Issues of Accountability

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Issues of Accountability Stewardship
Gene Tempel Executive Director Follow-up to
Presentation at Emory University
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What is the Center on Philanthropy?

• Mission
• To increase the understanding of philanthropy and
  improve its practice, enhance participation in
  philanthropy through programs in knowledge
  creation and dissemination and education and
  training for engaging community volunteers,
  donors, practitioners, and scholars in the United
  States and internationally
• Activities
• Academic Programs - including a Ph.D. in
  Philanthropic Studies and the only comprehensive
  Master of Arts degree in Philanthropic Studies
• Research - on the nonprofit sector, including
  Giving USA the premier source of charitable
  giving estimates published by the Giving USA
  Foundation. Other projects include the
  Philanthropic Giving Index, and Center on
  Philanthropy Panel Study.

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• Activities continued -
• Public Service and Special initiatives - The Fund
  Raising School provides professional development
  training for fundraising and development staff,
  board members and volunteers. Lake Family
  Institute on Faith and Giving.
• Services to donors and advisors - Womens
  Philanthropy Institute, Millennium Initiative and
  Learning to Give-Indiana
• Resources
• Joseph and Matthew Payton Philanthropic Studies
  Library
• Ruth Lilly Special Collections and Archives

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Issues of Accountability and Stewardship

• Donors are interested in outcomes and impacts
• Senate Finance Committee
• Salaries, inside dealing, Donor Advised funds,
  valuation of gifts
• How to make a case for support when already well
  endowed
• What are the specific urgent needs to be met?
• How will the world be different?
• Tension between long-term and short-term

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Best Practices for Capital Campaigns

• The Fund Raising School course
• Test for Readiness
• Nonprofit Times column Capital Campaigns Its
  a Feeding Frenzy Right Now (August 2004)
• Philanthropic Giving Index recently found that
  42 of organizations are actively engaged in
  campaigns, while 27 indicate they are planning
  capital campaigns in the next 6 months
• Cautions should sensitize what are you really
  doing?
• What is your case for support?
• Can you build it from the ground up?
• Mega campaign

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Use of Volunteers COP Cost Study
Resources for Capital Campaigns

• How well have volunteers been engaged at Emory?
• COP Cost Study suggests that while fundraising is
  done by staff and executive directors, much of it
  is done by volunteers and board members. It also
  indicates that nearly 3 out of 4 nonprofit
  organizations report using volunteers for
  fundraising.

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Resources for Capital Campaigns
Center on Philanthropy Panel Study

• The Centers signature research project that aims
  to follow the same families philanthropic
  behaviors throughout their lives.
• The study will provide nonprofit sector
  professionals, fundraisers, policymakers and
  public officials a unique perspective of
  families giving and volunteering behaviors over
  time.
• Has surveyed the same 5,000 families since 1966,
  which has expanded to 7,400 families.

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Center on Philanthropy Panel Study

• Analyzing just a portion of COPPS data already
  has helped us learn how and why
• Tax changes affect charitable giving
• Adults whose parents give are much more likely to
  be donors
• Parents religious giving stimulates the
  religious generosity of their adult children
• Giving patterns of married couples change with
  each phase in their life cycles
• Healthy individual heads of households are more
  generous than those who are unhealthy
• The total amount African Americans give is
  similar to that of whites, but they give more to
  religion and less to other causes
• Older Americans religious giving kept pace with
  their income growth, but their giving to secular
  causes did not
• Differences by race and ethnicity in prosocial
  behaviors such as charitable giving disappear
  after controls for wealth
• Adults who grew up in unstable family
  environments (mother absent or low income, etc.)
  give less to charitable organizations
• Recent immigrants initially give primarily
  informally (to family and friends) but increase
  their giving to nonprofit organizations with time
  spent in the U.S.
• And this is only the beginning of what COPPS can
  teach us and the ways in which it can be utilized.

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Wealth Transfer Shift to Supply Side
Philanthropy Unleashing Resources through
Cultivating Donor Inclination

• Scolding (Demand Side)
• Presents needs
• Arouses responses of obligation
• Offers inducements
• You ought to give this amount to these causes at
  this time and in this manner.

• Discernment (Supply Side)
• Invites self-reflection
• Elicits responsibility
• Prompts discernment and decision
• Is there something that you want to do with your
  wealth that fulfills the needs of others, that
  you can do more efficiently and more effectively
  than government, and that fulfills your happiness
  by expressing your gratitude, bringing you
  satisfaction, and actualizing your identification
  with others?

SOURCE Paul Schervish, John Havens The New
Physics of Philanthropy The Supply-Side Vectors
of Charitable Giving. Part 1 The Material Side
of the Supply Side
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Evidence of Tax Incentives for Giving
Resources

• Charitable Giving Tax Incentives United Way of
  America Public Policy Fact Sheet, July 2004
  (http//national.unitedway.org/publicpolicy/docs/T
  ax_Fact_Sheet.pdf)
• Independent Sector Report Details Influence of
  Tax Itemizing Status on Charitable Giving
  (www.independentsector.org)

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Resources
Estate Tax

• Repeal of the Estate Tax and Its Impact on
  Philanthropy by Patrick M. Rooney and Eugene
  Tempel (www.philanthropy.iupui.edu/EstateTax.pdf)
• Present and review primary arguments and
  empirical evidence promulgated in support of
  continuation and for repeal
• Further research is needed that clearly isolates
  differences between the income-tax and estate-tax
• This further research will assist in predicting
  the impact eh repeal of the estate tax will have
  on both giving during life and charitable
  bequests

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Resources
Estate Tax

• The Estate Tax and Charitable Giving, July
  2004, Congressional Budget Office
  (http//www.cbo.gov/showdoc.cfm?index5650sequenc
  e0)
• Because charitable bequests lower the taxable
  amount of estates, the tax gives people an
  incentive to contribute to charity at death
  rather than leave assets to heirs.
• The estate tax provides an incentive to make
  charitable contributions during life.
• Increasing the amount exempted from the estate
  tax from 675,000 to either 2 million or 3.5
  million would reduce charitable giving by less
  than 3 percent.
• However, repealing the tax would have a larger
  impact, decreasing donations to charity by 6
  percent to 12 percent

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Services Provided by COP

• Fundraising Training The Fund Raising
  School/Philanthropic Services
• Alumni Network many Alums in Atlanta
• Coaching and technical assistance
• Research (Philanthropic Giving Index, Panel
  Study, Giving USA)
• Academic Programs
• MA, ExMA, MPA, PhD
• Jason Chandler MA 1999
• Rob McClellan MA 2001
• Maggie T. Bowden MA/MPA 2003
• Arun Mohan Jane Addams Fellow
• Edward Queen Alum of our Faculty
• New Programs
• Lake Family Institute Doctoral Dissertations
• Womens Philanthropy Initiative
• Philanthropy Incubator