms. The institute
surveyed nearly 450 nonprofit executives in charitable organizations of all
types; a majority of those surveyed said they had at least 20 years of
experience at nonprofit organizations.
Donations to Charities Slow, New Study Finds
March 31, 2008, Chronicle of Philanthropy
The turbulent economy caused donations to charity to slow last year and many
fund raisers are quite concerned about how the economic downturn will affect
giving in 2008, according to a study released by the Association of Fundraising
Professionals at its annual conference. Small groups have seen more significant
problems than large ones, according to data reported by 398 organizations.
Donors' big gifts come with no name tags
March 31, 2008, Los Angeles Times
To be sure, the great majority of donors still prefer to be recognized with a
line in the alumni newsletter -- only about 1% of UCLA's donors are anonymous --
or their names on concert halls. And even some ostensibly anonymous donations
come with ample fuel for insider gossip; in Santa Barbara, the opera has
revealed that its big donor is one of its 19 board members and loves the works
of Gounod, Leoncavallo, Puccini, Rossini, Verdi and Wagner. Still, more of
the extremely wealthy are keeping their generosity secret. That sometimes
disappoints recipients eager for publicity, but donors often fear that a story
in the paper could bring calls from other charities and scrutiny from their
communities.
Ethical Standards Erode at Nonprofit Groups, Study Finds
March 27, 2008, Chronicle of Philanthropy
Nonprofit organizations have long held a reputation for having significantly
higher ethical standards than businesses and government. But a report
released today by the
Ethics Resource
Center, in Washington, shows that gap is closing quickly — as standards at
charities are declining at what the study’s authors say is a disturbing rate.
Steeling for possible dry spell
March 26, 2008, Boston Globe
Will nonprofits be the next casualty in the shaky US economy? So far,
nonprofit organizations have been largely insulated from the economic turmoil
afflicting the nation's housing market and credit industry, but many nonprofits
say they are bracing themselves in case their fortunes take a turn for the
worse. In tough economic times, small social service agencies like food
pantries and homeless shelters are most vulnerable, not the large educational
and cultural institutions that typically have fat endowments. While
research shows that hefty gifts by wealthy benefactors to museums, hospitals,
and universities continue during recessions, modest donations by middle-class
contributors to smaller organizations, which often care for the most vulnerable
populations, are more likely to dry up even as demand for their services is
spiking.
Most Cases of Charity Fraud Could Be Prevented, Study Finds
March 26, 2008, Chronicle of Philanthropy
Most cases of employee fraud at charities stem from a lack of proper internal
controls that deter theft, and those cases are further compounded by lax efforts
to recover financial losses when the fraud is discovered, according to a new
study. The report — based on an analysis of 2004 data from the Association of
Certified Fraud Examiners regarding 58 fraud cases involving nonprofit groups —
also found that a significant number of organizations did not pursue criminal
charges against employees suspected of taking money.
Wealthy People Increasingly Give Online, Study Finds
March 24, 2008, Chronicle of Philanthropy
Affluent people are increasingly likely to use the Internet to make their
charitable donations, according to results released today of a study of nearly
3,500 donors. But charities are turning off some of their biggest donors —
people who give $1,000 or more, the survey found. Some charities send too many
messages to donors who say they don’t want them, while others don’t take take
advantage of the interest many donors express in expanding their online
interaction with nonprofit organizations, the
survey found.
Microlending
for Microbankers
March 20, 2008, Wall Street Journal
While the credit crunch bedevils fixed-income investors, a growing number of
individuals are discovering the financial and psychological benefits of an
alternative asset class: Lending to the poor through microfinance. Increasingly,
individual investors can make microfinance loans themselves through charitable
organizations and the Internet. Microcredit, which was made prominent by
Nobel Peace Prize winner Muhammad Yunus, is the practice of making small loans
to the world's poor. While the goal is the charitable one of helping them out of
poverty, investors are discovering that most borrowers -- 97% industrywide --
repay their loans, according to San Francisco-based nonprofit outfit KIVA.
Jumping for the Cause Without Being Asked
March 18, 2008, New York Times
Jack Shakely, president emeritus of the California Community Foundation,
contends that most donors are "dissatisfied" or "somewhat satisfied" with their
giving because they are responding to requests rather than taking charge of
their own giving. Shakely advocates "pre-emptive philanthropy" or giving without
being asked, arguing that those who give the most and get the most out of it are
those that "go deep."
