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« February 2009 | Main | April 2009 »
March 2009
March 30, 2009
March 26, 2009
Philanthropy Annual: 2008 Review
Highlights of News and Issues That Shaped the Year
The Foundation Center has just released Philanthropy Annual: 2008 Review, our yearly overview of the news, issues, people, organizations, and giving trends shaping the field. The new edition "serves as a permanent record of the ups and downs we've faced together in 2008 and the efforts of so many people to strive for something better," says Bradford K. Smith, the Center's president, in the Annual's introduction. Contents are drawn in part from Philanthropy News Digest, our daily online news service, as well as from selected Center research findings and other sources. Available for free use in our libraries, the Annual can also be downloaded or purchased ($19.95) at our web site.
March 24, 2009
From the Answer Desk: How often is the Center's Foundation Giving Forecast updated?
I found the Foundation Center's 2009 Foundation Giving Forecast to be extremely informative. How often is it updated and from what sources? Also, how would I find similar giving forecasts for foundations not included in the chart?
Answer: Our 2009 Foundation Giving Forecast is updated dynamically whenever new information is made available, and is compiled from public announcements of foundations, related news from the Center's Philanthropy News Digest, and other sources. It is available free of charge and can be found at http://foundationcenter.org/focus/
economy/forecast.html
To find current news and information for foundations not included in Foundation Giving Forecast, check the news section of Philanthropy News Digest (PND). For example, PND publishes a Community Foundation Update on a weekly basis with leadership changes and funding and program information for community foundations across the country. You can also search for the latest news on specific foundations using the "search news" option.
You might also check The Chronicle of Philanthropy, which is now periodically publishing lists of recently awarded grants targeting the economic crisis. Though these lists are not available free online, the San Francisco library/learning center provides access through our subscription to this publication. Another option is to sign up for alerts from nonprofit news wires such as PNN Online and Philanthropy Journal.
Do you have a question? Ask Us! (Thanks to Rob Bruno, reference librarian, Foundation Center - New York, for sharing this post.)
March 23, 2009
March 19, 2009
Pulse Check: How Are Nonprofits Doing?
A slew of surveys and studies have been conducted recently by a number of different organizations and agencies throughout the U.S. I offer selected information from a few of them to provide some insight into how nonprofits are doing.
Snapshot of Issues Facing Nonprofits: Fundraising Outlook for Fiscal Year 2009: [pdf] Prepared in March 2009 by the Silicon Valley Council of Nonprofits, this report finds:
- Nonprofits are increasingly concerned about massive cutbacks from traditional government funding sources and the reduced level of services to those in living in poverty.
- There is increased client need over last year.
- A serious concern about layoffs and staff downsizing in the nonprofit sector is prevalent.
- The overall number of individual donors has increased over last year.
- Corporate giving is drastically down from last year and is expected to continue downward well into next year due to the downsizing of many of our local corporations.
- Increased foundation giving seems to have had the greatest impact on emergency assistance such as food, clothing, and housing assistance agencies.
The Quiet Crisis: The Impact of the Economic Downturn on the Nonprofit Sector [pdf]. Released in March 2009 by Civic Enterprises and Democratic Leadership Council, this report says:
Reversing the nonprofit plunge is a matter of jobs, not just charity. With 9.4 million employees and 4.7 million full-time volunteers nationwide, nonprofits constitute 11 percent of the American workforce -- greater than the auto and financial industries combined. If the nonprofit sector were a country, it would have the seventh largest economy in the world. We cannot afford for it to go the way of Iceland, whose financial system collapsed.
Nonprofit Fundraising Trends 2009 [pdf]. Released 2/25/09 by Retriever Development Counsel, LLC, this report says:
Organizations that are doing well are not necessarily the ones with the biggest budgets or the ones that had the best fundraising year in 2008. Hallmarks of these organizations include:
- Diversified revenue streams and a variety of ways to give;
- Engaged leadership (executive, development/fundraising, and board) that is prepared to address the changes in the coming year;
- More effort expended into donor outreach and cultivating relationships;
- Investment in development staff, resources, and/or activities; and
- Proactive planning. They are looking to do more, not less.
