fundraising corporate social engagement digital research and analytics new york | atlanta |...

Fundraising Corporate Social Engagement Digital Research and Analytics New York | Atlanta | Boston | Washington, D.C. | London

Gavan MooneyExecutive Vice PresidentSusan Raymond, Ph.D.Executive Vice President

Nonprofit Innovation and Catholic Institutions: Funding for the Future

The expertise to do it right.The passion to see it through.

Fundraising Corporate Social Engagement Digital Research and Analytics ChangingOurWorld.com

Rule Number One in a World of Change

2

I always skate to where the puck is going to be.Wayne Gretsky

Even recognizing that…..

It’s hard to make predictions, especially about the future.Yogi Berra



Objectives• Document the realities facing the Church, challenges and

opportunities• Review the nature of innovation in the revenue strategy and

program work of nonprofits• Examine how Catholic institutions are quietly becoming leaders in

this evolution• Discuss the implications for fundraising strategies

Data on the Catholic Community

Catholic Population: The sky is not falling…



Declining Population: Perception Versus Reality

6

• The Catholic population has continued to grow• The retention rate for Catholics is high, nearly 2/3 of children

growing up in Catholic households remain Catholic• Decline in attendance skews perception of Catholic population,

new outreach methods are required

1965 1975 1985 1995 2000 2005 20120

10

20

30

40

50

60

70

Catholic Population from 1965 to 2012

Year

Popu

latio

n in

Mill

ions

Pew ASARB0

10

20

30

40

50

60

70

80

Number of Catholics

Polling Organization

Mem

bers

in M

illio

ns

19 million Catholics unaccounted for

Gallup and ASARB



Declining Attendance

7

Recent trends suggest that the decline in church attendance is leveling off and even rising slightly in young ages.

19741977

19801983

19861989

19942000

20062012

0%10%20%30%40%50%60%70%80%90%

100%

Percent who say they attend church at least weekly in the General Social Survey, 1974-2012

Strong CatholicsAll Catholics

Year

Perc

ent

Pew Research CenterGeorgetown University Center for Applied Research of the Apostolate

1955 1965 1975 1985 1995 20050

10

20

30

40

50

60

70

80

66 6460 58

77 74

73

56

35 37

2530

Church Attendance Among Catholics, by Age% Attended church in last seven day

60+50-5940-4930-3921-29

Perc

ent


ChangingOurWorld.com

But there is change.

Demographics are changing.

• Catholic Hispanic women have the highest birth rates in the U.S.

• It is projected that between 2005-2030, the number of Hispanics will double to 83.7 million, reaching 106 million by 2050.

• If 76% of those people are Catholic, Hispanic Catholics in the U.S. will be more than 80 million. That is the equivalent to the total populations of California, New York, and Texas combined.

• Over the next 12 years Hispanics will be the majority of Catholics.

2000 2011

35.2 million

51.9 million

Hispanics Living in the U.S.

40% in-crease

PEW RESEARCH CENTER

8



Increasingly, it is a U.S. born Hispanic population• Most immigrants arrived in the

U.S. before 2000.

• The share of the nation’s Hispanics who are U.S. born has been on the rise since 2000.

• As of 2009, 64% of the U.S. Hispanic population was U.S. born, indicating the majority of the Hispanic population has grown up in American culture.

• U.S. Hispanics’ homes, schools, and communities are diverse, and their participation in larger community institutions is no less common.

1968 1973 1978 1983 1988 1993 1998 2003 20080%

10%20%30%40%50%60%70%80%90%

100%86%

60% 64%

14%

40% 36%

Percent of U.S. Hispanics who are Foreign Born vs. U.S. Born

Foreign Born U.S. Born

Before 1990 1990-1999 '00-'05 '06 or later0%

5%

10%

15%

20%

25%

30%

35%

40%

38%

27%

20%16%

Percent of immigrants arriving in the U.S.

PEW RESEARCH CENTER

9


ChangingOurWorld.comFundraising Corporate Social Engagement Digital Research and Analytics

Catholic institutions represent a critical mass in nearly every social, health, and education sector in the nation

Institution Type Number of Institutions People Served

Hospitals 629 88,519,295

Health Care Centers 363 5,038,247

K-12 Education 6685 2,001,740

Higher Education 232 818,331

Catholic Charities (Social Services) 170 4,224,224

Catholic Charities (Hunger Services) N/A 7,146,490

Global Relief and Development (CRS and

CMMB only)2 > 100,000,000

100

mill

ion

peop

le

…..but the challenges are real

11



Workforce: A Changed Cost Driver

12

1965 1975 1985 1995 2000 2005 20120

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Total Number of Priests from 1965 to 2012

Year

Num

ber o

f Prie

sts

1965 1975 1985 1995 2000 2005 20120

40,000

80,000

120,000

160,000

200,000

Total Number of Religious Sisters from 1965 to 2012

Year

Num

ber o

f Prie

sts

Georgetown University Center for Applied Research of the Apostolate



Parish Financial Crisis: Revenue Versus Expenses

13

• On average, expenses exceed revenue during FY 2010, a trend that will likely continue

• The funding problem must be addressed systematically through new fundraising methods and strategies

Revenue Expenses$580,000.00

$600,000.00

$620,000.00

$640,000.00

$660,000.00

$680,000.00

$700,000.00

$720,000.00

Revenue Versus Expenses

USCCB



Dependence on Government: Catholic Charities as an Illustration

14

Source: Center for Applied Research in the Apostolate

Government Revenue

57%Program Service Fees9%

Diosesan and Church Support

2%

Community & Private Support

25%

Investment Income1%

Other Revenue4%

Catholic Giving: What do we have to work with?

