Understanding Philanthropy

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Understanding Philanthropy

• Motivating Philanthropic Action for Your Project

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Train of thought . . . .

• Philanthropywhats up and whats coming.
• Why do people give? What drives them?
• To whom do people give and why? What do they
  look for when giving?
• What makes a good match between
• giver and asker?
• Whats the purpose of all this action?

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Charity or Investment?The paradigm shift

• For much of the past half-century, America seemed
  exceptional in its enthusiasm for philanthropy.
• Claire Gaudiani, in her book, The Greater Good
  How Philanthropy Drives the American Economy and
  Can Save Capitalism, makes a distinction between
  charity, which is about easing symptoms of
  distress, and philanthropy, which is about
  investing in solutions to the underlying
  problems.
• The investment approach distinguishes the most
  significant kind of American generosity from the
  poorhouse and soup line method and expresses
  our values of freedom, the individual, and
  entrepreneurialism.

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Who is a philanthropist?

• About 90 of households earning less than
  100,000 account for about half of the giving.
• About 70 of households contribute to charity.
• Lowest wealth households give more than 10 of
  all donation dollars.
• Very high wealth households count for 21 of
  donation dollars.
• Compiled from various research studies may vary
  from year to year.

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The Role of Philanthropy

• Reduce human suffering
• Enhance human potential
• Promote equity and justice
• Build community
• Human fulfillment
• Support experimentation
• Stimulate change
• Foster pluralism

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• Giving USA Report of Philanthropic Giving
  Sources and Uses of Contributionsin 2005
• 260.28 billion, up from the revised estimate of
  245.23 billion in 2004

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Sources of Contributions(In billions)

• Individuals 199.07 76.5
• Bequests 17.44 6.7
• Foundations 30.00 11.5
• Corporations 13.77 5.3

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Uses of Contributions

• Type of Cause Amount in Billions Change
• Religion 93.18 35.8 Up 5.9
• Education 38.56 14.8 Up 13.1
• Human Services 25.36 9.7 Up 32.3
• Health 22.54 8.7 Up 2.7
• Gifts to Foundations 21.70 8.3 Up 6.8
• Unallocated Giving 16.5 6.2
• Arts, Culture 13.51 5.2 Down 3.4
• Public Society 14.03 5.4 Up 8.3
• Environment 8.86 3.4 Up 16.4
• International Affairs 6.39 2.5 Up
  19.4
• includes gifts to newly formed organizations,
  deductions taken in 2005 for gifts made in prior
  years, and other technical corrections.

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Universal Trends that Affect Philanthropy and
NGOsfor better or worse!

• Accountability and credibility
• Trust
• Government regulations and cuts
• Image
• Ethics
• Diversity and inclusion rather than exclusion
• Qualified professionals in fundraising
• Capacity building
• Globalization
• Competition
• Technology

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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.

Summarized from Giving and Volunteering in the
United States Findings from a National Survey,
Independent Sector, 2001.
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Factors that Influence Giving and Volunteering

• Religious attendance and membership in a
  religious organization.
• Affiliation with non-religious organizations.
• Youth experiences.
• Tax Status.

Summarized from Giving and Volunteering in the
United States Findings from a National Survey,
Independent Sector, 2001.
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Reasons for Not Giving

• No one personally asked.
• Couldnt 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.

Summarized from Giving and Volunteering in the
United States Findings from a National Survey,
Independent Sector, 2001.
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Aristotle said,

• To give away money is an easy matter and in
  anymans power. But to decide to whom to give
  it, and how large and when, and for what purpose
  and how, is neither in every mans powernor an
  easy matter. Hence it is that such excellence is
  rare, praiseworthy and noble.

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Determinants of Charitable Giving

• Communities of participation
• association
• Frameworks of consciousness
• identification with cause
• Invitation to participate
• Asked to give
• Discretionary resources
• Accepted capacity

• Models/experiences from youth
• Positive examples
• Intrinsic and extrinsic rewards
• Positive outcomes
• Urgency and effectiveness
• Philanthropy meeting needs
• Demographic characteristics
• Circumstances affecting giving

Material adapted from research by Paul G.
Schervish. For further explanation see
www.bc.edu/research/swri.
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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?

