Philanthropy . . .Voluntary Action for the Public Good.

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Philanthropy . . .Voluntary Action for the Public
Good.

• Global Perspectives and U.S. Practices

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• Presented by
• Dr. Lilya Wagner, CFRE
• Counterpart International

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Which World? Scenarios for the 21st Century

• Market World
• Fortress World
• Transformed World
• Allan Hammond, World Resources Institute

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Global Civil Society At-a-GlanceInstitute for
Policy StudiesJohns Hopkins University

• Highlights from a 26-country study in the
  mid-nineties

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Key Findings

• NGOs are a major economic force and can be found
  all over the world.
• Welfare services still dominate (education,
  health and social services).
• Volunteers are involved in nonprofit work.
• Fees and charges, not philanthropy, are major
  sources of income, followed by government.
• NGOs are an important source of employment.

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Issues and Possibilities -

• E-mail and a Web presence can attract
  brand-enhancing attention and pull in donors well
  beyond the geographic boundaries of their cause
  (e.g., content-rich websites, invitations to
  give, learn about cause, photos enhance cause).

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Issues and Possibilities continued

• Global philanthropy means boundless communication
  possibilities.
• Globalization means reaching out to fledgling
  nonprofit sectors around the world to help
  ethical fundraising and philanthropy grow and
  survive.

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Issues and Possibilities continued

• Small donations can yield big results because
  specific communities that seem and are distant in
  reality, now seem more real. Their needs are
  concrete and able to be met.
• Supporting an overseas project helps people take
  control of their lives and challenges global
  inequity by breaking down national and cultural
  barriers.

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Issues and Possibilities continued

• Charity should retain a local orientation when
  the rest of modern culture is part of a flow of
  international capital, goods, services and labor.
• Global philanthropy helps reduce the disparity of
  the richest 20 and the poorest 80 the rich can
  give to the neediest regardless of where they are.

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Issues and Possibilities continued

• The human return on global charitable investment
  results in a better world.
• Communication allows a heightened awareness and
  knowledge of other cultures.
• Increased global awareness and knowledge makes us
  aware that American fundraising strategies, while
  serving as a good model, dont always translate
  successfully and must be adapted.

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Issues and Possibilities continued

• Global awareness allows all of us to realize the
  generosity and giving tradition of all countries,
  and that the West doesnt have a monopoly on
  philanthropy.
• Those who know fundraising can help develop
  sustainable programs in countries where
  self-sufficiency is not a tradition.

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The General Roles of Philanthropy

• Reduce human suffering
• Enhance human potential
• Promote equity and justice
• Build community
• Human fulfillment
• Support experimentation
• Stimulate change
• Foster pluralism

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Universal Trends That Affect Philanthropy

• Accountability, credibility, trust, ethical
  behavior
• Government regulations
• Image
• Ethics
• Board roles, responsibilities and activities
• Qualified professionals in fundraising
• Capacity building
• Globalization
• Competition
• Technology

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In summary . . . .

• Philanthropy is present in every culture around
  the globe. Likewise, every country has developed
  structures for organized fundraising. The
  potential for good has been immeasurably
  amplified by globalization, particularly through
  technology.

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Understanding the Four U.S. Sectors
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U.S. Motivations to Give

• Being asked to give.
• Attitudes toward charities in general.
• Perceptions of the effectiveness of local
  religious organizations in addressing an array of
  human needs
• hunger
• homelessness
• elder care
• racial and ethnic tensions

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Specific Reasons for Giving

• Personally asked to contribute.
• Get a tax deduction.
• Religious obligations or beliefs encourage
  giving.
• Something is owed to the community.
• Those who have more should give to those who have
  less.

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Reasons for NOT Giving

• No one personally asked.
• Couldnt afford it.
• Would rather volunteer than give money.
• Asked too frequently.
• Did not think money was used efficiently.
• Charities have become too much like
• for-profits.

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Factors that Influence Giving and Volunteering

• Religious attendance and membership in a
  religious organization.
• Affiliation with non-religious organizations.
• Youth experiences.
• Tax Status.

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Universal Motivations to Give

• Make a difference.
• Belief in the cause.
• Personal connections.
• At times, guilt.
• Philanthropic tradition.
• Government attitudes and tax laws.
• Want to help.
• Changing attitudes due to political changes.
• Religious influence.
• Other?

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2004 U.S. Contributions Received by Type of
Organization

• Source Giving USA 2005.
• Giving USA 2005 is a publication of the Giving
  USA FoundationAAFRC Trust for Philanthropy.
• The work is researched and written at the Center
  on Philanthropy at Indiana University.

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Sources of Contributions, 2004

• Corporations 12.00 billion4.8
• Bequests 19.808.0
• Foundations 28.8011.6
• Individuals 187.9275.6
• TOTAL GIVING 248.52 BILLION

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Recipients

• Religion 88.30 / 35.5
• Education 33.84 / 13.6
• Unallocated 21.36 / 8.6
• Health 21.95 / 8.8
• Gifts to Foundations 24.00 / 9.7
• Human Services 19.17 / 7.7
• International Affairs 5.34 / 2.1
• Environment 7.61 /3.1
• Arts / Culture 13.99 / 5.6
• Public Society 12.96 / 5.2

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Giving by Source as a Percentageof Total Giving,
19632003
100
80
60
40
20
0
1993
1963
1968
1973
1978
1983
1988
2003
1998
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Trends in Corporate Giving

• Corporations are less likely to provide funds for
  general purposes.
• Gifts target specific problems, i.e., focused
  giving.
• Giving is aligned with business interests.
• Corporations target focused problem-solving.
• Companies want their giving to improve their
  image.
• Attention is on efficiency in both corporate and
  nonprofit worlds
• Therefore, corporate giving expects more
  accountability and evidence of good stewardship.

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Trends continued

• At times philanthropy is used to ease the
  negative effects of corporate downsizing and to
  boost employee morale.
• Mergers do not double the size of giving budgets
  sometimes philanthropic dollars are cut because
  of a merger.
• Philanthropic and community relations programs in
  corporations increasingly have to prove their
  worth or they are cut. Nonprofits must highlight
  benefits and results of giving.
• There is a reduced acceptance of unsolicited
  grant proposals.

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Trends continued

• Corporate giving is more decentralized there is
  increased use of employee committees and
  consultants in making philanthropic decisions.
• Nonprofit support is coming from marketing,
  public affairs, communications and
  government-relations departments in addition to
  philanthropic dollars.
• Corporations are increasingly establishing giving
  goals that are directed toward benefiting current
  or future customers.
• There is an increase in promoting non-cash forms
  of support.

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Trends concluded.

• Understanding corporate social responsibility
  goals is critical when asking for financial
  support.
• Corporate giving models are
• Corporate productivity model help increase
  profits.
• Ethical/Altruistic Model meet societal needs as
  social responsibility.
• Political model external version leverage
  social change, image.
• Political model internal version corporate
  giving is important function for career
  advancement and positioning.
• Stakeholder model response to various groups.

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Concepts and Principles of Fundraising that can
be Universally Applied and are Adaptable

• The need and art of making a strong, compelling
  case for funding.
• Donor motivations are surprisingly universal.
• The need to research and know the potential
  markets, the application of the exchange
  relationship in determining why a donor might
  give, and diversity in funding sources.

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Differences in Principles and Practice

• Professional compensation.
• Prospect research.
• Board involvement and responsibility.
• Taxation issues.

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Albert Schweitzer said . . .

• One thing I know The only ones among you who
  will be really happy are those who will have
  sought and found how to serve.

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Questions? Answers?

• Ideas? Suggestions?

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Time is Up!