1. Coming out of the Recession: Positioning Your Non-Profit for Success! Robert Evans The EHL Consulting Group, Inc. November 17, 2009

2. The Economic Forecast Where are we going? In September 2009, we entered the 22nd month of recession since December 2007 Based on the past, expect 3-4 years for individual giving to recover to pre-recession figures Other world-wide economies entered recovery before U.S.

3. Rebounding after Recession Historical perspective is important, but... Look back at major historical events and their effect on the economy How different is the economic crisis we are currently experiencing? Re-position for the future: what lessons have we learned?

4. Rebounding after Recession Recovery in giving likely to occur more rapidly than in 1930’s and 1970’s because: Income today is higher per capita greater percentage of people have completed college higher percentage of households support secular causes greater understanding of the role that public policy, tax rates, and governmental funding can play in creating incentives for giving non-profits are more sophisticated today and more dependent on voluntary support

5. Rebounding after Recession (continued) We should refer to past trends but must move forward strategically  unique experiences; we must all continue to adjust to changing environment Remember: charitable giving is always a lagging economic indicator

6. Total U.S. Giving in 2008 Total giving = $307.65 billion Decrease of 2.0 percent from best year ever First decline in giving since 1987 and the only decline attributed to economic climate Individuals remain the single most important source of giving

7. Total U.S. Giving in 2008 (continued) Individuals + charitable bequests = 82% of all giving Foundation grant making = 13% of all giving About 45% of independent, community, and operating foundation giving is from family foundations Corporate giving is an estimated 5% of total giving

8. Environment and Animals $6.58 2% Grants to Individuals* $3.71 1% Human Services $25.88 9% International Affairs $13.30 4 % Arts, Culture, and Humanities $12.79 4% Public-Society Benefit $23.88 8% Unallocated giving $19.39 6% Health $21.64 7 % Types of recipients of contributions, 2008 Total = $307.65 billion ($ in billions) Gifts to Foundations $32.65 11% *Foundation grants awarded to individuals Religion $106.89 35% Education $40.94 13% Chart from Giving USA Foundation

9. Implications for 2009/2010/2011 Foundation giving will continue to face unprecedented pressures  it will decline in 2009, 2010, and 2011 because of fluctuations on Wall Street Arts and Culture sector will be especially troubled Corporate Giving will continue to decline While Human Services had the largest decrease in 2008, the state of the economy has encouraged giving to this sector in 2009 Planned Giving will remain the same

10. How Non-Profits Should Respond Increase visibility  Get out in front of your constituencies Transparency is a must  Donors want to be assured of proper financial policies & procedures Donor recognition  Nothing lavish, but show appreciation; say thank you 7 ways Constant communication  E-newsletters, website updates, social networking sites, mailings, phone calls

11. Fundamental Institutional Strategies Financial oversight and reporting –Example: End of Year Annual Reports for constituency Review your organization’s accessibility –Example: Offer online giving Introduce/expand planned giving options Be even more creative than ever before

12. Ending 2009 on a Positive Note Follow-up any outstanding pledges: we only have 6 more weeks for 2009 Thank all of your donors for supporting you... especially during rough times Be time speedy with your acknowledgements  donors need this for tax-filing purposes

13. Starting Strong in 2010 Begin 2010 with a communication to all donors (i.e. newsletter, online posting) Have the leadership and staff develop a set of tangible/realistic goals for 2010 Invite donors to help you develop strategies

14. Starting Strong in 2010 Create and publicize an important calendar of events, especially regarding fundraising activity Also an open Board meeting is a good way to invite your constituency to be a part of the process Remember the #1 reason that people do not give: They are not asked!

15. Great Information & Resources Giving USA: www.givingusa.org www.givingusa.org Center on Philanthropy at Indiana University: www.philanthropy.iupui.edu/Research/CurrentBriefing.aspx www.philanthropy.iupui.edu/Research/CurrentBriefing.aspx Feel free to contact me: Robert Evans EHL Consulting Group, Inc. 215-830-0304, revans@ehlconsulting.comrevans@ehlconsulting.com