Breaking the Silence
March 18, 2008, New York Times
With the largest intergenerational transfer of wealth in American history now
under way — the Boston College Center on Wealth and Philanthropy has estimated
that $41 trillion will change hands by 2052 — many are reconsidering the meaning
of inheritance, thinking not just about the money but about the values they want
to pass with it. Families have often avoided the discussion of inheritance,
which involves both death and money. But as the nature of wealth in America
changes, many people are beginning to talk more openly about their money and the
purpose it has for them.
Young, rich and
socially active
March 13, 2008, International Herald Tribune
The Tribune talks to members of a movement of relatively young American
heirs who are giving away their inheritances and practicing what they call
social justice philanthropy, which emphasizes giving to small, local groups.
They include heirs like Karen Pittelman, 32, who inherited $3.5 million seven
years ago and gave away all but $15,000, and Jamie Schweser, 35, who inherited
$1 million eight years ago and gave away three quarters of it.
Internet spurs upswing in volunteerism
March 12, 2008, USA Today
Youth volunteerism is surging as high school and college students use the
Internet to mobilize quickly and nationally. More than 22,000 non-profit groups
have signed up to rally supporters on the teen-and-young-adult site MySpace
since it began in 2004, says Jeff Berman, the site's executive vice president
for marketing. He says more young people are engaged in activism online and
their creativity in using the Internet to do good works is "off the charts."
Games Can Help
Rich Kids Value Money
March 12, 2008, Wall Street Journal
A board game, a stock-market contest and donating $1,000 to charity: These are
techniques financial advisers are using to help wealthy parents introduce
concepts of financial and social responsibility to children of wealth. Wealthy
families frequently worry that, as money trickles down through the generations,
its value is lost. Financial advisers find that sometimes the easiest way to
raise the topic of the responsibilities of wealth is by playing a game.
What
Makes People Give?
March 9, 2008, New York Times
David Leonhardt examines the research of economists John List and Dean Karlan
into why people give, including the mechanics of matching gifts (it's not the
size of the matching gift but its existence that motivates giving), and the
"warm glow" theory (people give to feel the glow that comes with being the kind
of person who gives).
Potential
Charity Leaders See Top Job as Unappealing, New Survey Reveals
March 6, 2008, Chronicle of Philanthropy
The charity world is expected to require tens of thousands of new leaders within
the next decade, as the baby-boomer generation of senior managers begins to
retire. Now a new survey of nearly 6,000 potential nonprofit leaders shows just
how difficult recruiting those executives is going to be. Two-thirds of those
surveyed said they either don't want to be an executive director or are at best
unsure that the top spot at a nonprofit organization is their goal.
A Capitalist
Jolt for Charity
February 24, 2008, New York Times
Charities are changing their spots and making use of some of capitalism’s
virtues. The process is being pushed forward by a new breed of social
entrepreneurs who are administering increasing doses of bottom-line thinking to
traditional philanthropy in order to make charity more effective.
Number of Americans Who Volunteered Rose 10% in 2007, Survey Finds
February 21, 2008, Chronicle of Philanthropy
A growing number of Americans say they are volunteering, according to a study by
Thrivent Financial for Lutherans. Seventy-four percent of the 1,000 adults
surveyed said they participated in some form of volunteer service in 2007, a 10
percent increase over the previous year. Despite those gains, the survey found a
discrepancy between the number of Americans who say are willing to volunteer,
and those who do. Seventy-four percent of people surveyed said they would be
willing to serve a meal to a homeless person, for example, but just 13 percent
had volunteered at a homeless shelter.
Private Donations to Colleges Increase for Fourth Consecutive Year
February 20, 2008, Chronicle of Philanthropy
Backed by a strong economy and a growing stock market, American colleges and
universities raised an estimated $29.8 billion in the 2007 fiscal year, the
highest total ever recorded, according to a report released today by the Council
for Aid to Education. But the country’s recent economic troubles have some
fund-raising experts concerned that the high times might be coming to an end.
