Philanthropy . . .Voluntary Action for the Public Good.

1. Philanthropy . . .Voluntary Action for the Public Good. Global Perspectives and U.S. Practices

2. Presented by Dr. Lilya Wagner, CFRE Counterpart International

3. Which World? Scenarios for the 21st Century • Market World • Fortress World • Transformed World Allan Hammond, World Resources Institute

4. Global Civil Society At-a-GlanceInstitute for Policy StudiesJohns Hopkins University Highlights from a 26-country study in the mid-nineties…

5. Key Findings • NGOs are a major economic force and can be found all over the world. • Welfare services still dominate (education, health and social services). • Volunteers are involved in nonprofit work. • Fees and charges, not philanthropy, are major sources of income, followed by government. • NGOs are an important source of employment.

6. Issues and Possibilities - • E-mail and a Web presence can attract brand-enhancing attention and pull in donors well beyond the geographic boundaries of their cause (e.g., content-rich websites, invitations to give, learn about cause, photos enhance cause).

7. Issues and Possibilities continued • Global philanthropy means boundless communication possibilities. • Globalization means reaching out to fledgling nonprofit sectors around the world to help ethical fundraising and philanthropy grow and survive.

8. Issues and Possibilities continued • Small donations can yield big results because specific communities that seem and are distant in reality, now seem more “real. Their needs are concrete and able to be met. • Supporting an overseas project helps people take control of their lives and challenges global inequity by breaking down national and cultural barriers.

9. Issues and Possibilities continued • Charity should retain a local orientation when the rest of modern culture is part of a flow of international capital, goods, services and labor. • Global philanthropy helps reduce the disparity of the richest 20% and the poorest 80%; the rich can give to the neediest regardless of where they are.

10. Issues and Possibilitiescontinued • The human return on global charitable investment results in a better world. • Communication allows a heightened awareness and knowledge of other cultures. • Increased global awareness and knowledge makes us aware that American fundraising strategies, while serving as a good model, don’t always translate successfully and must be adapted.

11. Issues and Possibilities continued • Global awareness allows all of us to realize the generosity and giving tradition of all countries, and that the West doesn’t have a monopoly on philanthropy. • Those who know fundraising can help develop sustainable programs in countries where self-sufficiency is not a tradition.

12. The General Roles of Philanthropy • Reduce human suffering • Enhance human potential • Promote equity and justice • Build community • Human fulfillment • Support experimentation • Stimulate change • Foster pluralism

13. Universal Trends That Affect Philanthropy • Accountability, credibility, trust, ethical behavior • Government regulations • Image • Ethics • Board roles, responsibilities and activities • Qualified professionals in fundraising • Capacity building • Globalization • Competition • Technology

14. In summary . . . . • Philanthropy is present in every culture around the globe. Likewise, every country has developed structures for organized fundraising. The potential for good has been immeasurably amplified by globalization, particularly through technology.

15. Understanding the Four U.S. Sectors

16. U.S. Motivations to Give • Being asked to give. • Attitudes toward charities in general. • Perceptions of the effectiveness of local religious organizations in addressing an array of human needs: • hunger • homelessness • elder care • racial and ethnic tensions

17. Specific Reasons for Giving • Personally asked to contribute. • Get a tax deduction. • Religious obligations or beliefs encourage giving. • Something is owed to the community. • Those who have more should give to those who have less.

18. Reasons for NOT Giving • No one personally asked. • Couldn’t afford it. • Would rather volunteer than give money. • Asked too frequently. • Did not think money was used efficiently. • Charities have become too much like for-profits.

19. Factors that Influence Giving and Volunteering • Religious attendance and membership in a religious organization. • Affiliation with non-religious organizations. • Youth experiences. • Tax Status.

20. Universal Motivations to Give • Make a difference. • Belief in the cause. • Personal connections. • At times, guilt. • Philanthropic tradition. • Government attitudes and tax laws. • Want to help. • Changing attitudes due to political changes. • Religious influence. • Other?

21. 2004 U.S. Contributions Received by Type of Organization • Source: Giving USA 2005. • Giving USA 2005 is a publication of the Giving USA Foundation—AAFRC Trust for Philanthropy. • The work is researched and written at the Center on Philanthropy at Indiana University.

22. Sources of Contributions, 2004 • Corporations $12.00 billion—4.8% • Bequests $19.80—8.0% • Foundations $28.80—11.6% • Individuals $187.92—75.6% • TOTAL GIVING $248.52 BILLION

23. Recipients • Religion $88.30 / 35.5% • Education $33.84 / 13.6% • Unallocated $21.36 / 8.6% • Health $21.95 / 8.8% • Gifts to Foundations $24.00 / 9.7% • Human Services $19.17 / 7.7% • International Affairs $5.34 / 2.1% • Environment $7.61 /3.1% • Arts / Culture $13.99 / 5.6% • Public Society $12.96 / 5.2%

24. Giving by Source as a Percentageof Total Giving, 1963–2003 100 80 60 40 20 0 1993 1963 1968 1973 1978 1983 1988 2003 1998

25. Trends in Corporate Giving • Corporations are less likely to provide funds for general purposes. • Gifts target specific problems, i.e., focused giving. • Giving is aligned with business interests. • Corporations target focused problem-solving. • Companies want their giving to improve their image. • Attention is on efficiency in both corporate and nonprofit worlds • Therefore, corporate giving expects more accountability and evidence of good stewardship.

26. Trends continued • At times philanthropy is used to ease the negative effects of corporate downsizing and to boost employee morale. • Mergers do not double the size of giving budgets; sometimes philanthropic dollars are cut because of a merger. • Philanthropic and community relations programs in corporations increasingly have to prove their worth or they are cut. Nonprofits must highlight benefits and results of giving. • There is a reduced acceptance of unsolicited grant proposals.

27. Trends continued • Corporate giving is more decentralized; there is increased use of employee committees and consultants in making philanthropic decisions. • Nonprofit support is coming from marketing, public affairs, communications and government-relations departments in addition to philanthropic dollars. • Corporations are increasingly establishing giving goals that are directed toward benefiting current or future customers. • There is an increase in promoting non-cash forms of support.

28. Trends concluded. • Understanding corporate social responsibility goals is critical when asking for financial support. • Corporate giving models are: • Corporate productivity model –help increase profits. • Ethical/Altruistic Model –meet societal needs as social responsibility. • Political model: external version –leverage social change, image. • Political model: internal version –corporate giving is important function for career advancement and positioning. • Stakeholder model –response to various groups.

29. Concepts and Principles of Fundraising that can be Universally Applied and are Adaptable • The need and art of making a strong, compelling case for funding. • Donor motivations are surprisingly universal. • The need to research and know the potential markets, the application of the exchange relationship in determining why a donor might give, and diversity in funding sources.

30. Differences in Principles and Practice • Professional compensation. • Prospect research. • Board involvement and responsibility. • Taxation issues.

31. Albert Schweitzer said . . . “One thing I know: The only ones among you who will be really happy are those who will have sought and found how to serve.”

32. Questions? Answers? Ideas? Suggestions?

33. Time is Up!