Inaugural Seminar April 27, Sanford Institute of Philanthropy 1

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1 Inaugural Seminar April 27, Sanford Institute of Philanthropy 1

2 A Special Presentation for The Sanford Institute for LIU Tectonic Shifts in Philanthropy Are you Ready? April 2017

3 The Presentation Today American Philanthropy Today Tectonic Shifts M&A Too Many Charities? Generational Giving Patterns Post Recession Donor Acquisition Trends Planned Giving Are you Ready? 3

4 American Philanthropy

5 Total Giving ($373 Billion) Source: Giving USA Foundation Giving USA 2015 *Giving by Foundations estimate is provided by Foundation Center 5

6 Sources of Giving Source: Giving USA Foundation Giving USA

7 Too Many Charities???

8 Too Many Charities? 1.5 Million Tax-exempt Organizations Up 50% since 2000! (98% are approved by IRS) $1.74 Trillion in Revenue $3 Trillion in Assets 10 % of all wages in USA 5.3% of GDP 312,000 houses of worship / congregations * National Center for Charitable Statistics 8

9 Impact & Trends Revenue Mix: 60% Earned 20% Public 20 % Philanthropy M&A Emerging / Education & Healthcare Sectors Shifting Reliance on Public Sector Contracts & Grants Volunteer Driven vs. Business Culture What role the Board? 9

10 Generational Giving Patterns

11 Generation Name 11 Birth Years Depression World War II Post-War Leading Boomers Trailing Boomers Generation X Millennials ? Great Recession/Boomerang 1985-?

12 Depression Cohort ( ) Defining Moment: Great Depression Best Approaches: Bequests Unrestricted endowment Help the needy when tough times arrive Secure the charity s future Shared Values: Practicality Savings Safety/security Friends/family Trust for charities Marketing Tips: Simple/presented in a straightforward manner Use visuals and other cues Printed/face to face No reverse type 12

13 World War II ( ) Defining Moment: World War II Best Approaches: Save the world Delayed gratification Remembered for sacrifices Immortality Naming using bequests Shared Values: Patriotic Respect for authority Romantic Self-reliant Trust for charities Marketing Tips: Concierge-level treatment Rebates/coupons/discounts Matching gifts/challenges Print Families trust them 13

14 Leading Boomers (1946 to 1954) Defining Moments: Assassinations of JFK, RFK and MLK Jr. Vietnam War First man on the Moon Shared Values: Personal/social expression Individualism protected Youth/health/wellness Lack of trust for charities Best Approaches: Social justice meets personal planning Restricted gifts Advisor partnerships Beneficiary designations Complex asset gifts Structured gifts Marketing Tips: Impact, outcomes and verifiability Large type/high contrast/ no glossy paper Fun, individualism and excitement 14

15 Trailing Boomers (1955 to 1964) Defining Moments: Fall of Vietnam Watergate Nixon resignation Energy crisis Best Approaches: Gift outcomes Full range of charitable giving tools Restricted gifts Advisor partnerships Shared Values: Lonely individualism Cynicism/distrust Health and wellness Family commitments Lack of trust for charities Marketing Tips: Impact, outcomes, verifiability and accountability Conscious of distrust Robust stewardship 15

16 Generation X (1965 to 1976) Defining Moments: Large National Debt/Stock Market Crash of 1987 Challenger explosion Fall of the Berlin Wall First Persian Gulf War AIDS crisis Shared Values: Free agency/independence Dependence on friends Cynical about future Street-smart Quality of life Accept violence/ sex Lack of trust for charities Best Approaches: Custom gift solutions Beneficiary designations Restricted gifts (almost exclusively) Advisor partnerships Marketing Tips: Impact, outcomes, verifiability, accountability and volunteer ops Not attractive or rich-facts Subtlety/irony/irreverence 16

17 Post War ( ) Defining Moments: End of World War II Strong economy Move to the suburbs Cold War/Korean War McCarthyism Emergence of rock & roll Civil rights movement Shared Values: The American Dream Conformity Stability Family Self-fulfillment Trust for charities Best Approaches: Current gifts Beneficiary designations Gift annuities Marketing Tips: Volunteer Opportunities (not necessarily tied to gift) Active images Outcomes-based 17

18 Millennials (1977 to 1984) Defining Moments: The Internet Good economic times Columbine 9/11 Wars in Iraq and Afghanistan Shared Values: Hopeful about financial future Heightened fears Change is good Tolerance/diversity Lack of trust for charities Best Approaches: Beneficiary designations Restricted gifts exclusively Modest annual donations focused on mission 18 Marketing Tips: Get out of the way Change it up Fresh and multi-channel Brand conscious loyal

19 Post-Recession Donor Acquisition Trends

20 Post Recession Impact Donors reduced number of charities supported Acquisition is harder telemarketing vs. social media Restricted giving growing / unrestricted under pressure Planned giving = mainstream! Voluntarism is steady (25% of Americans) Metric driven donors are growing 20

21 Let s Talk about you

22 Lessons & Preparing for the Coming Tremors Business Plan Building the Board Distinctive Positioning / Partners? Major Gifts Matter! Modeling for Restricted & Budget Offsetting Gifts Make your donors feel like owners 22

23 Thank You Contact Information: Dave Gallagher, President, Harvest Fund Raising Counsel 23