Weekly Picks

Trend of the Week: May 13 - 19, 2012

Social Justice Philanthropy Trends

According to a new report from the Foundation Center, a small but important subset of grantmakers — those who work on issues ranging from human rights to environmental justice — has been disproportionately impacted by the global financial crisis and their recovery remains in jeopardy. Diminishing Dollars: The Impact of the 2008 Financial Crisis on the Field of Social Justice Philanthropy examines historical trends in foundation assets, spending, and giving levels; describes strategies used by foundations to cope with depleted assets immediately following the crisis; and presents projections through 2015 for asset and grantmaking levels. Key findings of the study indicate:
 

	Unless the field sees five years of above average investment returns, social justice grantmaking in 2015 will remain below 2008 levels.
	Small foundations (less than $50 million in assets) will struggle the most to recover from the economic downturn.
	Nonprofit organizations seeking new funders will have a difficult time.
	Some foundations are unintentionally depleting their endowments at a very slow rate.

May 6 - 12, 2012

Nonprofit Social Networking Trends

NTEN, Common Knowledge and Blackbaud have released the fourth annual 2012 Nonprofit Social Networking Benchmark Report. The report provides insights for nonprofits, foundations, media and businesses serving the nonprofit sector about the most important behavior and trends surrounding social networking as part of nonprofits’ marketing, communications, fundraising, program and IT work. Key trends include:

	Commercial social network use by respondents has passed well into mainstream adoption leaving a small percentage of late mainstream and laggards to join in.
	Facebook popularity among respondents is at saturation levels, while average community size continues to grow.
	Twitter adoption still growing along with average follower base size.
	LinkedIn popularity is relatively low (compared to Facebook and Twitter) but 2011 saw a sizeable jump in adoption of this channel.
	Many mature (2+ years old) commercial social networking communities continue to grow, while an increasingly smaller number of respondents are just getting started.

To download a copy of the report, go to: nonprofitsocialnetworksurvey.com
 

April 29 - May 5, 2012

Late Fall 2011 Fundraising Trends

April 22 - 28, 2012

Nonprofit Finance Trends

The Nonprofit Finance Fund (NFF) has released results of its 2012 State of the Nonprofit Sector survey. More than 4,500 respondents at nonprofits across the country shared the details of how they are adapting their organizations and finances to current economic conditions. The survey reveals that while 2011 was a year of significant organizational and programmatic changes, many nonprofits are still facing fundamental challenges that threaten the stability of the sector and the well-being of the people they serve. Key findings include:
 

	85% of nonprofits experienced an increase in the demand for services in 2011.
	This is on top of years of increased demand: previous NFF surveys found that 77% of nonprofits experienced an increase in demand in 2010; 71% experienced an increase in 2009; and 73% experienced an increase in 2008.
	88% expect an increase in demand for services in 2012.
	57% have 3 months or less cash-on-hand.
	87% said their financial outlook won’t get any better in 2012.

April 15 - 21, 2012

Online Advocacy Continues Gaining Momentum

Online advocacy actions grew at a solid 17 percent clip from 2010 to 2011, according to The Convio Online Marketing Nonprofit Benchmark Index™ Study. The fastest growing sectors, each at more than 29 percent, are: Animal Welfare, Environment & Wildlife and Jewish. Advocacy actions are instances of sending some form of written communication to political leaders. In addition to an increase in online advocacy, advocates are also quickly becoming financial supporters of the organizations they support, growing at a 24.6 percent rate -- nearly four times the increase from 2010. Key advocacy findings of the study Include:

	Online legislative advocate counts grew by 17 percent: Overall, 75 percent of the verticals experienced more than 10 percent growth in their number of advocates.
	Animal Welfare, Environment & Wildlife, and Jewish grew the most: The verticals that experienced the greatest growth were Animal Welfare (30.12 percent), Environment & Wildlife (29.23 percent), and Jewish (29.21 percent).
	Donor advocates increased by 24.63 percent. This is nearly a fourfold increase from 2010 when the median change was 6.42 percent.

