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Consultants in Advancement Planning, Fundraising, Marketing Communications and Executive Search Philanthropy in Recession. What Recession? Judy Comeau-Hart.

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Presentation on theme: "Consultants in Advancement Planning, Fundraising, Marketing Communications and Executive Search Philanthropy in Recession. What Recession? Judy Comeau-Hart."— Presentation transcript:

1 Consultants in Advancement Planning, Fundraising, Marketing Communications and Executive Search Philanthropy in Recession. What Recession? Judy Comeau-Hart Robert Alpaugh The Alley Theatre Senior Consultant November 11, 2008

2 877-957-0000 toll-free ~ www.campbellcompany.com Stocks Plunge Again; Dow Under 8,600 Dow plunges 679 points to trade below 9,000 for the first time in 5 years in afternoon sell-off Giving wilts at charities Agencies eye cuts even as need climbs in slack economy The Landscape November 2008

3 877-957-0000 toll-free ~ www.campbellcompany.com Theaters Monitoring Wall Street Drama For people who work in and around Broadway, as for pretty much everyone else in the country, the main stage in recent weeks has been on Wall Street… The Landscape November 2008

4 877-957-0000 toll-free ~ www.campbellcompany.com The Landscape November 2008

5 877-957-0000 toll-free ~ www.campbellcompany.com Individual s $229.03 74.8% Foundations $38.52 12.6% Bequest s $23.15 7.6% Corporations $15.69 5.1% Some Perspective 2007 - $306.39 billion ($ in billions)

6 877-957-0000 toll-free ~ www.campbellcompany.com Environment and animals $6.96 2.3% Foundations $27.73 9.1% Human services $29.64 9.7% International affairs $13.22 4.3% Arts, culture, and humanities $13.67 4.5% Public-society benefit $22.65 7.4% Unallocated giving $23.67 7.7% Health $23.15 7.6% Religion $102.32 33.4% Education $43.32 14.1% Some Perspective 2007 Types of Recipients

7 877-957-0000 toll-free ~ www.campbellcompany.com Recessions in light green: 1969–70; 1973–75; 1980; 1981–82; 1990–91; 2001 Inflation-adjusted dollars Current dollars Total Giving - 1967–2007 Showing Recessionary Years $ in billions

8 877-957-0000 toll-free ~ www.campbellcompany.com Recessions occur every five to ten years on average in the United States. Source: Giving USA Spotlight Economic Facts Official definition of a recession is two successive quarters with a decline in Gross Domestic Product (GDP). Source: Giving USA Spotlight

9 877-957-0000 toll-free ~ www.campbellcompany.com Giving USA surveys from 2001 through 2007 found that in all years, 49% to 59% of charities saw growth in giving. Source: Giving USA Spotlight Economic Facts Giving USA surveys from 2001-2007 found that even in the worst year surveyed (2002), fewer than half of charities saw a drop in total gift dollars received. Source: Giving USA Spotlight

10 877-957-0000 toll-free ~ www.campbellcompany.com Economic Facts Individual giving 80% of total giving dropped an average of 3.9% in the four years with eight months or more of recession. Source: Giving USA Spotlight

11 877-957-0000 toll-free ~ www.campbellcompany.com A national poll found that donors between the ages of 25 and 34 said they were more likely to increase their charitable giving this fall. Source: Chronicle of Philanthropy, 9/18/08 Economic Facts The same national poll found that donors over 65 said they planned to give less or not at all. Source: Chronicle of Philanthropy, 9/18/08

12 877-957-0000 toll-free ~ www.campbellcompany.com Corporate giving is about 5% of total giving. Source: Giving USA Spotlight Economic Facts In economic growth years, corporate giving grows an average of about 3% per year. Source: Chronicle of Philanthropy Corporate giving fell an average of 1.6% in the four years with eight months or more of recession. Source: Giving USA Spotlight

13 877-957-0000 toll-free ~ www.campbellcompany.com Economic Facts Foundation giving about 10% of total giving historically fell an average of only 0.1% in the four years with eight months or more of recession. Source: Giving USA Spotlight Thirty-seven percent of foundations planned to increase grant making during 2009. Source: Chronicle of Philanthropy, May 2008