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GET TO WORK
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• You arent being paid to believe in the power of
  your dreams.

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Seven Steps for Successful Proposal Writing

• Make a case
• Research and match
• Inquire
• Write
• Rewrite and review
• Send
• Follow-up

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What is a proposal?

• A document that speaks on behalf of its author,
  answers all questions it might generate, and
  persuades the reader to the authors point of
  viewusually in the authors absence.

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Who receives and considers proposals for funding?

• Foundations (family, independent, community,
  corporate, small, large, etc)
• Government (all levels)
• Businesses (from local to international)
• Associations
• Churches
• Federations
• Pass-through organizations
• Individuals

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Exercise in Making a Case

• Define the problem or explain the need.
• Define expected outcomes.
• Explain inherent values.
• Describe what will be done, how, by whom and
  when.

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Essential Information to Research

• Commitment to field of interest
• Geographic limitations
• Range of award size
• Applicant eligibility
• Special population groups of interest
• Award restrictions

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Essential Information Continued

• Matching or cost-sharing requirements
• Procedures
• Deadlines
• Format and/or forms
• Contact information

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Research Resources

• Electronic
• Volumes
• News sources of all kinds
• Individuals/Colleagues
• Similar institutions
• Annual reports
• Libraries
• Other?

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Writing the Inquiry Letter (or, Letter of Intent)

• One page, preferably
• Specifically addressed
• Title of project
• Objectives and outcomes
• Possibly include summary and budget
• Suggest your follow-up
• Keep cost reference to minimum
• See sample.

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Proposal Components

• Cover sheet (cover page, face page)
• Abstract (executive summary, summary)
• Table of contents
• Introduction
• Problem statement (need statement, program
  statement

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Components continued

• Goals, the Logic Model, Outcomes (inputs,
  activities, outputs, intermediate outcomes,
  long-term outcomes)
• Proposed solution (method, procedure)
• Timeline

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Components continued

• Impact of grant
• Rationale
• Staff
• Facilities
• Evaluation
• Budget and budget narrative
• Future funding

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Components continued

• Description of organization
• Appendices
• 501(c)(3) letter
• List of board
• Organizational budget
• Audited financial statement

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Preparation Suggestions

• Plan ahead.
• Involve others.
• Customize your proposal.
• Focus.
• Be reader-friendly.
• Proofread.

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Your Action Steps

• Develop your case. Be ready!
• Identify prospective funders.
• Contact and/or cultivate funders.
• Develop proposal.
• Develop budget.
• Write!
• Review.
• Send.

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An Overview of a Comprehensive, Successful
Fundraising Program

• Know basic marketing principles.
• Consider the environment and climate for
  fundraising.
• Create and examine case.
• Involve board and other volunteers.
• Determine potential donors and research them.
• Select campaigns and tools.
• Create, use and communicate a plan.
• Solicit the gift.
• Renew the gift.
• Steward the gift.

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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.

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Why raise funds?

• Accomplishing good things takes money.
• Intervening positively in peoples lives means
  having and expending resourceshuman and
  financial.
• Making a difference for others means having good
  organizations that attract support.
• Attracting funds means being good stewards, being
  accountable for the resources entrusted to us.
• Fundraising is a matter of combining head and
  heartfacts with appeal to the emotions.
• People want to give, to be involved, to make a
  difference. Give them an opportunity.
• Never raise funds apologeticallyinvite others
• to join you in accomplishing much for others,
• as Jesus would do.

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• "I shall pass through this world but once. Any
  good that I can do, or any kindness that I can
  show any human being, let me do it now and not
  defer it. For I shall not pass this way again."
• Grellet

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Times Up!
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Contact informationplease feel free to be in
touch with me.

• Dr. Lilya Wagner
• Counterpart International
• 1200 18th St., NW
• Suite 1100
• Washington, DC 20036
• General line 202-296-9676
• Direct line 202-721-1502
• Work e-mail lwagner_at_counterpart.org
• Personal e-mail coplilya_at_cs.com