GOOD WORKS &GIVING HOUSTON

Transcription

1 GOOD WORKS &GIVING HOUSTON 2015

2 The economy may rise and fall, but giving continues... and strong nonprofits thrive through it all! Kim Sterling An assortment of relevant data, observations, and insights into what makes nonprofits strong and successful. Presented here for nonprofit leaders, development professionals, and philanthropists to consider on National Philanthropy Day 2015!

3 Fact #1 Giving is strong! Over the past decade, e, total giving in the US has increased by $98 billion in current dollars, despite a major national recession. Giving occasionally dips for a year or two but then rebounds. Total giving in the US is up 7% since In 2014 it was $358.4 billion nationally, $11 billion of which was given in the Houston area. Individual giving is up 5.7% Bequests to charity are up 15.5% Foundation giving is up 8.2% Corporate giving is up 13.7% Bottom line, we are a generous people. This is especially true in Houston. In fact, some of our city s greatest nonprofit achievements have happened during recessions and oil price slumps. Source: National data are from Giving USA, Houston data are extrapolated. Charitable giving represented 2.1% of GDP in 2014 (per Giving USA). The U.S. Bureau of Economic Analysis estimates that the Houston region s GDP reached $525.4 billion in 2014, so Houston s giving is estimated at $11 billion. Fact #2 Nonprofits are vital to society and to the economy. The nonprofit sector is large and growing, and its economic impact is tremendous. As a matter of fact, it s expanding at twice the pace of the for-profit sector. There are 1.4 million nonprofits in the US and more than 22,000 nonprofits in the greater Houston region.* Nonprofits provide 5.4% of national Gross Domestic Product, 10% of national jobs, and 9% of wages. And what would life be like without arts and culture, schools, health and human service organizations, houses of worship, hospitals, or those who make our communities greener? The sector is vibrant and highly competitive. How well is your nonprofit positioned for success in this crowded field? *Includes Austin, Brazoria, Chambers, Fort Bend,Galveston, Harris, Liberty, Montgomery, San Jacinto, and Waller counties. Sources: Urban Institute, Nonprofit Sector in Brief, 2014; The Urban Institute, National Center for Charitable Statistics

4 #1 They build an effective board. WHAT MAKES NONPROFITS SUCCESSFUL AND STRONG Strong nonprofits have high-performing boards. They make sure their board is composed of people with the knowledge, skills, relationships, influence, and commitment to lead the organization strategically and financially. And they organize the work of the board to fulfill those responsibilities. The board-building process has two major purposes: replenishing the board s people power by bringing in new members, and strengthening the board s performance. BoardSource, The Board Building Cycle

5 #2 They invest in staff. #3 They develop a business mindset. This includes everyone from the CEO to the person who answers the phones. Unfortunately, turnover is a major challenge. Today, the average nonprofit staff turnover rate is 19%. 67% of Executive Directors anticipate leaving their jobs within five years. Many nonprofit organizations are stuck in a vicious cycle that threatens their ability to raise the resources they need to succeed. UnderDeveloped study 50% of development directors plan to leave their job in the next two years and many are considering leaving fundraising altogether. Why so much instability? The stress of wearing too many hats. Frustration with one s board. The need to earn more money. Greater opportunities for advancement elsewhere. Strong nonprofits care about their staff and invest in hiring, developing, compensating, and retaining the people they need. In particular, they have effective recruitment and retention strategies and budget for these crucial activities. Sometimes people forget that nonprofits are businesses. They just have tax-exempt status. Strong nonprofits manage to a budget. They are good stewards of the gifts they receive. They are as effective and efficient as any for-profit business, with their return on investment measured in outcomes, not just the bottom line. And, like any good business, they are adaptive. In particular, today s strong nonprofits are adapting successfully to the major demographic and technological shifts that are underway. Those organizations that lean in and change are the ones that will make it and succeed, and those that don t will find themselves on the ash heap of history. Diana Aviv, The Chronicle of Philanthropy, September 2015 Sources: The Chronicle of Philanthropy, Half of Fundraisers in the Top Job Would Like to Quit, UnderDeveloped: A National Study of Challenges Facing Nonprofit Fundraising. Nonprofit HR, 2015 Nonprofit Employment Practices Survey Results. CompassPoint Nonprofit Services and the Meyer Foundation, Daring to Lead, 2011

6 #4 They focus on measurable impact. Strong nonprofits convey their value proposition clearly in explaining how they advance their mission. They know what differentiates them from their competitors, and they measure results (not just inputs) to demonstrate their success. If their data show that a program is not effective, strong nonprofits: a) Fix it, b) Stop doing it, or c) Find a partner. Which option they choose depends on the situation, but strong nonprofits always do one of the above. They don t keep doing things that aren t delivering value or advancing their mission. Across the universe of donors, there is more and more interest in learning what strategies are being used by nonprofits they support, as well as what impact their donations are having. Giving USA 2015 #5 They create a donor-centric culture. Strong nonprofits learn about their donors and care for them in many different ways. They know it s smarter and easier to take care of their existing donors than to lose them and try to replace them with new people. Sometimes taking care simply means saying thank you when it s not expected. The one thing you don t want anyone to say about your organization is, They only communicate with me when they want money. Nonprofits continue to lose slightly more donors than they recruit. [And] for every $100 a charity gained in 2014, it lost $95 from lapsed donors and donors who reduced giving from the previous year, for a $5 gain. New Donors Elusive, The Nonprofit Times, October 2015

7 #6 They implement good communications strategies. Strong nonprofits communicate effectively and strategically. There are so many communications vehicles available today: letters, phone calls, s, texts, social media, presentations, video, podcasts, websites, etc. The best communications are tailored to the needs and interests of different stakeholder groups. What works with donors, for example, may not work with local government leaders so it s crucial to know and think about your audience. Strong nonprofits look for opportunities to make people aware of the vital work they are doing because they know this builds loyal support. And they listen well and use this information to serve their community better. #7 They instill an appreciation for volunteers. Everybody is busy but Americans are more than willing to volunteer their time. Volunteers not only save nonprofits money by doing work that would otherwise have to be performed by paid staff; they can also play a valuable role in spreading the word about the nonprofit s mission and programs. They are potential donors, too either now or in the future. Storytelling is an essential component of nonprofit communications, but very few organizations have a firm grasp of what good storytelling truly is and how it can be leveraged to improve outreach and fundraising. Georgetown University Center for Social Impact Communication and the Meyer Foundation, Stories Worth Telling Strong nonprofits therefore cherish their volunteers, consistently and strategically addressing the three R s of volunteer management: Recruitment Recognition Retention Sources: Urban Institute, Nonprofit Sector in Brief, 2014; U.S. Bureau of Labor Statistics, Volunteering in the United States, 2014

8 Strong nonprofits know what research shows to be true: GIVING IS GOOD FOR YOU. In a 2006 study, Jorge Moll and colleagues at the National Institutes of Health found that giving to charity activates regions of the brain associated with pleasure, social connection, and trust, creating a warm glow effect. Scientists also believe that altruistic behavior releases endorphins in the brain, generating the positive feeling known as the helper s high. * People take great joy in giving their time and money to make the world better. Why not give them good reasons to give to your organization? To inspire people to support your good work, just keep thinking about the essentials. Build an effective board. Invest in staff. Develop a business mindset. Focus on measurable impact. Create a donor-centric culture. Implement good communications strategies. Instill an appreciation for volunteers. Thank you for all that you do to make our community a better place to work and live. *Greater Good, Five Ways Giving is Good for You, 2010

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