April 2023
Things We’re Loving This Month
A Vision for the Future of Philanthropy
In the Stanford Social Innovation Review, Crystal Hayling shares some eloquent words on what the future of philanthropy must be. “There is no more room for business as usual. The people and planet are demanding that we build a vision for philanthropy, let go of practices that no longer serve us, and create new ones that move us forward.”
What I’m Thinking About
Cynicism and lack of awareness are trending as two of the nonprofit sector’s biggest threats.
A new study by the Lilly School of Philanthropy (What Americans Think About Philanthropy) also reveals that by and large, the American public have little understanding of the nonprofit sector and their role in it. “When asked whether they thought that the percentage of Americans who give to charitable organizations increased, decreased, or stayed the same over the past 20 years, the majority incorrectly believed it had stayed the same or even increased (61.6 percent). Less than four in 10 (38.4 percent) were aware of what might arguably be considered the most frequently discussed reality of contemporary charitable giving.” The percentage of Americans donating to 501c3s has been declining over the past two decades, yet only one in three Americans is aware of this key challenge to the future of philanthropy.
Gaggingly, when survey respondents were asked if they or an immediate family member had benefited from services from a nonprofit in the past year, only 5.4% responded yes. 5%! Clearly there is a need for more education from us in the sector on what a nonprofit is and how we impact daily life.
Another post by Liz Brownsell for Birketts in the UK supposes that charitable giving by the top 1% is reducing in part because of hesitation that their philanthropic deeds will be misinterpreted as self-serving. That doesn’t feel like a great reason not to donate.
Another interesting bit from Brownwell’s article reveals that “while the top 1% give around £2-3bn a year, that generosity is concentrated to a small proportion of the richest. It is considered that the £2-3bn figure come largely from only 20% of individuals in that top 1% – so 80% of the top 1% are not contributing meaningfully to that figure.” The 80/20 rule alive and well. How does that affect the sector when the “funding power” is held by such a small group? Just thinking of the billions of dollars wasting away in bank accounts makes me spiral.
Articles and News
Renewed Push for Universal Charitable Deduction
A coalition of eleven U.S. Senators introduced a bill to “amend the Internal Revenue Code of 1986 to modify and extend the deduction for charitable contributions for individuals not itemizing deductions.” Co-sponsors to date include: Catherine Cortez Masto (D-NV), Marco Rubio (R-FL), Maggie Hassan (D-NH), Raphael Warnock (R-GA), Susan Collins (R-ME), Amy Klobuchar (D-MN), Gary Peters (D-MI), Tim Scott (R-SC), and Jeanne Shaheen (D-NH). (For Purpose Law Group)
A Fourth of Donors Plan to Give Less in 2023
Dunham+Company recently released its donor confidence survey which revealed nearly a quarter of donors said they plan to give less this year than they gave last. A recent Gallup Poll found 50 percent of Americans said they were worse off financially than they had been a year ago. Gallup says the last time that many Americans felt worse off financially was during the Great Recession in 2008 and 2009. (Chronicle of Philanthropy)
Sankofa Philanthropy: Hip Hop’s Sixth Element
“To understand how hip-hop artists are transforming the sector, it’s important to know that hip-hop culture’s sixth element of philanthropy is grounded in sankofa, an Akan word that means, “it is not taboo to fetch what is at risk of being left behind.” The cultural value of sankofa is why hip-hop artists who understand their communities’ assets and needs often return to reinvest in them.” (Non Profit Quarterly)
How to Implement Strategic Inquiry at Your Nonprofit in 5 Steps
Using the example of an educational nonprofit (Decatur Education Foundation!), this article presents five steps nonprofits can take to implement strategic inquiry including building board support, listening to community, research, broadening networks, and sharing the journey. (Blue Avocado)
Studies and Research
Survey says: single women were more likely to give charitably than single men by a margin of 9 percent and femaleheaded households were not only more likely to give, but also tended to give nearly twice as much. Are you surprised? (Rockefeller Philanthropy Advisors)
Upstart Co-Lab’s Impact Report: Investing for an Inclusive Creative Economy
