Shifting the Sustainability Paradigm: Eliminating Programs Jim Snell Deputy Director, TCNCS...

Shifting the Sustainability Paradigm:Eliminating Programs

Jim SnellDeputy Director, TCNCS

Multi-State Cross-Program National Service Conference

July 14, 2006

Atlanta, Georgia

Sustainability - Background

How much?- $260.28 Billion for 2005.1

Who gives?- Individuals (living and bequests) - $216.51 billion

70-80% of Americans.1

~70% of households give to religious congregations.2

85+% of households that give to religious organizations also give to secular organizations.2

- Foundations - $30.0 billion 52% of foundations anticipate increased giving in 2006.3

32% of foundations anticipate decreased giving in 2006.3

- Corporations - $13.77 billion

Giving


Who gives?

Giving

Foundations$30.011.5%

Corporate$13.775.3%

Bequests$17.446.7%

Individuals$199.0776.5%

2005 CONTRIBUTIONS: $260.28 BILLION

BY SOURCE OF CONTRIBUTIONS

Source: Giving USA, a publication of Giving USA FoundationTM, researched and written by the Center on Philanthropy at Indiana

University.


To what?

Giving

International Affairs$6.392.5%

Environment/Animals

$8.863.4%

Religion$93.1835.8%

Health$22.548.7%

Human Services$25.369.7%

Education$38.5614.8%

Foundations$21.708.3%

Unallocated$16.56.2%

Public-society Benefit$14.035.4%

Arts, Culture, and Humanities

$13.515.2%

2005 CONTRIBUTIONS: $260.28 BILLION

BY TYPE OF RECIPIENT

Source: Giving USA, a publication of Giving USA FoundationTM, researched and written by the Center on Philanthropy at Indiana

University.

$0.340 Religion

$0.219Social

Sciences

$0.419 Inter. Affairs,

Devel., Hum. Rights

$3.625 Education

$3.447 Health

$2.146 Human

Services

$2.004 Public Affairs

$1.979 Arts & Culture

$0.813 Environment

& Animals

$0.454 Science &

Tech.

Sustainability - BackgroundFoundation Giving 2004 $15.4 Billion4

Grants of >$10,000. Sample size = 1,172 U.S. foundations.


How many?- 65.4 million people (28.8% of the civilian non-

institutional population age 16+);

- 32.4% of women and 25% of men.5

How much?- Median of 50 hours;

- 47.8% of volunteers served 50 or more hours during the year.5

Volunteering


Where?- Religious organizations (34.8%);

- Educational/youth service organizations (26.2%).5

Volunteering

Religious35%

Educational/Youth

Service27%

Social/Community

Service14%

Hospital/Other Health

8%

Civic/Political/

Professional/International

7%

Public Safety1%

Sport/Hobby/Cultural/Arts

3%

Other5%


Why?- 42.8% were asked (25.9% by someone in the organization,

16.9% by someone else);

- 40.3% of the volunteers approached the organization.5

What?- Fundraise or sell items to raise money – 29.7%;

- Collect, prepare, distribute or serve food – 26.3%;

- Engage in general labor or supply transportation to people – 22.5%;

- Tutor or teach – 21.3%;

- Provide professional or management assistance, including serving on a board or committee – 17.7%.5

Volunteering


Households are more likely to give when they:

-Volunteer with or without a family member;

-Regularly attend religious services; and

-Own their home.6

Giving and Volunteering

Sustainability – Current Paradigm

Doing more with the same amount of funding.

Doing the same thing with less funding.

Other?

What is Sustainability?


Social pressures- Current US population of 297 million people is expected to

be 336 million by 2020 and 392 million by 2040.7

- 37 million people below poverty.8

Nonprofit woes- Approximately 1.4 million registered nonprofits:

• 825,523 public charities;• 472,962 other nonprofits; and• 103,068 private foundations.9

- Fundraising professionals identified “Too many nonprofits/increased competition for the charitable dollar” as the top fundraising issue.10

What is wrong with sustainability?


Nonprofit woes, continued- The number of charities continues to grow, with

religious organizations growing the most followed by education organizations.11

Corporate giving- 41% of corporate donations supported health and

human services.12

- Pharmaceutical companies gave the most, but the majority of those contributions were non-cash.12



Volunteers stretched thin- 37.7 million people who had volunteered in the past did not

volunteer in 2005. Their most common reason was lack of time .5

- 61.3% of volunteers volunteered 100 hours or less in 2005.5

Increasing demands on public and private sector resources.

