Monday, November 29, 2010

Charities Seeing Slight Recovery in Giving, But Not Enough to Keep Up with Demand or Budget Cuts

Nonprofit organizations have seen a slight turnaround in giving so far this year that mirrors the slow economic recovery, a new survey from the Nonprofit Research Collaborative (NRC) finds. But the small rebound hasn't been enough to help many nonprofits that are grappling with staff and service cuts even as demand for their services has increased.

The national survey showed that 36 percent of charities reported an increase in donations in the first nine months of 2010, compared with only 23 percent in the same period of 2009.

Thirty-seven percent of charities reported a decrease in giving, a dramatic change from 2009's 51 percent. Among those experiencing a decline in giving, the main reason cited was fewer individual donations and smaller amounts. Lower amounts received from foundations and corporations also contributed to the overall lower giving amounts at these charities. Giving remained unchanged at 26 percent of nonprofits in 2010 vs. 25 percent in 2009.

"We are beginning to see some positive signs, but despite that giving still has a long way to go to return to the levels it was at three or four years ago," said Patrick M. Rooney, executive director of the Center on Philanthropy at Indiana University, which spearheaded the collaboration. "One-fifth of charities in the survey said their budgets for 2011 will be lower than for 2010, forcing many of them to look at cuts in services, salaries and staff."

Among the 20 percent of nonprofits anticipating reduced budgets next year, 66 percent say they will have to reduce programs, services or operating hours, 59 percent expect to cut or freeze staff salaries or benefits, and 49 percent are planning layoffs or hiring freezes.

"The Nonprofit Fundraising Survey: November 2010" is the first product of a collaboration involving six organizations that serve the nonprofit sector: the Association of Fundraising Professionals, Blackbaud, the Center on Philanthropy at Indiana University, the Foundation Center, GuideStar USA Inc., and the Urban Institute's National Center for Charitable Statistics.

"For the first time in two years, there is cause for cautious optimism about the nonprofit sector in this economy," said Bob Ottenhoff, president and CEO of GuideStar. "Nonetheless, in this latest study, as in all prior years, nonprofits also are reporting increased demand for their services. Even as giving increases, philanthropic dollars fall short of the amounts needed to help people in our country and abroad."

Demand for services increased at 78 percent of human service nonprofits and 68 percent of charities overall in 2010. Charities will be hard-pressed in 2011 to secure funding for growing needs, especially as individual and foundation donors are cautious about boosting support and other sources of funding — including government contracts for services — are cut.

"Younger, less well-established nonprofits have been especially hard hit by the recession," noted Lawrence T. McGill, vice president for research at the Foundation Center. "Many foundations, seeking to maximize more limited resources, have steered their grantmaking toward organizations they believe have the best chance to weather the economic storm."

Other Key NRC Survey Findings:

  • In four of eight subsectors, the share of organizations reporting an increase in contributions was about the same as the share reporting a decrease. The four with nearly equal percentages of organizations with giving up and giving down are: arts, education, environment/animals, and human services.
  • International organizations were the most likely to report an increase in contributions, reflecting donations made for disaster relief.
  • In three subsectors — health, public-society benefit, and religion — a larger share of the organizations reported declines than reported increases.
  • The larger an organization's annual expenditures, the more likely it reported an increase in charitable receipts in the first nine months of 2010 compared with the same period in 2009.
  • Most organizations were guardedly optimistic about 2011. Forty-seven percent plan budget increases, 33 percent expect to maintain their current level of expenditures, and 20 percent anticipate a lower budget for 2011.
The Collaborative and Survey Methodology

By working together, the Nonprofit Research Collaborative can reduce the number of surveys nonprofits are asked to complete, collect information more efficiently, and analyze it in more useful ways to create the benchmarks and trends that nonprofits and grant makers use to guide their work. Each partner has at least a decade of direct experience collecting information from nonprofits on charitable receipts, fundraising practices, and/or grantmaking activities. Survey participants will form a panel over time, allowing for trend comparisons among the same organizations. This approach provides more useful benchmarking information than repeated cross-sectional studies.

The first NRC survey, based on questions that GuideStar used for its annual economic surveys, was fielded between October 19 and November 3, 2010. It received 2,513 responses. More than 2,350 charities completed the questions, as did 163 foundations. The analysis for grant makers includes responses from charities that make grants but that are not foundations. These include United Ways, Jewish federations, congregations, and a number of other types of organizations. There were responses from 386 grant makers.

The respondents form a convenience sample. There is no margin of error or measure of statistical significance using this sampling technique, as it is not a random sample of the population studied. However, given the long-running nature of GuideStar's economic surveys and the strong relationship between findings in those studies in prior years and actual results once tax data about charitable giving are available, the method employed here is a useful barometer of what charities experience and what total giving will look like. In the future, the NRC surveys are expected to occur in early winter, spring, and fall every year.

