Giving USA and the AFG Benchmarking Survey: What You Need to Know - - PowerPoint PPT Presentation

Giving USA and the AFG Benchmarking Survey: What You Need to Know

Association Foundation Group Chicago Conference October 17, 2019

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About CCS and Your Presenters

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Leading fundraising consulting and management firm Worked in 5,000 cities around the world Clients are among the most recognizable brands in philanthropy internationally Varied and flexible client engagements Largest and most experienced permanent staff

New York – Chicago San Francisco – Los Angeles Baltimore – Washington DC

• St. Louis – Dallas – Seattle

Boston – Philadelphia Toronto – London – Dublin

Lindsey C y Copple

Corporate Vice President

Meghan an D Davison

Corporate Vice President

A Selection of Our Work with Associations and Association Foundations

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Today’s Discussion

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Overview of the philanthropic landscape How can we use this information to inform fundraising strategies?

Main Data Sources for Our Discussion

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2019 Giving USA Report 2019 AFG Benchmarking Report

Giving USA

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• The longest-running annual report on U.S.

charitable giving

• Estimates for

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Sources of giving

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Amount received by type of organization

• Researched and written by the Indiana

University Lilly Family School of Philanthropy

• Published by Giving USA Foundation
• Made possible by contributions from The

Giving Institute member firms, foundations, and other donors

• 2019 report estimates 2018 giving

AFG Benchmarking Report

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• Provides valuable information on board

structure, fundraising tactics, foundation relationships, and donor trends

• Undertaken in 2009, 2012, 2014, 2018 and

2019

• Conducted by Association Foundation Group in

partnership with CCS

• 2019 survey distributed in February 2019 to

250+ individuals

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35% response rate

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85 organizations participated

The Philanthropic Landscape at a Glance

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In 2018, Americans gave an estimated $427.71 Billion

Both ec economic ic conditions and the pol

• licy

icy environmen ment influenced giving. Total estimated charitable giving rose 0. 0.7% 7% between 2017 and 2018 in current dollars and declined 1. 1.7% 7% when adjusted for inflation. Adjusted for inflation, total giving has declined 13 tim imes sin s since 1978, including this year.

Today’s Climate Giving Has Declined Estimated Giving

Source: Giving USA (2019)

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2018 U.S. Contributions by Recipient

$124. $124.52B 52B (29%)

Religion

$58. $58.72B 72B (14%)

Education

$51. $51.54B 54B (12%)

Human & Social Services

$50. $50.29B 29B (12%)

Foundations

$40. $40.78B 78B (10%)

Health

$31. $31.21B 21B (7%)

Public-Society Benefit

$19. $19.49B 49B (5%)

Arts, Culture, & Humanities

$22. $22.88B 88B (5%)

International Affairs

$12. $12.70B 70B (3%)

Environmental & Animal Welfare

$9. 9.06B 06B (2%)

Individuals

Source: Giving USA (2019)

Contributions by Source

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9% 68% 8% 18% 8% 5% Bequest Individual Foundation Corporate Giving USA 7% 37% 9% 47% 7% Bequest Individual Foundation Corporate AFG Benchmarking Survey

Sources: AFG Benchmarking Report (2019); Giving USA (2019)

Association Total Gifts and Pledges Raised, by Source

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Sources: AFG Benchmarking Report (2019)

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 Individuals Foundations Corporations Trusts & Estates

Engineering/Scientific Medical Society Professional Trade

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Spotlight on Corporate Giving

Increased overall in 2018 High potential for volatility Dependent on company profit and economic environment There can be a lag time between profitability and charitable giving

Source: Giving USA (2019)

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Spotlight on Individual Giving

Sources: IUPUI Lilly Family School of Philanthropy, Overview of Overall Giving (2017); Bank of America, U.S. Trust Study of High Net Worth Philanthropy (2018)

56% %

• f the general U.S. population gives

Aver erage o e of $2, $2,514 514 gi given a annually

90%

• f wealthy households give

Average o e of $29,269 g given en annually

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Spotlight on Individual Giving

Source: Blackbaud, The Next Generation of American Giving (2018)

Prior to making contributions, donors consider the following factors… To Topic % % of Do Dono nors Who R Resea search Before Gi e Givi ving Overall Efficiency 70% Philanthropic Impact 59% General Reputation 54% Operating Costs 53% Mission and Services 53% Executive Salaries 43% Funding Sources 31%

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Programs Funded

79% 70% 64%

Education Research Scholarships

Source: AFG Benchmarking Report (2019)

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Source: AFG Benchmarking Report (2019)

Programs Funded, by Type

59 67 54 33 50 55 46 29 9 12 8 4 Research Education and Advocacy Scholarships Other Aggregate Assocation Foundation Association/Parent Organization Note: Items mentioned in ‘Other’ include Workforce Development; Financial Aid for Fellowship Programs; Direct Service; Public Awareness; Career Achievement Awards; and more.