Many Americans Say Charity Overhead Costs Are Too High, Study Finds
February 14, 2008, Chronicle of Philanthropy
Sixty-two percent of the public thinks that charities spend too much money on
overhead costs such as fund raising and administration, according to a
new study, a
belief that could make it harder for charities to raise money. On average,
people said they thought that charities spend about 36 cents of every dollar
they receive on overhead, substantially more than the 22 cents the public feels
charities ought to spend, according to Ellison Research, in Phoenix, which
conducted the study.
Nonprofit
Journalism on the Rise
February 12, 2008, Christian Science Monitor
The success of the tightly focused Voice of San Diego, which relies on donors,
offers a ray of hope for a troubled newspaper industry. Plagued by shrinking
circulations and advertising, newspapers are shedding staff and downsizing their
offerings. Even the pages have gotten smaller. By contrast, several nonprofit
newspapers – though rare and often tiny – have sprung up in recent years both
online and in print, funded largely by foundations and individual donors. The
strategy of nonprofits like the Voice "may be one of the ways to preserve the
integrity of journalism," says Dean Nelson, a journalism professor at San
Diego's Point Loma Nazarene University.
The Slate 60
February 11, 2008, Slate
Slate's annual ranking of 2007's biggest philanthropists, plus Google's
philanthropy, online networks and giving, and raising charitable children.
Bracing for
Tough Times
February 7, 2008, Chronicle of Philanthropy
The faltering economy is starting to affect a growing number of charities and
the people they serve. In recent week, nonprofit organizations have heard from
donors who are putting off big gifts, and some groups that rely mostly on small
donations have also seen a falloff. Many social-service charities — especially
those in states like California, Florida, Michigan, and Ohio, which economists
believe have already entered a recession — are facing increased demand and such
a severe budget crunch they may have to lay off workers. Rising gas and
construction prices are adding to the challenge of financing services and
expansion plans that numerous charities have under way.
New Study Sheds Light on Foundations' Charitable Expenses
February 7, 2008, Chronicle of Philanthropy
Nearly one-quarter of the nation’s 10,000 largest private, community, and
corporate foundations did not report any administrative expenses as part of
their annual minimum-payout requirement, a
new study has found. The report was issued by the Urban Institute, the
Foundation Center, and GuideStar. The study pinpointed only those administrative
expenses directly related to charitable and program activities, which count
toward the federal government’s 5-percent minimum-payout requirement for private
foundations.
College
Endowments Post 16.9% Return
January 17, 2008, Wall Street Journal
College endowments, benefiting from soaring U.S. and international stock
markets, posted an average investment return of 16.9% in their most recent
fiscal year, according to a study to be released today. In absolute terms, the
results were the strongest since at least 2000, according to the study by
nonprofit Commonfund, a Wilton, Conn., firm that manages money for colleges. But
the increase lagged behind the broader U.S. stock market. Including reinvested
dividends, the Standard & Poor's 500-stock index returned 20.6% during the same
period.
Yale Joins
Financial-Aid Push
January 15, 2008, Wall Street Journal
Yale University, following a similar move by Harvard, said it will enhance
financial aid for middle- and upper-middle class families beginning this fall.
Responding to concern that elite universities are becoming unaffordable for most
Americans, Yale said undergraduates whose families earn between $60,000 and
$120,000 will typically pay between 1% and 10% of their incomes to attend the
Ivy League school. Yale currently charges $45,000 a year for tuition and other
fees. Because of these moves, Yale said it will cut the school's costs for
families receiving financial aid, on average, by a third to a half.
Lessons from the Field: Improving the Grantee Experience at the David and Lucile
Packard
Foundation
January 2008, Center for Effective Philanthropy
Improving the Grantee Experience at the David and Lucile Packard Foundation
describes how
leaders at Packard identified and translated the elements of quality
interactions and clear
communications with grantees into specific criteria. The case study explores how
they developed
and implemented these criteria, called Grantee Experience Standards, as a way to
strengthen the
Foundation’s relationships with its grantees. It also documents program staff’s
reactions to the
standards and lessons learned from the process.
Donors Increasingly Make Their Big Gifts Anonymously, Chronicle Analysis Finds
January 9, 2008, Chronicle of Philanthropy
Anonymous charity hasn’t had a year like 2007 in recent memory, which left many
nonprofit groups
with big checks but little they could say about them. According to The
Chronicle’s compilation
of gifts of $1-million or more announced in 2007, unnamed donors pledged or gave
at least 87
donations of $1-million, including 23 gifts of more than $10-million and four
gifts of
$100-million or more. The donations totaled just under $1.1-billion, greater
than all but the
single largest gift of 2007.