"The Nonprofit Fundraising Survey: November 2010" (PDF), which includes responses broken down by types of nonprofits and budget size, can be downloaded at no charge from the Gain Knowledge area of the Foundation Center's web site.

Saturday, November 20, 2010

Foundations Likely to Increase Giving in 2011, According to Foundation Center Survey

Foundation Operations Have Stabilized in the Wake of Widespread Disruption

Giving by U.S. foundations is poised for modest overall growth in 2011, after remaining flat in 2010. But it may take several years for giving to match the peak level recorded in 2008, according to estimates reported by the Foundation Center in Moving Beyond the Economic Crisis: Foundations Assess the Impact and Their Response.

Foundation operations appear to have stabilized following cuts in staffing, travel, or other operating expenses by a majority of grantmakers. In a sign that foundations may be turning the corner, only 12 percent of respondents to the Center's September 2010 "Foundation Giving Forecast Survey" expect these operational changes to remain in place over the longer term. Among the changes that could persist: funders making fewer site visits to grantees, attending fewer conferences, eliminating print copies of annual reports, and moving to electronic grant applications.

"The foundation community is adapting in our dramatically changed environment," said Steven Lawrence, director of research at the Foundation Center and author of the advisory. "Even though the 2010 economy has been anything but predictable, foundations are working with greater efficiency, holding their giving steady, and a number are planning for growth."

Findings from the new report also indicate that about 40 percent of respondents have made some type of modification to their grantmaking priorities as a result of the economic crisis. However, less than 8 percent expect these to be long-term changes. The priority changes described by respondents range from providing greater support for safety net activities to tightening their grantmaking focus to eliminate funding that falls outside of their existing priority areas.

This Foundation Center research advisory is the latest in a series that has explored the impact of the economic downturn on the nonprofit sector. The advisories are available at the Center's Focus on the Economic Crisis web page, which offers a variety of resources to help nonprofits and foundations deal with the challenging economy. Also available on this page is the Center's interactive map that displays the most recent data available on U.S. foundation support for the crisis, totaling $440 million to date. Moving Beyond the Economic Crisis: Foundations Assess the Impact and Their Response (PDF) can also be downloaded at no charge from the Gain Knowledge area of the Foundation Center's web site.


About the Survey
In September 2010, the Foundation Center launched a special online update of its annual "Foundation Giving Forecast Survey" and made it available to approximately 5,000 large and mid-size U.S. independent, corporate, and community foundations. The survey included questions on the outlook for foundation giving in 2010 and 2011, changes in their grantmaking priorities and operations, and their response to specific needs created by the economic crisis. A total of 719 foundations provided useable responses as of mid-October 2010. The Center's next Foundation Giving Forecast Survey will be conducted in January 2011, with results released in the April 2011 edition of Foundation Growth and Giving Estimates.

This study was made possible in part by support from The Wallace Foundation. The Foundation Center's Research Institute is funded in part by The Wallace Foundation, which supports and shares effective ideas and practices to help institutions expand learning and enrichment opportunities. To learn more, visit the Knowledge Center at www.wallacefoundation.org.


About the Foundation Center
Established in 1956 and today supported by close to 550 foundations, the Foundation Center is the leading source of information about philanthropy worldwide. Through data, analysis, and training, it connects people who want to change the world to the resources they need to succeed. The Center maintains the most comprehensive database on U.S. and, increasingly, global grantmakers and their grants — a robust, accessible knowledge bank for the sector. It also operates research, education, and training programs designed to advance knowledge of philanthropy at every level. Thousands of people visit the Center's web site each day and are served in its five regional library/learning centers and its network of 450 funding information centers located in public libraries, community foundations, and educational institutions nationwide and beyond. For more information, please visit foundationcenter.org or call (212) 620-4230.

Tuesday, November 16, 2010

Nonprofits Have Big Role in State

As Governor-Elect Andrew Cuomo and legislators shape their plans for New York next year, they should pay close attention to the state's vibrant not-for-profit sector, as it is the standard-bearer for innovation and service to the state and its people. The 80,000 not-for-profit organizations in the state play crucial roles: leading efforts to prevent or cure disease, alleviate poverty, advance education, address environmental and social concerns, and ennoble through culture.

New York's robust charitable sector, including such powerhouses as Columbia University, Sloan-Kettering, the Red Cross, the Ford Foundation and Lincoln Center, as well as community-based organizations, such as local drug-prevention programs, small community theaters and religion-based charities, help fuel the state's economy, generating over $150 billion in revenue annually and employing hundreds of thousands of New Yorkers. Second in size only to the government as an employer in the city, the nonprofit sector provides more jobs than the financial and insurance industries combined.

Working together, state government and nonprofits can help maintain our state's primacy as innovator, incubator and magnet for investment. Here's how.

