The Jay Love Blog : philanthropy

Giving Institute Puerto Rico Style

Jay Love — Tue, 21 Jul 2009 14:17:00 GMT

It is early Saturday evening and I am typing this in the San Juan International Airport after spending two and a half days in what was to have become our 51st state at one time. This is my second time to visit San Juan. I had the splendid opportunity to speak to the local fundraising group about computerization back in 1987. Needless to say, but much has changed in nonprofit computer usage and in San Juan over the last 22 years!

First of all, let me mention how neat this part of the world is to visit. The people in Puerto Rico are genuine, and at least the ones I met, caring. Plus, if you want a part of the world to visit where they speak English/Spanish, use the same currency and no passport is required this is your vacation spot. Believe me they have plenty of history, natural outdoor beauty, sun and beaches for those looking for such a place to relax. Here are a couple of previews.

The planners of this summer symposium did a superb job of integrating various individuals from the local fundraising and foundation community. It was fascinating to hear their perspectives on what is proper and effective in the way of techniques for raising funds in this culture. One key insight is that the wealthy will usually take care of their entire extended family at a very high level before donating large amounts to charity.

The symposium had quite a line-up of top notch education sessions. Among the many, were my favorites on women in philanthropy, Hispanic philanthropy trends, next generation philanthropy, the use of technology in fundraising (where I presented...) and a detailed explanation of what is happening with our economy. The latter session on the economy, led by a Doctor of Economics from LSU, certainly had most of us smiling. His numerous charts spelled out a bottoming of our recession in the 3rd quarter of 2009 followed by economic advances in the 4th quarter and all of 2010! His insights into the various causes of this recession were quite revealing. He stated that the chief cause was the highly leveraged credit which was so plentiful. Such quick and easy credit was like gas for a fire causing the quick rise and the hard and somewhat sudden fall. Let's hope his insights are spot on.

Just like most gatherings and conferences, the real key aspect is the immense amount of personal networking that takes place. When you are surrounded by some of the most experienced and talented fundraising consultants in America you are a bit crazy if you do not soak in some of the expertise. Each year I try not to waste a minute in garnering that knowledge and forging relationships. Besides being rewarding, it is also downright fun to make so many new friends!

Hopefully, some of my future speeches, blog posts, tweets and emails will provide a glimpse of the knowledge I attempted to soak in. If nothing else I certainly picked up a couple of decent jokes from the LSU economist. He was darn near ready for Comedy Central with his delivery.

I will certainly be looking forward to next year's event in Utah. Hopefully, our economy and philanthropy will be back to normal well before next July!

Why Don’t NPO’s Embrace Younger Board Members?

Jay Love — Tue, 16 Jun 2009 18:01:00 GMT

The recent article in Non Profit Times titled "Youth Movement Critical for Boards" moved my interest to a higher level. This particular topic was being discussed by one the local Indiana NPO boards I serve on during a board recruitment session. Never shy, I posed the question on why we do not have anyone under 40 years of age on the board. I did not hear many answers worth sharing here...

A little research revealed they have even made it legal for individuals under 18 years of age to serve on NPO boards in New York. On the other hand, it was quite disturbing to find on the Urban Institute Web site the following fact:

Other groups underrepresented on nonprofit boards are those under age 35 or over age 65. On average, only 6 percent of board members are under 35 and only 13 percent are over 65.

The link is here.

The plain and simple fact is that ALL future board members will be coming from that 18-35 year old age grouping. If those of us who serve in leadership roles on NPO boards do not step up and change current recruitment policies, we cannot complain if we have most of an entire generation that does not seem as interested in serving on NPO boards.

In my opinion, we have a superb opportunity to inspire and instill philanthropy values for this younger generation. Just think of the energy and insights a couple of below 35 new members of any NPO board could bring. How many of you on such boards have had discussions on such topics as:

Should we get involved with blogs or social networks
Increasing volunteers
Technology of any kind
Impacting the world of education
Impacting family life
Special events that are athletically inclined

As you read those few items, (I am sure many of you can think of additional ones), do you not think any person in the younger generation would not have major ideas and thoughts to bring to the table?

How can we expect the under 35 generation to be ready to step up with involvement and more importantly charitable giving without early engagement?

Here is an idea to consider. Either reserve or add two board member slots for people under 35 only. They could serve one term now and then another term a few years down the road. Those two individuals would be there to learn, provide advice and most of all to add insights from the younger generation. When they return for the second term just think of how much more they will be able to bring to the table. In between, they just might become evangelists for your NPO via communication networks you are just hearing about!

Only 6% of board members being under 35 is just plain not smart in my humble opinion. Perhaps my explanation will make some sense and hopefully change a few minds sitting on board recruitment committees. Please let me know what you think by dropping me an email.

Here is a link to a fair number of past articles and resources which might be helpful in engaging youth in philanthropy I hope they will help if you need further evidence and ideas. If enough of us pitch in we can change the average age of quite a few boards and perhaps set the stage for growth in the future. It might actually make board meetings more fun. How about it, can we give it a try?

