The Rundown - February 11, 2022
The latest news and notes from the nonprofit and philanthropic sectors
The Rundown - SUPER BOWL EDITION!
This weekend is Super Bowl LVI. For those of you that may not be aware, this newsletter is headquartered a mere 65 miles north of Cincinnati, who just happens to be one of the teams that will be facing off in the biggest game of the year.
Our heart goes out to long-suffering Bengals fans. For many grown adult fans, this is the first year in which their beloved Bengals have had any post-season success. Our hopes are with those Bengals as they look to take down those treacherous Los Angeles Rams (as a long suffering fan of the Arizona Cardinals, I have a particular distaste for the Lambs, I mean Rams).
This week we dive a bit more into some new regulations that have recently been introduced to regulate Donor Advised Funds, how a popular fundraising platform got entangled with truckers and the Canadian Government and we will take a look at what one consultant believes are some top trends in fundraising for 2022.
If you like what you have read, feel free to share this with friends and colleagues by simply clicking the link below!
New Laws Regulating Donor Advised Funds Introduced in Washington
The website Think Advisor has a good review of new legislation that will create two types of Donor Advised Funds, if approved. The new bill, called the Accelerating Charitable Efforts (ACE) Act, would reform the laws to make sure that dollars in Donor Advised Funds are used within a reasonable period of time.
The legislation would create two separate types of Donor Advised Funds. The first type would allow donors to receive up front tax benefits from making the donation to the fund, but only if those dollars in the Donor Advised Funds are distributed in the fifteen years when the tax benefit was given. The second type would receive capital gains and estate tax benefits at donation, but not income tax benefits, at the time of donation and would have fifty years to make donations.
Donor Advised Funds have grown in popularity of the last few years and according to Representative Chellie Pingree (the main sponsor of the ACE Act) , “one out of every eight dollars donated to U. S. charities went to a Donor Advised Fund” and “[Donor Advised Funds] currently have more than $140 billion set asked for future charitable donations.”
Some groups have come out against the ACE Act stating that any type of increased regulations on Donor Advised Funds would restrict giving in these vehicles. Proponents say the legislation will help put dollars in the coffers of nonprofits who these vehicles were originally designed to help.
Disclosure: I have a Donor Advised Fund with Fidelity Charitable.
Philanthropy in the News: Truckers, GoFundMe and the Canadian Government
The Federalist published an interesting look into the latest kerfuffle with GoFundMe. To summarize, there was (and still is) a huge convoy of truckers that have converged from every corner of Canada onto the capitol city of Ottawa. The truckers are heading what they call a “Freedom Convoy” as they protest the requirement that they need the Coronavirus/Covid-19 vaccine to do their jobs.
The truckers have made life for the average citizen of Ottawa fairly difficult. Parked tractor-trailers litter the street and the protesters are also blaring their horns at all hours of the day (including nighttime hours). There were also reports that national monuments were vandalized. Local officials feel hamstrung; sure they can pass out tickets and make arrests, but they lack the physical tools to move the trucks.
To make matters more complicated, the convoy has enjoyed support. Many folks, to the chagrin of local officials, have provided food, fuel, clothing and other physical needs to the protesters. This has the effect of encouraging the protesters to continue to stay to block traffic and commerce.
The protesters have also been given money. In fact millions of dollars. As I was listening to talk radio out of Canada, one individual said that so much money was raised that it is one of the largest charitable donation drives in the country’s history, which makes many believe that the dollars funding this effort are actually coming from outside of Canada.
Most of the dollars raised originally came from the website, GoFundMe, a website that is used to raise money for all types of causes. It was originally told (though not vetted and reported) that GoFundMe was not keen into supporting the protest and would take the millions of dollars raised and instead of having it gone to the intended purpose, would be reallocated to other Canadian non-profits. The decision that was later made, was that GoFundMe would actually refund the donors their donations.
All of this leads to some serious ethical questions for those paying attention to philanthropy and society. One of those serious questions is that do we have a freedom to give?
In the United States, there are certain rights that are spelled out in the Constitution. While Canada has a much different constitution, they do have a Charter of Rights and Freedoms that play much the same role. Both documents outline fundamental freedoms such as freedom of speech, freedom of religion, freedom of peaceful assembly, etc.
But one right that is not discussed is the freedom to give. Do we have such a right?
