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It ’ s a GREAT Time to Fundraise A Contrarian View of the “ New Normal ”. John W. Hicks, CFRE President & CEO J.C. Geever, Inc. Its a GREAT Time To Fundraise. Recession creates uncertainly about money, not necessarily uncertainty about generosity.
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It’s a GREAT Time to FundraiseA Contrarian View of the “New Normal” John W. Hicks, CFRE President & CEO J.C. Geever, Inc.
Its a GREAT Time To Fundraise Recession creates uncertainly about money, not necessarily uncertainty about generosity
Estimates for 2009 indicate charitable giving was 2.1 percent of Gross Domestic Product (GDP), the 13th consecutive year that giving has been greater than 2 percent. • Source: Center on Philanthropy at Indiana University • Giving USA 2010
Estimates for 2009 indicate charitable giving was 2.1 percent of Gross Domestic Product (GDP), the 13th consecutive year that giving has been greater than 2 percent. • Source: Center on Philanthropy at Indiana University • Giving USA 2010
Most recent AFP member survey says: • More than 50 percent of respondents raised more money in 2009 than in 2008. • Source: 2010 AFP Annual Member Survey
Its a GREAT Time To Fundraise There’s sympathy and empathy in the air: Donors feel the pain too
When unemployment rises above 7% the chances double that you will personally know someone who feels the pain. And that someone might be you.Robert Reich, Former Secretary of Labor
The fact that charity exists at all is a testament to the human soul. We feel for others. When someone else is suffering, we suffer ourselves.Dan Pallotta, Author of Uncharitable
It’s a GREAT Time to Fundraise Newton was right: what goes down bounces back up
The Center’s preliminary projections for 2010 suggest that total household charitable giving could return to the pre-recession (2007) level of $234 billion, in the best-case scenario, or decline at most an additional 3.9%. Source: Boston College Center on Wealth and Philanthropy February, 2010
It’s a GREAT Time to Fundraise The well is a little lower but there’s still a lot of water down there
Giving USA Stats for 2009 • Individual giving fell an estimated 0.4 percent in 2009, reportedly rising toward the end of the year, as stock market indices rose and media highlighted rising need. • Foundation grants fell by 8.9 percent, according to the Foundation Center, a less severe drop than foundations anticipated early in 2009. • Corporate giving rose an estimated 5.5 percent, in part on increased in-kind gifts, taking corporate giving to within 1 percent of its pre-recession level.
Snapshot: Total Public and Private Sector Foreign Aid in 2009 1. United States - $28.67 billion 2. France - $12.43 billion 3. Germany - $11.98 billion 4. United Kingdom - $11.50 billion 5. Japan - $9.48 billion Source: Organization for Economic Co-operation and Development, April 2010
Snapshot: Public and Private Foreign Aid as Percentage of GDP, 2009 16. Australia - 0.29% 17. New Zealand - 0.29% 18. Portugal - 0.23% 19. United States - 0.20% 20. Greece - 0.19% Source: Organization for Economic Co-operation and Development, April 2010
Are we becoming a nation of savers? Revolving consumer credit card outstanding debt fell 15% since August 2008 from its all-time peak. Wage and salary income fell by 3.2% over the same period. Source: Wall Street Journal Septemer 9, 2010
It’s a GREAT Time to Fundraise Performance metrics are changing. For the better.
John’s Informal Survey • Phone calls and emails • AFP colleagues, others • Organizations range from small agencies to large institutions • Organization focus ranges from domestic to international NGO • Survey included a few colleagues in the UK
What I Am Hearing Before the Recession During the Recession Annual goals are adjusted vs. prior year Performance measures now include number of visits and calls completed, number of renewing donors More time spent developing major and planned gifts Some increase in board involvement • Annual increase in goal was a given, regardless of prior year giving • Performance measured in dollars and cents • More time spent on donor acquisition campaigns • Board involvement was “hit or miss”
It’s a GREAT Time to Fundraise! The return on investment for a contribution has never been higher.
What $1,000 Earns in One Year in the Financial Market • Invested in S&P 500 Index Fund: -1.46% • Stuffed in your mattress: Zero • Playing blackjack in Las Vegas: -3.0% to +0.48% • Checking account: 0.52% • Savings account: 0.79% • 1-year CD: 1.24%
What $1,000 Earns in One Year in the Philanthropic Market • Builds a brick home for a family of four living in Bujugali Falls Village, Uganda • Buys a child living below the federal poverty in New York City a life-changing two week stay at a summer camp • Provides a college scholarship that can help a student get a quality education.
Its a GREAT Time To Fundraise The recession may be making our organizations smarter, better and . . . gosh darn it . . . people like us.
Nearly 80% of respondents to a 2009 Foundation Center survey of foundation executives expect the field of philanthropy to become more strategic and creative in the future as a result of the economic crisis, putting a greater emphasis on sustainability, collaboration and transparency Source: The Foundation Center
Operation Exodus Inner City • Founded in 1989 • Serves children and families living in Washington Heights neighborhood in New York City • Faith-based approach to afterschool education • Operating budget is about $700,000
Since 9/15/2008 • Exodus’ Board of Directors has adopted an aggressive, growth-oriented strategic plan • Opened a second site and doubled student participation • Foundation grants have increased from $199,000 in FYE 2008 to $272,000 in FYE 2010 • Individual contributions have increased from $281,000 in FYE 2008 to $330,00 in FYE 2010
What Happened? • Running at the problem rather than away from it • Demonstrating smarter, tougher approach • Proposals and presentations lay out a very clear set of numbers with realistic expectations • Hedging risk for donors
Its a GREAT Time To Fundraise Let’s share: your stories and best practices
Its a GREAT Time To Fundraise Get there the firstest with the mostest. - Nathan Bedford Forrest
Its a GREAT Time To Fundraise I never won a fight by throwing in my towel instead of my fighter. - Angelo Dundee
Its a GREAT Time To Fundraise You can spend every day living or every day dying. Its up to you. - Lulie East