Upstart tracks the impact of creative economy investments across five dimensions: access to capital for BIPOC and women entrepreneurs, quality jobs, vibrant communities, sustainable creative lives, and an inclusive creative economy. (Upstart Co-Lab)
This is a few years old by now but still has tons of relevant information and statistics and is definitely worth a read. For instance, “The unrestricted net assets of the Black-led organizations are 76 percent smaller than their white-led counterparts.” (Bridgespan)
The Psychology of Overhead Aversion—and What It Means for Charitable Work
A study revealed that people are more apt to donate, and donate in larger amounts, if they believe their donation will not be used for overhead. We know it, we hate it. (Behavioral Scientist)
Resources
The Highlander Center’s Methodologies
The Highlander Research and Education Center provides a beautifully illustrated summary of their methodologies including Popular Education, Language Justice, and Participatory Action Research. (Highlander Center)
Candid is now offering the ability to display demographic data on Candid (Guidestar) profiles in the hopes that funders can use these profiles to access this data without requiring bespoke demographics forms. (Candid)
For Funders
An Easy Step to Improve Transparency and Access in Philanthropy
Atlanta’s own David Weitnauer and Rachel Sprecher from Dobbs Foundation relate the success of their monthly “Open Information Sessions".” I love this approach and would be elated to see more foundations follow Dobbs’ lead. (National Center for Family Philanthropy)
Through several blog posts, three program officers from Northwest Area Foundation relate what they’ve learned through a Racial Capitalism Community of Practice led by Neighborhood Funders Group. The term racial capitalism is a concept originally proposed by Cedric J. Robinson to describe the extractive way America’s capitalist economy derives social and economic value from another person of a different racial identity. (Northwest Area Foundation)
"It's a False Dichotomy." Questioning Perpetuity and Spend Down with Clara Miller
A very compelling conversation with F.B. Heron Foundation President Emerita and impact investing pioneer Clara Miller on the perpetuity debate. This is worth a read - if you can’t access the article because of a firewall, just reach out and we can send you a copy. (Inside Philanthropy)
Darren Walker proposes shift in focus of giving in new book ‘From Generosity to Justice’
Darren Walker, President of the Ford Foundation, has a new book that “convenes some of the most important voices in philanthropy to ask and offer answers to a vital question: If there’s a continuum between generosity and justice, how do we push our work closer to the latter?” (PBS)
National Center for Family Philanthropy Racial Justice Cohort
The Racial Justice Learning and Action Cohort is an educational opportunity for family foundation trustees interested in advancing racial justice practices, both personally and professionally. Online applications are due April 21. Click here for more.
Upcoming Events
Webinar Series: Demystifying Trust-Based Philanthropy
In this 6-part webinar series, the Trust-Based Philanthropy Project will explore some of the most commonly asked questions and the underlying misperceptions that may be roadblocks to understanding and operationalizing trust-based philanthropy. April 19, May 11, May 31, June 14, July 12, & August 2, 2023, 12PM-2:00PM PT // 3-5:00PM ET. Click here to learn more.
Charitable Registration: What Does it Take to be Compliant?
Did you know that depending on which state your organization is registered, you may have to register with the government to conduct charitable solicitation? Learn about U.S. state charitable registration requirements and what does it take to be compliant. April 20, Virtual, 1pm EST. Click here to learn more.
This is For Everybody: Transforming the Housing System in Minneapolis through Cooperatives
Join NFG's Midwest Organizing Infrastructure Funders and Democratizing Development Program in a 90-minute Fireside Session with Inquilinxs Unidxs Por Justicia (United Renters for Justice) (IX). We'll learn about IX's four-year campaign to galvanize thousands of people in Minneapolis to create durably affordable housing, end the violence of one of the largest landlords in the city, and devop the Sky Without Limits cooperative. April 25, Virtual, 11:30am EST. Click here to learn more.
Apparo’s Nonprofit Technology and Process Improvement: Free Webinar Series
Bookmark Apparo’s upcoming, free webinars. Upcoming topics include Designing for Impact: Enhancing Your Nonprofit Content with Canva and Future Proof your Nonprofit Operations: Ensure Business Continuity through Technology and Automation. Click here to learn more.
