The Rundown: The Year End Edition - December 30, 2022
Looking at the latest trends in philanthropic giving as we finish out our first full year!
Our First Full Year is in the Books!
The first full year of the “The Rundown” is in the books. I hope you have enjoyed this weekly newsletter and more importantly found value in some of the stories we shared this past year.
If you are also a reader of the “Deeper Dive” that we put out on Tuesdays, you know that some changes are coming to that weekly publication, as it is going to be available only to our paid subscribers.
You can become a paid subscriber to the “Deeper Dive” by clicking the box below.
As a subscriber, we will also send you a free gift as a token of thanks for your support. In fact, today I was in a meeting with one of our subscribers and I noticed she was using the free gift. When I noticed, she said, “I absolutely love it.!”
Good news for readers of “The Rundown” is that there will be no changes. Our Friday flagship publication will continue to be free for our readers and we hope you enjoy latest news and comment from the worlds of nonprofits and philanthropy.
New Data on Nonprofit Giving in 2022
This article on the KUAR website has some interesting data points that are worth discussing. At first blush, 2022 seems like a good year for nonprofits - data from the Fundraising Effectiveness Project showed that in the fist half of the year, donations to nonprofits were up 6% year-over-year. However, when we look at an inflation rate up over 8%, most nonprofits are lucky to be treading water.
But the further we dive into the data, the more we are seeing some interesting trends. As donations climbed 6%, the number of donors actually decreased 7%. This decrease was due to a lack of small givers — those that have given $100 or less dropped by more than 17%.
For nonprofits in the human service field, the numbers are more stark. Donors are down well over 7%, donor retention is down over 4% and the actual number of dollars being donated rose a paltry 2.7%. One-time donors make up over 70% of all donations to these nonprofits, dropped nearly 15% over the same time last year.
The message for these smaller nonprofits is that money is being left on the table.
If there is one strong piece of advice for fundraisers is that it is much, much easier to retain a donor than to create a donor. It’s the same rule of thumb in nearly any line of business. When we are seeing that the number of one-time donors decrease by 15%, we need to really think about how we are being stewards of these donors and think about how we can get these one-time donors to give more often and possibly give at high amounts.
The latest data from the Fundraising Effectiveness Project can be accessed here.
And the headwinds that we are facing as nonprofits are more than just the fact that we are seeing fewer donors come through our doors, we are also seeing more and more people show up for service. It continues to prove that nonprofits live in a very counter-cyclical world; when the world is economically treacherous, our shops are always busy and always requiring more resources.
Vanishing Corporate Support
The same article referenced above also reported that dollars raised from corporate support is also slowly eroding.
Tyler Clark, the CEO of the Single Parent Scholarship Fund of Northwest Arkansas was quoted as saying:
“So we were raising money from individuals higher than usual, but corporate [giving] dropped out, completely dropped out, because they had their own priorities,”
Many giving programs that relied on employee-directed and supported giving are going away. The rise in remote work, as well as new charitable giving tools, such as Donor Advised Funds, is making the traditional United Way campaign the thing of the past.
Even in smaller communities, where the corporate leadership of yesterday were the big champions of these type of giving programs, cultural changes have made keeping these programs challenging.
The Baby Boomer generation that were groomed as corporate leaders to promote programs like the United Way are retiring in record numbers, often being replaced by younger (and sometimes cheaper) leadership that hold different philanthropic values that may not be addressed by a local non-profit. Further compounding the problem, corporate philanthropic leadership may be completely absent in a community and all corporate giving decision making is made in a larger city hundreds of miles away.
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!
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
Check us out on the Celebrating Leadership Facebook Page.
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