DONATIONS. Evolving landscape, renewing optimism Philanthropic Trends 2010 AFP Congress.

DONATIONS

Evolving landscape,renewing optimism

Philanthropic Trends 2010AFP Congress

The base statisticssector snapshot

overall giving

individual giving

Many organizations

60,000

85,000

50,000

55,000

60,000

65,000

70,000

75,000

80,000

85,000

90,000

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

the base statisticssector snapshot

2-year decline in giving…

the base statisticsoverall giving

0

2

4

6

8

10

12

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Giv

ing i

n $

bil

lions

0

2

4

6

8

10

12

Individuals Corporations Foundations Total

…including individuals…

the base statisticsindividual giving

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Charitable donations by Canadians ($ billions)

…and now % giving down slightly too.

$0

$250

$500

$750

$1,000

$1,250

$1,500

0%

5%

10%

15%

20%

25%

30%

35%

40%

Avg. Donation % of Filers

the base statisticsindividual giving

The landscape evolvesdonor confidence

demographics

technology

accountability

competition

Renewed donor confidence…

the landscape evolvesdonor confidence

…leads to turning the corner?

Did you experience an increase or decrease in fundraising revenue in 2009?

Increase greater than 10%

Increase between 1% and 10%

No increase or decrease

Decrease between 1% and 10%

Decrease greater than 10%

Snapshot: 2010 KCI client poll

the landscape evolvesdonor confidence

The generations are shifting…

1971-2030

the landscape evolvesdemographics

…with more complexity…

Source: FDU Magazinethe landscape evolvesdemographics

…and diversityVisible Minorities in Canada

0% 10% 20% 30% 40% 50% 60% 70%

Halifax

Saskatoon

Winnipeg

Montreal

Ottawa

Calgary

Vancouver

Toronto

Canada

2006 (Actual)

2031 (Projected)

Source: Statistics Canada

the landscape evolvesdemographics

Just a few new tech choices…

the landscape evolvestechnology

…more accountability than ever…

• Increased scrutiny of donors and ‘public’• Demand for ‘fiscal accountability’

– Governance renewal and reaffirmation

• Imagine Canada’s Standards Initiative• More scrutiny re cost per dollar raised, but

also more understanding of what it takes to be successful

• CRA Guidance

the landscape evolvesaccountability

…and more sophisticated competition

Increased number of charities

Increased sophistication of profession

Increased needs and

demands for funds

Dramatically increased competition for ‘mind-share’:– Public goodwill and

profile

– Volunteers and community leaders

– Donors

– Staff

=+

+

the landscape evolvescompetition

Generating renewalalignment & collaboration

engagement & impact

diversification

leadership development

More we work together…• Alignment of board

– To the strategic priorities of the organization– Aligned in terms of governance, board composition, focus

areas

• Alignment of staff– Between foundations and the organizations they support– Between the Development department and the rest of the

organization– Understanding of the need to be ‘on the same page’

generating renewalalignment & collaboration

…more effective we will be

• Much more collaboration than ever before– Between funders– Between charities– Between sectors– Driven in part by donors interest in issues as

opposed to organizations

generating renewalalignment & collaboration

Reaching your ‘traditional’ groups

• Deepening relationships with donors and volunteers• Developing engagement strategies for donors and

prospects for the long haul– Keeping the conversation going with potential donors– Using a customer management model while remaining

authentic• Same holds true for volunteers

– Looking for ways to keep them engaged over long periods of time

– Concept of maintaining “mindshare”

generating renewalengagement & impact

New audiences, new strategies

• Engaging new prospective donor groups will be key to growing philanthropy

• Younger generation– New technology will be key– Four generations in the workplace

• Mainstream ethnic fundraising– Not a “project” but a core part of fundraising programs– May mean not doing things the way we’ve always done

them


The ‘cheque’ is the start, not end

• Evidence that donors and volunteers want to be more engaged, driven by their desire to have real impact on the organizations they support

• Want to be involved beyond writing a cheque• Concept of “catalytic philanthropy” – catalysts

for change and being actively involved in the solution

• On the one hand, wonderful; however, can be challenging for the organization


Moving beyond just volunteer ‘connections’…

How are you currently using volunteers in fundraising?

