Post by Ray Higgins on Aug 20, 2013 7:36:30 GMT -6
Raising Money in a Changing World
By Nicole Lewis
The deepest downturn since the Great Depression may seem like the biggest seismic shift charities face.
But it’s America’s demographic transition that has the potential to transform the philanthropic landscape.
Nonprofits such as the Silicon Valley Community Foundation are already laying the groundwork for learning about the wishes and hopes of new groups of donors.
“Charities that don’t recognize demographic trends are going to shrink and ultimately go out of business,” says Emmett Carson, the foundation’s president.“The populations in the past that have supported them spectacularly will not have the base to support them going forward. This is adapt, change, or die.”
Demographic Shifts
White Americans will no longer be the majority.
By 2045, people of color will outnumber whites in the United States, according to the U.S. Census Bureau. A shrinking pool of Caucasian donors means fundraisers need to focus on burgeoning minority groups.
...
Tailored Messages
While nobody knows for sure whether the demographic shifts now underway will lead overall giving to rise, it seems likely that a changing America will continue to give.
Americans of all races and ethnicities tend to donate to charity at roughly the same rate when differences in education and finances are taken into account, according to research by Indiana University’s Lilly Family School of Philanthropy.
“That suggests that nonprofits can be successful at raising money from all different groups as long as they identify and build relationships with those donors,” says Una Osili, head of research at the school.
A report last year by the W.K. Kellogg Foundation offered a snapshot of philanthropy by women and minorities that indicates enthusiasm for giving.
Kellogg found 400 funds that are organized by blacks, Hispanics, and other minorities that contributed an aggregate of $400-million annually.
“Giving from donors in communities of color is definitely growing,” says Alandra Washington, director of family economic security programs at the foundation. “There is a real appetite and hunger for people to be able to engage and participate in finding solutions in areas of challenge in their communities and using philanthropy as a vehicle to do that.”
Earning Donations
The Silicon Valley Community Foundation, located in a diverse region known for its technology wealth, was able to build on that appetite. But, says Emmett Carson, president of the foundation, success didn’t happen overnight.
After the 2001 earthquake in Gujarat, India, the foundation connected with Indian-Americans who wanted to send help. Foundation staff members have since spent time researching issues important to those donors and recruited several Indian-Americans to serve on its board and join its staff. Last year, the group published a report on the philanthropy of Silicon Valley Indians.
The foundation’s efforts helped produce about a dozen donors interested in giving to India who have contributed a total of nearly $1.5-million.
The fund is now working on a similar report about Chinese-American philanthropy in the Bay Area that will be published in November.
“We believe you have to earn your way into a community over time with trust,” says Mr. Carson. “By having people on the board level, having a diverse staff, and by faithfully taking on issues that are of interest to that community, we are authentic to them when we reach out to them to support their work.”
Not only do fundraisers need to educate themselves about the causes different groups hold dear but they also need to know how to communicate with each one, says Judith Nichols, a fundraising consultant and demographics expert.
Sometimes the same message can be interpreted in different ways by various groups of potential supporters.
For instance, when she worked with Girl Scouts of the USA, Ms. Nichols says, the charity held an information session in Southern California about their camp programs.
White mothers attended with their daughters, Hispanic families sent only their fathers, and many Asian families who were invited to attend did not, she says, because the word “camp” had a negative connotation to them.
In the past, fundraisers would send the same direct-mail appeal to all donors, but strategies have changed along with the country’s population, says Ms. Nichols. “You’ve got all these groups that are very unique, and you can’t approach them all the same way.”
philanthropy.com/article/Raising-Money-in-a-Changing/140941/
By Nicole Lewis
The deepest downturn since the Great Depression may seem like the biggest seismic shift charities face.
But it’s America’s demographic transition that has the potential to transform the philanthropic landscape.
Nonprofits such as the Silicon Valley Community Foundation are already laying the groundwork for learning about the wishes and hopes of new groups of donors.
“Charities that don’t recognize demographic trends are going to shrink and ultimately go out of business,” says Emmett Carson, the foundation’s president.“The populations in the past that have supported them spectacularly will not have the base to support them going forward. This is adapt, change, or die.”
Demographic Shifts
White Americans will no longer be the majority.
By 2045, people of color will outnumber whites in the United States, according to the U.S. Census Bureau. A shrinking pool of Caucasian donors means fundraisers need to focus on burgeoning minority groups.
...
Tailored Messages
While nobody knows for sure whether the demographic shifts now underway will lead overall giving to rise, it seems likely that a changing America will continue to give.
Americans of all races and ethnicities tend to donate to charity at roughly the same rate when differences in education and finances are taken into account, according to research by Indiana University’s Lilly Family School of Philanthropy.
“That suggests that nonprofits can be successful at raising money from all different groups as long as they identify and build relationships with those donors,” says Una Osili, head of research at the school.
A report last year by the W.K. Kellogg Foundation offered a snapshot of philanthropy by women and minorities that indicates enthusiasm for giving.
Kellogg found 400 funds that are organized by blacks, Hispanics, and other minorities that contributed an aggregate of $400-million annually.
“Giving from donors in communities of color is definitely growing,” says Alandra Washington, director of family economic security programs at the foundation. “There is a real appetite and hunger for people to be able to engage and participate in finding solutions in areas of challenge in their communities and using philanthropy as a vehicle to do that.”
Earning Donations
The Silicon Valley Community Foundation, located in a diverse region known for its technology wealth, was able to build on that appetite. But, says Emmett Carson, president of the foundation, success didn’t happen overnight.
After the 2001 earthquake in Gujarat, India, the foundation connected with Indian-Americans who wanted to send help. Foundation staff members have since spent time researching issues important to those donors and recruited several Indian-Americans to serve on its board and join its staff. Last year, the group published a report on the philanthropy of Silicon Valley Indians.
The foundation’s efforts helped produce about a dozen donors interested in giving to India who have contributed a total of nearly $1.5-million.
The fund is now working on a similar report about Chinese-American philanthropy in the Bay Area that will be published in November.
“We believe you have to earn your way into a community over time with trust,” says Mr. Carson. “By having people on the board level, having a diverse staff, and by faithfully taking on issues that are of interest to that community, we are authentic to them when we reach out to them to support their work.”
Not only do fundraisers need to educate themselves about the causes different groups hold dear but they also need to know how to communicate with each one, says Judith Nichols, a fundraising consultant and demographics expert.
Sometimes the same message can be interpreted in different ways by various groups of potential supporters.
For instance, when she worked with Girl Scouts of the USA, Ms. Nichols says, the charity held an information session in Southern California about their camp programs.
White mothers attended with their daughters, Hispanic families sent only their fathers, and many Asian families who were invited to attend did not, she says, because the word “camp” had a negative connotation to them.
In the past, fundraisers would send the same direct-mail appeal to all donors, but strategies have changed along with the country’s population, says Ms. Nichols. “You’ve got all these groups that are very unique, and you can’t approach them all the same way.”
philanthropy.com/article/Raising-Money-in-a-Changing/140941/