The Rundown - Looking Back, Looking Ahead: December 16, 2022
Let's take a look at where philanthropy has been and where it might be headed
Looking in the Rear-view Mirror
A recent piece in the Chronicle of Philanthropy took a look at how philanthropy faired in 2022 and what we can expect in 2023. Folks that know me really well, know I have a bit of a catch-phrase, “a bucket of suck”. The bucket of suck is a vivid representation of the troubles, concerns and headwinds we all carry with us in the course of our work. Some are bigger than others, but in the end, we are all carrying some bucket of suck with us.
Well, 2022 was a pretty big bucket and this piece from the Chronicle of Philanthropy laid it out pretty well. Inflationary pressures eroded our organizational budgets, the collapse of FTX actually took millions of potential philanthropic donations out of play, the fraud of groups like Feeding our Future in Minnesota continue to dog the sector.
But, what if we took a further view back? How is the sector compared to thirty years ago? Well, that outlook is much, much rosier.
Thirty years ago, there was the huge United Way fraud scheme, which found their CEO convicted on 23 felony counts and a guest of the U. S. taxpayer for six years in prison - just a reminder that fraud has always been with us.
On the positive side, the sector has some good things for it. First of all, the amount of charitable donations have kept pace with economic growth. In 1993, charitable donations were over $124 Billion; this year, that number is expected to be closer to $485 Billion. Even after taking inflation into account, donations have certainly grown over the past thirty years.
There are also more organizations in this space. The number of registered charities are over 1.3 million according to IRS data, more than double from back in 1992. The number of private foundations grew by nearly 70% to almost 100,000.
Challenges Ahead
So, what does the next thirty years look like? Well, with the knowledge economy firmly in place, it might be reasonable to think that the number of nonprofits will continue to steadily grow — perhaps there will be nearly 3 million nonprofits by the time 2052 rolls around.
Also, with the proliferation of Donor Advised Funds reaching middle-class households, these tools might be the “go to” donor of choice for millions of Americans and current campaign efforts such as the Combined Federal Campaign and the United Way, might find themselves on the sidelines.
But perhaps the biggest challenges for philanthropy is the inherent challenge of society itself. Philanthropy is not immune from the political and social forces of today. Organizations that aren’t politically involved might find themselves sidelined from potential donors if they aren’t effectively advocating for their needs. Organizations that advocate too much or are too cozy with certain political actors might be seen as extensions of a never-ending campaign season. Balance must be sought.
Even ideas such as effective altruism, which have taken a hit thanks to Sam Brinkman-Fried and his FTX collapse are making people rethink what philanthropy really is and how it is helping to serve the better angels of our nature. The wonderkid of philanthropy and finance, that at least gave an appearance of a logical approach to “doing the most good for the most people”, ended up running a sham corporation from a laptop and zero accounting skills. Maybe people are going to think twice when they start hearing from people they don’t really know?
The Next Asian Generation
I found this article in Wealth Briefing Asia very interesting. Asian banking giant, HSBC commissioned a study of second and third generation businesses looking at how the next generation of family business leaders are being groomed as leaders in the world of finance and philanthropy.
A couple of noteworthy nuggets:
23% of Next Generation business leaders are actively involved in Philanthropy
29% of Next Generation lead businesses had philanthropic interests, compared to 21% of first generation lead businesses
32% of Next Generation lead businesses state education is their highest philanthropic concern
While this information is specifically for Asia, I would contend the same is probably true for American or Western Europe, though I don’t think education would be at the top of the list of philanthropic concerns. My own best guess is that younger philanthropists in the West are more concerned with the environment.
The Weekly Announcements
A quick rundown of what I am seeing and hearing in the nonprofit world….
A Huge Note of Congratulations!
I would be remiss if I didn’t publicly shoutout one of my clients, New Creation Counseling Center. We worked with them on creating a basic fundraising plan and they recently announced that they received their first five-figure donation as an organization! Amazing!
How can we help you serve your community better? Reach out and let’s talk. Shoot me an email at pinnaclestrategiesltd@gmail.com!
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!
Registrations now open for Paul G. Duke Academy for Community Leadership!
Registrations are now open for continuing education offered by Edison State Community College in Piqua for the Paul G. Duke Academy for Community Leadership! I have been a proud alumni of both programs and have even been asked to help present sessions and teach classes. It’s an amazing program and I would encourage you to be a part of it if you are in the area! You can register here.
There are only two spots open for the 1.0 Academy and one spot open for the 2.0 Academy!
The Paul G. Duke Academy for Community Leadership 1.0 is a series of workshops designed to develop more effective directors, leaders, board members, staff and volunteers of nonprofit organizations. Course topics include the fundamental practices of board recruitment, planning, staffing, budgeting, evaluation, board meetings and community awareness. The classes are designed to help individuals make a difference on their boards and in their community.
The Paul G. Duke Academy for Community Leadership 2.0 has been created and designed specifically for experienced executive directors of nonprofit organizations and alumni of the Academy for Community Leadership 1.0. This challenging and intensive Academy is coordinated by the Academy development team and participants. Advanced participants will conduct original research and exchange results via reports and discussion. Participants will help to further develop the foundational agenda for each of the four monthly sessions that will explore nonprofit organizations—based upon their backgrounds, experiences, pressing issues and needs—through self-analysis, organizational analysis, guest speakers, best practices, resource review and in-depth discussions. At its conclusion, Academy 2.0 participants will be immersed in the annual Mosaic of Community Leadership Conference, both as participants and presenters. Academy 2.0 is the latest collaboration between the Paul G. Duke Foundation and the Edison State Community College Center for Leadership Development.
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.
We are so close to 500!
Over the last few weeks, the subscription base to the newsletter has just grown and grown and grown. It has finally arrived at a point where we are SO CLOSE to 500 SUBSCRIBERS!
Originally, I had hoped to have 500 by the end of the first year, but it looks more and more likely like it’s going to 15 months to hit that 500 figure, which is still pretty impressive. You can help this newsletter get to that 500 figure by sharing this publication with your friends and colleagues!
Personally, 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….remember we are trying to get to 500….right?
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
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