Posts Tagged ‘Charities and Recession’

Corporate Giving Slow to Recover in Weak Economy

Wednesday, August 31st, 2011

volunteerscreeningblog.comCharitable giving will probably remain flat in 2011, according to a Chronicle of Philanthropy survey of 180 businesses. After 2010’s 13% increase in cash donations, businesses are not expected to maintain the increases. Some see a possible increase in product donations, which when added to 2010’s total, increased giving by nearly 20%.

Out of the 107 Fortune 500 companies surveyed, 74 said they expected 2011’s giving to remain about the same as 2010’s, while 27 expected an increase and six expect a decrease.

The head of the Association of Corporate Contributions Professionals, a group that represents company grant makers, said that companies are just holding steady and it will take until at least 2013 before companies give like they did prior to the recession’s start at the end of 2007.

Other findings in the survey include:

  • Cash donations totaled $4.9 billion in 2010.
  • Wal-Mart gave the most cash of any company in the survey, at $319.5 million. Wal-Mart also pledges food and other gifts, with a $1.75 billion commitment to food banks and other organizations that provide the poor with groceries.
  • Goldman Sachs and Citigroup posted increases as their corporate profits soared. Goldman Sachs giving increased 353% to $315.4 million, and Citigroup gave more than $100 million in cash.
  • When combining cash and products, Pfizer topped the list with $3 billion, followed by Oracle at $2.3 billion and Merck at $1.2 billion.
  • Businesses are receiving more requests for basic help, as with utility bills, from non-profits. The president of the Wells Fargo Foundation called this “a very big shift.” Prior to the recession, he said, charities sought strategic, long-term grants. Keeping up with requests will be a stretch in 2011, he suggested, after Wells Fargo’s giving increased by 8.5% in 2010.

Many corporate grant makers say the economy is changing how and what they give, and causing them to focus their charitable dollars more, by focusing on non profits that better match their business objectives, and offering more skills and products as cash becomes tighter.

Count on CriminalData.com for your volunteer prescreening services. Protect your staff, clients, and your community with volunteer background checks.

New Survey Reveals Higher 2010 Revenues for Nonprofits

Friday, February 25th, 2011

volunteer screening, volunteer background checkA recent survey of nonprofit executive directors revealed that half had seen their revenues increase last year. The report, released by the Bridgespan Group, also said that out of 102 EDs surveyed, 60% are actively seeking talent to hire, compared to 31% the previous year.

This is good news for nonprofits everywhere. While the survey sample is not a huge number, it does indicate that things are starting to look up for nonprofits after a few very tough years.

The survey reports:

  • 32% of respondents said their organization faced funding cuts in 2010, compared to 80% in 2009
  • Of these, only half experienced cuts greater than 10%; in 2009, 77% of funding cuts exceeded 10%
  • Half of nonprofits responding said they had seen an increase in revenues over the past year
  • Most of those experiencing growth saw increases of 10% of more (63%), while 29% experienced 20% increases or more

Nonprofits Try New Strategies in Challenging Economic Times
The nonprofits that experienced growth often implemented new strategies, including:

  • 84% of higher-revenue nonprofits developed contingency plans
  • 94% of increasing-revenue nonprofits increased efforts to accurately measure outcomes
  • 59% of nonprofits with increased revenues nonprofits created a communications plan that addressed recession-related issues, compared to only 43% of declining-revenue organizations
  • 22% of nonprofits that saw revenues increase participated in some form of collaboration with other nonprofits

It’s certainly good to report some positive news about nonprofit revenues. Not only has the rate of declining revenue slowed, the size of cuts have also decreased.

How to Boost Year-End Giving For Your Non Profit

Wednesday, November 25th, 2009

Charitable Giving on Volunteer Screening BlogLast week we reported on the year-end picture for charitable giving: traditional holiday gifts to non profits are likely to be way down in 2009 over 2008. But the study revealed some other interesting statistics, too. Using the data wisely to change your non profit’s year end strategy could be an effective way to boost income.

This year, successful non profits are using the recession as a starting point to re-establish relationships and appeal to new and existing donors. The difference is in the message: avoiding the same, stale, year-end letter is essential. Donors and potential supporters are weary and wary this time of year. Everyone knows that non profits need help more than ever—but most people cannot give to every one of the dozens of appeals they receive this time of year.