April 8 - 14, 2012

Nonprofit Fundraising Study: 2012 Outlook

The Nonprofit Research Collaborative (NRC), through its Nonprofit Fundraising Survey, offers the largest national survey of charitable receipts available in the United States and covering an entire calendar year. More than 1,600 organizations answered survey questions in early 2012 about charitable receipts from January through December 2011. Responding groups included large and small organizations (by budget size) and organizations from every subsector, from Arts, Culture & Humanities to Religion. Key findings are summarized here:

	Charitable receipts rose in 2011 at more than half of surveyed organizations
	Six in 10 respondents met their fundraising goal in 2011
	Respondents showed diverse use of fundraising approaches and methods
	Board members at responding charities are usually engaged in fundraising in numerous ways. Several survey respondents offered examples of successful strategies they have used for engaging board members in fundraising.

Survey respondents remain optimistic about prospects for fundraising in 2012, with 71 percent expecting to raise more this year than in 2011. However, when asked about the most important trends or issues that could affect fundraising results either positively or negatively, nearly one-third (31%) mentioned local, national, or global economies as a challenge to raising funds this year. To download a copy of the study, go to: www.nonprofitresearchcollaborative.org
 

April 1 - 7, 2012

Volunteerism and Charitable Giving Trends

To explore volunteer behavior in the United States, the Fidelity® Charitable Gift Fund fielded a telephone survey of 15 minutes in length conducted by Harris Interactive of Princeton, N.J. from October 21 - 25, 2009. A total of 1,005 respondents were polled with an essentially equal proportion of men and women. Key findings include:

	People are volunteering in the U.S. but cynicism exists.
	Volunteers donate significantly more money to nonprofits than non-volunteers and many contribute both time and money.
	Most adults believe true philanthropy means the gift of time and money and are not looking for rewards.
	Many volunteer because it is the right thing to do or to support a cause they care about. The mission of an organization and serving local community needs top the list of choosing where to volunteer.
	Recent economic downturn has made volunteering time more appealing than giving money.
	Some adults are optimistic about increasing their donations in 2010 – especially those under 35.
	Time is the main barrier to volunteering, but trouble finding the right fit is also cited by 3 in 10 adults.

March 25 - 31, 2012

Gaps In Financial Knowledge Challenge Mid-Size Nonprofits

A new survey of financial managers at mid-size nonprofit organizations reveals gaps in their financial knowledge, even as they grapple with economic challenges. The study was conducted by the Center on Philanthropy at Indiana University to help nonprofits understand and increase their financial knowledge levels and improve their effectiveness. Nonprofits’ knowledge, policies and procedures were studied; some results were positive, while others revealed a clear need for financial education. Nearly half (49 percent) of mid-size nonprofits had less than three months’ worth of cash reserves for operating expenses available. A quarter (26 percent) had four to six months’ worth on hand, while another quarter had more than seven months of operating expenses. Other key findings include:

	Respondents said they were knowledgeable about negotiating with banks or lenders (78 percent), cash flow projections (75 percent) and financial scenario planning (72 percent).
	Only 46 percent reported knowing about debt restructuring.
	Financial literacy increased with the number of courses taken in accounting, economics, operations and financial management, and with the nonprofit’s revenue.
	Boards were involved in accountability (66 percent), but less so in managing investments (38 percent), developing budgets (30 percent) and scenario planning (27 percent).
	Less than 40 percent of nonprofits surveyed had an audit committee.

