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What is the difference between Giving USA, the Blackbaud Index, and the Atlas of Giving
For more information visit AtlasOfGiving.com
There will never be a current, centralized database that contains all charitable contributions made to 964,000 publically supported nonprofits and churches. This is an issue that is not unique to charitable giving. Other financial and economic measurements like retail sales, manufacturing inventories, and unemployment face the same challenge.
Established macroeconomic measurements have developed formulas (algorithms) to establish a benchmark. The benchmark is then used to measure changes, establish trends, and create forecasts. Consistency and fidelity of the benchmark is vital. The Atlas of Giving uses this proven methodology for measuring and forecasting giving.
Atlas of Giving formulas were built upon the fact that charitable giving is directly tied to specific individual economic and demographic factors. A team of 25 PhD level mathematicians, analysts and statisticians evaluated more than 70 possible variables and their interactions with charitable giving outcomes over four decades. They not only proved that charitable giving is directly tied to economic and demographic factors; they determined exactly what they are. The research team used the relevant identified factors to create an algorithm that when compared with published annual giving data dating back to 1968 correlates 99.5%.
The Atlas has built the capability to measure, analyze and forecast total US charitable giving economy by sector (religion, health, arts, etc), by source (individual, foundation, corporation, and bequest), and by state each month.
Complimentary Copies of Atlas of Giving Reports Available for Media Upon Request
A complimentary copy of the 12-month forecast and the results from January’s report is available to members of the media. Infographics, created to illustrate giving data and upcoming forecast are also available by request. In addition, access to The Atlas of Giving Professional Edition monthly update is provided for credentialed media members at no charge. Monthly giving data by sector, source, and state since 1980 are also available upon request.
To schedule an interview with Rob Mitchell, Atlas of Giving CEO, contact Jennie Whitaker at 512-215-8977 or jennie@seedling-communications.com.
Atlas of Giving Attributes a Rise in Charitable Giving for Early 2012 to Stock Surge, Unseasonable Weather and Economic Growth
January 2012 giving came in at a 6.4% increase over January 2011, 1.5% better than December 2011, the best month of 2011.
DALLAS (February 21, 2012) – Atlas of Giving today announced results from its January 2012 report on charitable giving. The report outlines charitable giving in the United States from January 2012 and forecasts the upcoming year based on demographic and economic factors. According to the report released by Atlas of Giving, total giving to U.S. nonprofits rose 6.4% for January 2012, totaling 28.55 billion. This was a 1.5% increase over the best month in 2011, which was December. Giving to environmental and nature organizations experienced the largest increase with a growth of 12.3% over January 2011, while the religious sector grew at a modest 3.9% over January 2011.
“The results were better than forecasted, and build on the momentum of the 7.5% U.S. giving increase for 2011,” Rob Mitchell, Atlas of Giving CEO, said. “The continuing strong resurgence is being fueled by the quickening pace of the U.S. economic recovery, the strongest January stock market performance in 15 years, low inflation, unseasonably warm weather and continued improvement in the unemployment picture.”
“When stock values are high, individuals can make gifts of stock and avoid capital gains tax; grant making foundation portfolios increase making more grant money available, and estate gift values are enhanced. Low inflation increases giving because individual and corporate donors have more income available. The unseasonably warm weather across the U.S. in January translated into more gifts because less money was being spent by individuals and corporations on snow removal, heating bills, and transportation costs. High unemployment is directly related to charitable giving by individuals, especially small gift donors and participants in special fundraising events. People who are unemployed or fear becoming unemployed suspend their giving activity. After finding work, it takes as many as 24 months before giving activity resumes because people are catching up on delayed maintenance, replacement of household goods, and paying off accumulated debt. Since individual contributors account for 75% of all giving, any positive movement in employment numbers translates favorably for donations,” Mitchell, explained.
The current forecast indicates that every month in 2012 will be a growth month, better than the same month last year. Giving in 2012 can be expected to grow 4.1% to $360.31 billion, $13.42 billion more than was given in 2011. The forecast is expected to change as events unfold during the year. Natural and man-made disasters, economic events, and many other things affect the velocity and trajectory of charitable giving results. The Atlas of Giving actively monitors the factors affecting giving and provides monthly updates of the forecast to account for these.
