Summer 2010

From The President

With the release of Giving USA 2010 last week, you may wonder why this national data matters to your organization. Not only can it give you insights into what’s happening in your sector, the report can also educate your board members and staff on important giving trends.

For example, making board members aware that the nation now has more than 1.2 million nonprofits, and that 89 percent of all 2009 giving came from individuals (when bequests and family foundations are added in) helps reinforce their critical fundraising role.

The good news is that considering last year’s economy and job market, Americans continue to give generously. Charitable giving declined only 3.6 percent in 2009. And if the two large bequests totaling $9 billion (yes, that’s “b” for billion) are removed from 2008 data, the decline was actually less.

To learn more about what Giving USA 2010 means for nonprofits, tune into 89.5 WHRV’s “HearSay with Cathy Lewis” next Wednesday, June 23, at noon. I’ll be on the show, along with Angelica Light of the Hampton Roads Community Foundation, to discuss the report and answer listener questions. There’s also an overview of the report below and other timely guidance from our team. If we can help you in any other way, please get in touch. And thanks for reading.

W. Keith Curtis, President

Giving USA 2010: What You Need to Know

by Nancy Chapman, Communications Director

That charitable giving declined in 2009 was no surprise. What’s surprising is that considering the economy and job market last year, it dropped by only 3.6 percent. And what’s truly amazing is that giving by individuals barely changed at all - down only 0.4 percent.

With Americans stepping up to support the causes most in need, total giving was $303.75 billion, making 2009 the third year in a row that giving topped $300 billion. Giving to human services and health organizations rose by 2.6 percent and 3.8 percent, respectively. Categories that saw declines were education, public-society benefit, and arts and culture, likely because donors turned to other causes and some major campaigns were put on hold.

If your organization took a bigger hit, it might be because you rely more heavily on government funding, foundation funding, and special events. This ties into what we consider to be the most important takeaway from the 2010 data: while corporate giving is only 4 percent of all giving and foundations are only 13 percent, individuals account for 75 percent. And when individuals are combined with bequests and family foundations, the percentage jumps to 89.

“So many nonprofit boards are focused on corporate and foundation giving,” says Keith Curtis. “Considering the reality of where giving comes from, we can’t emphasize enough that cultivating gifts from individuals is where every nonprofit’s focus should be.”

The good news? In a survey of the nation’s top 400 charities, The Chronicle of Philanthropy reports that in 2010’s first quarter, charitable giving grew by a median rate of 11 percent. When including funds donated to the Haiti earthquake recovery, the growth rate was 14 percent.

“History shows that as the economy recovers, giving recovers,” Curtis adds. “There may be a slight lag, but it’s crucial to remember that even during the recovery, people are still giving.”

For a free 15-page executive summary of Giving USA 2010, click here.

Funding Cutbacks? Time for Funding Diversity

by Wendy McGrady, Vice President

In our recent travels to make presentations, conduct trainings, and meet with clients, we’ve heard a lot of talk about cutbacks in government funding.  Even human services nonprofits like free clinics, whose services are more in demand than ever, are losing state and municipal funding.

The reality is, this may get worse before it gets better. It’s partly the economy, of course. But it’s also the result of a growing mentality, at least in some areas, that the government shouldn’t be funding non-governmental agencies and services.

If your nonprofit has been dependent on government funds, you must begin investing time and effort in developing other sources of funding. It’s either that or you may be reducing services and laying off employees. So instead of lamenting these cuts and just hunkering down, nonprofit staff and board members need to take the right steps to start raising money from individuals.

First, put a plan in place to identify and cultivate donors. Second, start getting out in the community and telling your story.  Third, get your board involved and make sure they’re trained in their fundraising role. Once you’ve diversified your funding streams and increased gifts from individual donors, not only will you survive any funding cuts, in the long run you’ll end up thriving.

Nonprofit News

by Wesley Stanley, Marketing Director and Campaign Consultant

• The Curtis Group was invited to participate in the Giving USA 2010 special briefing and discussion that took place last Thursday in Washington, D.C. The event, which was hosted by the Hudson Institute’s Bradley Center for Philanthropy and Civic Renewal, featured Patrick Rooney, head of Indiana University’s Center on Philanthropy; Urban Institute’s Tom Pollack; Nonprofit Quarterly’s Ruth McCambridge; and our own Wendy McGrady. “What an honor it was to have co-presented with such distinguished panelists,” Wendy said. “I was impressed by the thoughtful questions raised by both the attendees and panelists.” In the coming weeks, we will address these questions on our blog and Facebook page.
• Lynnhaven House held a dedication of its Colonial Education Center last month in Virginia Beach. Over 150 people attended, including the mayor, city manager, and several City Council members. The event provided a wonderful opportunity for the public to visit and tour this notable historic site. The Curtis Group assisted Lynnhaven House in the early stages of its fundraising for the project. The Colonial Education Center’s completion is a result of generous donations from both the local community and the political sector, as well as many hardworking volunteers and docents.
• Keith Curtis has been invited to moderate a panel at the Giving Institute’s 2010 Summer Symposium. He was also selected to co-chair the 2011 Giving Institute Summer Symposium with fellow Giving Institute member George Ruotolo.
• The Curtis Group will sponsor AFP Hampton Roads’ National Philanthropy Day celebration on Nov. 16. The luncheon event will feature keynote speaker Patrick Rooney of the Center on Philanthropy at Indiana University. We are pleased to have secured Dr. Rooney again this year after severe weather prevented him from speaking at last year’s cancelled event.

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