Archive for the ‘Give Page’ Category

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Economic Downturn Leads To Unexpected Career Choices

Thursday, April 30th, 2009

One man’s career turn-around in the face of economic decline shows us how finance and philanthropy intersect and how a trying situation might lead down a fulfilling path.

  • After a successful career at Bear Stearns, Kip Schaefer left the private sector and now works for the National Philanthropic Trust.
  • His masters degree from NYU’s fundraising program, combined with his finance background and outgoing personality, made him the top candidate for the National Philanthropic Trust’s opening for director of institutional business development.
  • He relied on passion and gut feelings to guide his decision-making when he ended up with two promising job offers.

Facts & Figures

  • In the last decade, the number of nonprofit groups has increased nearly 40%, to 1.4 million organizations.
  • $306 billion was raised in 2007 by nonprofit organizations.
  • Thirty programs around the country offer master’s degrees in nonprofit study.

Best Quote

“Align your intuitive spirit with your career goals.” – Kip Schaefer

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Your Grandparents Had War Bonds. You’ll Have Climate Bonds.

Thursday, April 30th, 2009

Not your Grandma’s socially responsible investment, climate bonds address one of the most pressing issues of our generation: climate change.

  • James Cameron of Climate Change Capital has proposed environment bonds (also called climate bonds) as a way for governments to raise money to develop clean technology.
  • Bonds offer secure returns, which should appeal to investors in the current economic climate, as well as contribute to the sense of renewed idealism among investors who seek to use their finances for good causes.
  • Environment bonds would be directed to the new technologies and infrastructure needed to lower and trap carbon emissions.

Facts & Figures

  • Bonds were created in the 20th century to fund World War II fighting efforts.
  • From 2000-2030, carbon dioxide emissions are predicted to increase by 40-110%.
  • It takes carbon dioxide 100 years to filter out of the atmosphere.

Best Quote

“I sense that there is now will for people to put their money to productive use. There is something powerful in the idea that, ‘My money built that and it works and I use it.’ Building things for a purpose that binds investor, worker, user – and society – is a noble cause.”  – James Cameron, Executive Director of Climate Change Capital

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Facebook A Fundraising Flop For Non-Profits

Tuesday, April 28th, 2009

It was a good idea, but it hasn’t quite worked out on popular social-networking site Facebook. Have you joined a Cause? Have you given money to that Cause?

  • The “Causes” Facebook application has become popular among nonprofits hoping to raise money through the vast circles of people connected through social networks.
  • While many organizations have no difficulty getting users to become supporters (no financial commitment is required to become a supporter), very few have had success raising money from those supporters.
  • Although Causes is free for organizations to join, it often uses a significant amount of staff time for nonprofits to develop and maintain their presence on Facebook.

Facts & Figures

  • Fewer than 1% of people who join a Facebook Cause actually donate money to that Cause.
  • More than 25 million Facebook members (of 200 worldwide) have signed on as a supporter of at least one Cause, but only 185,000 members have actually given money through the site.
  • Only two organizations (out of 179,000), the Nature Conservancy and Students for a Free Tibet, have raised more than $100,000.

Best Quote

“I definitely think it’s first and foremost a tool for brand and reputation. It definitely does more for influence than for fundraising.” – Sue Citro, Digital Membership Director at The Nature Conservancy

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Philanthropists Tightening Belts To Get Most Bang For Their Buck

Saturday, April 25th, 2009

The changing economy can affect which ways of giving are best for you…

  • Increasingly donors are closing private/family foundations and choosing to take advantage of the many benefits of donor-advised funds.
  • Advantages include an immediate and bigger tax deduction, lower administrative costs, more diversified giving options (including cash, stocks, and art), no annually required distribution amounts (foundations are required to give away at least 5% of their assets), and increased efficiency and privacy for the donor.
  • Donor advised funds can be found both in large investment firms such as Fidelity and Schwab, as well as religious, university, and community foundations.

Facts & Figures

  • There are more than 64,000 private foundations in the U.S.
  • Americans give more than $300 billion annually to charity.
  • In 2007 there were $27.7 billion in donor-advised funds – up from $7.5 billion eight years earlier.

Best Quote

“We all agreed that it was impractical to continue it.” – Charles Buchanan, heir to the stewardship of a corporate foundation

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Why would an organization choose to be a 501c4?

Tuesday, April 7th, 2009

A nonprofit organization might choose to file as 501c4 if it wishes to engage in political lobbying or if it does not qualify for 501c3 status because of political activities. Unlike 501c3s, contributions to 501c4s are not tax-deductible, making them less attractive to donors who wish to save money on their taxes.

For example, MoveOn.org – a progressive online advocacy group initially registered as a 501c3 – wanted to lobby Congress freely and run ads for and against certain political candidates, so they registered a separate 501c4 organization and eventually phased out the 501c3 arm of the organization.

A 501(c)(4) is…

Tuesday, April 7th, 2009

A 501(c)(4) is a nonprofit organization that is exempt from paying federal income taxes but still has an unlimited ability to lobby and participate in political campaigns and elections. Donations to 501(c)(4)s are not tax-deductible.

What is the difference between a microloan and a regular loan?

Monday, March 23rd, 2009

Normally, banks make loans to customers who need a large sum of money immediately to purchase a house or a car or to start a business. These customers are attractive to the banks because they promise to repay their loans with a significant amount of interest.

A microloan is a very small loan for individuals or entrepreneurs – often those living in poverty – who aren’t as attractive to traditional large financial institutions. Banks decide whether they want to lend money based on how likely they are to make a profit by doing so. Things they consider to make their decision are the size of the loan, interest rate charged, and the borrower’s credit quality (or the risk involved in lending to a specific person).

Microloans are available in the U.S., but they’re even more popular in developing nations with a high poverty rate. The average size of a microloan secured through the U.S. Small Business Administration is $13,000. The size of an average microloan worldwide is $1,026. To make up for the higher risk involved in lending to people who may not be able to pay back their loan, microloans often have a much higher interest rate than traditional loans. Interest rates on commercial loans in the U.S. are typically around 7-8%, but they can be more than 20% on micro-loans!

Still, microloans are important to the development of a struggling economy. They are sometimes the only opportunity a poor entrepreneur has to raise enough money to start up a potentially successful business.

Life Without Clean Water?

Monday, March 23rd, 2009

Water, water… everywhere?

  • A meeting of nations at the 5th World Water Forum took place in Istanbul this week, focusing on international diplomatic and economic solutions to the ever-present worldwide shortage of clean water.
  • The primary causes of the shortage are climate change and poor local resource management. As the earth heats up, the hydrological cycle is disrupted. Rising sea levels begin to infuse natural fresh water sources with salt, which makes the water unfit for human consumption. In rapidly modernizing countries like China, deforestation and desertification also disrupt the hydrological cycle and encourage salinization of freshwater aquifers.
  • Some outside conservation groups say that the council doesn’t go far enough beyond making proclamations to properly address the issue, though this year’s forum tried something new: Focusing attention on the economic impact of improved access to water and sanitation, in the hopes this would motivate local governments to take a more active role in dealing with the water crisis.

Facts & Figures

  • Humans can survive 30 days without eating food but only 7 days without drinking water.
  • 1 billion people lack any access to clean water; 2.5 billion lack water for sanitation purposes.
  • According to the World Health Organization, every $1 spent on water and sanitation can result in economic returns of $7-$12.

Best Quote

“I don’t know why anyone should need to be reminded of this, because it’s so obviously important and so obviously solvable. The answer really is people are blind to the obvious. It’s not sexy.” – Susan Keane, Public Health Expert at Natural Resources Defense Council

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