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Transcript of Fundraising Corporate Social Engagement Digital Research and Analytics New York | Atlanta |...
Fundraising Corporate Social Engagement Digital Research and Analytics New York | Atlanta | Boston | Washington, D.C. | London
Gavan MooneyExecutive Vice PresidentSusan Raymond, Ph.D.Executive Vice President
Nonprofit Innovation and Catholic Institutions: Funding for the Future
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Fundraising Corporate Social Engagement Digital Research and Analytics ChangingOurWorld.com
Rule Number One in a World of Change
2
I always skate to where the puck is going to be.Wayne Gretsky
Even recognizing that…..
It’s hard to make predictions, especially about the future.Yogi Berra
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Objectives• Document the realities facing the Church, challenges and
opportunities• Review the nature of innovation in the revenue strategy and
program work of nonprofits• Examine how Catholic institutions are quietly becoming leaders in
this evolution• Discuss the implications for fundraising strategies
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Declining Population: Perception Versus Reality
6
• The Catholic population has continued to grow• The retention rate for Catholics is high, nearly 2/3 of children
growing up in Catholic households remain Catholic• Decline in attendance skews perception of Catholic population,
new outreach methods are required
1965 1975 1985 1995 2000 2005 20120
10
20
30
40
50
60
70
Catholic Population from 1965 to 2012
Year
Popu
latio
n in
Mill
ions
Pew ASARB0
10
20
30
40
50
60
70
80
Number of Catholics
Polling Organization
Mem
bers
in M
illio
ns
19 million Catholics unaccounted for
Gallup and ASARB
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Declining Attendance
7
Recent trends suggest that the decline in church attendance is leveling off and even rising slightly in young ages.
19741977
19801983
19861989
19942000
20062012
0%10%20%30%40%50%60%70%80%90%
100%
Percent who say they attend church at least weekly in the General Social Survey, 1974-2012
Strong CatholicsAll Catholics
Year
Perc
ent
Pew Research CenterGeorgetown University Center for Applied Research of the Apostolate
1955 1965 1975 1985 1995 20050
10
20
30
40
50
60
70
80
66 6460 58
77 74
73
56
35 37
2530
Church Attendance Among Catholics, by Age% Attended church in last seven day
60+50-5940-4930-3921-29
Perc
ent
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But there is change.
Demographics are changing.
• Catholic Hispanic women have the highest birth rates in the U.S.
• It is projected that between 2005-2030, the number of Hispanics will double to 83.7 million, reaching 106 million by 2050.
• If 76% of those people are Catholic, Hispanic Catholics in the U.S. will be more than 80 million. That is the equivalent to the total populations of California, New York, and Texas combined.
• Over the next 12 years Hispanics will be the majority of Catholics.
2000 2011
35.2 million
51.9 million
Hispanics Living in the U.S.
40% in-crease
PEW RESEARCH CENTER
8
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Increasingly, it is a U.S. born Hispanic population• Most immigrants arrived in the
U.S. before 2000.
• The share of the nation’s Hispanics who are U.S. born has been on the rise since 2000.
• As of 2009, 64% of the U.S. Hispanic population was U.S. born, indicating the majority of the Hispanic population has grown up in American culture.
• U.S. Hispanics’ homes, schools, and communities are diverse, and their participation in larger community institutions is no less common.
1968 1973 1978 1983 1988 1993 1998 2003 20080%
10%20%30%40%50%60%70%80%90%
100%86%
60% 64%
14%
40% 36%
Percent of U.S. Hispanics who are Foreign Born vs. U.S. Born
Foreign Born U.S. Born
Before 1990 1990-1999 '00-'05 '06 or later0%
5%
10%
15%
20%
25%
30%
35%
40%
38%
27%
20%16%
Percent of immigrants arriving in the U.S.