Philanthropy is built on the voluntary donations individuals give to the causes they choose to give. Even if it is not freedom of speech, it certainly seems like an extension of it. And even in the most draconian dictatorships, there is some sense of philanthropic giving (even it is very small and very non-formal).
I do believe that individuals have an inalienable right to give - - it’s almost a part of the fundamental belief that we have an obligation to love. And should government play a role in who is worthy of receiving a donation or not? Who gets to make that decision and how is that decision made?
Regardless of how we feel on those decisions, I think we can all agree that if GoFundMe was going to reallocate funds received for one cause and send it to another, that would have been a huge mistake. Individual donors have the right to know that if they are making a donation to an organization, their dollars are going to that organization. If that can’t happen, individuals should at least be communicated with and given options on other organizations to donate or given the option to receive their gift back.
The relationship between the donor and the organization is one that is fundamental to our work and honestly one that should be free from as much governmental interference as possible.
A Consultant Looks at Fundraising in 2022!
This post from the Gail Perry Group has outlined what they believe will be some of the biggest fundraising trends in 2022. These were ten trends that I thought weren’t so much new for 2022, as much as they build on some of the things our industry saw in 2021.
One of the big takeaways comes in the first two trends and they are large economic. As long as our stock market grows, philanthropic giving grows as well. It almost works as clockwork, if the S&P 500 goes up, overall philanthropic giving goes up by the same margin.
And with that, we are seeing new behaviors in consumeristic and work trends. The Great Resignation is still happening and is largely brought on by late-career workers retiring early thanks to large stock market gains in 2020. Many households were also buoyed by pandemic relief payments that gave individuals and families more spending cash. Families with children were given advanced tax credit payments during the latter part of 2021. Having an economy flush with cash in the hands of individuals and families that need those dollars, might provide new opportunities for philanthropy to open up new doors to new donors.
Now Hiring!
Our good friends at the Lilly School of Philanthropy at Indiana University are hiring for three positions. You can learn more at this website posting here! I bring this up, because I have seen the value first hand of the Lilly School as a student in their professional development programs and have gotten to know many of the instructors, professors and staff members. They are a high quality group.
Also, the Northern Illinois Food Bank is looking for an Innovation Manager, take a look at the position description here! And they are also looking for a Innovation Business Design Lead; description here! For our Chicagoland area friends (we know you are out there!) check it out!
If you have a position you are hiring for, please feel free to email pinnaclestrategiesltd@gmail.com and we will run an announcement!
Is your New Year Resolution to Learn Something New?
If your New Year Resolution was 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!
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.
An Excerpt from the “Tools, Tips and Tricks” Newsletter
The Pinnacle Strategies, “Tips, Tools and Tricks” newsletter comes out every Tuesday and is available for a paid subscription for as little as $7/month. Here is an excerpt from our last version: Don’t forget, those that sign up for a paid subscription will receive a free gift that you will be sure to enjoy!
This week our paid newsletter looked into the nuts and bolts of Donor Advised Funds and how these tools are changing the philanthropic landscape.
Over the last few years, Donor Advised Funds have grown exponentially. Currently 3% of all giving is coming from a donor-advised fund. In 2020, Donor Advised Funds had assets of over $34 Billion and paid out over $8 Billion in donations to non-profit organizations. In fact, if you research the largest grant-maker in the country, it’s Fidelity Charitable — which the largest donor advised fund provider in the country. In full disclosure, I have a Donor Advised Fund through Fidelity Charitable, in which my family does all our charitable giving.
The National Philanthropic Trust reported that in 2020, the average size of a Donor Advised Fund was just north of $166,000; however over half of the Donor Advised Fund accounts had less than $25,000 in them.
A Quick Note of Thanks!
Thank you readers! I am not sure how it happened, but ever since the first of the year, this newsletter has taken off, subscriber growth has more than doubled this past month! And many of you have reached out to me and it’s amazing to see that this newsletter has readers in Canada, Italy, Kenya and all over the United States. To say that we have an international newsletter, is not an exaggeration!
I know many of you have shared this with your friends and colleagues and I am very grateful. Thank you!
Other Ways to Connect
Our coaching practice has openings starting here in 2022. If you are interested in working with me to get your nonprofit organization on a track to achieve the big missions you have for your organization, 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
and Check out the Celebrating Leadership Facebook Group for almost daily content and interaction with other leaders!
If you like enjoyed this newsletter, please feel free to share it with your friends and colleagues. It would be greatly appreciated!