A Critical Source of Support for Charities and Nonprofits Philanthropy 2018 Brought to you by Media Group Online, Inc. A Critical Source of Support for Charities and Nonprofits © 2018 Media Group Online, Inc. All rights reserved.

Giving Is in Our Blood According to Giving USA’s latest annual report, total giving increased 2.7% during 2016, to $390.15 billion. The Indiana University Lily Family School of Philanthropy, the source of Giving USA’s data, forecasted a 3.6% increase for 2017, or a total of $404.20 billion. The report states that while giving from individuals increased almost 4%, foundations by 3.5% and corporations by 3.5% during 2016, those by bequest decreased 9.0%. The Lily Family School of Philanthropy forecasted a 3.8% increase in total giving for 2018, but this was prior to the passage of the tax reform bill, which is predicted to cause a decrease in 2018 giving (see page 4 of the Profiler).

Deep-Pocket Donors According to Wealth-X’s World Ultra Wealth Report, North America was the leading region in 2016 wealth creation, increasing 5.1%. Philanthropy was UHNW (Ultra-High Net Worth) individuals’ top interest, at 36.3%, during 2016. Many of the largest philanthropists are “living donors” and have changed the giving paradigm from simply writing a check to contributing to their foundations and being actively involved in the use of their dollars. During 2017, not only were there 3 donations of $1 billion or more from individuals/couples and/or their foundations, but the 10 biggest gifts totaled $10.2 billion, which was more than double the 2016 top-10 total of $4.3 billion.

So Many Are Prepared to Do Their Part According to a July 2017 YouGuv poll, 55% of Americans donated or sponsored someone during the past 12 months, and 31% volunteered their time, with 24% for a church or religious organization and 23% for an NPO/charity. The median amount Americans donated during the past 12 months was $100; however, the average (mean) amount donated during the previous 4 weeks was $321 among men and $227 among women. The largest group of Americans (29%) donated online; followed by check, 27%; donation box, 23%; purchase goods, 17%; donating cash directly, 16%; at a fundraising event, 14%; raffle ticket, 12%; and Internet/digital wallet, 9%.

Assessing the Value of Donations Giving is important, but it’s effectiveness is also crucial. According to the Fundraising Effectiveness Project, the total revenues of nonprofits for the first nine months of 2017, or $4.70 trillion, were 4% less than for the same period during 2016. The total number of donors to nonprofits, or 4.81 million, was also less than the first nine months of 2016, at -5%. In addition, the overall donor retention rate of 33% was a 1.9% decrease from 2016. It’s important to understand that it is typical, since 2011, for charitable organizations to report a lower percentage of giving through June of each year, and then an increase by year’s end of an average of 9 points.

Methodologies to Target Givers According to Summer 2017 Nonprofit Fundraising Study, 50% of nonprofits had adapted some communication method(s) to reach potential Baby Boomer donors, primarily because they have more discretionary income and a large portion of the total wealth. Human Services nonprofits was the largest group to use photographs, at 88%; Health nonprofits that posted to Facebook twice a week, 94%; and Arts hosted events for parents and children, 59%. Organizations with budgets of $1 million or less used these methods more than those with budgets of $1 or more: donors can use digital payment, such as PayPal, 62%; recruit people younger than 40 for leadership positions, 59%; and host events, 49%.

Corporate Giving Starts with a Clear Sense of Purpose According to CECP, a CEO-led coalition, 58% of corporations/companies with a “clear sense of (social) purpose” increased revenues by more than 10% during the 2014–2016 period, compared to 42% of companies with a less clear sense of purpose. Of the 209 companies which provided contributions data for the 2014–2016 period, 48% reported median total giving had increased by 2.3%. The total giving median for the 209 companies during 2016 was $21.2 million, which was 0.13% of revenues. Of the companies responding to the 2017 CECP survey, 48% said their total giving wouldn’t change during 2017, with 39% of them forecasted an increase in giving (2%–more than 25%), compared to 13% forecasting a decrease (1%–8%).

Advertising Strategies www.mediagrouponlineinc.com Advertising Strategies Use the information in the Profiler to help local charitable organizations and nonprofits develop specific marketing/communications efforts to target specific age groups/generations. Consider offering your advertising clients a discounted rate for ads on your Website or a free ad when they sponsor and/or pay for two online ads for local charitable organizations and nonprofits. Suggest to advertisers that they use some portion of their annual flights to promote a dollar-for- dollar match when consumers/customers donate to a local charity or nonprofit, or offer a discount on a specific product or service for a limited time with a qualifying donation.

www.mediagrouponlineinc.com New Media Strategies Ask your station management if it could donate some of the video production crew’s time to record videos for local charities and nonprofits for their Websites and social media. Employees would receive “credit” in the videos, or even on your Website, for volunteering. Suggest local charities and nonprofits select a few Generation Z young adults/teens who are active volunteers to serve as brand ambassadors or social media influencers, posting videos of their experiences and the importance of making a lifelong commitment to charities. Suggest local charities and nonprofits share stories on social media of local people and families that the organizations and/or its volunteers helped to find a home or a job or provide food and clothing, etc., and especially those who are now volunteering their time.

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