Nonprofit Mergers and Acquisitions: More Than A Tool for Tough Times. Issued in February 2009 by Bridgespan Group, which states:
Mergers and acquisitions (M&A) are much more common in the nonprofit world than most would think, as our study of 3,300 deals across four states over 11 years shows. But nonprofit mergers often come about through default—due to financial distress or leadership vacuums. At the same time, relatively few nonprofits are using M&A strategically, as a way to strengthen organizations' effectiveness, spread best practices, expand reach, and to do all of this more cost-effectively. Yet the potential for M&A to create real value in the nonprofit sector exists, particularly if more philanthropists take on the mantle of matchmaker and help nonprofits explore and evaluate M&A opportunities. This article discusses research conducted by the Bridgespan Group on nonprofit M&A; explores the Child and Family Services (CFS) field, where "market" conditions are especially favorable to combinations; and profiles two nonprofits making the most of acquisitions. It also issues a call to action to philanthropists to further strategic, social sector M&A.
A Snapshot of the Effects of the Economic Downturn on Nonprofits [pdf]. Issued by Management Consulting Services in January 2009, this white paper attempts to gauge the impact of the economy on Massachusetts nonprofits. Here's a sampling of findings:
Do you know of other reports, studies, findings? Share!!
(Thanks to Cindy Bailie, director, Foundation Center - Cleveland, for sharing this post.)
March 18, 2009
From The Answer Desk: What is Earned Income?
A: Simply put, earned income is revenue generated from the sale of goods, services rendered, or work performed. One nonprofit example that most people have some familiarity with is Girl Scout cookie sales. If you have ever purchased a box, you have contributed to the earned income of the Girls Scouts organization. Why is earned income gaining popularity with nonprofit organizations? As factors like increasing competition and a flagging economy have caused gift income, like foundation grants or donations from individuals, to level off for some organizations, nonprofits are looking to diversify or expand their bases of support to meet growing needs and to better sustain their operations over the long term. New players entering the field with new ideas about how nonprofit organizations should address society's ills are also spurring increased interest in earned income and other forms of social enterprise.
Earned income can be viewed as one part of a diversified financial or fundraising plan for nonprofits. A good primer providing background information on earned income is Social Enterprise: Hype or Reality? from the Social Enterprise Alliance, which says:
- Earned income ventures by nonprofits generally do not free a nonprofit from other types of revenue…
- Earned income ventures have never generated limitless profit…
- Launching and running a social enterprise is as risky as launching and running a business in the for-profit sector…
- Social enterprise demands skill sets that may be lacking in a typical nonprofit...
- Social enterprise has the added challenge of managing to the 'double bottom line' of both mission and margin…
Here are some additional resources to help you access services and get up to speed:
Web sites:
Books that can be borrowed from our library:
The Foundation Center also offers a full-day seminar, Earned Income: Assessing Your Nonprofit's Revenue Options.
Do you have a question? Ask Us!
(This post is from Katie Artzner, the Foundation Center's online librarian)
March 17, 2009
New Podcast: Mal Warwick Discusses Effective Fundraising Strategies During Challenging Economic Times
Philanthropy Chat is a series of podcasts featuring experts in the field of philanthropy and fundraising. Most recently Janet Camarena, director of Foundation Center-San Francisco, spoke with Mal Warwick, author of Fundraising When Money is Tight. Mal discusses using scenario planning as a tool, avoiding common mistakes, planning for leaner times, and strengthening your case for giving.
Download mp3 (18MB) Right-click and select "Save Link As". (Total running time: 37 minutes, 30 seconds). This podcast is also posted in the Commentary section of our Focus on the Economic Crisis web page.
Visit our audio events archive to listen to more Philanthropy Chat podcasts.
