Monthly Archives: June 2009

More Than Money: Movements

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Catalyzing meaningful community results takes more than money.

Experienced philanthropists know that their money and influence, even if significant, won’t go far enough to create lasting change.  Some of the most effective foundations and donors I’ve met have learned to connect their hopes for improving the world with broader social movements.  These movements help connect a broad base of people to action around a well-crafted and well-researched vision.

But knowing how to work with (or against) social movements can be tricky as a donor, foundation, or nonprofit.

Fortunately, The California Endowment and University of Southern California published a thoughtful guide on the subject, Making Change:  How Social Movements Work and How to Support Them, this past March.

The 62-page report provides a brief history of types of social movements and examines what has made both conservative and progressive movements work.  The authors outline:

  • Ten key elements of successful social movements
  • Six key capacities that allow social movements to sustain themselves
  • Three things foundations or donors should not do to help, and
  • Three key areas where foundations can invest to best help.

The authors note that social movements help expand and connect the work of grassroots- or neighborhood-oriented funders, and help deepen the chance of success for more policy-driven funders.  They note that funding social movements may even be more important given the economic and other problems our country faces:

“…people are looking for a broader [communications] frame and a broader solution than typical politics can offer.  Getting to this broader conversation – and making real change – will require groups that are willing to challenge power as well as policy, values as well as legislation.  Social movement thinking and doing will be a key element for both [philanthropic] strategy and giving.”

This guide would have been a great orientation when I was new to grantmaking in state government, and then again when I was a newby foundation program officer.  Kudos to The California Endowment for supporting the creation and dissemination of this guide.  It deserves a wider discussion in the donor, foundation, and nonprofit worlds.

Giving USA Insights

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The annual Giving USA report was released this week.  At a session this morning, Pittsburgh nonprofits were lucky to hear in-person insights from Dr. Patrick M. Rooney, the new Executive Director at The Center on Philanthropy at Indiana University.  Here are some highlights:

  • Total giving dropped 5.7% (adjusted for inflation) from 2007 to 2008.  Rooney noted the good news is that this decline is far less than stock market and job losses last year.  And, the total amount given ($307.65 billion in 2008) is still much higher than the amounts in the 1990s.  On the downside, giving has been rising on average 4.3%, so we’re down 10% from normal.
  • Foundations gave 13% of the contribution total.  At least 40% of that grantmaking was from family foundations, so that part could be also lumped together with direct giving by individuals.
  • Bequests were 7% of the gift value last year.  Rooney said that death rate of members of the top 300 richest families influences bequest giving more than any other factor.
  • Giving to foundations dropped 22% (in inflation-adjusted dollars) from 2007 to 2008 – the largest drop of any sector after a big run up of giving to foundations over the past decade.  Giving to human services organizations dropped 15.9%.  Health, education, arts, and environment giving dropped 9-10% each.  Rooney speculated (based on economic theory) that some donors may give less to health and human services because the government is seen as doing more in these areas.   
  • Personal income, GDP, corporate income, and the stock market are all key drivers of the rates of giving, and unfortunately those figures don’t look great for 2009.
  • The Center on Philanthropy’s research showed that President Obama’s current tax proposals would reduce giving by those earning $250,000 or more by 4.7%
  • Giving as a percentage of Gross Domestic Product has averaged around 2% over the past 40 years – basically stagnant.  Rooney said the most important question nonprofits and fundraisers face is, “What is the value-added proposition the nonprofit sector would have to offer to grow that figure from 2% to 5%?”
  • Lastly, Rooney noted that a separate study showed that about 85% of households made a charitable gift at least once in three years and 56% of them gave in all three years.   Giving rates per household (adjusted for income, education, and inflation) are similar across generations and across races and ethnicities.

(The Chronicle of Philanthropy also ran a great online discussion today with a team from the Giving USA Foundation, with the results available for free here.)

The take-away?  The short-term numbers are sobering but the long-term numbers and outlook are positive.  Im using them as a reminder of the importance of consistent, honest discussions between nonprofits and donors or funders about mutual hopes for meaning and impact.