Direct-Mail Appeals Suffer, New Survey Finds
January 8, 2008, Chronicle of Philanthropy
Charities’ direct-marketing appeals are not raising as much money as they have
in years past, and charities are losing more donors and attracting fewer new
supporters, according to a new survey.
Jewish Organizations
Shut Out From Philanthropists Largest Gifts
January 8, 2008, Religion News Service
According to a new study released by the Institute for Jewish & Community
Research (IJCR), Jewish individuals and foundations in the United States gave
95% of their dollars from gifts of $10 million or more to secular causes and 5%
to Jewish causes between 2001-2003. This compares to 6% between 1995-2000. The
study conducted by Gary A. Tobin and Aryeh K. Weinberg examined over 1,000 gifts
of $1 million or more, representing nearly $7 billion, the largest sample of
mega-gifts made by Jews ever assembled.
Can
Foundations Take the Long View Again?
January 6, 2008, New York Times
As business leaders like Ted Turner, Bill Gates and George Soros have moved vast
swaths of their private wealth into the philanthropic sector, market expertise
has migrated there, too. As a result, foundation directors, trustees and
advisers from corporate America have taken a stance that the return on
charitable dollars should be tangible and measurable, and should drive capital
flow in much the same way that earnings figures do in commerce. But a small and
increasingly vocal group of foundation leaders is challenging the benefits of
this approach.
For Modern Kids, 'Philanthropy' Is No Grown-Up Word
December 30, 2007, Washington Post
Young children and teenagers across the nation are getting involved in
philanthropy more than ever, according to research and nonprofit experts, who
credit new technologies with the rise of the trend. As young people increasingly
become exposed to and connected with the problems of the world via the Internet
and television, experts said, parents are finding new ways to instill in their
children the value of giving. At the same time, technology is
democratizing philanthropy so giving is not only easier for people of all ages
and means, but also trendier. And children are starting to organize at the
grass-roots level to give.
Foundations align investments with their charitable goals
December 29, 2007, Los Angeles Times
In a sharp break from past practice, major charitable foundations are initiating
or strengthening efforts to harmonize the social and environmental effect of
their endowment investments with their philanthropic goals.
A Growing Divide Emerges as 2007 Fund-Raising Year Comes to a Close
December 17, 2007, Chronicle of Philanthropy
As charities enter the final stretch of the busy year-end giving season, a
divide between wealthy organizations and other nonprofit organizations is
growing more stark. Even as many wealthy nonprofit institutions — like museums
and universities — are reporting record increases in contributions, other
charities, especially those that provide direct services to the poor, are
struggling to get donations and keep up with rapidly escalating demands for aid.
Some veteran leaders of organizations that serve the needy say they have not
faced such a tough time before in their nonprofit careers.
A New
Breed of Billionaire
December 14, 2007, New York Times
The global wealth boom has created a new breed of billionaire in once-destitute
countries like Turkey, India, Mexico and Russia. Propelled by their rising
economies, robust currencies and globally competitive companies, they have
ridden a surge in local stock markets that have reached previously untouchable
heights in a short five-year timeframe. Now, a number of them are using their
wealth to bolster their standing and push for social changes.
Philanthropic shift
December 13, 2007, Boston Globe
For generations, many Jews focused their charitable giving on mainstream Jewish
organizations, such as synagogues, anti-defamation leagues, the women's
association Hadassah, and Jewish community centers. The biggest recipients
traditionally have been Jewish federations, such as Boston's Combined Jewish
Philanthropies, the country's oldest, which take in donations and disburse the
money to a wide range of other charities, much like the United Way. But
unlike their parents and grandparents, whose philanthropy was typically fueled
by vivid memories of the Holocaust and the creation of Israel in 1948, many
young Jewish philanthropists want to fund organizations they believe directly
affect their modern-day lives. They want a wider choice of charities, and they
want more control over their giving.
Many Celebrate Charity
for Holidays
December 13, 2007, Associated Press
For many, charitable giving at the holidays has become a family tradition.