So here’s some statistics you can use in your year-end holiday appeal: the same charitable giving study reveals that fully three-quarters of Americans surveyed would prefer to receive gifts that help others, rather than traditional holiday clothing, and electronics. And, an overwhelming majority—95%—want the nation’s holiday focus to be on helping children. A message that speaks to the heart of the recipient could go a long way to standing out from the crowd—and being more effective. The fact is that your donors might not know that most of the folks on their holiday gift list would rather see them give a needy organization a donation than give them a present.

So don’t send out the same message this year to your supporters and donors. You can help make gift-giving much easier—and maybe even increase your donations—simply by pointing out that giving gifts of charity and helping children in need is what everyone on their list really wants this year.

Report Says Year-End Giving Will Be Down

Thursday, November 19th, 2009

dollar-sign12009 has been a tough year for non profits and charities all over the United States. And unfortunately, the traditional year-end bump that most receive will not likely happen this year.

As the economy sputters back to life, unemployment is higher than ever—and wallets are snapping shut. Doing without is the new trend, and giving to charities is just not possible for countless Americans.  For those whose incomes have been slashed and are out of work, the incentive of a tax deduction for charitable giving is not at all important.

Giving to a charity as an alternative to buying a gift is not as widespread as last year. A new report commissioned by World Vision says that only 38% of Americans are more likely to give to charity as a gift to another this year—in 2008, that figure was 49%.

Practicality has replaced philanthropy, as holiday gift-givers focus on providing treats to those who have done without them all year, or on giving basic necessities to friends and family who have not been able to afford them.

The good news is that most of those surveyed  for the report plan to increase giving when they can—a full 74% said “yes” when asked if they would increase charitable contributions when the economy improves.

In this economic downturn, non profits have experienced a double-whammy: the need for their services has increased while donors’ ability to give has been significantly cut. The same number of people are donating to charity, but they are giving fewer dollars. Even the nation’s most successful charities expect a 9% decline in income for 2009.  The American Heart Association ended its fiscal year on June 30 with donations down by almost 12%.

Luckily, the AHA saw an increase in both  the number of individual donors and the number of volunteers—a sign that folks still want to help, even if they can only give small amounts of cash or their time.

Count on CriminalData.com for your volunteer prescreening services. Protect your staff, clients, and your community with background checks.

Getting Creative with Donors

Tuesday, November 10th, 2009

Donor writing a check on volunteer screening blogAs non profits climb out of the deep hole created by the recession, volunteer managers and fundraisers are more than a little weary. But some have used the recession to get creative when asking donors for help.

In Virginia, an art museum asked its top donors to give even more so it could eliminate its entry fee and open the museum to everyone, regardless of ability to pay. Believing that the economic situation was exactly the time when folks needed access to art, four donors gave $150,000—and the fee was eliminated.

But free admission created another issue: how to appease the members whose annual fees give them the important perk of unlimited entry? The museum approached the problem with a creative solution: they changed their marketing message to help members understand all the other benefits they receive, such as invitations to special exhibits and events, and to point out that it is their membership fees that are helping others enjoy the museum.  The museum also instituted an entry fee for four special exhibitions per year, which members could still attend for free.

How is it working? The first week of September, when free admission began, saw three times the usual attendance and double the voluntary donations at the museum’s door.

Other non profit organizations are polishing up their donor and volunteer relationships. The head of a youth services foundation in Washington decided that the economic slump was not the time to do just an annual report or stage the same tired annual fundraising event. Personal cards and more frequent updates kept the charity’s name top of mind throughout the year. And when it was time for the annual fundraising event, she took a bold step by ramping it up into an elegant affair—a big change from the simple thank-you dinner of years past.

Instead of charging nothing to attend and hoping for donations at the event, the organization hired an exclusive caterer and held the function in the nicest ballroom in town. They charged $75 per ticket, and quickly sold out. Additional fundraisers at the event brought in even more cash. And, she had more volunteers than ever before, because the event was more fun than ever before!

The lesson as we come through the end (hopefully) of the recession is to be bold, come up with new ideas, and go big! Put your non profit ahead by giving people something to talk about.