donations. evolving landscape, renewing optimism philanthropic trends caisap conference
TRANSCRIPT
DONATIONS
Evolving landscape,renewing optimism
Philanthropic Trends CAISAP Conference
The base statisticssector snapshot
overall giving
individual giving
The base statisticssector snapshot
overall giving
individual giving
The base statisticssector snapshot
overall giving
individual giving
The base statisticssector snapshot
overall giving
individual giving
Many organizations
60,000
85,000
50,000
55,000
60,000
65,000
70,000
75,000
80,000
85,000
90,000
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
the base statisticssector snapshot
2-year decline in giving…
the base statisticsoverall giving
0
2
4
6
8
10
12
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Giv
ing i
n $
bil
lions
0
2
4
6
8
10
12
Individuals Corporations Foundations Total
…including individuals…
the base statisticsindividual giving
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Charitable donations by Canadians ($ billions)
…and now % giving down slightly too.
$0
$250
$500
$750
$1,000
$1,250
$1,500
0%
5%
10%
15%
20%
25%
30%
35%
40%
Avg. Donation % of Filers
the base statisticsindividual giving
The landscape evolvesdonor confidence
demographics
technology
accountability
competition
The landscape evolvesdonor confidence
demographics
technology
accountability
competition
The landscape evolvesdonor confidence
demographics
technology
accountability
competition
The landscape evolvesdonor confidence
demographics
technology
accountability
competition
The landscape evolvesdonor confidence
demographics
technology
accountability
competition
The landscape evolvesdonor confidence
demographics
technology
accountability
competition
Renewed donor confidence…
The generations are shifting…
1971-2030
the landscape evolvesdemographics
The generations are shifting…
1971-2030
the landscape evolvesdemographics
The generations are shifting…
1971-2030
the landscape evolvesdemographics
The generations are shifting…
1971-2030
the landscape evolvesdemographics
…with more complexity…
Source: FDU Magazinethe landscape evolvesdemographics
…and diversityVisible Minorities in Canada
0% 10% 20% 30% 40% 50% 60% 70%
Halifax
Saskatoon
Winnipeg
Montreal
Ottawa
Calgary
Vancouver
Toronto
Canada
2006 (Actual)
2031 (Projected)
Source: Statistics Canada
the landscape evolvesdemographics
Just a few new tech choices…
the landscape evolvestechnology
…more accountability than ever…
• Increased scrutiny of donors and ‘public’• Demand for ‘fiscal accountability’
– Governance renewal and reaffirmation
• Imagine Canada’s Standards Initiative• More scrutiny re cost per dollar raised, but
also more understanding of what it takes to be successful
• CRA Guidance
the landscape evolvesaccountability
…and more sophisticated competition
Increased number of charities
Increased sophistication of profession
Increased needs and
demands for funds
Dramatically increased competition for ‘mind-share’:– Public goodwill and
profile
– Alumni and new students/families
– Parents/past parents/grandparents
– Faculty/Staff
=+
+
the landscape evolvescompetition
Generating renewalalignment & collaboration
engagement & impact
diversification
leadership development
Generating renewalalignment & collaboration
engagement & impact
diversification
leadership development
Generating renewalalignment & collaboration
engagement & impact
diversification
leadership development
Generating renewalalignment & collaboration
engagement & impact
diversification
leadership development
Generating renewalalignment & collaboration
engagement & impact
diversification
leadership development
More we work together…• Alignment of Board(s)
– To the strategic priorities of the School– To the Advancement function and priority work of the
Head– To defining the philanthropic agenda– To embracing their philanthropic leadership position
• Alignment of Faculty/Staff– With a philanthropic culture– With Advancement expectations– With ethic of engagement among departments
(Admissions, Bursar, House Parents, and Advisors)
generating renewalalignment & collaboration
…more effective we will be
• Much more collaboration than ever before
• Creating caring alumni
• Embracing and advancing a culture of School excellence
generating renewalalignment & collaboration
Reaching your ‘traditional’ groups
• Deepening relationships with donors and volunteers• Developing engagement strategies for donors and
prospects for the long haul– Keeping the conversation going with potential donors– Using a customer management model while remaining
authentic• Same holds true for volunteers
– Looking for ways to keep them engaged over long periods of time
– Concept of maintaining “mindshare”
generating renewalengagement & impact
Defined audiences, new strategies
• Engaging donor groups in the vision of the School– Presenting “today’s School” to older alumni– Thinking of School beyond tuition costs for parents– Defining capacity, interest and intent– “Re-engagement” strategies take time/patience– Consider “lifetime” relationship of parents –
present and future– Realistic expectations of international $$
• Younger generation– New technology– Four generations in the workplace
generating renewalengagement & impact
Moving beyond just alumni/parent ‘connections’…
How are you currently using volunteers in fundraising?