March 18 - 24, 2012

Charitable Giving Affected by Racial and Age Stereotypes

March 11 -17, 2012

Voluntary Turnover Rates to Double in 2012

March 4 -10, 2012

More Children Living in High Poverty Areas

February 26 - March 3, 2012

Consumer Attitudes Around Social Purpose

The GoodPurpose study is an annual global research published by Edelman, the world’s largest independent public relations firm. The study explores consumer attitudes around social purpose, including their commitment to specific social issues and their expectations of brands and corporations. The survey was conducted in 13 countries among more than 7,000 adults. It is the only global study of its kind. According to the latest study results, while consumers in emerging markets now outrank their peers on several measures of commitment to social purpose, citizens around the world maintain a high level of interest and engagement in cause. For the fourth year running, in all European and North American countries surveyed, purpose is more important than design/innovation or brand loyalty as a purchase trigger. when quality and price are the same. Despite the prolonged recession, two-thirds (66 percent) of global consumers report that they are likely to buy and recommend products and services from companies that support a good cause. Additional Key Findings Include:
 

	Sixty-nine percent of consumers globally believe corporations are in a uniquely powerful position to make a positive impact on good causes—as high as 80 percent in the U.S. and 82 percent in Mexico.
	Nearly two-thirds of global respondents (64 percent) believe it is no longer enough for corporations to give money; they must integrate good causes into their everyday business
	Seventy percent of global consumers say that a company with fair prices that gives back is more likely to get their business than a company that offers deep discounts and doesn’t give back.
	Globally, food and beverage tops the list of industries considered the most involved in good causes, virtually tied with media and healthcare providers.
	“Protecting the environment” ranks as the no. 1 cause that global consumers care about, followed by “improving the quality of healthcare”.
	Globally, 71 percent of consumers believe that projects that protect and sustain the environment can help grow the economy—with even higher numbers for China, Mexico, India, Brazil, and the U.S (87, 81, 81, 79, and 75 percent, respectively

To access the study report, go to: www.goodpurposecommunity.com
 

February 19 - 25, 2012

Engagement Levels of Nonprofit Employees is Dangerously Low

Opportunity Knocks (OK) has released their a report, Engaging the Nonprofit Workforce: Mission, Management and Emotion, and it indicates that the current engagement level of nonprofit employees is dangerously low. According to OK, "55% of respondents plan to continue working for their current employer. Of those planning on leaving their current organization (45%), more than half plan on leaving within the next two years." OK does not consider these low percentages to be surprising. According to their report, nearly half of the respondents of their survey felt that "fulfilling all of their job responsibilities did not improve their chances of being promoted and only one third are satisfied with their pay level." The goal of their report is to better understand the ways in which nonprofit employees are engaged and the impact of employee engagement and disengagement upon employees, nonprofit organizations and communities. To access the complete report, go to: content.opportunityknocks.org
 

February 12 - 18, 2012

State of the Nonprofit Industry

Blackbaud has conducted its State of the Nonprofit Industry survey annually for seven of the past eight years. The study asked nonprofit leaders to report on some of the management strategies they’re using, and the degree to which they anticipate changes in their organizations this year and next. According to the latest survey, although the global economic climate remains uncertain, there is once again a growing sense of optimism in the nonprofit sector regarding growth in staffing and earned and charitable income, especially when looking forward to 2012. At the same time, organizations anticipate an increased demand for services and increased expenditures. The majority of organizations expect to see an increased demand for their services in 2011 and 2012, similar to last year’s study. To meet the projected increase in demand for services, organizations are primarily anticipating either constant or growing staffing levels in 2011 and are slightly more optimistic about increased staffing in 2012. The percentage expecting overall staffing increases coincides with the percentage expecting fundraising staff growth. Similar to overall staffing, organizations expect to maintain or increase fundraising staffing levels in 2011 and 2012. For almost all countries, the percentage expecting fundraising staffing to increase is higher in 2012 than 2011. This reconfirms the finding from last year’s survey that fundraising is emerging as a widely-recognized profession around the globe. It is clear that fundraising is no longer someone’s “part-time” responsibility. For more information, go to: www.blackbaud.com
 

