future philanthropists
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Future Philanthropists. Framingham State University Spring 2012. Our purpose. Give away $5,000 (it’s harder than it seems). To do it, we look at:. Who we are What we value Our “programmatic” interests The needs of the community The organizations meeting those needs - PowerPoint PPT PresentationTRANSCRIPT
Future PhilanthropistsFramingham State UniversitySpring 2012
Our purposeGive away $5,000 (it’s harder
than it seems)
To do it, we look at:Who we areWhat we valueOur “programmatic” interestsThe needs of the communityThe organizations meeting those needsThe intersections of 1) our
values/interests, 2) community needs, and 3) organizations that, in your assessment, have the ability to effectively meet those needs.
What is philanthropy?Philanthropy is the giving of time,
talent, and treasure for the common good through◦Volunteering◦Financial support◦In-kind support◦Advocacy and social activism◦Research
Overview of the Nonprofit SectorNonprofits are one of three
sectors (the other two are for-profit and public)
“Nonprofit” doesn’t mean that you can’t make money; it means that any surplus is put back into the organization, rather than divided between owners or shareholders
Nonprofit sector includes foundations that provide financial supports
How is this sector different?Focus on community and quality of lifePicks up the tasks that are citizen-
oriented but that government cannot do or should not do (examples?)
A lot of trust involved—from those receiving the services and those supporting the service financially
Focus is on organizational goals, not financial ones
Nonprofits are businesses!
Nonprofit Sector nationallyMore than 1.5 million nonprofits20,000-30,000 new nonprofits
started each yearUS nonprofit sector is the sixth
largest economy in the world—bigger than the entire economy of Canada or Russia
Areas of mission focusHuman services (aka social services)
(30%)Health (20%)Education (20%)Youth and families (can overlap with
other areas)Environment (9%)Arts and culture (13%)Housing (5%)Human rights (3% domestically)
How many nonprofits?Officially, 35,000 in Massachusetts (but
many no longer operating)Includes Scout troops, PTOs, youth
soccer clubs, garden clubsOnly about 4,000 seek grants16.7% of Mass workforce works in
nonprofits (where are they employed?To find out how many in your town, go to
◦http://nccsdataweb.urban.org/massNonprofits.php
How big are they?An organization’s “size” is
measured by its annual operating budget
80% of all Mass nonprofits have annual operating budgets of less than $100,000; many have less than $10,000
What can an organization do with $100,000 annually? Can you run a food pantry? Animal shelter?
The organization’s MISSIONA mission is the need the
organization meetsA mission statement is a
compelling, “tool” that explains the primary purpose and value of the organization. It should answer: why we are here, what we do (broadly), and for whom.
The mission guides decisions about programs, services, and funding.
Sample mission statementsOrganization for the Assabet
River◦Protect, preserve and enhance the natural
and recreational features of the Assabet River, its tributaries and watershed
HOPE◦To counter violence and promote peace
through education, leadership development and mentoring
◦ (Notice that the mission statements don’t explain HOW in much detail; this provides some flexibility in their services)
GovernanceGoverned by a volunteer board of 6-
30 peopleManaged by an executive director or
CEO (some effective nonprofits have no staff)
Board has ultimate responsibility for the organization’s financial sustainability through◦Revenue-generation (fees, donations)◦Sound budgets for programs/services
What does the staff do?Deliver programs and servicesStrengthen the “capacity” to
deliver programs and services◦Fundraise◦Operations◦Financial and other management◦Recruit and manage volunteers◦Be an active and visible partner in
the community
Nonprofits as economic engine in Mass.•Employ almost 17% of workforce (national average is 10% of workforce)•57% of nonprofit jobs nationally are in health care (hospitals, nursing homes, health clinics)•Nonprofit jobs continued to grow in the last decade, even during recession•Why do you think nonprofit jobs are somewhat recession-proof?
Two pennies!Two pennies of every dollar of
personal income (per capita) in Mass is spent on human services◦Basic services: food pantries, homeless
shelters, heating assistance◦Family issues: domestic violence, child
abuse, juvenile protection◦Some health-related: aging, mental
health, hunger/nutrition, substance abuse, physical and developmental disabilities (group homes, etc.)
Fun facts about staffMost nonprofits have fewer than 5 staff
peopleAverage salary for an executive director
at nonprofits that have an annual budget of less than $1 million?
Average salary for a female executive director at a nonprofit with a budget of less than $500,000?
Average salary for a male executive director at a nonprofit with a budget of less than $500,000?
How are they funded?71% of revenue is from fees for
services and goods9% of revenue is government
grants (decreasing!)7% from events, dues,
investments13% of revenue is from
contributions◦83% from individual donations◦11% from private foundations◦5% from corporations
Individual contributionsAmericans give 2% of their
annual income to nonprofits. How does that strike you?
35% of those donations went to religion subsector
14% went to education
Motivations for givingPersonal connectionWanting to make an impact on
their communities or specific cause important to them
Sense of personal responsibilityThey were asked!Tax deductions
Giving guidelinesOf all funds raised by
professional tele-fundraisers, an average of 40% goes to the charity
Nonprofits HAVE to be financial transparent: anyone can see their tax returns and other financial info on the state attorney general’s website and other sites, such as Guidestar
Funding trendsThe trend is for nonprofits to build
collaborations and partnerships within the nonprofit sector and cross sectors. Two or more organizations often apply for a grant together.
Many donors (and even foundations!) are reluctant to give money that goes toward overhead (aka staff) and instread restrict their gift for a specific aspect of a program or service.◦ Nonprofits have increasing difficulty paying their
staffs, especially at staff-intensive services like hotlines
For next sessionLook deeply at some organizations:
◦What needs does the nonprofit meet◦Structure of the staff◦Who is on the board◦What do their budget and financials
look like (find 990s on Guidestar)◦Use these sites: Guidestar, Charity
Navigator, idealist, taxexempt.com, Mass Attorney General’s Nonprofits & Charities Division , nonprofitdata.com