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Identifyingprospects
Openingdoors toprospects
Prospectivedonor
cultivation
Solicitationactivities
Stewardshipactivities
Other
Snapshot: 2010 KCI client poll
generating renewalengagement & impact
…with customized approaches…
• No “one size fits all” when it comes to involving alumni and parents– Dependent on your School’s stage of development– Using peer pressure to advantage– Parents/alumni can train their peers
• Regardless of stage, role clarity is critical– Clearly understand and communicate role you want them
to play at recruitment stage
• Measuring performance of volunteers (scorecards)• Ultimately, ideal is a ‘partnership model’
generating renewalengagement & impact
…including in campaigns• Flatter volunteer structures
– Executive Committee/Cabinet model– Case Component model
• To Chair or not to Chair?– No Chair model– Co-Chair model– Revolving Co-Chair model
• Increased Board involvement– No longer just downloaded to campaign volunteers
• Fewer meetings, more one-on-one
generating renewalengagement & impact
All eggs…one basket… bad idea
• Recession showed us value of diversification– Top performers consistently had diversity of fundraising
activities
• Diversification of fundraising programs to address all 4 generations
• Strategic retooling and tactical facelift of programs• Aging Boomers (A,P,PP,GP,F/S,PF/PS) bodes well
for charitable giving– Now is the time to build planned giving programs
• Concept of donor equity evolving
generating renewaldiversification
Technology: new tools in the toolbox…
Are you using any of the following in your fundraising strategies?
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Text messagedonations
Facebook Twitter Youtube Other
Snapshot: 2010 KCI client poll
generating renewaldiversification
Technology: new tools in the toolbox…
• Facebook and Twitter– used to mobilize groups and spread messages– Utility as fundraising tool not yet proven
• Mobile philanthropy growing– Gifts made via mobile philanthropy to Haiti demonstrate
the power of this vehicle– Organizations now using iPhone and Blackberry
applications to enable “point of sale” donations• Sector grappling with how best to make it work• First things first
– Focus on enhancing your web presence, email quality, and enabling more donor control
generating renewaldiversification
…with impact across three key areas
Data ManagementProspect identification Appeal segmentation Performance analysis
CommunicationsBroader engagementCustomize messagesFoster collaboration
FundraisingShift from ‘donate now’
to ‘fundraise now’
generating renewaldiversification
Tech questions to ask• What are you trying to achieve?
• What is the capacity of the tools?
• Are you willing to resource (money and human)?
• If on a limited budget, what are you willing to drop?
generating renewaldiversification
Looming ‘leadership gap’…
• Capacity of organization limited by capacity of the people in the organization
• Shifting demographics mean need to focus on talent management and leadership development– Aging Boomers retiring– Entrance of new generations into the workforce– “Cross-pollination” seen as healthy
• Succession planning is precursor to good leadership and key to talent management– At all levels of the organization– In consultation with senior management and involving the staff
under consideration– Open and transparent
generating renewalleadership development
…and the importance of ‘both Qs.’
IQ• Intellect• ‘Threshold’
capability for executives
• Cannot be learned
• Can be reinforced
EQ• Personal
capabilities or competencies
• Typifies outstanding leaders
• Can be learned• Not nice to
have… but need to have
generating renewalleadership development
…and the importance of ‘both Qs.’
IQ• Intellect• ‘Threshold’
capability for executives
• Cannot be learned
• Can be reinforced
EQ• Personal
capabilities or competencies
• Typifies outstanding leaders
• Can be learned• Not nice to
have… but need to have
Hire for EQ, not just IQ…
Hire for leadership potential, not
just tactical skill.
generating renewalleadership development
What does it mean for you?
Journey of a thousand miles…
• Opportunities– Defining the philanthropic agenda (Board & School)– Building internal champions for advancement– Presenting “today’s School and its future” to older stakeholders (A,PP,GP,PF/PS)– Planned Giving geared to demographics
• Challenges– Setting realistic expectations– Mining the database– Competition/positioning– Institutional cultural and thinking shift required in considering development and MG FR
as School priorities particularly as it relates to “asking” and raising giving sights– Raising giving participation levels among parents and alumni– Robust MG pipeline development– Resisting “just in time” cultivation and solicitation pressures from Boards– Engaging Foundation Board in fundraising activities
Snapshot: 2010 KCI client poll
what does it mean for you?
Journey of a thousand miles…
• ‘Minimum requirements’ remain– Sharp, relevant case for giving– Respect for donors individually– Flexibility in giving options– Patience with extended timelines for cultivation and
decision-making
• In 2011 ALL organizations must:– Revisit strategic and operational plans– Conduct a prospect audit– Get out there
what does it mean for you?
Slow and steady
• Not a matter of abandoning long held fundraising principles
• Adopt an orientation of openness to emerging opportunities
• Take a thoughtful look at how they fit in organizational realities
• Plan the integration of tools and techniques• Develop structures and strategies to maximize
strength and capitalize on new opportunities
what does it mean for you?