2. Shifting the Sustainability Paradigm: Eliminating Programs Jim Snell Deputy Director, TCNCS Multi-State Cross-Program National Service Conference July 14, 2006 Atlanta, Georgia

3. Sustainability - Background How much? - $260.28 Billion for 2005. 1 Who gives? - Individuals (living and bequests) - $216.51 billion 70-80% of Americans. 1 ~70% of households give to religious congregations. 2 85+% of households that give to religious organizations also give to secular organizations. 2 - Foundations - $30.0 billion 52% of foundations anticipate increased giving in 2006. 3 32% of foundations anticipate decreased giving in 2006. 3 - Corporations - $13.77 billion Giving

4. Sustainability - Background Who gives? Giving 2005 CONTRIBUTIONS: $260.28 BILLION BY SOURCE OF CONTRIBUTIONS Source: Giving USA, a publication of Giving USA Foundation TM, researched and written by the Center on Philanthropy at Indiana University.

5. Sustainability - Background To what? Giving 2005 CONTRIBUTIONS: $260.28 BILLION BY TYPE OF RECIPIENT Source: Giving USA, a publication of Giving USA Foundation TM, researched and written by the Center on Philanthropy at Indiana University.

6. Sustainability - Background Foundation Giving 2004 $15.4 Billion 4 Grants of >$10,000. Sample size = 1,172 U.S. foundations.

7. Sustainability - Background How many? - 65.4 million people (28.8% of the civilian non- institutional population age 16+); - 32.4% of women and 25% of men. 5 How much? - Median of 50 hours; - 47.8% of volunteers served 50 or more hours during the year. 5 Volunteering

8. Sustainability - Background Where? - Religious organizations (34.8%); - Educational/youth service organizations (26.2%). 5 Volunteering

9. Sustainability - Background Why? - 42.8% were asked (25.9% by someone in the organization, 16.9% by someone else); - 40.3% of the volunteers approached the organization. 5 What? - Fundraise or sell items to raise money – 29.7%; - Collect, prepare, distribute or serve food – 26.3%; - Engage in general labor or supply transportation to people – 22.5%; - Tutor or teach – 21.3%; - Provide professional or management assistance, including serving on a board or committee – 17.7%. 5 Volunteering

10. Sustainability - Background Households are more likely to give when they: - Volunteer with or without a family member; - Regularly attend religious services; and - Own their home. 6 Giving and Volunteering

11. Sustainability – Current Paradigm Doing more with the same amount of funding. Doing the same thing with less funding. Other? What is Sustainability?

12. Sustainability – Current Paradigm Social pressures - Current US population of 297 million people is expected to be 336 million by 2020 and 392 million by 2040. 7 - 37 million people below poverty. 8 Nonprofit woes - Approximately 1.4 million registered nonprofits: 825,523 public charities; 472,962 other nonprofits; and 103,068 private foundations. 9 - Fundraising professionals identified Too many nonprofits/increased competition for the charitable dollar as the top fundraising issue. 10 What is wrong with sustainability?

13. Sustainability – Current Paradigm Nonprofit woes, continued - The number of charities continues to grow, with religious organizations growing the most followed by education organizations. 11 Corporate giving - 41% of corporate donations supported health and human services. 12 - Pharmaceutical companies gave the most, but the majority of those contributions were non-cash. 12 What is wrong with sustainability?

14. Sustainability – Current Paradigm Volunteers stretched thin - 37.7 million people who had volunteered in the past did not volunteer in 2005. Their most common reason was lack of time. 5 - 61.3% of volunteers volunteered 100 hours or less in 2005. 5 Increasing demands on public and private sector resources. Each sector demands sustainability, but decreases in $ from a sector require increases from another to maintain level service. What is wrong with sustainability?

