July 2023
What I’m Thinking About
Happy Summer!
I don’t know about you, but I’ve badly needed some time to indulge in reading on topics other than philanthropy and injustice. I often find it hard to sit down and read after a long workday of writing and.. reading. I am grateful to have had the time to visit one of my favorite places in the world, Beach Haven on Long Beach Island, where I devoured six novels of varying quality. After that little dalliance in the sun, it’s back to the business of examining the third sector.
One thing I’m loving is the Funding for Real Change website put together by the UK’s Ariadne and EDGE Funders Alliance advocating for a future where multi-year flexible funding is more common. The site presents a variety of practices funders can employ to create impact and strengthen organizations for the long term by building more flexibility and trust into grantmaking. It’s a great resource for donors and foundations to understand the problem of restricted giving and learn proven methods through a variety of case studies.
Articles and News
Donor Confidence Continues to Decline as Economy Takes Toll
With one in four donors (24 percent) indicating they plan to give less in 2023, a few insights and advice on how to respond to the latest Giving USA report. (Giving USA)
The 2022 Giving Slump Exposes the Fragility of Top-Heavy Charity
Inequality.org explores the danger in relying too much on a few major donors based on findings from the recent Giving USA report. (Inequality.org)
Rigorous Evaluation Versus Trust-Based Learning: Is This a Valid Dichotomy?
Brenda Solorzano, CEO of Headwaters Foundation, offers some great examples of trust-based evaluation methods employed by progressive funders. (Center for Effective Philanthropy)
“Motley Zoo Animal Rescue founded an innovative approach to community engagement based on eight tenets. These tenets are based on understanding the problems faced by the community, innovating for the community, knowing your place in the community, fostering two-way communication, adopting a mentality of giving, finding a balance between time and money, building coalitions, and having fun while doing it.” (Blue Avocado)
$1 Billion of ‘Trust Based Philanthropy’: Before Mackenzie Scott, There Was Diana Blank
An in-depth look at Diana Blank, Kendeda Fund, and her giving in Atlanta and beyond. (Chronicle of Philanthropy)
Studies and Research
Preheating Prosocial Behaviour
This is a very academic read, but this recent article from The Economic Journal included research that shows encouraging a good mood in donors before making a solicitation results in larger gift amounts: “They asked volunteers online to decide how to split $50 between themselves and a charity. But first, the would-be philanthropists had to watch either the cheerful “Hakuna Matata” scene from Disney’s The Lion King or a neutral clip about microbes. The researchers found that those who watched the relentlessly optimistic singing warthog and meerkat duo donated 7% more to charity and were more likely to give away the entire amount than those who watched the microbe video.” (The Economic Journal)
Health of the U.S. Nonprofit Sector Quarterly Report
Despite contributing $1.5 trillion to the U.S. economy in just Q1 of 2023, the Independent Sector’s quarterly report shows that charitable giving is trending down. One interesting tidbit: “Many policymakers hold the strong assumption that charitable giving and the financial health of nonprofits are closely tied to the state of the economy. Giving trends in 2022 show giving declining (-10.5%) at the same time GDP increased (+1.1%), indicating policymakers’ assumptions are not a guarantee and some other variables must be at play.” (Independent Sector)
For Funders
Radical grantmaking: Shifting decision-making – and power – to communities
The WES Mariam Assefa Fund’s Marina Nuri reflects on launching a participatory grantmaking pilot project and shares five recommended actions for funders that are seeking to experiment with participatory approaches. (The Philanthropist Journal)
“Be Open to Evolving.” How a Regional Arts Funder Centered Equity, Increased Payout, and More
An interesting highlight on Denver-based Bonfils-Stanton Foundation’s work to close the funding equity gap through a new strategic framework. (Inside Philanthropy)