15



Median Income Compared to Other Religions

16

Latter

Day Sa

ints

Pentec

ostal/A

SG

Other Pro

testan

t

Baptist

Luthera

n

Greek/R

ussian

/Easte

rn O

rthodox

Jewish

Methodist

Episc

opalian

Presbyte

rian

Catholic

Muslim/B

uddhist

Jehova

h's Witn

essNone

$0.00

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00

Median Family Income by Religious Affiliation



But a Soft Middle in Structure

17

Georgetown University Center for Applied Research of the Apostolate

Pew Research Center

$100,000+ $75,000 to $99,999 $50,000 to $74,999 $30,000 to $49,999 Less than $30,0000.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Catholic Household Income Versus National Average

Catholic ChurchNational Average



Propensity to Give is high but slightly lower than some other faith groups

18

Latter

Day Sa

ints

Pentec

ostal/A

SG

Other Pro

testan

t

Baptist

Luthera

n

Greek/R

ussian

/Easte

rn O

rthodox

Jewish

Methodist

Episc

opalian

Presbyte

rian

Catholic

Muslim/B

uddhist

Jehova

h's Witn

essNone

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Percent of People Who Give by Religion

Source: Center on Philanthropy at Indiana University



And on the low end in terms of propensity to give to religion compared to other giving causes

19

Latter

Day Sa

ints

Pentec

ostal/A

SG

Other Pro

testan

t

Baptist

Luthera

n

Greek/R

ussian

/Easte

rn O

rthodox

Jewish

Methodist

Episc

opalian

Presbyte

rian

Catholic

Muslim/B

uddhist

Jehova

h's Witn

essNone

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Total Giving and Religious Giving as a Share of Income by Religious Affiliation Sorted by Percentage

Total Giving as a Percent of Income Religious Giving as a Percent of Income



Younger Generations Still Donate Heavily to Religion

20


Millennials X Boomer Silent Great$0.00

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

$1,600.00

$1,800.00

$2,000.00

Average Gift Total by Cause by Generation

ReligionSecular

But, controlling for education, income, marital status, race and other factors, there is no statistical significance to the relationship between generation and religious giving.



But age does matter in terms of interests

21


Basic Needs of Poor Make Community Better Give Poor a Way to Help Themselves

Make World Better0

10

20

30

40

50

60

Top Four GIving Motivations

MillennialsXBoomersSilentGreat



So, where are we?

22

• Reliance only on traditional ways of charitable giving will require new outreach and new approaches to a changing Catholic demographic, especially with the “soft middle” on Catholic household income structure.

• But, even those improvements may not be enough, given the propensities to give and the propensities to give to religion of those who do give.

• Is there anywhere else to turn?

The Changing World of Nonprofit Strategy and Social Finance

23



A much more robust toolbox.

Traditional pools but also PRIs, MRIs, impact investing, venture philanthropy, social investment, social

enterprise, bridge funds for internal program loans, corporate philanthropy, CSR, CSE, CRM, product-embedded transactions, bond and equity tools.

Cash or in-kind gifts, pledges, foundation grants, bequests of

various types



The Arc of Innovation in Philanthropy

Traditional resource transfers

Traditional philanthropic resources at efficiency and scale

Traditional philanthropic resources demanding market-like results

Philanthropicresources moving in new ways onto the societal commons

Entirely new kinds of resources moving onto the societal commons

Social stock exchangesImpact investingMRIsEquity-like flowsBond-like flowsSocial businessBlended investmentsCollaboratives

Interactive hubsMultiple-funder partnerships

Venture philanthropy

PRIsMicro-insurance poolsEmbedded transfers

Charitable grants

Therefore, we can build along a very complex arc of innovation in ways that suit the problem.

We can

give a

man a

fish.

But we ca

n

also cr

eate a

fishing net

business

that

powers

fishing and

creates s

kills

and jobs.

Catholic Innovation

26



We can set the standard of excellence in innovation for the nation and remain true to mission by building on the flagships in our armada.

27

The new approach to private resource mobilization focuses on• Integration across a range of problems to address multiple dimensions of complex

issues with a single funding strategy

• Investment in problem solving

• Sustainability of both program efforts and the funding for those efforts

• Performance against clearly articulated measurable goals

In no cases does this new approach supplant traditional giving. Rather, it provides an approach to ensuring that charitable giving is used for what cannot be otherwise financed, and social finance is used for the rest.

It MAXIMIZES the utility of charity.



Innovative Funding Streams: What are we talking about?