Giving USA 2008 Results Provide In-Depth Analysis

Jay Love — Wed, 10 Jun 2009 12:49:00 GMT

Each year about this time in June I am proud to say I am a part of the Giving Institute and the Giving USA Foundation. You see, through their efforts the entire world is able to view the details of the wonderful tradition we call PHILANTHROPY.

The Giving USA Report for 2008 does reflect the tougher economic conditions in a small manner. However, it is remarkable to see the resiliency the United States has with regard to our giving to charity traditions. The small drop is nowhere near the level many might have expected it to be. In fact, some sectors within the nonprofit world actually had increases. As you might guess, times of need truly bring out the best in so many people. What a neat and wonderful tradition so many of us deeply involved in the NPO world are able to witness daily. Hopefully, we can keep instilling such values in every upcoming generation. (More on that concept in my next blog post...)

In a broad overview manner here is what happened:

2008 Estimates Outlined

Giving USA reports that, adjusted for inflation, total giving was down 5.7 percent, the largest drop recorded since the group has been keeping track of America's charitable donations. However, the estimated giving total exceeded 300 billion for only the 2nd time ever!

Individual giving, which is always the largest component of charitable contributions, was an estimated $229.28 billion, or 75 percent of the total, in 2008. This is a decrease of 2.7 percent compared with 2007 estimates.

Charitable bequests are estimated to be $22.66 billion in 2008, a decrease of 2.8 percent. They make up 7 percent of total giving.

Corporate giving, which is closely tied to corporate profits, is projected to have decreased 4.5 percent, to $14.5 billion. It is estimated to equal 5 percent of all charitable giving.

Foundation grantmaking, according to data from the Foundation Center, was $41.21 billion, an estimated 3 percent increase in current dollars. It is 13 percent of total giving for 2008.

2008 Estimates of Giving by Type of Recipient

Religion: Religious congregations and other religious organizations received an estimated $106.89 billion, which is 35 percent of the total. This is the second year that giving to religion has exceeded $100 billion. Giving to religion increased an estimated 5.5 percent. Religious gifts account for an estimated one-half of all individual giving, not counting gifts made through bequests (5.6 percent) or family foundations (about 3 percent).

Education organizations received an estimated $40.94 billion, or 13 percent of the total. Gifts to this type of organization decreased 5.5 percent.

Foundations received an estimated $32.65 billion, according to calculations by the Foundation Center and Giving USA. The estimate for 2008 is a decrease of 19.2 percent.

Gifts to Health organizations are estimated to be $21.64 billion, or 7 percent of total estimated giving. The decrease in giving to this subsector for 2008 is estimated to be 6.5 percent.

Estimated giving to the Public-Society Benefit subsector was $23.88 billion in 2008, or 8 percent of total estimated giving. The increase is 5.4 percent.

Arts/Culture/Humanities organizations received an estimated $12.79 billion in 2007, or 4 percent of total estimated giving. The decrease is 6.4 percent.

International Affairs organizations, which include relief, direct aid, exchange, and other programs focused on international issues, received an estimated $13.3 billion, or 4 percent of total estimated giving. This is growth of 0.6 percent.

Giving to the Environment/Animals subsector is estimated to be $6.58 billion, or 2 percent of total estimated giving. This estimate reflects a decrease of 5.5 percent.

As always, a picture is worth a thousand words!

Seeing Philanthropy in Action

Jay Love — Wed, 09 Jul 2008 12:42:00 GMT

Over the last five years, I have had the pleasure of being involved as a board member with the Gleaners Food Bank located in Indianapolis. It has been so neat to be an active part of such a thriving non-profit. Not only is it one of the most respected charities in our area, but Gleaners also truly lives and embraces its mission daily.

My role started off, like so many key supporters, as a volunteer. During my time as a volunteer, I was struck by just how caring the team at Gleaners was. I was also struck by the extreme frugality exhibited at all times. They were truly stewards of all assets provided them. Being frugal myself, it was a joy to watch and only brought me closer to their mission.

During the last couple of years, it became more obvious that their aging facility just had to be replaced in some manner. The process of researching options, acquiring land and preparing for a capital campaign has been like a Masters Degree in Philanthropy for me.

The board, staff, volunteers, mission recipients, and the greater community have all been galvanized to drive this dream forward. The planning and execution provided a means to reach out beyond current boundaries in central Indiana.

I have always been proud to work full time serving the non-profit sector. I do not know if I am actually prouder now, or if I just know better now where some of the internal feelings come from. Watching challenges come to life and be carefully addressed has such a remarkable way of allowing our own hopes and dreams to become intertwined. I know most of you reading this already understand this many times over, but perhaps it might inspire a few others to accept such a role in a key non-profit or two in your own communities. If you do, I truly think you will be delighted with how you feel!