PEW RESEARCH CENTER
9
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Catholic institutions represent a critical mass in nearly every social, health, and education sector in the nation
Institution Type Number of Institutions People Served
Hospitals 629 88,519,295
Health Care Centers 363 5,038,247
K-12 Education 6685 2,001,740
Higher Education 232 818,331
Catholic Charities (Social Services) 170 4,224,224
Catholic Charities (Hunger Services) N/A 7,146,490
Global Relief and Development (CRS and
CMMB only)2 > 100,000,000
100
mill
ion
peop
le
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Workforce: A Changed Cost Driver
12
1965 1975 1985 1995 2000 2005 20120
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Total Number of Priests from 1965 to 2012
Year
Num
ber o
f Prie
sts
1965 1975 1985 1995 2000 2005 20120
40,000
80,000
120,000
160,000
200,000
Total Number of Religious Sisters from 1965 to 2012
Year
Num
ber o
f Prie
sts
Georgetown University Center for Applied Research of the Apostolate
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Parish Financial Crisis: Revenue Versus Expenses
13
• On average, expenses exceed revenue during FY 2010, a trend that will likely continue
• The funding problem must be addressed systematically through new fundraising methods and strategies
Revenue Expenses$580,000.00
$600,000.00
$620,000.00
$640,000.00
$660,000.00
$680,000.00
$700,000.00
$720,000.00
Revenue Versus Expenses
USCCB
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Dependence on Government: Catholic Charities as an Illustration
14
Source: Center for Applied Research in the Apostolate
Government Revenue
57%Program Service Fees9%
Diosesan and Church Support
2%
Community & Private Support
25%
Investment Income1%
Other Revenue4%
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Median Income Compared to Other Religions
16
Latter
Day Sa
ints
Pentec
ostal/A
SG
Other Pro
testan
t
Baptist
Luthera
n
Greek/R
ussian
/Easte
rn O
rthodox
Jewish
Methodist
Episc
opalian
Presbyte
rian
Catholic
Muslim/B
uddhist
Jehova
h's Witn
essNone
$0.00
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
$140,000.00
Median Family Income by Religious Affiliation
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But a Soft Middle in Structure
17
Georgetown University Center for Applied Research of the Apostolate
Pew Research Center
$100,000+ $75,000 to $99,999 $50,000 to $74,999 $30,000 to $49,999 Less than $30,0000.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Catholic Household Income Versus National Average
Catholic ChurchNational Average
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Propensity to Give is high but slightly lower than some other faith groups
18
Latter
Day Sa
ints
Pentec
ostal/A
SG
Other Pro
testan
t
Baptist
Luthera
n
Greek/R
ussian
/Easte
rn O
rthodox
Jewish
Methodist
Episc
opalian
Presbyte
rian
Catholic
Muslim/B
uddhist
Jehova
h's Witn
essNone
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Percent of People Who Give by Religion
Source: Center on Philanthropy at Indiana University
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And on the low end in terms of propensity to give to religion compared to other giving causes
19
Latter
Day Sa
ints
Pentec
ostal/A
SG
Other Pro
testan
t
Baptist
Luthera
n
Greek/R
ussian
/Easte
rn O
rthodox
Jewish
Methodist
Episc
opalian
Presbyte
rian
Catholic
Muslim/B
uddhist
Jehova
h's Witn
essNone
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
Total Giving and Religious Giving as a Share of Income by Religious Affiliation Sorted by Percentage
Total Giving as a Percent of Income Religious Giving as a Percent of Income
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Younger Generations Still Donate Heavily to Religion
20
Source: Center on Philanthropy at Indiana University
Millennials X Boomer Silent Great$0.00
$200.00
$400.00
$600.00
$800.00
$1,000.00
$1,200.00
$1,400.00
$1,600.00
$1,800.00
$2,000.00
Average Gift Total by Cause by Generation
ReligionSecular
But, controlling for education, income, marital status, race and other factors, there is no statistical significance to the relationship between generation and religious giving.
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But age does matter in terms of interests
21
Source: Center on Philanthropy at Indiana University
Basic Needs of Poor Make Community Better Give Poor a Way to Help Themselves
Make World Better0
10
20
30
40
50
60
Top Four GIving Motivations
MillennialsXBoomersSilentGreat
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So, where are we?
22
• Reliance only on traditional ways of charitable giving will require new outreach and new approaches to a changing Catholic demographic, especially with the “soft middle” on Catholic household income structure.
• But, even those improvements may not be enough, given the propensities to give and the propensities to give to religion of those who do give.
• Is there anywhere else to turn?
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A much more robust toolbox.
Traditional pools but also PRIs, MRIs, impact investing, venture philanthropy, social investment, social
enterprise, bridge funds for internal program loans, corporate philanthropy, CSR, CSE, CRM, product-embedded transactions, bond and equity tools.
Cash or in-kind gifts, pledges, foundation grants, bequests of
various types
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The Arc of Innovation in Philanthropy
Traditional resource transfers
Traditional philanthropic resources at efficiency and scale
Traditional philanthropic resources demanding market-like results
Philanthropicresources moving in new ways onto the societal commons
Entirely new kinds of resources moving onto the societal commons
Social stock exchangesImpact investingMRIsEquity-like flowsBond-like flowsSocial businessBlended investmentsCollaboratives
Interactive hubsMultiple-funder partnerships
Venture philanthropy
PRIsMicro-insurance poolsEmbedded transfers
Charitable grants
Therefore, we can build along a very complex arc of innovation in ways that suit the problem.
We can
give a
man a
fish.
But we ca
n
also cr
eate a
fishing net
business
that
powers
fishing and
creates s
kills
and jobs.
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We can set the standard of excellence in innovation for the nation and remain true to mission by building on the flagships in our armada.
27
The new approach to private resource mobilization focuses on• Integration across a range of problems to address multiple dimensions of complex
issues with a single funding strategy
• Investment in problem solving
• Sustainability of both program efforts and the funding for those efforts
• Performance against clearly articulated measurable goals
In no cases does this new approach supplant traditional giving. Rather, it provides an approach to ensuring that charitable giving is used for what cannot be otherwise financed, and social finance is used for the rest.
It MAXIMIZES the utility of charity.
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Innovative Funding Streams: What are we talking about?