Americans have a history of generosity, with about six in 10 families routinely
contributing to charity, according to a study released earlier this month by the
Center on Philanthropy at Indiana University. The average amount given by those
families averaged $2,045 a year, it said. Last year, individuals and
families donated an estimated $223 billion; when charitable bequests, foundation
grant-making and corporate donations were included, the total surpassed $295
billion.
Combating
Donor Fatigue
December 13, 2007, Wall Street Journal
End-of-year tax planning prompts a flurry of charitable donations each year.
This year's donations will be particularly important. That is because charitable
giving has slowed recently after several years of record gains. Here are five
groups that address the growing concern among donors that their dollars be used
as effectively as possible, while finding creative solutions to helping people
who don't always qualify for traditional types of aid.
Charity’s Share
From Shopping Raises Concern
December 13, 2007, New York Times
Increasingly, nonprofit experts are beginning to question one of the
fastest-growing sectors of giving, the practice of building a donation into the
purchase of items as varied as fine jewelry and Always feminine products.
They point out that such giving is unregulated and, in most cases, unaccountable
— and no one knows who, if anyone, is claiming a tax deduction for it.
Twin Efforts Aim to Popularize Online Giving
December 13, 2007, Washington Post
The old thinking goes that to change the world, you have to give millions. But
young tech-savvy philanthropists are trying to prove otherwise. Leveraging new
technologies and the growth of social networking Web sites, several
online-giving pioneers have been trying to expand the pool of potential donors
by democratizing philanthropy and making it more transparent.
So Little Time,
So Many Charities to Feed
December 12, 2007, New York Times
When casting about for ways to spend on others at this time of year, people
whose hearts are as big as their appetites turn to food-related charities. But
figuring out where to direct help can be complex, especially in an era when tens
of thousands of such programs exist. Charitable groups dedicated to saving farms
from bankruptcy or delivering vegetables to poor urban neighborhoods have popped
up in recent years. So have groups that build organic gardens in struggling
school districts or protect endangered indigenous foods like the O’odham pink
bean.
Growing Share of 'Megagifts' Goes to Colleges, Hospitals, and Museums, Study
Finds
December 11, 2007, Chronicle of Philanthropy
Colleges, hospitals, and museums, long at the top of the list for America’s
biggest donors and grant makers, are receiving a growing slice of
multimillion-dollar gifts, according to a new study. The study, by the
Institute for Jewish and Community Research, in San Francisco, focused on
donations of $1-million or more made in 2001 to 2003.
'Tis the season for a little online altruism
December 11, 2007, Newark Star Ledger
While online consumers have made the Internet the world's shopping mall, the
virtual community also has been supporting charities that can help spread
technology to those in need around the globe.
Donor-advised funds provide ways to make donations, save on taxes
December 10, 2007, Ft. Lauderdale Sun-Sentinel
Much of Americans' charitable giving comes during the holiday season, and more
and more are turning to ways to donate beyond simply dashing off a check.
Colleges Urged to Do More to Reassure Donors
December 7, 2007, Chronicle of Philanthropy
Colleges and universities need to take new steps to assure donors that their
money is being used as intended, said several active alumni and other
higher-education and legal experts at a conference in Washington on Thursday.
How Groups of the Rich Diverge in Philanthropy
December 6, 2007, Washington Post
We've long known that the rich are different from the rest of us; F. Scott
Fitzgerald told us that. But a new study shows that the rich are different from
one another, at least when it comes to charitable giving. Amid what some call
the golden age of philanthropy, as high-tech entrepreneurs and financiers amass
extraordinary wealth and emerge as philanthropic players, a study to be released
today reveals specific behavioral patterns and motivations among the nation's
wealthiest donors.
Boards Change Governance Policies in Response to Congress
December 5, 2007, Chronicle of Philanthropy
Nearly nine out of 10 nonprofit groups have changed their governance policies in
the five years since Congress passed stricter rules on corporate responsibility,
according to a new survey.
Gift Cards Go Philanthropic
December 5, 2007, New York Times
This year, the use of gift cards, many of which are bought and redeemed
online, has merged with another venerable holiday tradition: charitable
donations made in the name of gift recipients. And in a new twist, several
groups are offering charitable gift cards that allow the recipient to choose the
organization that will receive the money given in his or her name.
