Fundraising Trends for Chesapeake Watershed Organizations Chesapeake Watershed Forum October, 2009

Agenda Welcome and introductions Opening exercise Review purpose of session Overview of trends National, regional, watershed group Discussion Closing exercise

Funding Partners 3 Current Funders – FY 2007 & 2008 Chesapeake Bay Trust - $950K Campbell Foundation - $200K Rauch Foundation - $150K Town Creek Foundation- 165K Morris and Gwendolyn Cafritz Foundation $60K Baltimore Community Foundation – 5K Prince Charitable Trust - $45K 3

Capacity Building Initiative (CBI) Overview Increase sustainability and effectiveness of 19 watershed organizations from MD, DC and VA Assess capacity building needs Provide targeted capacity building grants Host tailored trainings Encourage networking and collaboration Provides direct one on one assistance Approximately $900K per year for grants, training and one one assistance 3rd Party evaluation of impact 4

Goal is to increase core capacities Adaptive: ability to monitor, assess and respond to internal and external changes Leadership: ability to create/sustain vision, inspire, prioritize, innovate and make decisions. Management: ability to ensure effective/efficient use of resources Technical: ability to implement all functions

National Trends Philanthropic Giving Index (PGI) Lowest confidence level of Fund. Professionals reported in over a decade Decreased 27% since December 2007 PGI is 64.8 on a scale of zero to 100, down from a previous 10-year low of 72.3 in summer 2003 Fundraisers for human-services, public-benefit, environmental and international nonprofits exhibited the lowest confidence levels. Center for Philanthropy, Indiana University

National Foundation Giving Trends Current Trend Giving by this country’s more than 75,000 grantmaking foundations rose by an estimated 2.8 percent to a record $45.6 billion in 2008 Foundation Center estimates that foundation assets will drop a record 21.9 percent in 2008 and that 2009 foundation giving will decrease by 8 to 13 percent. Factors to Lesson Impact short-term increases in payout rates adopted by some foundations grants budgets based on a rolling average of their asset values exceptional commitments made to directly address the current crisis. Beyond 2009? remains unclear, and much depends on when the economy and stock market begin a consistent recovery. At present it appears likely that foundation giving will decline further next year. Foundation Center, July 2009

Other National Trends Reduction in estate taxes leads to Low investment returns leads to No minimum retirement withdrawal requirement leads to Bequests used for medical costs leads to Chronicle on Philanthropy

Regional Trends Anecdotal Reports from VA/MD/PA Foundations Mixed reports on future giving (stay the same, up and down) Grant budgets are down from previous years Prioritizing giving strategies, sticking with existing grantees For the most part, not changing type of grants

Reported fundraising changes from last year (2007-2008) 19 Watershed Orgs in MD/VA

Other Watershed Org Trends 19 groups in MD/VA Total membership increased, but avg. member contributions show slight declines ($131-$124) – overall member $ is increasing (median avg. $85-$96) 56% report increase in # of major donors and avg gift 50% report decreases from foundations Over 150% increase in median board donation over three years ($560 - $875)

Discussion What explains these results? Think……Pair……Share External Internal/organizational changes Short term vs. long term strategies Think……Pair……Share

Reported Reactions to Economy 19 Watershed Orgs in MD/VA

Organizational Changes adaptive 100% using a current Strategic Plan to guide work 89% using a fundraising plan to focus and track strategies Revenue is more diverse (new hires, ED focus, you asked for more $) “The strategic plan is guiding board and staff to focus time on our priority programmatic and operational goals and objectives. To ensure progress, we link each staff person’s annual work plan to a goal/objective in the strategic plan’

Organizational Changes Leadership Executive directors have more focus Board have new skills, energy and purpose (63% have 75%-100% attendance) # of Board members giving $ is up 93% of board members of groups contribute $

Organizational Changes Management Median of 3 paid staff and 2 full time volunteers Management of existing and new hires will integrated and with clearly defined roles with performance review Median # volunteers increased new = 42 – 50 total = 2800 - 3300

Organizational Changes technical Revamping publications and websites More than half have new technology for communications and constituent management Only 5 track website hits…

What does the future hold?

Projected Trends (Spring 2009 forward) 19 Watershed Orgs in MD/VA ?

Conclusions Economy in 2010 likely to impact all organizations more severely than 2009 Capacity building work has and will: Help organizations diversify revenue Help focus on core areas of work Increased visibility and appeal

Thank You Jamie Baxter Chesapeake Bay Trust jbaxter@cbtrust(dot)org chesapeakebaytrust(dot)org