Raising More Money Will Make You Better Looking
Well, maybe not. But, you will feel like you are better looking.
As a fund raising practitioner or nonprofit manager, you are always trying to find new ways to raise more money and spend less money doing it. There is a powerful free tool that gives you the benchmarks and forecasts you need to identify and expand productive promotions (like online giving) more quickly and reallocate dollars from declining promotions (like a special event past its prime). These improvements will favorably impact your cost per dollar raised. This will make your organization (and you) more attractive to donors, prospective donors, and watchdog organizations like Guidestar and the BBB Wise Giving Alliance…
The Atlas of Giving reports that US giving is up 7.7% in 2011 through October. This benchmark gives you a good idea about how your results compare to 2011 aggregate results for the US. The Atlas forecast shows that unfortunately, giving will be flat for the 12 months ahead – with some months being dramatically lower than the previous year. April, 2012 is forecast to be down 5.5% from April, 2011. But, September, 2012 is currently projected to be 5.9% better than September, 2011. Pay attention to the monthly forecast, so that you can schedule mailings, events and other activities for times when they will have an optimal chance for producing successful returns.
Use Atlas of Giving forecast and benchmarking information to improve your credibility with your CEO, the CFO, the Board of Directors, and your staff. Use Atlas data to schedule promotions and adjust budgeting and staffing to prepare for upcoming conditions so that you can raise more money at less cost. Also use the information to sound the alarm to warn against making significant expenditures based on unfavorable giving forecasts – like the first 7 months of 2012.
The current Atlas Insight and Analysis section points out that political fundraising is affecting charitable giving. Individuals and companies are redirecting contributions that would normally go to charity to political campaigns instead. This phenomenon will increase as the campaign season heats up. Keep this in mind as you make plans for 2012. You can subscribe at no cost to The Atlas of Giving Standard Edition at www.philanthromax.com.
If this sounds good, it can be even better… much more giving information is available. Charitable giving benchmarks and forecasts for 8 sectors (Arts, Education, Health, etc), 4 sources (Individual, Corporation, Foundation, and Bequest), and for all 50 states is available every month with the Atlas of Giving Professional Edition (Atlas Pro). Check it out atwww.atlasofgiving.com.
Keep your finger on the pulse of American philanthropy.
AFP & UTEP Center for Civic Engagement
Nonprofit Leadership Conference
Rob Mitchell’s PowerPoint Presentations
9.12.11
Retaining Donors - More Income at Less Cost
The Nonprofit Board: Separating Fact from Fiction
Click below to download the files.
It's August; do you know where your donors are?
For more than 20 years I had my auto and homeowners insurance with the same agent – Greg. I don’t remember how I started with Greg except that we went to school together and at one time attended the same church.
In all those years, I never shopped. I was loyal… and probably lazy. It just seemed easier to renew.
Two years ago, while doing the household budget I realized that I was insuring a nice house, 5 cars, and 5 drivers including 3 teenagers. The annual total for this coverage was close to the Gross Domestic Product of Belize I think.
Then it hit me – in more than 20 years, the only times I ever heard from Greg was when he wanted to ‘up sell’ me on something. He never took me to lunch, sent tickets for an event or show, sent a handwritten thank you note, or just called to catch up. Greg did not care about me. My loyalty was ridiculously misplaced. For years I had been paying more than I should and giving my business to someone who really didn’t appreciate it.
Of course I shopped and got a much better deal and called Greg’s office to cancel. I was stunned when he didn’t call me back to try to talk me out of it or find out why – proof positive that I made the right decision.
It is 5 to 12 times less expensive to retain a donor you have than to acquire a new one.
Many people in fundraising have never even considered measuring their donor retention rate. Oh sure they may know about retention in the direct mail file but they are clueless about event donors, major gifts donors, and online contributors.
How much of your annual budget is devoted to donor retention and renewal activities as opposed to acquisition activity? What does your donor appreciation program look like? How many of your loyal donors do you and your staff really know? What is the lifetime value of your median donor? What strategy have you developed to keep and upgrade the donors you’ve acquired? Do you care?
Do yourself a favor… Don’t be Greg.
Fire the do-gooders and shut down the pretenders
People who work for and volunteer for nonprofits are nice people… many of them should be fired.
