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Understanding the Mind of the 21st Century Donor: Growing Community Philanthropy

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Title: Understanding the Mind of the 21st Century Donor: Growing Community Philanthropy


1
Understanding the Mind of the 21st Century Donor
Growing Community Philanthropy
  • Kay Sprinkel Grace
  • AFP Permian Basin
  • National Philanthropy Day Keynote
  • November 13, 2008

2
What We Will Cover
  • Ingredients for effective community philanthropy
  • US and Midland County Philanthropy
  • 21st Century influences that are changing
    philanthropy
  • How volunteers and professionals can partner to
    strengthen our communities
  • The role each of us plays in assuring the future
    of our philanthropic heritage

3
Philanthropy in the 21st Century An American
Heritage
  • These Americans are peculiar people. If, in a
    local community, a citizen becomes aware of a
    human need which is not being met, he thereupon
    discusses the situation with his neighbors.
    Suddenly, a committee comes into existence.

4
Philanthropy in the 21st Century An American
Heritage - 2
  • The committee thereupon begins to operate on
    behalf of the need and a new community function
    is established. It is like watching a miracle,
    because these citizens perform this act without a
    single reference to any bureaucracy, or any
    official agency.
  • Alexis de Tocqueville, Democracy in America, 1830

5
Philanthropy Defined
  • All voluntary action for the public good (Payton,
    Center on Philanthropy, IU)
  • Giving, asking, joining, serving
  • Based in values people do not give, ask, join
    or serve organizations whose values they do not
    share
  • Based in love of humankind that is why people
    give their time and talent as well as their
    treasure
  • People seek high-impact philanthropy in all the
    ways they give

6
What National Philanthropy Day Celebrates
  • Americas finest social export voluntary action
    for the public good
  • Civil society at work opportunities for
    everyone in the community and in your
    organizations to play a role
  • Americas immense support for its own people and
    for those in other countries
  • A profound and positive global influence

7
Ingredients for Creating Effective Community
Philanthropy
  • A recipe that works

8
Recipe for Effective Philanthropy
  • Mix equal parts innovation, inspiration, hard
    work, vision, mission, values, leadership and
    passion
  • Add a critical human or societal need, or a
    community artistic or cultural need, and blend
    well
  • Surround with dedicated board members and other
    volunteers and professional staff
  • Garnish with the voluntary investments of time,
    talent and treasure of your community
  • Serve, savor and repeat whenever needed

9
The US Philanthropic Sector
  • 1,654,416 organizations 
  • Assets 4,250,147,387,161  
  • Income 3,061,360,759,466
  • Source for this slide and the next
    TaxExemptWorld.com (updated 9/6/08)

10
GIVING USA 2007 Report (6/24/08)
  • Total giving from all sources 306.69 billion,
    up 1 (inflation adjusted) or 3.9 (non adjusted)
  • Living individuals donated an estimated 229
    billion, a drop of 0.1 percent from 2006. Gifts
    from estates were 23.2 billion, or 4 percent
    more than in 2006.
  • All told, donations by individuals, including
    estate gifts and contributions to family
    foundations, made up 88 percent of donations last
    year.
  • Corporate gifts declined by 0.9 percent, to
    15.7-billion. Those contributions accounted for
    5.1 percent of all donations.

11
In Your Community….
  • Midland County TX
  • Number of nonprofit organizations -- 732
  • Total Income Amount from Tax Exempt/Nonprofit
    Organizations -- 352,724,566
  • Total Asset Amount of Tax Exempt/NonProfit
    Organizations -- 710,840,592
  • A major sector with high impact
  • Forbes Best Small Places For Business And
    Careers 82 Midland TX -- 3.19.08

12
In Your Community….
  • Ector County TX
  • Number of nonprofit organizations -- 499
  • Total Income Amount from Tax Exempt/Nonprofit
    Organizations -- 80,649,307
  • Total Asset Amount of Tax Exempt/NonProfit
    Organizations -- 102,198,228
  • UTPB gives 13.7 million in financial aid and
    enrolls 3,559 students
  • Corporate support evident Flint Hills Resources

13
Characteristics of a Community Focused on
Philanthropy
  • A vision for a continually improved community
  • Support for those who pursue the vision
  • Recognition for those who achieve steps towards
    the vision
  • Values-directed decision making relative to
    allocation of community resources
  • Encouragement of voluntarism and voluntary
    organizations at all levels
  • Prevailing idea that it is a privilege to give
    back