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Identifyingprospects

Openingdoors toprospects

Prospectivedonor

cultivation

Solicitationactivities

Stewardshipactivities

Other



…with customized approaches…

• No “one size fits all” when it comes to involving volunteers in organizations– Dependent on organization’s stage of development

• Regardless of stage, role clarity is critical– Clearly understand and communicate role you want

volunteers to play– Starts at recruitment

• Measuring performance of volunteers• Ultimately, ideal is a ‘partnership model’


…including in campaigns• Flatter volunteer structures

– Executive Committee/Cabinet model– Case Component model

• To Chair or not to Chair?– No Chair model– Co-Chair model– Revolving Co-Chair model

• Increased Board involvement– No longer just downloaded to campaign volunteers

• Less meetings, more one-on-one


All eggs…one basket… bad idea

• Recession showed us value of diversification– Top performers consistently had diversity of fundraising

activities

• Diversification of fundraising programs to address all 4 generations

• Strategic retooling and tactical facelift of programs• Aging Boomers bodes well for charitable giving

– Now is the time to build planned giving programs

• Concept of donor equity evolving

generating renewaldiversification

Shifting program priorities

What program(s) have shown the greatest decline over the past 5 years?

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Major giftsand planned

giving

Direct mailcontributions

Online giving Specialevents

Corporatepartnerships/sponsorships

Other



Shifting program priorities

What program(s) have shown the most growth for you in the past 5 years?

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Major giftsand planned

giving

Direct mailcontributions

Online giving Specialevents

Corporatepartnerships/sponsorships

Other



Technology: new tools in the toolbox…

Are you using any of the following in your fundraising strategies?

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Text messagedonations

Facebook Twitter Youtube Other



Technology: new tools in the toolbox…

• Facebook and Twitter– used to mobilize groups and spread messages– Utility as fundraising tool not yet proven

• Mobile philanthropy growing– Gifts made via mobile philanthropy to Haiti demonstrate

the power of this vehicle– Organizations now using iPhone and Blackberry

applications to enable “point of sale” donations• Sector grappling with how best to make it work• First things first

– Focus on enhancing your web presence, email quality, and enabling more donor control


…with impact across three key areas

Data ManagementProspect identification Appeal segmentation Performance analysis

CommunicationsBroader engagementCustomize messagesFoster collaboration

FundraisingShift from ‘donate now’

to ‘fundraise now’


Tech questions to ask• What are you trying to achieve?

• What is the capacity of the tools?

• Are you willing to resource (money and human)?

• If on a limited budget, what are you willing to drop?


Looming ‘leadership gap’…

• Capacity of organization limited by capacity of the people in the organization

• Shifting demographics mean need to focus on talent management and leadership development– Aging Boomers retiring– Entrance of new generations into the workforce– Four generations in the workplace

• Succession planning is precursor to good leadership and key to talent management– At all levels of the organization– In consultation with senior management and involving the staff

under consideration– Open and transparent

generating renewalleadership development

…and the importance of ‘both Qs.’

IQ• Intellect• ‘Threshold’

capability for executives

• Cannot be learned

• Can be reinforced

EQ• Personal

capabilities or competencies

• Typifies outstanding leaders

• Can be learned• Not nice to

have… but need to have


…and the importance of ‘both Qs.’

IQ• Intellect• ‘Threshold’

capability for executives

• Cannot be learned

• Can be reinforced

EQ• Personal

capabilities or competencies

• Typifies outstanding leaders

• Can be learned• Not nice to

have… but need to have

Hire for EQ, not just IQ…

Hire for leadership potential, not

just tactical skill.


What does it mean for you?

Journey of a thousand miles…

• Opportunities– Renewal in major and planned giving– Online/multimedia/technology initiatives– Collaborative asks– Corporate partnerships– New prospect markets – women, ethnicities, youth– Alignment

• Challenges– Hangover’ effect from the economic challenges (i.e. cautious donors and

volunteers)– Recruiting and retaining good staff– Competition/brand positioning – Transitioning, maintaining momentum after a campaign– Communicating cost of fundraising– Alignment


what does it mean for you?

Journey of a thousand miles…

• ‘Minimum requirements’ remain– Sharp, relevant case for giving– Respect for donors individually– Flexibility in giving options– Patience with extended timelines for cultivation and

decision-making

• In 2011 ALL organizations must:– Revisit strategic and operational plans– Conduct a prospect audit– Get out there


Slow and steady

• Not a matter of abandoning long held fundraising principles

• Adopt an orientation of openness to emerging opportunities

• Take a thoughtful look at how they fit in organizational realities

• Plan the integration of tools and techniques• Develop structures and strategies to maximize

strength and capitalize on new opportunities


DONATIONS. Evolving landscape, renewing optimism Philanthropic Trends 2010 AFP Congress.

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