* Adjust taxes to encourage more giving. For example, reward taxpayers for increases in year-over-year charitable giving and incentivize artists to donate their work to charity auctions in support of good causes.

* Promote regulatory, administrative and legislative reforms that make it easier to start and operate nonprofits, especially in high-tech, medical research and green industries.

* Encourage and facilitate partnering among nonprofits and between them and for-profit businesses. For instance, provide a clearinghouse so that environmental groups can pair up with green-tech businesses or so arts-in-education organizations can collaborate with founders of charter schools.

* Incentivize nonprofits to hire recent college graduates to fill needed roles while they learn important lessons about professional development and social responsibility.

* Rearrange state budgets with existing charitable resources in mind. For example, recalibrate school aid and Medicaid expenditures so that public spending on students, the elderly and the disabled complements and stimulates private nonprofit resources and support.

* Safeguard against encroachments on sales- or property-tax -exemptions, which would hurt already-stretched hospitals, elder-care facilities and YMCAs.

* Promote visibility for worthy nonprofits by providing voluntary check-offs on state tax forms.

* Include nonprofit destinations in the state's promotion of tourism and convention activity.

* Make nonprofits part of New York's federal lobbying strategy.

The public's trust in state government may be at a low ebb, but public support for nonprofits endures. By recommitting himself to the well-being of our valuable nonprofit institutions, Mr. Cuomo can take important steps toward reclaiming the state's role as a national beacon and perpetuate its highest ideals.

by Lesley Freidman Rosenthal, for original article click here.

Saturday, November 13, 2010

Deadline is Dec 1 for Knight News Challenge media innovation contest

If you have an innovative media technology idea, you might be able to get funding from the Knight News Challenge contest.

Run by the Knight Foundation, the grant competition awards up to $5 million annually for innovative projects that use digital technology to transform the way communities send, receive and make use of news and information.

More info can be found here: http://newschallenge.org. The site includes application information, as well as details about past winners.

This year's application deadline is December 1. The News Challenge is looking for applications in four categories: mobile, authenticity, sustainability and community. All projects must make use of digital technology to distribute news in the public interest.

The contest is open to anyone in the world.

A simple description of the project is all you need to apply. Submit a brief pitch to http://newschallenge.org. If the reviewers like it, you'll be asked to submit a full proposal later.

Tuesday, November 9, 2010

NYSCA: Actors Fund Affordable Housing Survey

As a member of the professional performing arts and entertainment community, have you struggled to find affordable housing?

If so, the Actors Fund Housing Development Corporation (AFHDC) wants to hear from you.

NYSCA is working with AFHDC in their efforts to learn about the housing needs of the performing arts and entertainment community in the New York/New Jersey and Eastern Pennsylvania regions.

From now until December 6th, you can participate in a 10-minute survey to help them determine the unique affordable housing needs of entertainment professionals.

Your opinion is vital as your responses will assist AFHDC in determining interest, need, design, amenities and more! Your input, and the input of your friends, will move this project forward!

Take the survey now at www.ActorsFundHousingSurvey.org.

If you have questions or need more information, contact The Actors Fund Survey Team at 212.221.7300 ext 107.

For more on The Actors Fund, please visit www.actorsfund.org.

Spread the word and help us help AFHDC!

Sunday, November 7, 2010

Survey: CFOs have mixed feelings about employees using social media

About half the CFOs in a new survey said their “greatest concern” about employees’ use of social media was wasting time on such sites during business hours.

Accountemps, a division of Menlo Park, Calif.–based Robert Half International, released the survey Thursday. Robert Half International specializes in the placement of skilled administrative professionals.Besides those concerned about workplace use of social media, another 18 percent were worried about employees behaving unprofessionally while using sites such as Facebook or Twitter. The survey also found 11 percent were worried about employees posting financial or confidential company information and 10 percent were concerned about employees posting negative comments about their firm.

When asked about the greatest benefit for a company of employees’ use of social media, 28 percent said it’s a way to provide better customer service. Another 22 percent saw it as a way to enhance the company’s reputation.

International Communications Research, a Media, Pa.–based independent-research firm, conducted the survey through telephone interviews with more than 1,400 CFOs from a random sample of U.S. companies with 20 or more employees.

by Eric Reinhardt, from Business Journal

Thursday, November 4, 2010

Nonprofit Times TV

Nonprofit Times TV has a collection of webcasts and other videos directed specifically to nonprofits and their needs and interests. Videos cover not just current news, but issues such as fundraising, volunteer management, legal issues, and finance. Most videos are less than three minutes, giving necessary information without taking too much time. Users can also submit their own videos to share ideas with others in the sector.

Their current webcast discusses the loss of revenue of national nonprofit organizations and the Jerry Lewis telethon. Check out Nonprofit Times TV here.