I spent 28 years of my life working alongside these well-meaning folks in a variety of charitable organizations as both an employee and a board member. But, I have a bone to pick. Solid business practice and accountability is almost universally resisted in charities and churches. It’s a lot like government in that way. These people and organizations would rather defend themselves than really solving anything.
Hard work and zealous devotion to the mission do not excuse anyone or any organization or church from effectiveness or efficiency. Results matter.
Oh sure, I’ve heard the arguments that charities are not businesses and deserve to be dealt with differently. And, I agree – on a few points, but not many.
Every charity and church owes it to its supporters and the taxpayers prove that it produces measurable results that benefit our society. Similarly, every nonprofit employee should be expected to be held accountable for the job that they are paid to accomplish and every board member should demand that this occurs. Can your charity or church prove a significant return on its investment? Can you justify your salary and benefits based on your measurable impact on the mission?
I am in favor of a donor and taxpayer revolution. Somebody, please start an effective movement that demands that charities, churches, and the people that work for them and volunteer for them produce real, measurable results. I’ve devised a suggested plan to start this process… it’s not perfect but it’s a start - see what you think http://www.philanthromax.com/blogs/rob-mitchell?page=3
We can learn a lot from business and we should. Measurement and accountability is good and appropriate – embrace it and you and your organization will thrive. Yes, ineffective programs and people will be eliminated… they should...sorry. Nice people should sometimes be fired and replaced with people who are committed to accomplishment not tradition and hard work. And, ineffective old organizations should fail. Results matter!
Blinding Revelation of the Obvious?
Nonprofits are very different… in how they raise money and where they get it. And yet, there is a persistent effort to compare to national or sector averages. For example, the American Cancer Society and Mayo Clinic are both considered health charities. But they are very different in how they raise money and where their gifts come from.
One is funded primarily from millions of small gifts that come from millions of individual donors who give through special events, direct mail, and online giving. That organization also gets a significant percentage of its revenue from bequests. It gets a larger than average share of its gifts from corporations but almost nothing from foundation grants and major gifts from individuals.
The other has a nice base of annual support but really benefits from major gifts, foundation grants, and bequests. Its average individual donor has a very different profile from the average contributor in the other organization.
This difference is vitally important in understanding why some nonprofits are thriving in 2011 and others are struggling.
Unemployment is, and has been high. High unemployment dramatically constricts the flow of small gifts from working class and middle class individuals. People who are unemployed, underemployed, or fear becoming unemployed generally curtail or suspend their giving, while some cease giving entirely. This has a profoundly negative impact on an organization that relies on small transactional gifts.
Consumer Confidence is also important to individuals who make small gifts through events, direct mail, and electronic giving. These individuals make contributions out of their discretionary income. High prices on necessities like gas and food take a bite out of their budgets and damper their confidence making spending decisions on things they want but don’t necessarily need – this includes their desire to make charitable gifts.
The stock market is having a good run. Corporate earnings are soaring. The effect on net worth for wealthy individuals, grant making foundations, estates, donor advised funds and corporations is very significant. These donors and funds feel flush with value and are making game-changing contributions to charities, churches, donor advised funds, and private foundations. They are not affected much by high unemployment and consumer confidence.
A growing economy is also good for bigger gifts. And, believe it or not, the US economy is growing. It is a very slow growth but the recession is over and has been over for months. Fragile? Yes of course, but it is growing.
So, the lesson here is that nonprofit fundraising is a function of the donor mix and fundraising portfolio of a charity and the components of the economy that affect the donor types and fundraising techniques employed by the nonprofit.
If you are fortunate enough to be in an organization that is weighted heavily toward major gifts, grants, corporate support and bequests you are enjoying wonderful growth in giving in 2011. Make hay while the sun shines. Take advantage of the current environment. Step up your solicitation efforts. Ask, ask, ask!
If however, your nonprofit is focused on grassroots support from lots of small individual contributions, you are not feeling too flush. Now might be a good time for you to invest in diversification of your fundraising portfolio so that you can begin to share in the largesse of major gifts, corporate support, foundation grants, and bequests.
But, don’t forget to keep your finger on the pulse of American philanthropy at www.atlasofgiving.com. Conditions can and do change – sometimes quickly.