February 5 - 11, 2012

Poverty Spike Very Likely to Worsen

Between 2006 and 2010, poverty increased by 27 percent to include 47.2 million Americans—or 15 percent of the U.S. population. Now, a study released on Wednesday by Indiana University predicts that poverty will continue to worsen in the wake of the recession. The report is based on 2010 poverty statistics, but a combination of factors led the authors to this conclusion. The United States now has the largest number of unemployed people since records started being kept in 1948, and four million of these Americans report being out of work for more than a year. The longer they are out of work, of course, the harder it will be for them to re-enter the workforce. If unemployment insurance benefits are cut before new jobs appear in the market, the numbers of “new poor” will likely swell accordingly. Key findings include:

	The Great Recession has left behind the largest number of long-term unemployed people since records were first kept in 1948.
	Large numbers of Americans are already poor. The official federal measure of poverty and a new “Supplemental Measure,” which accounts for several shortcomings in the official measure, both reveal a sobering fact: poverty in America is remarkably widespread. In 2010, about 46.2 million Americans were living in poverty according to the official measure, or about 15.1% of the U.S. population.
	The adverse effects of the Great Recession would have been much worse had recent policy initiatives not been enacted by Congress.
	The Federal government’s large yearly deficits are creating pressures for spending control that are likely to result in cutbacks of the safety net.
	Due to fiscal pressures, states are already making cuts to the safety net, and more are likely in the next several years.

January 29 - February 4, 2012

Nonprofits Added Jobs Faster Than Businesses Last Decade

Defying two recessions, the nonprofit sector posted a remarkable 10 year record of job growth, achieving an average annual growth rate of 2.1 percent from 2000 to 2010, while for-profit jobs declined by an average of minus 0.6 percent per year, according to a new Johns Hopkins University report. Other findings from the report include:

	The U.S. nonprofit sector employs 15 times more workers than the nation’s mining industry, nearly 10 times more workers than the agriculture industry, and about twice as many workers as the construction industry.
	The vast majority of nonprofit jobs are in three service fields—health care (57 percent), education (15 percent), and social assistance (13 percent).
	During the 2007-2009 recession, nonprofit employment grew in 45 of the 46 states on which state-specific data were available, while for-profit employment declined in 45.
	Nonprofit employment also grew in all regions of the country from 2000 to 2010, with an average annual growth rate that ranged from 1.5 percent in the East South Central region to 3.4 percent in the Mountain region. During this same time span, for-profit employment registered annual average declines in all but two of the regions, and the growth rate in these two was no more than one-seventh as robust as the nonprofit one.
	While nonprofit employment in social assistance grew at an average annual rate of 2.2 percent between 2000 and 2010, for-profit employment in this field grew by an average of 5.4 percent per year. As a result, the nonprofit market share in this field fell from 62 percent in 2000 to 54 percent in 2010. Similarly, for-profit growth outpaced nonprofit growth in education (4.4 percent vs. 2.6 percent) and nursing home care (2.3 percent vs. 1.3 percent).

These findings come from a report presenting previously unavailable data on year-to-year changes in employment in private, nonprofit establishments in the United States from January 2000 through June 2010. The full report, Holding the Fort: Nonprofit Employment during a Decade of Turmoil, which includes charts with state by state data, is available at ccss.jhu.edu
 

January 22 - 28, 2012

Minorities Are More Generous Than Whites, Study Finds

The W.K. Kellogg Foundation (WKKF) released a new report, “Cultures of Giving: Energizing and Expanding Philanthropy by and for Communities of Color” with support from Rockefeller Philanthropy Advisors. This new report shows how the face of philanthropy is rapidly changing to become as ethnically, culturally and socioeconomically diverse as our country’s population, with some of the most significant growth stemming from identity-based philanthropy—a growing movement to spark philanthropic giving from a community on behalf of a community, where “community” is defined by race, ethnicity, gender or sexual orientation. Historically, communities of color receive a small percentage of mainstream philanthropic dollars despite an often disproportionate need. Yet recent trends show that communities of color are giving at increasing rates and levels. For instance, 63 percent of Latino households now make charitable donations, and African Americans give away 25 percent more of their income per year than whites. To download the full report, go to: www.wkkf.org
 