15. Sustainability – Current Paradigm. What is wrong with sustainability? Government Corporations Individuals Foundations Nonprofit Service/Outcomes

16. Sustainability – Current Paradigm. What is wrong with sustainability? Government Corporations Individuals Foundations Nonprofit Service/Outcomes

17. Sustainability – Current Paradigm. What is wrong with sustainability? Government Corporations Individuals Foundations Nonprofit Service/Outcomes

18. Sustainability – Current Paradigm. What is wrong with sustainability? Government Corporations Individuals Foundations Nonprofit Service/Outcomes

19. Sustainability – New Paradigm We must determine the investment required to eradicate the need and then make that investment. This will require increased, not decreased public and private investment and cooperation. The goal of the new paradigm is not to sustain programs but to eliminate them by eliminating the need.

20. Sustainability – New Paradigm Clearly define the problem in your community Clearly define the factors that lead to this problem Clearly define the needs that result from this problem 1. Define Root Causes

21. Sustainability – New Paradigm Identify the stakeholders in the community Identify decision-makers and people of influence Identify potential solutions involving everyone in the process as equal partners Identify the resources needed to achieve the solution(s) 2. Identify Solutions

22. Sustainability – New Paradigm Make a long-term plan that uses the solutions to eliminate the need Make partnerships - 89% of Americans want non-profits and corporations to work in partnership. 76% believe that such partnerships will lead to a more positive image of the nonprofit. 13 Make new ways to give - Real estate gifts are increasing in popularity, as are gifts of art, appreciated securities and gift annuities. 14 - Only 9% of households named a charity in their will. 15 3. Make Connections

23. Sustainability – New Paradigm Make new ways to give, continued - Donors who give online tend to give more than those who do not. 16 - Online donations were up 148.1% in 2005. 17 Make a name for your organization through marketing and branding. Make community foundations part of the plan - Community foundations had the highest percent increase in giving in 2005. 3 - Community foundations most likely to fund at least half of their grant requests in 2004. 18 3. Make Connections

24. Sustainability – New Paradigm Make changes to fundraising activities - December is the best time to raise funds, followed by November. July and January are the worst times. 10 - Corporate foundations are most likely to receive 1,000 or more proposals; whereas, half of foundations received fewer than 100 proposals. 18 Make commitments with public and private organizations to fund the change 3. Make Connections

25. Citations 1.Giving USA. (2006). 2.Faith and Philanthropy: The Connection Between Charitable Behavior and Giving to Religion. Independent Sector (2002). 3.Foundation Growth and Giving Estimates 2005. The Foundation Center (2006). 4.The Foundation Centers Statistical Information Service.. 5.Volunteering in the United States, 2005. US Department of Labor, Bureau of Labor Statistics (December 2005). 6.A Nation of Givers: Regional Patterns in American Giving and Volunteering. Independent Sector (2004). 7.US Interim Projections by Age, Sex, Race, and Hispanic Origin. US Census Bureau (2004). 8.Age and Sex of All People, Family Members and Unrelated Individuals Iterated by Income-to- Poverty Ratio and Race: 2004 Below 100% of Poverty -- All Races. US Census Bureau (Last revised: June 24, 2005). 9.Exempt Organizations Business Master File. Internal Revenue Service (December 2004). 10.State of Fundraising Survey 2005. Association of Fundraising Professionals (2006). 11.The Chronicle of Philanthropy, January 2005. 12.The 2004 Corporate Contributions Report – Report 1355. The Conference Board (2004). 13.The 2004 Cone Corporate Citizenship Study. Cone, Inc. (2005). 14.The Nonprofit Times Weekly Update, April 2004.

26. Citations 15.Planned Giving in the United States 2000: A Survey of Donors. National Committee on Planned Giving (2000). 16.Kintera/Luth Nonprofit Trend Report. Luth Research and Kintera (2005). 17.The Chronicle of Philanthropy, June 2006. 18.Foundation Growth and Giving Estimates 2004. The Foundation Center (2005).

27. Shifting the Sustainability Paradigm: Eliminating Programs Jim Snell Tennessee Commission on National & Community Service Tennessee Tower 312 8 th Ave. N., 12 th Floor Nashville, TN 37243 615-253-1426 jim.snell@state.tn.us