Are You Motivated by Seeking Pleasure or Avoiding Pain?
Here's a puzzler for you... Is year-end giving traditionally good because donors are in the giving mood... or is it because charitable organizations have made a tradition of aggressively asking during that period? In other words, has Q4 giving become a self-fulfilling prophecy?
When I was Chief Development Officer at the American Cancer Society, our worst calendar quarter overall was Q4. Our best was Q2 because that is when our largest special event (Relay For Life) was held each year.
This has me thinking a lot about timing of fundraising promotions – mail drops, events, and campaigns.
Tradition drives too much in fundraising management.
We have the fall gala the third Saturday in October not because the giving environment is best then but because that is when we always have it. We plan our mail drops on a predetermined schedule never based on forecasted charitable economic conditions… and, we are afraid to change the dates because it might screw up our comparisons to previous years.
I love the story of the husband who asks his wife why she always cuts the Thanksgiving ham in half before baking. Her response is that that is the way her Mother did it. When she calls Mom to ask, Mom says that’s how her Mom did it. When inquiry leads to Grandma she replies “Oh honey, I cut the ham in half because my oven was so small I couldn’t fit a whole one!” Our promotion scheduling is like that.
Now that we have new technology (Atlas of Giving) that provides a reliable forecast for the giving environment, we have an obligation to start to use the information to schedule promotions for periods when they have the best chance of return… Don’t you think?
The Fidelity Gift Fund had its best first quarter in history in Q1 of 2011... How do you explain that? I’m pretty sure that I know the answer. The environment for giving was strong in Q1 and people with assets were feeling the euphoria of market gains, corporate earnings, and what seemed to be signs of an improving economy. I won't be surprised if Fidelity reports a really good Q2 result because the environment for giving was better than Q1.
Based on what we see now, it makes sense to time promotions sooner rather than later in 2011 to take advantage of a better charitable giving environment. A September mail drop or event should perform better than one in December - all other variables being equal. Based on the current forecast, September results should be 3-5% better than December results.
Will you be the practitioner that seeks the pleasure of better returns or avoids pain by sticking with the established schedule?
Keep your finger on the pulse of American Philanthropy
www.atlasofgiving.com
Can't wait to find out what happened 18 months ago? ...GET A LIFE!
And so it begins… the annual summer discussion about what giving did last year – 2010 in this case. Whose number is more accurate? Is any number accurate? Is it too high or too low? How did we do in comparison?
Honestly, why waste your time? If you have to wait six months to find out what the giving environment was for last year - you really don’t have enough to do. And, you are looking in the wrong direction.
Until now, charitable giving has been the only $300 billion dollar a year industry trying to drive forward while using only the rearview mirror.
At the Atlas of Giving we are all about looking ahead. Yes we measure, but we measure monthly so that we can note how giving is trending. More importantly, we are providing a reliable predictive forecast for the months ahead and are analyzing the impact of current events on giving. The name of this game is ‘utility’. How can you use data and information to raise more money and create better budgets? I’m pretty sure that Mattel isn’t focused on how accurate the retail sales numbers were for December of 2010 – their profitability depends on what the forecast is for this coming December.
So, as you watch the annual spectacle of the June release of Giving USA numbers and the frenzy of speculation related to accuracy, you’d be smart to ask yourself – Why is this important?
Until September 8, 1900, the National Weather Bureau mostly measured weather. Everything changed on that fateful day when as many as 12,000 were killed in Galveston, Texas in a strong hurricane (the biggest loss of life in a natural disaster in US history). As a result, the National Weather Bureau changed its focus from measuring to forecasting for the obvious reason that reliable forecasting would save lives... and it certainly has. It’s time for our sector to stop its infatuation with the past and focus on a brighter future.
Greater accuracy has little utility - especially if it is more than 6 months old. A reliable forecast and an ongoing monitoring of events and conditions that are currently affecting giving are the tools of that will bring real advancement and better results.
The Atlas of Giving is focused on the future but will continue to accurately measure the past and learn from it.
“The future belongs to those who prepare for it.” – Ralph Waldo Emerson
Keep your finger on the pulse of American Philanthropy
www.AtlasofGiving.com