1 / 29

Philanthropy in Recession. What Recession?

Philanthropy in Recession. What Recession?. Judy Comeau-Hart Robert Alpaugh The Alley Theatre Senior Consultant November 11, 2008. Dow plunges 679 points to trade below 9,000 for the first time in 5 years in afternoon sell-off. Stocks Plunge Again; Dow Under 8,600 .

markku
Download Presentation

Philanthropy in Recession. What Recession?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Philanthropy in Recession.What Recession? Judy Comeau-Hart Robert Alpaugh The Alley Theatre Senior Consultant November 11, 2008

  2. Dow plunges 679 points to trade below 9,000 for the first time in 5 years in afternoon sell-off Stocks Plunge Again; Dow Under 8,600 Giving wilts at charities Agencies eye cuts even as need climbs in slack economy The Landscape November 2008

  3. Theaters Monitoring Wall Street Drama For people who work in and around Broadway, as for pretty much everyone else in the country, the main stage in recent weeks has been on Wall Street… The Landscape November 2008

  4. The Landscape November 2008

  5. Some Perspective 2007 - $306.39 billion ($ in billions) Corporations$15.695.1% Foundations$38.52 12.6% Individuals$229.03 74.8% Bequests$23.15 7.6%

  6. Some Perspective 2007 Types of Recipients Environmentand animals$6.962.3% Internationalaffairs$13.224.3% Arts, culture, and humanities$13.674.5% Foundations$27.73 9.1% Unallocatedgiving $23.677.7% Public-society benefit$22.657.4% Health $23.157.6% Religion $102.32 33.4% Humanservices $29.64 9.7% Education$43.32 14.1%

  7. Total Giving - 1967–2007Showing Recessionary Years $ in billions Inflation-adjusted dollars Current dollars Recessions in light green: 1969–70; 1973–75; 1980; 1981–82; 1990–91; 2001

  8. Economic Facts Recessions occur every five to ten years on average in the United States. Source: Giving USA Spotlight Official definition of a recession is two successive quarters with a decline in Gross Domestic Product (GDP). Source: Giving USA Spotlight

  9. Economic Facts Giving USA surveys from 2001 through 2007 found that in all years, 49% to 59% of charities saw growth in giving. Source: Giving USA Spotlight Giving USA surveys from 2001-2007 found that even in the worst year surveyed (2002), fewer than half of charities saw a drop in total gift dollars received. Source: Giving USA Spotlight

  10. Economic Facts Individual giving  80% of total giving  dropped an average of 3.9% in the four years with eight months or more of recession. Source: Giving USA Spotlight

  11. Economic Facts A national poll found that donors between the ages of 25 and 34 said they were more likely to increase their charitable giving this fall. Source: Chronicle of Philanthropy, 9/18/08 The same national poll found that donors over 65 said they planned to give less or not at all. Source: Chronicle of Philanthropy, 9/18/08

  12. Economic Facts Corporate giving is about 5% of total giving. Source: Giving USA Spotlight In economic growth years, corporate giving grows an average of about 3% per year. Source: Chronicle of Philanthropy Corporate giving fell an average of 1.6% in the four years with eight months or more of recession. Source: Giving USA Spotlight

  13. Economic Facts Foundation giving  about 10% of total giving historically fell an average of only 0.1% in the four years with eight months or more of recession. Source: Giving USA Spotlight Thirty-seven percent of foundations planned to increase grant making during 2009. Source: Chronicle of Philanthropy, May 2008

  14. Economic Facts Almost one-third of foundations say they have stepped up their giving this year to help families, provide human services, or support economic development. Source: Chronicle of Philanthropy

  15. Worst Case Scenario? • Worst decline in philanthropy - 1973/1974 • Decline was 5.4% • Drop for 2008 would result in philanthropy retrenching to 2005 levels - $289.5 billion

  16. Worst Case Scenario2008 Philanthropy at 2005 Level Corporations$15.69 - 5.1% Foundations$38.52 -12.6% Individuals$229.03 - 74.8% Bequests$23.15 - 7.6% Total - $289.5 Billion Corporations$14.76 -5.1% Foundations$36.47 - 12.6% Individuals$216.54 74.8% Bequests$22.00 - 7.6%

  17. Worst Case Scenario2008 Philanthropy at 2005 Level Environmentand animals$6.66 - 2.3% Internationalaffairs$12.454.3% Arts, culture, and humanities$13.03 - 4.5% Foundations$25.94 - 9.1% Unallocatedgiving $22.307.7% Public-society benefit$21.42 - 7.4% Health $22.00 - 7.6% Religion $96.69 - 33.4% Education$40.19 -14.1% Humanservices $27.65 - 9.7%

  18. The number of 501(c)(3) organizations, 1998–2007

  19. Action Steps Top Down/Inside Out Assessment of Organization • Revenue Streams • Programming • Staffing • Core Values • Importance of Mission

  20. Action Steps Communication • What You are Doing to Secure Operations • Importance of Donors • Importance of Mission • Recent Successes • Transparency • Honesty/Integrity

  21. Strategies - Annual Fund Move More Resources into Individual Giving Budget • Hire a Major Gifts Officer • Use a Wealth Screening Tool • Create a List of Major Gift Prospects • Promote Major Gift Patron Groups

  22. Strategies - Annual Fund Establish a Campaign Atmosphere • Ask Board of Directors to Issue a Challenge • Promote Challenge • Communicate Success

  23. Strategies - Annual Fund • Have a two pronged approach, for example: • Major Gifts Levels • $10,000 - $15,000 • $5,000 - $9,999 • $3,000 - $4,999 • Levels Below • $1,500 - $2,999 • $500 - $1,499 • $150 - $499

  24. Strategies - Annual Fund Engage Board in Cultivating and Soliciting Major Gift Prospects Hire Two Hourly Callers to Help Cultivate Donors at Other Levels Focus on Building Relationships Communicate Frequently with Donors Provide Donor Recognition That is Meaningful

  25. Strategies - Annual Fund Use Direct Mail for Acquisition Use Telefunding to Follow-up with Acquisition Prospects Use the Board Challenge as an Incentive Use Other Incentives to Raise Minimum Giving Levels For example: “For a minimum gift of $150 you will be invited to a Behind the Scenes Tour of the Alley

  26. Strategies - Annual Fund In This Economy • Throw Your Net Wider • Ask Your Board to Be More Active • Focus Where You Can Get Results • Communicate, Communicate, Communicate • Lead the Charge!

  27. Strategies – Capital Campaigns • Planning Stage • Philanthropic Market Study Phase • Early Stages of a Campaign • Quiet Phase • Public Phase

  28. What NOT to Do • Procrastinate • B. Put Your Head in the Sand • C. NOTHING

  29. Discussion • What are you finding in your community/organization? • Attendance? • Earned Revenue • Contributed Income • What are you doing to protect your organization? • What is your Board doing? • How are you planning for 2009 - 2010? • Are you going ahead with BHAGs? • How long will this last? • Other?

More Related