• Products/services consistent with mission or extension of mission in their– Content– Execution

• Building on assets or core capacities• Earnings flowing to mission-related program support

Therefore we are not talking about the hospital gift shop nor sweatshirt sales in the book store. We are talking about mission-

critical innovation.


Fundraising Corporate Social Engagement Digital Research and Analytics ChangingOurWorld.com29

Let us look, therefore, at the approaches and concrete illustrations in five categories of Catholic institutions:

– Religious communities– Health care– Social services– Education– Global relief and development

How Does Innovation Actually Work?And How Does It Help Funding?



So, let’s look at some examples with a common optic

30

The mission of the organization

The Assets that could be put to work

The initiatives undertaken

The leverage that results



Catholic Religious Congregations

31

The AssetsLand and

Knowledge

The MissionServe the Underserved

Sisters of St. Francis Oldenberg, Indiana:

Michaela FarmOrganic Farming

Dominican Sisters, Great Bend, Kansas

Heartland Farm, Education. Ecology, Energy,

Organics

Philanthropy and investments from other religious

communities



Catholic Health Care

32

The AssetsFacilities,

Expertise, Capital

The MissionJustice, Peace, Sustainability

CHI, CHHW, Trinity Health Calvert Social Investment

NotesProviding investment capital

to nonprofits

Catholic Health Initiatives: Direct Community InvestmentMission-Related Investing of

2% of total operating investment assets

Ascension HealthEnterprising Health

Bottom of the Pyramid Investing in Flint, Michigan

Leverage from Private Capital



Catholic Social Service

33

The AssetsFacilities, access to large populations, knowledge

The MissionEmpower and enable the poor

Catholic Charities SpokaneNew Leaf Bakery

A social enterprise that trains those in need and has

become a popular brand and eatery

Catholic Charities ErieCatering on Parade

Locavore catering that creates jobs and returns revenue for

St. Martin Center

Catholic Charities OmahaMicrobusiness Loans

Low interest rate loans for also create revenue

Increased visibility and funder dialogue, especially with

younger donors

Homeboy IndustriesA social enterprise that trains at risk youth and former gang

members and produces goods and services

throughout Los Angeles



National Scope and Coverage of Catholic Charities Social Enterprises

34

Source: Center for Applied Research in the Apostolate, Georgetown University, Washington, DC: Catholic Charities USA 2011 Annual Survey Final Report



Catholic Education

35

The AssetsFacilities, quality

outcomes, huge alumni networks

The MissionAccess to quality education for all

Catholic Alumni PartnershipFundraising model for

elementary schools that uses collaboration and a “CAP

University” training system to raise capacity

Cristo ReySchool system whose

scholarship funding is tied to corporate employment

partnerships, creating jobs, skills, and education together

Saskatoon Catholic School Division (CAN)

Core Neighborhood Youth Corps

Social enterprise that prepares youth for school or work

Incentivizes corporate partnerships and internal

investments



Catholic Global Relief and Development

36

The AssetsGeography and

Programs

The MissionFight Poverty

Sisters of Notre Dame de Namur

Cyber Cafes in the Congo to fund student education costs

CordaidPerformance Based

Financing in health and education in Africa

Bank of FonkozeMicrofinance serving

56,000 women borrowers and ¼ million savers in

HaitiChildren of God Relief

Institute Laboratory Services in Kenya to support HIV

orphan villages

Catholic Relief ServicesMicrofinance, Fair Trade

chocolate

Funding leverage and appeals to younger donors



Illustrative Results: Fonkoze makes a measurable difference through micro finance in Haiti

37

Tin roof or better Cement floor Sanitary toilet Send all children to school

Can read and write

Own small assets Food secure0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% 97%

83%

77%73%

67%

60%

0%

100%

87%83%

90%

70%

77%

63%

Client Progress by Key Indicators After3 Years with Fonkoze

2007 (Baseline) 2010Key Indicators

Implications for Catholic Fundraising

38



Innovation Powers Fundraising

39

• Expectations of the new generation of donors– Impact, impact, impact– Leverage– Collaboration across types of institutions– Efficiency

• Innovation produces– Scale– Results– New interest from new partners



We must learn to do this and spread the knowledge and practice.

40

If we do not….– We will underperform in fundraising

• We are leaving money on the table by not reaching new charitable investors.

• And we will find our existing donors going elsewhere.– We will underperform in mission

• We will not serve as many as we could as well as we might• We will not solve as many problems as we might.

– We will cede leadership to others• And fail to evangelize the world



Therefore, the consequences are not trivial.



The Challenge: Turning Atoms into Molecules

42

We lack a concerted effort to document the innovations, objectively evaluate their impacts, scale what works, and replicate by sharing both the innovations and the management and finance systems

needed to implement them.

We have the organizational scale to lead the world in innovation. We have the donors to fuel the effort.

We need the vehicle to carry us forward.



We must

43

• Build skills• Build knowledge• Have the courage to innovate and therefore also to fail• And then the courage to keep going• Communicate what we are doing• Seize leadership in this sector.



We can lead.We are leading.We must lead.

Thank you.

45

fundraising corporate social engagement digital research and analytics new york | atlanta |...

Documents

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