14
Impact of Philanthropy In This Community
  • Do all the good you can, By all the means you
    can, In all the ways you can, In all the places
    you can, At all the times you can, To all the
    people you can, As long as you ever can.
  • - John Wesley

15
Some of the Many Ways…
  • AFP National Philanthropy Day
  • Annual awardees and recognition
  • Midland College Students in Philanthropy
  • When recognized for their achievement in 2006,
    more than 236 had students participated in the
    program, granting in total nearly 150,000 to 132
    organizations in the area. The students
    fundraising is matched on a 151 basis by the
    Abell-Hanger Foundation. (William R. Simms Award,
    AFP, 2006)
  • Permian Basin Area Foundation
  • Texas Medical Association Hard Hats for Little
    Heads (Odessa)

16
More Ways…
  • Midland Memorial Hospital Foundation
  • Faces of Philanthropy recognizing People of
    Extraordinary Generosity
  • Vision of the late Ted Roden and his wife, Jan,
    for UTPB and their generosity in Odessa
  • Programs of the Nonprofit Management Center
  • A guiding light for the Permian Basin Nonprofit
    Community

17
21st Century Philanthropy
  • What is different?
  • What is the same?

18
What is Different?
  • Gifts come via the stairway or the helicopter
    landing pad
  • Social-investors are looking for organizations
    that address issues of concern to them
  • Diversity of the social-investor is remarkable
  • Expectations for accountability are higher
  • Traditional stewardship may not work

19
What is the Same?
  • Majority of giving is from individuals and it is
    mission/vision driven
  • People give to make a difference and because they
    believe in the cause
  • Donors want to be appreciated
  • They want to know how their money has been spent
  • They want an experience with the organization,
    the issue, or the people in the organization
  • Philanthropy is based in values

20
Keeping Philanthropy Vital in the 21st Century
  • A partnership among citizens, volunteers,
    organizations and donor-investors

21
Nonprofits Contribute to the Vitality of
Philanthropy By…
  • Knowing their core values and pursuing them
  • Knowing their vision and pursuing it
  • Clearly communicating their mission and impact
  • Aligning their values and vision with those of
    the community or asserting their values and
    vision when a void is perceived
  • Embracing their principles and traditions
  • Being accountable and transparent

22
Volunteers Contribute By…
  • Serving on boards and committees that address
    critical needs and issues in the community
  • Giving willingly of their time, talent and
    treasure to advance the vision of the community
  • Participating in training and other opportunities
    to become more effective
  • Understanding and advocating for the role of
    philanthropy in our communities and society
  • Getting engaged and engaging others

23
Donor-Investors Contribute By….
  • Developing relationships with the organizations
    they fund
  • Requiring transparency, accountability and
    return on investment
  • Learning about the challenges nonprofits often
    face in implementing programs practicing
    patience when appropriate
  • Assuring the advancement of the vision by
    increasing investment when they can

24
One Decade Nearly Gone
  • What 21st Century Philanthropy Has Done Already

25
This Dynamic Decade is Having a Dramatic Close
  • 21 gifts of 100 million or more in 2006 20
    gifts of 100 million or more in 2007
  • In 2008 so far gifts of 1 and 4.5 BILLION 12
    gifts ranging from 25 to 80 million and 10 of
    100 million
  • Americas 50 most-generous donors committed 7.3
    billion in 2007
  • PLUS the rise of citizen philanthropists who
    viral market their dreams and raise more money
    than they can give is astounding more than 1
    million given through Cause the donation
    engine for MySpace and Facebook -- in its first
    year

26
The Late Paul Newmans Own Reflection on
Philanthropy
  • Paul Newman maintained his devotion to his
    charitable work until the very end of his life
    Hole in the Wall Gang cancer camps for kids and
    more than 250 million raised through Newmans
    Own.
  • We are such spendthrifts with our lives, he
    once told a reporter. The trick of living is to
    slip on and off the planet with the least fuss
    you can muster. Im not running for sainthood.
    I just happen to think that in life we need to be
    a little like the farmer, who puts back into the
    soil what he takes out.

27
Understanding the Mind of the 21st Century Donor
Growing Community Philanthropy
  • Kay Sprinkel Grace
  • AFP Permian Basin
  • kaysprinkelgrace_at_aol.com
  • 415-831-2923
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