The Rundown - Bits and Pieces Edition - February 24, 2023
News clippings from around the world of philanthropy high light today's edition
A Change in Format
We are mixing things up a little bit. Usually in these newsletter, we try to tackle a big story that his hit the world of philanthropy and give it a deep discussion. Well, today, we are just going to bring up a couple little things that caught my eye in the world of philanthropy and share some of the news from this sector that has been happening thiis week.
The World’s Biggest Grant Maker Gives More
If I asked you who the world’s biggest grant maker is, would you know who or what it is? Well, the answer is Fidelity Charitable. Fidelity Charitable, the world’s largest provider of Donor Advised Funds recently reported that it gave over $11.2 Billion in 2022. This story from the Associated Press goes in depth on this number.
For those that aren’t aware, let’s get into these philanthropic tools a little more.
Donor Advised Funds (DAFs) are philanthropic vehicles that allow individuals, families, and organizations to make charitable contributions and receive an immediate tax deduction while recommending grants to charities over time. They have become increasingly popular in recent years, as they offer donors flexibility, simplicity, and cost-effectiveness in their charitable giving.
The way a DAF works is simple: donors contribute cash, stocks, or other assets to a public charity that sponsors the DAF, such as a community foundation or a charitable arm of a financial institution. Once the funds are in the DAF, donors can recommend grants to eligible charities at any time. The sponsoring charity then reviews the recommendation to ensure it meets IRS requirements and, if approved, makes the grant to the designated charity. Donors can recommend grants to any public charity that is recognized by the IRS, as long as it is not for personal benefit or to fulfill a pre-existing pledge.
DAFs offer several benefits to donors. First, they provide an immediate tax deduction for the full amount of the contribution. This means that donors can take the deduction in the year they make the contribution, even if they do not recommend grants to charities until later. Second, DAFs allow donors to centralize their giving in one place, simplifying record-keeping and reducing administrative burdens. Third, DAFs offer donors flexibility in their giving, as they can recommend grants to charities over time and adjust their giving strategy as their priorities change. Finally, DAFs can be a cost-effective way to manage charitable assets, as the sponsoring charity typically handles the investment management and administrative tasks for a small fee.
Despite their benefits, DAFs have been subject to some criticism in recent years. Some critics argue that DAFs can be used to park money in accounts that are not being distributed quickly enough to charitable organizations in need. Others have criticized the lack of transparency around DAFs, as the sponsoring charity is not required to disclose the identity of the donor who made the recommendation.
Overall, DAFs can be a powerful tool for donors who want to support charitable causes while maximizing their tax benefits and simplifying their giving. As with any charitable giving strategy, it is important for donors to carefully consider their priorities and goals before choosing to open a DAF, and to work with a trusted financial advisor or philanthropic consultant to ensure they are making the most of their giving.
Trends in Philanthropy
The website Philanthropy Roundtable recently provided an intresting commentary on a recent report from the Dororthy A. Johnson Center for Philanthropy at Grand Valley State University in Michigan. You can read the GVSU report here and Philanthropy Roundtable’s Response here. Both pieces talk about what could be 11 big trends in philanthropy this year.
The eleven trends discussed were:
The Rise of Collaborative Funding
Rethinking What Capacity Building Should Be - and Who Should Decide
Disaster Philanthropy Transitions
Journalism explores Non-Profit Models
New Organizational Structure Models are Toppling the Staff Pyramid
Policymakers Are Paying Increasing Attention to Miving More Money Faster
ESG Backlash Will Affent the Future of Philanthrophy and Impact Investment
Will Philanthropy Stay Focused on Racial Equity?
More Nonprofit Employees are Moving to Unioninze
IRS Delays are Other Barriers to Data Mean Real Risks for Nonprofits
The Public Is Holding Nonprofits Accountable to Living Their Mission and Values
Each one of these could have been the topic of a separate newsletter edition in itself, but I would encourage you to read the studies and the response and determine which one of these trends seem to be the most impactful in your line of work.
Share it in the comments! Let’s have a discussion!
The Weekly Notebook
A quick rundown of what I am seeing and hearing in the nonprofit world….
Now Hiring!
I have a nonprofit in Sidney, Ohio that has reached out to me looking for a new Executive Director. I can tell you that this a very strong organization that needs leadership that has strong entrepreneurial and staff management skills. If you have any interest, please drop me a line at pinnaclestrategiesltd@gmail.com and let’s talk!
Also, the local CASA/GAL agency in Troy, Ohio is looking for a new staff member as well. It’s a great agency with solid leadership. If you have interest, please let me know by sending an email to pinnaclestrategiesltd@gmail.com and I will share what I know.
Finally, the Habitat for Humanity affiliate serving Miami and Shelby Counties in Ohio is looking to a hire a Community Development Director. This looks like a great posiiton for anyone interested in helping build communities and affordable housing. The position is located in the growing community of Troy, Ohio. You can look at the listing here. Applications are due April 15, 2023.
What Can We Work on Together?
Did you know that Pinnacle Strategies works individually with nonprofit and public sector leaders to help them solve problems, achieve goals and gain confidence in their roles?
Why?
Because, this work is hard and it’s often a lonely road. Our nonprofit and public sector leaders need people that they can talk to to get solid advice and encouragement to do the work that is in front of them. If you feel that this can be of value to you, or a member of your team, please reach out to pinnaclestrategiesltd@gmail.com and let’s talk.
Ready to Learn Something New?
One of the prettiest cities in the Midwest is Indianapolis and travelling there can open a perfect opportunity to sharpen your skills and meet new professionals in the field. I would encourage you to look at some of the offerings of The Fund Raising School at the Lilly School of Philanthropy at Indiana University’s campus in Indianapolis. The professional development school has great programming both on-line and in-person both in Indianapolis and at other sites across the country. Take a look at their course offerings here!
Online Learning Options from Texas A&M Announced
If travelling for professional development isn’t in the cards (or the budget), the Center for Nonprofits at Texas A&M University has some great offerings! I recently enrolled in one of their certificate programs and really enjoyed the online format and the online discussions that were developed. It was time and money well spent and I would highly recommend this program, especially for early or mid-career professionals. The next session begins in early February and you can learn more here!
Other Ways to Connect
Our coaching practice has openings and it has been a blast working with nonprofit leaders all across the country! If you are interested in working with me to get your nonprofit organization on a track to achieve the big missions you have, please reach out to me at pinnaclestrategiesltd@gmail.com.
Here are some other ways you can keep in contact with Pinnacle Strategies!
Check us out on our LinkedIn Page
Check us out on the Celebrating Leadership Facebook Page.
Want to help support this newsletter?
I hope you have found value in this newsletter. If you have found it valuable and want to help, the best thing you can do is “hit the heart”! By liking this post, you help other people interact with it. Also, sharing and commenting is very helpful as well. Thank you.