• Products/services consistent with mission or extension of mission in their– Content– Execution
• Building on assets or core capacities• Earnings flowing to mission-related program support
Therefore we are not talking about the hospital gift shop nor sweatshirt sales in the book store. We are talking about mission-
critical innovation.
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Let us look, therefore, at the approaches and concrete illustrations in five categories of Catholic institutions:
– Religious communities– Health care– Social services– Education– Global relief and development
How Does Innovation Actually Work?And How Does It Help Funding?
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So, let’s look at some examples with a common optic
30
The mission of the organization
The Assets that could be put to work
The initiatives undertaken
The leverage that results
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Catholic Religious Congregations
31
The AssetsLand and
Knowledge
The MissionServe the Underserved
Sisters of St. Francis Oldenberg, Indiana:
Michaela FarmOrganic Farming
Dominican Sisters, Great Bend, Kansas
Heartland Farm, Education. Ecology, Energy,
Organics
Philanthropy and investments from other religious
communities
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Catholic Health Care
32
The AssetsFacilities,
Expertise, Capital
The MissionJustice, Peace, Sustainability
CHI, CHHW, Trinity Health Calvert Social Investment
NotesProviding investment capital
to nonprofits
Catholic Health Initiatives: Direct Community InvestmentMission-Related Investing of
2% of total operating investment assets
Ascension HealthEnterprising Health
Bottom of the Pyramid Investing in Flint, Michigan
Leverage from Private Capital
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Catholic Social Service
33
The AssetsFacilities, access to large populations, knowledge
The MissionEmpower and enable the poor
Catholic Charities SpokaneNew Leaf Bakery
A social enterprise that trains those in need and has
become a popular brand and eatery
Catholic Charities ErieCatering on Parade
Locavore catering that creates jobs and returns revenue for
St. Martin Center
Catholic Charities OmahaMicrobusiness Loans
Low interest rate loans for also create revenue
Increased visibility and funder dialogue, especially with
younger donors
Homeboy IndustriesA social enterprise that trains at risk youth and former gang
members and produces goods and services
throughout Los Angeles
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National Scope and Coverage of Catholic Charities Social Enterprises
34
Source: Center for Applied Research in the Apostolate, Georgetown University, Washington, DC: Catholic Charities USA 2011 Annual Survey Final Report
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Catholic Education
35
The AssetsFacilities, quality
outcomes, huge alumni networks
The MissionAccess to quality education for all
Catholic Alumni PartnershipFundraising model for
elementary schools that uses collaboration and a “CAP
University” training system to raise capacity
Cristo ReySchool system whose
scholarship funding is tied to corporate employment
partnerships, creating jobs, skills, and education together
Saskatoon Catholic School Division (CAN)
Core Neighborhood Youth Corps
Social enterprise that prepares youth for school or work
Incentivizes corporate partnerships and internal
investments
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Catholic Global Relief and Development
36
The AssetsGeography and
Programs
The MissionFight Poverty
Sisters of Notre Dame de Namur
Cyber Cafes in the Congo to fund student education costs
CordaidPerformance Based
Financing in health and education in Africa
Bank of FonkozeMicrofinance serving
56,000 women borrowers and ¼ million savers in
HaitiChildren of God Relief
Institute Laboratory Services in Kenya to support HIV
orphan villages
Catholic Relief ServicesMicrofinance, Fair Trade
chocolate
Funding leverage and appeals to younger donors
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Illustrative Results: Fonkoze makes a measurable difference through micro finance in Haiti
37
Tin roof or better Cement floor Sanitary toilet Send all children to school
Can read and write
Own small assets Food secure0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100% 97%
83%
77%73%
67%
60%
0%
100%
87%83%
90%
70%
77%
63%
Client Progress by Key Indicators After3 Years with Fonkoze
2007 (Baseline) 2010Key Indicators
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Innovation Powers Fundraising
39
• Expectations of the new generation of donors– Impact, impact, impact– Leverage– Collaboration across types of institutions– Efficiency
• Innovation produces– Scale– Results– New interest from new partners
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We must learn to do this and spread the knowledge and practice.
40
If we do not….– We will underperform in fundraising
• We are leaving money on the table by not reaching new charitable investors.
• And we will find our existing donors going elsewhere.– We will underperform in mission
• We will not serve as many as we could as well as we might• We will not solve as many problems as we might.
– We will cede leadership to others• And fail to evangelize the world
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Fundraising Corporate Social Engagement Digital Research and Analytics ChangingOurWorld.com41
Therefore, the consequences are not trivial.
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The Challenge: Turning Atoms into Molecules
42
We lack a concerted effort to document the innovations, objectively evaluate their impacts, scale what works, and replicate by sharing both the innovations and the management and finance systems
needed to implement them.
We have the organizational scale to lead the world in innovation. We have the donors to fuel the effort.
We need the vehicle to carry us forward.
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We must
43
• Build skills• Build knowledge• Have the courage to innovate and therefore also to fail• And then the courage to keep going• Communicate what we are doing• Seize leadership in this sector.
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Fundraising Corporate Social Engagement Digital Research and Analytics ChangingOurWorld.com44
We can lead.We are leading.We must lead.