Posts Tagged ‘philanthropy’

Why do some nonprofits have a for-profit arm?

Monday, August 10th, 2009

Frequently (especially in tough economies), nonprofits struggle to meet their costs on grants and donations alone. When these organizations consider their options for a financially sustainable future, they sometimes choose to create a for-profit arm – though the goal of the for-profit business is generally just to finance the nonprofit’s mission and activities when its members can’t do so by other means.

Like any other organization, nonprofits need money to accomplish their goals, or even just to pay employees and keep the lights on, and there isn’t any way around that. So if they can run a business that doesn’t conflict with their mission or ideals, how is that so much different from throwing fundraising parties or soliciting donations? But having a for-profit arm doesn’t turn a nonprofit into a full-scale business. Why? The difference is that, in a regular company, the goal is to make money for the owners of the business. The more money the company makes, the richer its owners (and stockholders) get and, by extension, the more they’re willing to pay their employees. But even if a nonprofit has a for-profit arm, the extra money generated goes toward the nonprofit’s mission, not in its CEO’s wallet.

You are the future of philanthropy: Katherine Fulton on TED.com

Monday, July 13th, 2009

In this uplifting talk, Katherine Fulton describes the new philanthropy — one where collaboration and innovation allow regular people to do big things, even when money is scarce.

A little long, totally worth it.

Reposted  from TED.com.

Why does the United States give more aid to developing countries than anyone else?

Tuesday, July 7th, 2009

In absolute numbers, the U.S. gives by far the most money in Official Development Assistance (ODA) – in 2008 it was nearly twice that of the next biggest donor, Germany. Compared to how much money we have, however, the U.S. actually gives the least of any developed country. Does this mean Americans are the least generous people of all the nations of the industrialized world? Hardly. ODA is just foreign aid give by governments under the watch of the OECD (Organization for Economic Co-operation and Development). It doesn’t take into account private contributions from individuals, foundations, and other institutions.

American people, foundations, and institutions send more money and aid abroad than private citizens and organizations in any other developed country in the world by far. Why? It might be easier to understand by examining why people in other countries give less. In Europe – where most of our fellow developed countries are located – there are tons of big social programs based on the philosophy that the government should take care of the poor and other issues that Americans generally think should be taken care of by private individuals, religious organizations, and stuff like that. In order to pay for these big social programs, these countries have equally big taxes. Even more so, the U.S. gives tax breaks to people who give to charity – almost paying you to give money away.

Living under the assumption that the government should pay for all social ills, and having less money to give away because of higher taxes isn’t a recipe for huge private donations.

How can you make sure the charity you’re donating to is legit?

Tuesday, June 23rd, 2009

It isn’t wise to trust a stranger with anything of value, and charities are no exception. The most basic way to investigate a charity’s legitimacy is to research it–by checking the Internet, looking for mentions of your chosen organization in the news, asking for pamphlets detailing the charity’s purpose and goals, and so on. In addition, there are several web sites where you can check a charity’s legitimacy (or even just how well it’s putting donations to use).

If the organization doesn’t make its purpose clear or tell you what the money you give is actually being used for, there may be cause for concern. A legitimate charity should always be willing to provide you with more information and should never try to obtain donations by pressuring or intimidating you, so any representative of a charity who is vague or aggressive is highly suspect. The bottom line: it’s your money that’s going to the charity, so if you don’t feel comfortable with an organization you’ve chosen, you can always find another better suited to your needs and interests.

A Grant is…

Tuesday, June 23rd, 2009

A grant is a sum of money given to an individual or a nonprofit organization, usually to help finance some project. Grants do not need to be repaid.

They Have Less, But Give More. What We Can Learn From The Philanthropy Of The Poor…

Monday, June 15th, 2009

Americans who don’t make a lot of money tend to be more generous than those who do.

  • America’s poorest demographic is also the most generous, a reality rarely publicized. They give back a higher percentage of their earnings than their higher-income counterparts.
  • During the hardest of economic times, they cut back on their giving the least as compared with wealthier people.
  • Our nation’s most generous are also the least-educated, oldest, most religious, most likely to rent (instead of own) their homes, be on welfare, drive used cars or rely on public transportation, to be students, minorities, women, and recent immigrants.

Facts & Figures

  • The lowest-income fifth of population normally give more than their capacity, the next two-fifths give at capacity, and those above give below capacity (two to three times less than their capacity).
  • The poorest fifth of households contributed an average of 4.3% of their incomes to charities in 2007 while the richest gave at 2.1%.

Best Quote

“I believe the more I give, the more I receive… Plus, I’ve been in their position, and someday I might be again.” – Tanya Davis, a laid-off security guard and single mother on why she gives

Philanthropy is…

Wednesday, June 10th, 2009

Philanthropy is the act of donating money, time, services, effort, and/or goods to a cause in order to promote the well-being of others while expecting nothing in return.

A Charity is…

Wednesday, June 10th, 2009

A charity is an organization created by an individual or group of individuals to provide support for a philanthropic cause.  Charities can exist to support people (like the homeless), things (like the environment), and ideas (like democracy).

Don’t Give Up, Give Better…

Friday, May 29th, 2009

This article explores different strategies for giving in a changing economic climate.

  • With the wrath of the recession widespread, most people are cutting spending wherever possible, charitable giving being a popular place to start.
  • But charities are in need right now more than most and more than ever.
  • Instead of cutting charitable giving altogether, some people are reassessing which charities are most in need (prioritizing, for instance, food banks over art galleries) and directing whatever they can afford to those organizations.

Facts & Figures

  • Donors have two basic theories of giving: (1) direct service to individuals and (2) change through advocacy and public education.
  • During tough economic times, there is a shift from advocacy and public education to direct service because its effects are tangible and measurable.
  • Three techniques for giving in tough times are: (1) conversion (let the charity spend part of the pledge to an endowment immediately), (2) deferral (spread the donation out over time), and (3) triage (weed out charities no longer seen as effective).

Best Quote

“When things go down, no matter how much you have, you think you are poorer and therefore your tendency is to withdraw completely. The problem is that this is the time when you can do the most good, when you really need to give.” – Joe Briggs, retired legal-publishing executive and philanthropist

The New Face of Philanthropy Is Slightly More Feminine

Friday, May 29th, 2009

The way people spend, grow, and give their money is changing. This write-up demonstrates one way in which the face of philanthropy and finance has changed.

  • Three years ago, sisters Swanee Hunt and Helen LaKelly Hunt seeded a philanthropic challenge with $10 million, named Women Moving Millions, to raise money for programs helping girls and women.
  • Women’s charitable giving is often less publicized or done anonymously; this initiative has inspired many women to step out and give boldly.
  • The fiscal prowess and sophistication of this group has caused some people to consider if this current economic crisis might have been avoided had more women been in positions of power within the finance sector.

Facts & Figures

  • Women Moving Millions has raised $176 million for programs to improve the lives of girls and women.
  • 98 women and 2 men have joined the challenge so far.

Best Quote

“It’s about standing up for what we believe. I’ve done a lot of amazing things. I have climbed mountains and dived ocean waters. But the very best thing I’ve done is to give this $1 million gift.” – Anonymous Donor to Women Moving Millions