14 877-957-0000 toll-free ~ www.campbellcompany.com Almost one-third of foundations say they have stepped up their giving this year to help families, provide human services, or support economic development. Source: Chronicle of Philanthropy Economic Facts

15 877-957-0000 toll-free ~ www.campbellcompany.com Worst Case Scenario? Worst decline in philanthropy - 1973/1974 Decline was 5.4% Drop for 2008 would result in philanthropy retrenching to 2005 levels - $289.5 billion

16 877-957-0000 toll-free ~ www.campbellcompany.com Individuals $216.54 74.8% Foundations $36.47 - 12.6% Bequests $22.00 - 7.6% Corporations $14.76 -5.1% Worst Case Scenario 2008 Philanthropy at 2005 Level Total - $289.5 Billion Individuals $229.03 - 74.8% Foundations $38.52 -12.6% Bequests $23.15 - 7.6% Corporations $15.69 - 5.1%

17 877-957-0000 toll-free ~ www.campbellcompany.com Worst Case Scenario 2008 Philanthropy at 2005 Level Environment and animals $6.66 - 2.3% Foundations $25.94 - 9.1% Human services $27.65 - 9.7% International affairs $12.45 4.3% Arts, culture, and humanities $13.03 - 4.5% Public-society benefit $21.42 - 7.4% Unallocated giving $22.30 7.7% Health $22.00 - 7.6% Religion $96.69 - 33.4% Education $40.19 -14.1%

18 877-957-0000 toll-free ~ www.campbellcompany.com The number of 501(c)(3) organizations, 1998–2007

19 877-957-0000 toll-free ~ www.campbellcompany.com Action Steps Top Down/Inside Out Assessment of Organization Revenue Streams Programming Staffing Core Values Importance of Mission

20 877-957-0000 toll-free ~ www.campbellcompany.com Action Steps Communication What You are Doing to Secure Operations Importance of Donors Importance of Mission Recent Successes Transparency Honesty/Integrity

21 877-957-0000 toll-free ~ www.campbellcompany.com Strategies - Annual Fund Move More Resources into Individual Giving Budget Hire a Major Gifts Officer Use a Wealth Screening Tool Create a List of Major Gift Prospects Promote Major Gift Patron Groups

22 877-957-0000 toll-free ~ www.campbellcompany.com Strategies - Annual Fund Establish a Campaign Atmosphere Ask Board of Directors to Issue a Challenge Promote Challenge Communicate Success

23 877-957-0000 toll-free ~ www.campbellcompany.com Strategies - Annual Fund Have a two pronged approach, for example: Major Gifts Levels -$10,000 - $15,000 -$5,000 - $9,999 -$3,000 - $4,999 Levels Below -$1,500 - $2,999 -$500 - $1,499 -$150 - $499

24 877-957-0000 toll-free ~ www.campbellcompany.com Strategies - Annual Fund Engage Board in Cultivating and Soliciting Major Gift Prospects Hire Two Hourly Callers to Help Cultivate Donors at Other Levels Focus on Building Relationships Communicate Frequently with Donors Provide Donor Recognition That is Meaningful

25 877-957-0000 toll-free ~ www.campbellcompany.com Strategies - Annual Fund Use Direct Mail for Acquisition Use Telefunding to Follow-up with Acquisition Prospects Use the Board Challenge as an Incentive Use Other Incentives to Raise Minimum Giving Levels For example: For a minimum gift of $150 you will be invited to a Behind the Scenes Tour of the Alley

26 877-957-0000 toll-free ~ www.campbellcompany.com Strategies - Annual Fund In This Economy Throw Your Net Wider Ask Your Board to Be More Active Focus Where You Can Get Results Communicate, Communicate, Communicate Lead the Charge!

27 877-957-0000 toll-free ~ www.campbellcompany.com Strategies – Capital Campaigns Planning Stage Philanthropic Market Study Phase Early Stages of a Campaign Quiet Phase Public Phase

28 877-957-0000 toll-free ~ www.campbellcompany.com What NOT to Do A. Procrastinate B. Put Your Head in the Sand C. NOTHING

29 877-957-0000 toll-free ~ www.campbellcompany.com Discussion What are you finding in your community/organization? Attendance? Earned Revenue Contributed Income What are you doing to protect your organization? What is your Board doing? How are you planning for 2009 - 2010? Are you going ahead with BHAGs? How long will this last? Other?


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