Leadership, Governance and Giving

The following material was prepared for the AFP Research Council Think Tank held October 7-8, 2008. The event was co-sponsored by the Philanthropy and Nonprofit Leadership Center at Rollins College. The Research Council is indebted to a generous grant from the Edyth Bush Charitable Foundation to the AFP Foundation that made it possible to convene nationally recognized presenters for the 2008 AFP Think Tank.

Individual Giving: Just What Have We Achieved ? Dr. Adrian Sargeant Robert F. Hartsook Professor of Fundraising Indiana University – Purdue University Indianapolis

2008 Charitable Giving $307.65 billion Corporations $14.50 5% Foundations $41.21 13% Individuals $229.28 75% Bequests $22.66 7%

Public Trust and Confidence in the Sector is Miserably Low Only 16% of Americans have a great deal of confidence in nonprofits 34% have not much or none at all! In 2003 34% of Americans said nonprofits were ‘very good’ at helping people – now only 25% 70% say we waste money – up 10 percentage points in 5 years

Public Trust and Confidence

On Judgment . . . Roughly 40% of U.S. nonprofits claim zero costs of fundraising—that “100% of your gift goes to those who need it” In other reports, 6% of nonprofits indicate no direct costs associated with fundraising and 59% indicate no overhead costs associated with fundraising

“But under a different accounting convention . . .”

A Model Worth Considering The CharityFacts website (www.charityfacts.org) provides information on fundraising and philanthropy in Great Britain for members of the media, researchers and the general public

Another Good Idea The ImpACT Coalition A group of charities that promote better public understanding of how charities work Also promote the benefits nonprofits bring to society by improving accountability, clarity and transparency (ImpACT) NPOs in the group speak with one voice on a specific set of messages www.impactcoalition.org.uk

Messages from the ImpACT Coalition

Levels of donor attrition are terrible and getting worse …

The donor pool is contracting steadily . . .

Participation in bequest giving is unchanged in a century of our best efforts . . . “90% of donor mortality will simply result in lost current giving” . . . as a result of current donors having made no plans for charitable bequests . . . —James (2008)

Online giving still accounts for only around 2% of individual giving

So what can we do to stimulate giving?

Wouldn’t it be good if every fundraiser knew . . . One or two models of giving behavior The underpinning psychology of giving? Philanthropic psychology? What drives bequest giving? How people make decisions about the future—and what language is most effective?

Wouldn’t it be good if every fundraiser knew . . . What drives public trust in the sector—and in organizations—and why this matters The three things that drive donor loyalty—and why this matters The characteristics of successful nonprofit websites—and the links between these characteristics and facts of performance

So, for the Profession . . . Set real performance standards—aspirational standards Create a formal qualification framework Pursue education, NOT just credentialing Value research and integrate it into the books we write and our fundraising practice Establish ethical standards with teeth Implement public information and education Coordinate action

Questions and Comments Please send any questions or comments about this presentation to . . . Association of Fundraising Professionals Research Council 4300 Wilson Boulevards, Suite 300 Arlington, VA 22203 (703) 684-0410 Or submit a comment via the AFP website . . . www.afpnet.org And click ‘Contact Us’ at the bottom of the home page.