January 15 - 21, 2012

Foundation Funding for Hispanics/Latinos

According to Foundation Funding for Hispanics/Latinos in the United States and for Latin America, released by the Foundation Center in collaboration with Hispanics in Philanthropy, total grant dollars targeting Latinos in the U.S. between 2007 and 2009 averaged about $206 million per year, while funding for Latin America averaged roughly $350 million per year. Human services (27 percent) and health (26 percent) captured the largest shares of grant dollars awarded for Latinos in the U.S. Of the grants targeting Latin America, Mexico and Brazil received the largest shares. Among other key findings in the report:

	The top 10 funders awarding grants for Latinos in the U.S. from 2007 to 2009 accounted for close to 40 percent of grant dollars.
	Recipient organizations in the Western region of the United States received the largest share (42 percent) of foundation dollars intended to benefit Hispanics. Over 80 percent of this funding went to organizations in California.
	The largest share of grant dollars for Latin America was for the environment and animals (33 percent), followed by international affairs (20 percent).
	Roughly half of funding for Latin America went directly to recipient organizations located in Latin America, while the other half was awarded through U.S.-based international programs.

January 8 - 14, 2012

Key Predictions and Trends for the Nonprofit Sector in 2012

Convio announced its key predictions and expected trends that will have the biggest impact on the nonprofit sector in 2012: social and mobile continuing to mature; peer-to-peer engagement having greater influence; and donors dictating terms of interaction. Key Predictions and Trends for the Nonprofit Sector in 2012 include:

	Online fundraising was up 40 percent from 2009. Online will continue as the fastest growing giving channel.
	Online's influence outside of transactions is growing as older donors engage in web-based communications and advocacy.
	Acceleration in new media channels and devices (social and mobile) will have significant increase in material importance for nonprofits.
	Direct communications by nonprofit organizations will have less impact on the giving decisions of donors than in years past.
	Donors will increasingly rely on referrals and guidance from friends, family and co-workers to make decisions, particularly the younger generations.
	Nonprofits will want to tap their most vocal and loyal supporters to be active promoters.
	Information overload will continue as individuals receive mail, email and other communications from marketers with increasing intensity, making it challenging for nonprofits to have their messages heard.
	Text messages, RSS feeds, tweets and Facebook posts only compound the problem.
	Tailored communications that resonate with donors will be critical.
	Nonprofit supporters want to be able to define and customize how they are communicated to (e.g. go paperless, set frequency of emails and filter for content).
	The burden of expectation for nonprofits is being set by the for-profit sector.

January 1 - 7, 2012

State Budget Losses Expected to Cause Problems for Nonprofits Through 2013

Despite signs the economy is improving, nonprofits that rely on state money should brace for at least two more years of tough times, a new report warns. The report, prepared by Changing Our World, a philanthropy consulting firm, traces the evolution of the economic crisis, assesses its impact on state budgets, and explores whether philanthropy can make up for the loss of government spending on social programs.

The report offers the following tips to help nonprofits respond to the current economic downturn and prepare for the next one:

	Tap unemployed people to work as volunteers, possibly with an honorarium. The organization benefits from their experience while they gain a position that will make them more attractive to potential employers.
	When raising money, emphasize the positive. Instead of saying the organization is hurting financially, explain the impact a gift could make. Develop a strategy for measuring results if one does not already exist to be prepared for the next crisis.
	Consider adding to the board people who have financial expertise and relevant government experience.
	Get educated about domestic and international business and economic trends. Read the Financial Times and The Wall Street Journal.
	Set up a board committee that meets when an economic measure, like unemployment or consumer confidence, hits a designated number.
	Make sure no more than 60 percent of any program’s budget comes from government money.

To view 2011 Trends of the Week, click here.

To view 2010 Trends of the Week, click here.

To view 2009 Trends of the Week, click here.

To view 2008 Trends of the Week, click here.

To view 2007 Trends of the Week, click here.

To view 2006 Trends of the Week, click here.

To view 2005 Trends of the Week, click here.

To view 2004 Trends of the Week, click here.