Each sector demands sustainability, but decreases in $ from a sector require increases from another to maintain level service.



.


Government

Corporation

s

Indi

vidu

al

s

Foundations

Nonprofit Service/Outcomes


.


Government

Corporation

s

Indi

vidu

al

s

Foundations



.


Government

Corporation

s

Indi

vidu

al

s

Foundations



.


Government

Corporation

s

Indi

vidu

al

s

Foundations


Sustainability – New Paradigm

We must determine the investment required to eradicate the need and then make that investment.

This will require increased, not decreased public and private investment and cooperation.

The goal of the new paradigm is not to sustain programs but to eliminate them by eliminating the need.


Clearly define the problem in your community

Clearly define the factors that lead to this problem

Clearly define the needs that result from this problem

1. Define Root Causes


Identify the stakeholders in the communityIdentify decision-makers and people of

influenceIdentify potential solutions involving everyone

in the process as equal partnersIdentify the resources needed to achieve the

solution(s)

2. Identify Solutions


Make a long-term plan that uses the solutions to eliminate the need

Make partnerships- 89% of Americans want non-profits and corporations to work

in partnership. 76% believe that such partnerships will lead to a more positive image of the nonprofit.13

Make new ways to give - Real estate gifts are increasing in popularity, as are gifts of

art, appreciated securities and gift annuities.14

- Only 9% of households named a charity in their will.15

3. Make Connections


Make new ways to give, continued - Donors who give online tend to give more than those who do

not .16

- Online donations were up 148.1% in 2005.17

Make a name for your organization through marketing and branding.

Make community foundations part of the plan- Community foundations had the highest percent increase in

giving in 2005.3

- Community foundations most likely to fund at least half of their grant requests in 2004.18

3. Make Connections


Make changes to fundraising activities - December is the best time to raise funds, followed

by November. July and January are the worst times.10

- Corporate foundations are most likely to receive 1,000 or more proposals; whereas, half of foundations received fewer than 100 proposals.18

Make commitments with public and private organizations to fund the change

3. Make Connections

Citations

1. Giving USA. (2006).2. Faith and Philanthropy: The Connection Between Charitable Behavior and Giving to Religion.

Independent Sector (2002).3. Foundation Growth and Giving Estimates 2005. The Foundation Center (2006). 4. The Foundation Center’s Statistical Information Service.

<http://foundationcenter.org/findfunders/statistics/>.5. Volunteering in the United States, 2005. US Department of Labor, Bureau of Labor Statistics

(December 2005).6. A Nation of Givers: Regional Patterns in American Giving and Volunteering. Independent Sector

(2004).7. “US Interim Projections by Age, Sex, Race, and Hispanic Origin”. US Census Bureau (2004).8. “Age and Sex of All People, Family Members and Unrelated Individuals Iterated by Income-to-

Poverty Ratio and Race: 2004 Below 100% of Poverty -- All Races”. <http://pubdb3.census.gov/macro/032005/pov/new01_100_01.htm> US Census Bureau (Last revised: June 24, 2005).

9. Exempt Organizations Business Master File. Internal Revenue Service (December 2004).10. State of Fundraising Survey 2005. Association of Fundraising Professionals (2006).11. The Chronicle of Philanthropy, January 2005.12. The 2004 Corporate Contributions Report – Report 1355. The Conference Board (2004).13. The 2004 Cone Corporate Citizenship Study. Cone, Inc. (2005).14. The Nonprofit Times Weekly Update, April 2004.

Citations

15. Planned Giving in the United States 2000: A Survey of Donors. National Committee on Planned Giving (2000).

16. Kintera/Luth Nonprofit Trend Report. Luth Research and Kintera (2005).

17. The Chronicle of Philanthropy, June 2006.

18. Foundation Growth and Giving Estimates 2004. The Foundation Center (2005).

Shifting the Sustainability Paradigm: Eliminating Programs

Jim SnellTennessee Commission on National & Community ServiceTennessee Tower312 8th Ave. N., 12th FloorNashville, TN [email protected]

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