Charities' Value to Economy: $9 Billion
November 26, 2007, Washington Post
Nonprofit organizations contribute at least $9.6 billion to the Washington
region's economy and often deliver services in more fiscally prudent ways than
the government, according to a new study by a nonprofits consortium that for the
first time calculates the return on investment for charitable donations.
The Backlash Against Tithing
November 23, 2007, Wall Street Journal
Can you put a price on faith? That is the question churchgoers are asking as
the tradition of tithing -- giving 10% of your income to the church -- is
increasingly challenged. Opponents of tithing say it is a misreading of the
Bible, a practice created by man, not God. They say they should be free to
donate whatever amount they choose, and they are arguing with pastors, writing
letters and quitting congregations in protest. In response, some pastors have
changed their teaching and rejected what has been a favored form of fund raising
for decades.
How Generation Wired
is reinventing philanthropy
November 16, 2007, Miami Herald
Generation Wired -- the Gen Xers, Gen Yers, and even the more techno-savvy of
the baby boomers -- are reinventing the rules of giving, using the Internet to
reshape the traditional philanthropic map. Now, a crisis on the other side of
the globe demands their charity as much as or more than a crisis in their
hometown.
Foundations Increase Spending on Conferences and Other 'Direct' Activities
November 8, 2007, Chronicle of Philanthropy
U.S. foundations have increased their spending on conferences, training, and
other “direct charitable activities” that complement grant making, according to
a new report by the Foundation Center, in New York. But while expanding
numbers of foundations are engaging in such activities, the center says it has
traditionally been difficult to track such spending for several reasons,
including limitations in the Form 990-PF, the informational return that private
foundations file annually with the Internal Revenue Service.
Trustees Don't Do Enough to Help Charities Raise Money, Study Finds
November 8, 2007, Chronicle of Philanthropy
Board members of nonprofit organizations aren’t doing enough to raise money
for their groups, according to a new report that surveyed chief executives and
board members from more than 1,100 organizations. Only 40 percent of
charity board members feel comfortable asking other people to donate to their
organizations, and on average, only about three-quarters of board members donate
money themselves, according to the report by BoardSource, a Washington nonprofit
group that provides governance training to nonprofit groups and their trustees.
Fulfillment Elusive for Young Altruists In the Crowded Field of Public Interest
November 2, 2007, Washington Post
After years of amassing so many achievements, many young people struggle to find
full-time
employment with decent pay and realize they might not get exactly what they set
out for.
Numerous young Washingtonians bemoan the improvisational and protracted career
track of the
area's public interest profession. They say the high competition for
comparatively low-paying
jobs saps their sense of adulthood, forcing them to spend their 20s or early 30s
moving from
college to work to graduate school and back to work that might or might not be
temporary.
Risk pays off for endowments
November 2, 2007, Boston Globe
Endowments at a dozen top-tier schools grew much faster than those at higher
education
institutions as a whole since the early '90s, mostly because larger portions of
the elite
schools' endowments were allocated to "alternative" assets such as buyout,
venture capital,
and hedge funds, according to a new research study.
Most Stockholders Don't Understand Tax Breaks for Donating Securities, Study
Finds
November 1, 2007, Chronicle of Philanthropy
A majority of donors who own stock do not understand the tax breaks they could
obtain by
donating securities that have risen sharply in value, a new survey has found.
The
survey, released by Fidelity Investments and the Fidelity Charitable Gift
Fund, assessed
the knowledge of more than 500 investors who had at least $100,000 in stocks or
mutual funds,
including retirement accounts, and who also had donated $1,000 or more to
charity in one of
the past three years.
Modest Gains in Giving
November 1, 2007, Chronicle of Philanthropy
Donations to America's largest charities grew by 4.3 percent last year, to
$67.5-billion,
according to The Chronicle's annual Philanthropy 400 survey.
The increase was much smaller than in the previous two years, when giving rose
by
double-digit percentages, thanks to the money that flowed tocharities dealing
with Hurricane
Katrina and the Asian tsunamis. In fact, if $2.1-billion in contributions to the
American Red
Cross in response to Hurricane Katrina are excluded from the 2006 tally,
donations to
organizations in the Philanthropy 400 increased by just 0.9 percent.