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Programs Funded, by Category

Source: AFG Benchmarking Report (2019)

2 8 5 3 19 18 11 11 24 18 28 14 14 24 9 5 Research Education and Advocacy Scholarships Other Engineering/Scientific Medical Society Professional Trade Note: Items mentioned in ‘Other’ include Workforce Development; Financial Aid for Fellowship Programs; Direct Service; Public Awareness; Career Achievement Awards; and more

Association/Parent Organization-Foundation Relationship

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Source: AFG Benchmarking Report (2019)

Over 95% of respondents said that the Foundation is able to promote its mission at Association/Parent Organization major conferences and meetings. The top five ways they do this are:

78% 77% 72% 72% 40%

Foundation Materials Available Donor Ribbons on Name Badges Booth or table Hosts Events Recognition at Opening Session

Total Gifts and Pledges Raised (Comparative Dollars, by Category)

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Source: AFG Benchmarking Report (2019)

$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 Engineering / Scientific Medical Society Professional Trade Major Gifts ($5,000+) Bequest and Planned Gifts Direct Mail Dues Check-off Special Events Online Giving

Spotlight: Membership Giving

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Membership Giving Rates (Aggregate)

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Source: AFG Benchmarking Report (2019)

8% 8%

Average Mem ember ership Gi Giving Ra Rate

13, 20% 8, 13% 8, 12% 8, 12% 15, 23% 13, 20%

Below 2% 2-4% 5-6% 7-9% 10-14% 15%+ Note: Of the 85 responses, 65 answered this question.

Membership Giving Rates (Comparative)

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Source: AFG Benchmarking Report (2019)

2 2 1 1 6 3 6 3 2 1 5 6 4 7 2 3 4 5 3 6 2 1 2 2 3

No Response 15%+ 10 - 14% 7 - 9% 5 - 6% 2 - 4% Below 2%

Engineering/Scientific Medical Society Professional Trade

Membership Giving Rates (Average)

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6% 8% 8% 10%

Engineering/Scientific Medical Society Professional Trade

Source: AFG Benchmarking Report (2019)

Membership Dues

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Source: AFG Benchmarking Report (2019)

43% 57%

Yes No Specific Amount Dues Check-Off

6% 59% 34%

Yes, that is all we use Yes, that is one part No

Times Per Year Foundation Solicits for Annual Support

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Source: AFG Benchmarking Report (2019)

3.03 3.25 3.83 3.08 1.67 Aggregate Engineering/Scientific Medical Society Professional Trade

Spotlight: Board Giving

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Association Boards Active in Fundraising

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Source: AFG Benchmarking Report (2019)

2% 51% 47%

Yes No Does Not Apply

National Statistics

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Source: Board Source, National Index of Board Practices (2017)

Organ aniz ization ion T Typ ype % Engagi ging B g Board in Fundr draising ng % % Boards A s Activel ely Participating i g in F Fundraising g

• vs. Relyi

ying M Mostly o y on CEO/ O/Staf aff Charity 95% 42% Foundation 58% 36% Association 53% 31% Other 83% 35% All 86% 40% For comparison, 47% of organizations responding to the 2019 AFG Benchmarking Survey reported that their board is “active” in fundraising

Association Board Giving

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2019

14% 8% 13% 65%

2018

12% 8% 15% 65%

2014

22% 17% 17% 45%

Source: AFG Benchmarking Report (2019)

Strongly encouraged but not required No gift required Minimum gift to stay on board Required but no minimum

National Statistics

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Source: Board Source, National Index of Board Practices (2017)

Organ aniz ization ion T Typ ype % Requiri ring Bo Board Members t to Make P e Personal M Monetary Co Contri ribution t to the O Organization Charity 69% Foundation 36% Association 19% Other 51% All 59% For comparison, 27% of organizations responding to the 2019 AFG Benchmarking Survey reported that they require a gift to stay on the board

Spotlight: Fundraising Infrastructure

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Average Development Staff by Association Category

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Source: AFG Benchmarking Report (2019)

0.8 0.7 2.5 0.3 4.3 0.6 0.6 1.4 0.6 3.2 1.4 1 1.4 2.9 6.8 0.4 0.4 0.7 0.3 1.3 Support Staff Professional Support Staff Fundraising Staff Program Staff Total Staff Engineering/Scientific Medical Society Professional Trade

Staff Structural Changes

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Source: AFG Benchmarking Report (2019)

Q: Do you anticipate increasing your Association/Foundation staff positions during the next 12 months?

29% 71%

Professional

50% 50%

Engineering/Scientific

29% 71%

Trade

28% 72%

Medical Society

Yes No

Development Operations Budget by Association Category

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Source: AFG Benchmarking Report (2019)

3 3 1 2 6 16 16 1 3 4 23 23 2 3 16 16 $2,500,000+ $1,000,000 - 2,499,999 $501,000 - 999,999 <$500,000 Engineering/Scientific Medical Society Professional Trade

Development Budget Changes

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Source: AFG Benchmarking Report (2019)

Q: During the most recently completed fiscal year, your development budget was: Unchanged, Increased, or Reduced?

Note: 4 of the 85 surveyed Associations didn’t respond

60.49% 30.86% 8.64% Unchanged Increased Reduced

Bringing It All Together

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How can we use this information?

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Share with institutional leaders, including Board and President Set informed, data-driven fundraising and performance goals to incorporate into overall strategies Make the case to the Board, President, and stakeholders for increased investments in development to elevate fundraising results Assess performance of your program with current levels of investment and resources Align messaging with donor motivations

Questions and Open Discussion

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Thank you!

Lindsey Copple – lcopple@ccsfundraising.com Meghan Davison – mdavison@ccsfundraising.com

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Download CCS’s Philanthropic Landscape ccsfundraising.com/PhilanthropicLandscape Purchase Giving USA 2019 givingusa.org; 30% Discount Code: ccs