The Rundown - July 8, 2022
The latest news and notes from the nonprofit and philanthropic sectors.
The Rundown - Back in the Saddle Edition
This past week the Tour de France kicked off in Denmark and will finish in a couple weeks on the famed Champs-Elysees in Paris. This year also marks the first year of a women’s edition; an eight stage event that will take place over 630 miles.
I only bring it up not because I am huge Tour fan, but I have done quite a bit of bicylcle riding this past year. I had a personal goal of getting 2,000 miles in this calendar year. For living in Ohio, this seemed appropriately ambitious. Well, as we have just turned the half way point in the year, I have just passed the 1,300 mile mark. Perhaps that 2,000 miles was too low?
A lot of riding is dependent upon time and good weather. Both can be exceedingly short supply in a moment’s notice. For the time being, we will keep the 2,000 mile goal in mind and check back in around the beginning of September.
By the way, you may be wondering what I do to pass the time on those long bicycle rides. I have compiled a list of audiobooks I plan to listen to this summer, you can check the list out here!
The Bleak Future of Philanthropy
This was an insightful piece on the Inside Philanthropy website. In his article, Philip Rojc described seven trends in philanthropy that he sees as particularly worrying. These trends include things as philanthropy becoming more hidden and politicization of giving.
Last month, I wrote a “Deeper Dive” imploring my fellow nonprofit and philanthropic friends to leave politics at the door of our work.
And in all reality, much of the work that we do as a sector is doesn’t need to have politics at the center of it. I often muse at friends that in my time as an executive director of a human service non-profit, I have yet to meet one person who is “pro-poverty”. No one wants to see anyone else go hungry.
Rojc in his piece, decries the fact that liberal minded grant makers have failed to make broad leaps to improve things such as civil rights, democratic action and climate. But also warns that if these liberal-minded funders start funding those causes near and dear to their hearts, more conservative-minded funders will start doing the same things. The author make the claim that action will create the non-profit sector as nothing more than a cause celebre for “uber-rich super citizens”.
I understand the argument Rojc makes and perhaps it does give us reason to take pause. But, even Rojc’s argument is steeped in a zero-sum game of philanthropy. Perhaps I am a bit optimistic, but I tend to believe that there is a sizable amount of untapped potential in philanthropic giving. Giving to one effort doesn’t necessarily negate giving in another.
Good fundraisers and development professionals aren’t in a world of competition. When I make a solicitation, of course I hope I have earned the trust to get a donation, but if that individual chooses to make a donation to another organization, I should still celebrate it! When we all give, we all do better.
Another point that the author makes is that philanthropy may become more hidden. The proliferation of Donor Advised Funds, charitable LLCs and 501 c 4 organizations are hiding donors from plain view. One of the aspects of this work is that we always in a struggle between donor privacy and organizational accountability.
Donors need not to be promoted for their donation, but a conversation needs to happen. Some donors wish to remain under the radar. But at the same time, some donors want to be out front in their donation and our profession would be wise not to get into situations where we unwittingly become enablers of reputation rehabilitation when it is not warranted. Such is the stuff public relations nightmares are made. Above all else, we should strive for legal and ethical compliance everywhere we work and with every donor we encounter.
The Economic Value of Nonprofit Organizations
According to a report from The NonProfit Times (article here), nonprofit organizations contributed $1.4 Billion to the United States economy in the first quarter of 2022. The article also dipped into some new insights in how people are giving that I found particularly interesting.
The amount of money giving to nonprofits increased by 11% since 2019.
The giving rates by those donors have dropped by 0.8%
Donor retention rates have fallen by nearly 8% since 2019
That third point really can’t be emphasized enough. One of the hardest aspects of nonprofit fundraising and developing is finding donors and the best way to find a large donor is to grow them from the cadre of existing donors an organization already has.
If our donor retention rates are falling by 8%, we need to at least make sure our new donors rate is at least 8% just to keep pace. In reality, that number is probably higher since we know that returning donors tend to give more than new donors.
All of this to say, right now it appears that donor retention is more important than ever!
Check Out Some New Resources
Pinnacle Strategies has created a new resource! Check out our store here on the gumroad platform. These are the three most popular tools that I am hit up for. Take a look at these tools and of course, if you have any comments or questions, please feel free to contact me at pinnaclestrategiesltd@gmail.com.
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.
A Quick Note of Thanks!
Thank you all for subscribing to this newsletter. The subscription numbers continue to grow and from what I am learning, this side job seems like it has “sticking power”. I am not getting inquiries and calls from literally all over the world wanting to partner and work together to create value for you, the non profit and philanthropy leader. I feel very excited about the future of this newsletter and if you have any ideas or comments, please feel free to share them with me at pinnaclestrategiesltd@gmail.com
I know many of you have shared this with your friends and colleagues and I am very grateful. Thank you! If you haven’t shared it yet…..well, here is your chance….
Ready to Learn Something New?
Spring is a wonderful time to visit Indianapolis and it opens 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!
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
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!