Gates Studies the Rich
October 31, 2007, Wall Street Journal
The Bill and Melinda Gates Foundation announced yesterday that it’s funding a
new survey of
the rich, called “The Joys and Dilemmas of Wealth.” The study, co-funded by
Wachovia’s
Calibre division, will be conducted by Boston College’s Center on Wealth and
Philanthropy. It
will poll people worth $25 million or more, with a “considerable portion” of
respondents
worth $100 million or more.
Cynics might ask why studying rich people counts as charity. Michael Deich,
deputy director
of public policy for the Gates Foundation, says the answer is that the study
aims to boost
charitable giving by offering a better understanding of the wealthy.
“We believe the center’s survey will make an extraordinary contribution toward helping us understand what drives donors to give and what they need in order to give effectively,” he says.
Charity Leaders Say Antipoverty Efforts Need to Be Higher Priority for
Nonprofit World
October 24, 2007, Chronicle of Philanthropy
The responsibility of the charitable world in fighting income inequality was
among several
key topics discussed at this year’s Independent Sector conference here, which
drew roughly
1,000 people from some of the country’s largest charities and foundations.
The three-day meeting, which wrapped up on Tuesday, sparked discussion about
whether the
field is doing enough to help poor people and minorities, a question that
several members of
Congress have raised in recent months.
Companies Increased Giving by 4.8% in 2006
October 18, 2007, Chronicle of Philanthropy
Corporations increased their giving by a median of 4.8 percent last year,
according to a new
study. The median value of company contributions of cash and products last year
was nearly
$33-million, which means half the companies gave less than that amount and half
gave more.
The increase, spurred by giving in the service sector, is the result of strong
profits,
improved measures for tracking and accounting for gifts, and new philanthropic
commitments,
especially to programs overseas, says the report by the
Committee Encouraging
Corporate
Philanthropy, in New York.
Technology aids microcredit loans
October 12, 2007, Washington Times
The head of a World Bank affiliate says inexpensive new technologies such as
cell phones and pre-paid calling cards are for the first time bringing
microcredit loans within reach of the world's neediest people.
A Lexus In Every Garage
October 11, 2007, Washington Post
Columnist George Will speculates that as luxury brands are democratized, "the
merely affluent are diminishing the ability of the very rich to derive pleasure
from positional goods," making philanthropy "the final form of positional
competition."
U-Va. Drive May Raise Stakes for Fundraising
October 10, 2007, Washington Post
When the University of Virginia announced its goal to raise $3 billion from
alumni and other supporters between 2004 and 2011, it was the biggest
fundraising campaign ever launched by a public university.
Expert says volunteering vital to economy
October 10, 2007, Bangor Daily News
Volunteering should no longer be viewed as an occasional, "feel-good" activity,
because committed volunteers are essential to the U.S. economy and social
services sector, argues David Eisner, CEO of the Corporation for National and
Community Service.
Foundations Talk Strategy, But Few Follow a Clear Plan, Report Says
October 3, 2007, Chronicle of Philanthropy
While many foundations say they have a strategy for their giving, a new report
suggests only a small number of grant makers actually do. After interviewing 42
chief executives and program officers at two dozen large philanthropies, the
report identifies 11 staff members who could articulate a coherent plan for
their fund’s efforts. While almost all the respondents said they believe in the
value of having a strategy, few backed up their words with action, according to
the Center for Effective Philanthropy, a research group in Cambridge, Mass.,
that produced the study. The 28-page report, “Beyond the Rhetoric:
Foundation Strategy,” is available free on a new
Web site.
Fewer clients waiting till death to part with charitable dollars
October 1, 2007, Investment News
More clients are interested in charitable donations while they are still alive
to oversee how the money is being spent. Americans left a record $295 billion to
charities last year, according to the Giving USA Foundation's annual look at
philanthropy. But the amount of charitable bequests in 2006 totaled $22.9
billion, down 2.1% from a total of $23.4 billion in 2005, according to Giving
USA 2007, a yearbook published by the Glenview, Ill.-based foundation.
In Big
Banks’ Hands, Trusts Often Give Fewer Grants
September 29, 2007, New York Times
Such is the fate of many “orphan” trusts and foundations around the country that
have been left in the hands of lawyers or local banks that have then been
swallowed up by multinational financial institutions. With no family members to
encourage gifts to the original donor’s favorite causes, the banks and lawyers
have wide latitude to remake the way the trusts operate and to decide which
charities will receive grants. Banks can reduce gifts and grow the foundation’s
assets, thus increasing their fees. At the same time, banks and lawyers stand to
gain personal influence and prestige by selecting new charities.
