Archive for the ‘Other Give’ Category

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Does An Increase In Donations Mean A Recovering Economy?

Wednesday, July 14th, 2010

In the first quarter of 2010, charitable donations rose sharply, which may indicate an economic recovery.

  • After donations to charity fell in 2009 due to the recession, first quarter reports indicate that 2010 looks much more promising.
  • Many charities are working on new fund-raising approaches in order to make donations seem more personal.
  • Even though things are looking up, it will still take a while for nonprofits to fully recover from the recession.

Facts and Figures

  • The median rate of growth for the 73 charities that The Chronicle of Philanthropy polled was 14%.
  • Donations decreased by about 12% in 2009.
  • The 73 organizations polled raised a total of $564.4 million more in the first quarter of 2010 than in the first quarter of 2009.

Best Quote

“The economy has certainly loosened up a bit, and that has loosened up how our donors feel and how we all feel.” – Joe Kender, Vice President for Advancement at Lehigh University

Rebuilding in Haiti?

Monday, July 12th, 2010

Six months after the disastrous earthquake, the rebuilding effort in Haiti is slow.

  • U.S. relief organizations have received $1.3 billion since the earthquake, but experts fear that it’s not enough to fund rebuilding.
  • Nonprofits have provided a lot of food and water, but may not be focused enough on providing shelter.
  • Hurricane season is imminent and aid experts emphasize the need for stable structures and shelters, especially in under-served rural areas.

Facts and Figures

  • An estimated 230,000 people were killed in the January 2010 earthquake.
  • Clearing rubble and establishing land rights are the two main obstacles to construction.
  • 3,722 transitional shelters have been built – each houses a family of 5.
  • Nonprofits aim to build 125,000 transitional shelters by mid-2011.

Best Quote

“I feel really good about what the donor community did in this first six months. I would feel even better if I knew that the donor community was poised to stay active over the long haul.” – Regine A. Webster, Senior Associate for Disaster Philanthropy at Arabella Advisors

Charitable Foundations Finally Looking Up

Thursday, July 8th, 2010

Finally, some good news about philanthropy in the wake of the financial crisis!

  • Endowments for charitable institutions grew steadily last year, rebounding from the sharp declines of 2008.
  • Despite the rebound, many foundations and charities have still cut back on spending and giving.
  • Most foundations (55%) gave less in 2009, but a few (16%) gave more.

Facts and Figures

  • Hundreds of grant makers saw their investments increase by about 20% this year (compared to a 26% drop in 2008).
  • Charities and foundations carry a median debt of over $20 million.
  • 38% of charities spent less in 2009, 20% spent more.

The Rocky Relationship Between Philanthropy And Government

Tuesday, June 29th, 2010

The federal government and philanthropic programs have always struggled to get along, but they’re trying to put their differences aside to help programs grow.

  • The government sometimes has a hard time following through on promised funding to nonprofits. For example, $50 million that might have been allocated to Teach for America’s 2011 budget met calamity when political pressure cut the funds completely.
  • Program funding is moving away from direct government disbursements and toward foundations with grant applications and matching programs.
  • As budgets are expected to tighten, the relationship between philanthropy and the government will only become more complicated.

Facts & Figures

  • Teach for America received $18 million in the 2010 federal budget.
  • The Investing in Innovation Fund, run by the Department of Innovation, gives up to $50 million to education programs that are able to match 20% of the grant with private money.
  • 12 foundations have pledged over $500 million that they will use to either match winners or help programs that do not win government money from the fund.

Best Quote

“Partnership with government is going to continue to be hard. We should pursue it but with a sober recognition there will be curves ahead on the road that you can’t see coming.” – David Gergen, Professor at Harvard’s Kennedy School of Government

Gates And Buffett Encourage Fellow Billionaires To Give It Away

Wednesday, June 23rd, 2010

For the past year, Bill Gates and Warren Buffett have been campaigning to get other American billionaires to donate at least half of their fortunes to charity.

  • People are asked to donate their money either during their lifetime or after death.
  • Most of the money raised by charities comes from normal people donating $5-$50 at a time.
  • Gates and Buffett encourage large donors to publicly pledge and explain their decision.

Facts and Figures

  • Buffett donated 99% of his $46 billion fortune to charity in 2006.
  • Gates and Buffett believe they can generate $600 billion through these pledges.
  • American philanthropies received $300 billion in donations in 2009.
  • Only 17 people on the Forbes’s 400 wealthiest people in America are also on the Chronicle of Philanthropy’s list of the most generous American donors.

Best Quote

“The pledge is a moral commitment to give, not a legal contract. It does not involve pooling money or supporting a particular set of causes or organizations.” – A written statement by Bill Gates, Co-Founder of Microsoft Corporation and Warren Buffett, chairmenn and CEO of Berkshire Hathaway Inc.

Can non-profits legally influence lawmaking?

Friday, June 18th, 2010

When it comes to advocacy, nonprofits are governed by the IRS (Internal Revenue Service), specifically under Code Section 501 (c)(3). This code effects charities in two ways regarding advocacy activities:

(1) it stipulates that charities may neither publicly support nor oppose candidates running for public office, and
(2) it limits a charity’s ability to lobby for certain legislative efforts. The amount of time they’re allowed to lobby depends on the IRS designation the organization selected, but the amount allowable usually ranges from 3% to 20%. Charities can often do a fair amount within these restrictions.

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