Understanding the Mind of the 21st Century Donor: Growing Community Philanthropy

1. Understanding the Mind of the 21st Century Donor: Growing Community Philanthropy Kay Sprinkel Grace AFP Permian Basin National Philanthropy Day Keynote November 13, 2008

2. What We Will Cover Ingredients for effective community philanthropy US and Midland County Philanthropy 21st Century influences that are changing philanthropy How volunteers and professionals can partner to strengthen our communities The role each of us plays in assuring the future of our philanthropic heritage 2

3. Philanthropy in the 21st Century:An American Heritage �These Americans are peculiar people. If, in a local community, a citizen becomes aware of a human need which is not being met, he thereupon discusses the situation with his neighbors. Suddenly, a committee comes into existence. 3

4. Philanthropy in the 21st Century: An American Heritage - 2 �The committee thereupon begins to operate on behalf of the need and a new community function is established. It is like watching a miracle, because these citizens perform this act without a single reference to any bureaucracy, or any official agency.� Alexis de Tocqueville, Democracy in America, 1830 4

5. All voluntary action for the public good (Payton, Center on Philanthropy, IU) Giving, asking, joining, serving Based in values: people do not give, ask, join or serve organizations whose values they do not share Based in love of humankind: that is why people give their time and talent as well as their �treasure� People seek high-impact philanthropy in all the ways they give Philanthropy Defined 5

6. What National Philanthropy Day Celebrates America�s finest social export: voluntary action for the public good Civil society at work: opportunities for everyone in the community and in your organizations to play a role America�s immense support for its own people and for those in other countries A profound and positive global influence 6

7. Ingredients for Creating Effective Community Philanthropy A recipe that works

8. Recipe for Effective Philanthropy Mix equal parts innovation, inspiration, hard work, vision, mission, values, leadership and passion Add a critical human or societal need, or a community artistic or cultural need, and blend well Surround with dedicated board members and other volunteers and professional staff Garnish with the voluntary investments of time, talent and treasure of your community Serve, savor and repeat whenever needed 8

9. The US Philanthropic Sector 1,654,416 organizations� Assets: $4,250,147,387,161�� Income: $3,061,360,759,466 Source for this slide and the next: TaxExemptWorld.com (updated 9/6/08) 9

10. Total giving from all sources: $306.69 billion, up 1% (inflation adjusted) or 3.9% (non adjusted) Living individuals donated an estimated $229 billion, a drop of 0.1 percent from 2006. Gifts from estates were $23.2 billion, or 4 percent more than in 2006. All told, donations by individuals, including estate gifts and contributions to family foundations, made up 88 percent of donations last year. Corporate gifts declined by 0.9 percent, to $15.7-billion. Those contributions accounted for 5.1 percent of all donations. GIVING USA 2007 Report (6/24/08) 10

11. In Your Community�. Midland County TX Number of nonprofit organizations -- 732 Total Income Amount from Tax Exempt/Nonprofit Organizations -- $352,724,566 Total Asset Amount of Tax Exempt/NonProfit Organizations -- $710,840,592 A major sector with high impact Forbes: Best Small Places For Business And Careers #82 Midland TX -- 3.19.08 11

12. In Your Community�. Ector County TX Number of nonprofit organizations -- 499 Total Income Amount from Tax Exempt/Nonprofit Organizations -- $80,649,307 Total Asset Amount of Tax Exempt/NonProfit Organizations -- $102,198,228 UTPB gives $13.7 million in financial aid and enrolls 3,559 students Corporate support evident: Flint Hills Resources 12

13. Characteristics of a Community Focused on Philanthropy A vision for a continually improved community Support for those who pursue the vision Recognition for those who achieve steps towards the vision Values-directed decision making relative to allocation of community resources Encouragement of voluntarism and voluntary organizations at all levels Prevailing idea that it is a privilege to give back 13

14. Impact of Philanthropy In This Community Do all the good you can,By all the means you can,In all the ways you can, In all the places you can,At all the times you can, To all the people you can,As long as you ever can. - John Wesley

15. Some of the Many Ways� AFP National Philanthropy Day Annual awardees and recognition Midland College Students in Philanthropy When recognized for their achievement in 2006, more than 236 had students participated in the program, granting in total nearly $150,000 to 132 organizations in the area. The students� fundraising is matched on a 15:1 basis by the Abell-Hanger Foundation. (William R. Simms Award, AFP, 2006) Permian Basin Area Foundation Texas Medical Association �Hard Hats for Little Heads� (Odessa) 15

16. More Ways� Midland Memorial Hospital Foundation Faces of Philanthropy � recognizing �People of Extraordinary Generosity� Vision of the late Ted Roden and his wife, Jan, for UTPB and their generosity in Odessa Programs of the Nonprofit Management Center �A guiding light for the Permian Basin Nonprofit Community� 16

17. 21st Century Philanthropy What is different? What is the same?

18. What is Different? Gifts come via the stairway or the helicopter landing pad Social-investors are looking for organizations that address issues of concern to them Diversity of the social-investor is remarkable Expectations for accountability are higher Traditional stewardship may not work 18

19. What is the Same? Majority of giving is from individuals and it is mission/vision driven People give to make a difference and because they believe in the cause Donors want to be appreciated They want to know how their money has been spent They want an experience with the organization, the issue, or the people in the organization Philanthropy is based in values 19

20. Keeping Philanthropy Vital in the 21st Century A partnership among citizens, volunteers, organizations and donor-investors

21. Nonprofits Contribute to the Vitality of Philanthropy By� Knowing their core values and pursuing them Knowing their vision and pursuing it Clearly communicating their mission and impact Aligning their values and vision with those of the community � or asserting their values and vision when a void is perceived Embracing their principles and traditions Being accountable and transparent 21

22. Volunteers Contribute By� Serving on boards and committees that address critical needs and issues in the community Giving willingly of their �time, talent and treasure� to advance the vision of the community Participating in training and other opportunities to become more effective Understanding and advocating for the role of philanthropy in our communities and society Getting engaged and engaging others 22

23. Donor-Investors Contribute By�. Developing relationships with the organizations they fund Requiring transparency, accountability and �return on investment� Learning about the challenges nonprofits often face in implementing programs � practicing patience when appropriate Assuring the advancement of the vision by increasing investment when they can 23

24. One Decade Nearly Gone What 21st Century Philanthropy Has Done Already 24

25. This Dynamic Decade is Having a Dramatic Close 21 gifts of $100 million or more in 2006; 20 gifts of $100 million or more in 2007 In 2008 so far: gifts of $1 and $4.5 BILLION; 12 gifts ranging from $25 to $80 million and 10 of $100+ million America�s 50 most-generous donors committed $7.3 billion in 2007 PLUS: the rise of �citizen philanthropists� who viral market their dreams and raise more money than they can give is astounding: more than $1 million given through �Cause�� the donation engine for MySpace and Facebook -- in its first year 25

26. The Late Paul Newman�s Own Reflection on Philanthropy Paul Newman maintained his devotion to his charitable work until the very end of his life: Hole in the Wall Gang cancer camps for kids and more than $250 million raised through Newman�s Own. �We are such spendthrifts with our lives,� he once told a reporter. �The trick of living is to slip on and off the planet with the least fuss you can muster. I�m not running for sainthood. I just happen to think that in life we need to be a little like the farmer, who puts back into the soil what he takes out.� 26

27. Understanding the Mind of the 21st Century Donor: Growing Community Philanthropy Kay Sprinkel Grace AFP Permian Basin kaysprinkelgrace@aol.com 415-831-2923