Gap Grows in Salaries for CEO's, Survey Finds
September 27, 2007, Chronicle of Philanthropy
Salaries paid to chief executives of nonprofit organizations with annual budgets
of $50-million or more are growing at a much faster rate than pay for leaders of
smaller groups — a trend that is further widening an already significant
compensation gap between small and large charities. The median pay
increase for the leaders of big nonprofit groups jumped 7.3 percent in 2005,
according to a study released last week by GuideStar, an organization that
collects the federal tax forms that nonprofit groups use to inform the Internal
Revenue Service about their finances and activities.
Eight-Country Study Tallies Nonprofit Groups' Economic Impact
September 25, 2007, Chronicle of Philanthropy
Nonprofit organizations contribute an average of 5 percent to the gross domestic
product in eight major countries, according to a new statistical analysis — a
level much higher than previously recorded. “The economic scale of
nonprofit institutions outdistances that of major industries,” says a report
released today by the Johns Hopkins University Center for Civil Society Studies.
The university analyzed data from countries that were the first to implement new
United Nations guidelines for collecting statistics on nonprofit activities.
Big-Money Donors Move to Curb Colleges' Discretion to Spend Gifts
September 18, 2007, Wall Street Journal
For generations, wealthy alumni have donated big money to their alma maters with
near-religious devotion. But some blue-chip donors are no longer willing to give
merely on faith. In an initiative to be announced today, several
philanthropists -- including Bernard Marcus, the billionaire founder of Home
Depot Inc., and investor John Templeton, who made a fortune running mutual funds
-- are launching a nonprofit that will advise donors on how to attach legally
enforceable conditions to their gifts. The new Indianapolis-based Center
for Excellence in Higher Education aims to curb colleges' discretion in spending
donors' contributions. The three foundations backing the center -- those founded
by Messrs. Marcus and Templeton and the John William Pope Foundation -- have
about $1.25 billion in assets and have made $585 million in gifts over the past
five years.
In
need of blood
September 11, 2007, Washington Times
A new study by the University of Minnesota says the number of potential blood
donors in the United States is far smaller than previously thought. The updated
figures show just 37 percent of the population, or 111 million people, are
eligible to donate blood. Existing research had said about 177 million were able
to donate. The study looked at newer exclusions, such as high-risk behavior,
established by the American Association of Blood Banks.
In 9/11
remembrance, a turning to good deeds
September 10, 2007, Christian Science Monitor
Sept. 11 has inspired dozens of philanthropic efforts – from groups dedicated to
building memorials to foundations designed to improve education in the Middle
East. But myGoodDeed has a more universal goal: to turn 9/11 into a day
dedicated to doing good. The idea has been endorsed by members of
Congress, and at myGoodDeed's urging, President Bush for the first time this
year included a call for volunteering in his annual 9/11 proclamation. After
major disasters, Americans have historically tapped a deep reserve of compassion
and reached out to others. But in the months and years that follow, those
compassionate and civic urges tend to recede. Studies at Harvard's Saguaro
Seminar on Civic Engagement in America found that in as few as five months after
9/11, most Americans had gone back to their daily lives and were not more
engaged as they said they'd hoped to be.
Charity work nearing end
September 11, 2007, Philadelphia Daily News
The outpouring of charity that followed the Sept. 11 terrorism attacks has begun
to run its course. Of the 33 New Jersey-based private charities established in
the aftermath of the attacks, only 14 are still around, according to Internal
Revenue Service records. The majority are either paying the education costs of
victims' children or giving out scholarships in honor of someone who died that
day. A few are altering their mission statements so they can support other
causes, such as to benefit Iraq war veterans or emergency and construction
workers who labored at the World Trade Center site. Most of the Sept. 11
charities that have closed spent their money in the first few years after the
attacks to support survivors and victims' families.
Big Gifts, Tax Breaks and a Debate on Charity
September 6, 2007, New York Times
Some ask if the public benefits of philanthropy are worth the tax breaks that
givers receive, as the Times looks at "a growing debate over what philanthropy
is achieving at a time when the wealthiest Americans control a rising share of
the national income and, because of sharp cuts in personal taxes, give up less
to government."