Philanthropy Front and Center - New York

New Research Advisory Gives Long-Term View of Foundation Giving

In September 2009, the Foundation Center conducted a follow-up to its January 2009 giving forecast survey to determine foundation expectations for giving beyond 2009. The survey responses from over 600 grantmakers have been analyzed and indicate that giving from foundations is expected to decline by more than 10 percent in 2009, and continued reductions are expected in 2010. "Foundations will be giving less than they expected at the beginning of the year," said Bradford K. Smith, president of the Foundation Center. "But many are rethinking their grantmaking so that fewer dollars will not necessarily mean less impact."

Foundations' Year-end Outlook for Giving and the Sector is the latest in the Center's research advisory series that explores the impact of the economic downturn on the nonprofit sector. The advisories and the online chart "In Their Own Words: 2009 Foundation Giving Forecast" are available at the Center's Focus on the Economic Crisis web page.

The report can be downloaded at no charge from the Gain Knowledge area of the Center's web site.

Steven Lawrence, Senior Director of Research at the Foundation Center and the author of the advisory, will be discussing this study and its specific findings at the New York library/learning center's 4th annual Open House, to be held on Tuesday, November 17.
Learn more about this program and sign up to attend today>>

Pulse Check 3: How Are Nonprofits Doing?

As a follow-up to earlier Pulse Checks posted by our Cleveland colleagues in March and July, here is another round-up of the latest surveys and studies indicating how the nonprofit sector is handling the effects of the economic downturn.

Glass Half Full or Half Empty? Results of GuideStar's Latest Nonprofit Economic Survey (August 2009)
GuideStar’s most recent nonprofit economic survey takes a look at the financial health of charitable organizations from March-May 2009. They found that since the last update, covering October 2008-February 2009, the percentage of nonprofits reporting decreased contributions has remained steady at 52%. Other findings showed that:

• 18% of responding nonprofits saw their contributions increase, while 29% reported that their contributions had stayed about the same from the previous survey period.
• Nonprofits reported that the decrease in giving was the result of the following:
  • Fewer individuals gave (69%)
  • Gifts from individuals were smaller (68%)
  • Corporate gifts were smaller (38%)
  • Private foundation grants were smaller (37%)
  • Read more>>

Volunteering in America: Research Highlights (August 2009) [PDF]
The Corporation for National and Community Service collects information on the American volunteer landscape in an effort to track changes and developments that may be useful for civic leaders and nonprofit organizations. Some of the key findings showed that:

• In 2008, 61.8 million Americans or 26.4 percent of the adult population contributed 8 billion hours of volunteer service worth $162 billion, using Independent Sector’s 2008 estimate of the dollar value of a volunteer hour ($20.25).
• As the economy slows and nonprofit organizations struggle to provide services on smaller budgets, volunteers become even more vital to the health of our nation’s communities. Between September 2008 and March 2009, more than a third (37%) of nonprofit organizations report increasing the number of volunteers they use, and almost half (48%) foresee increasing their usage of volunteers in the coming year. Almost no nonprofit organizations are showing a decrease in their volunteer usage.
• Volunteers were much more likely than non-volunteers to donate to a charitable cause in 2008, with 78.2 percent contributing $25 or more compared to 38.5 percent of non-volunteers.
• Read More [PDF]>>

Nearly 30% of Nonprofit Leaders Took a Pay Cut This Year; Pay in 2008 Grew Quickly (Sept. 2009)
The Chronicle of Philanthropy conducted a survey of 325 organizations that raised the highest amounts of donations from private sources in 2008, as well as grantmakers holding the highest assets that year. The results of the survey revealed that:

• 57 charities and foundations—29 percent of the 195 groups that responded—reported that their top executive had taken a pay cut this year due to the recession, declined raises or bonuses, or had his or her pay frozen. The median pay cut was 10 percent.
• The median compensation for chief executives at the organizations surveyed was $361,538, based on information from 253 groups that provided data for both 2007 and 2008. In 2007 the median compensation was $330,395.
• Read more>>

Have you read other enlightening reports and survey findings? Tell us about them.

Katie Artzner, Online Librarian, Foundation Center

Listen! David La Piana Discusses How Nonprofits Should Approach Strategic Restructuring

David La Piana, author of Strategic Restructuring: Mergers, Integrations and Alliances, recently sat down with Janet Camarena, Director, Foundation Center-San Francisco, to talk about best practices in how nonprofits should approach collaborations, mergers, and other types of partnerships. Listen>>

Live From Challenges and Opportunities of the Economic Crisis - October 13

Bradford K. Smith, president of the Foundation Center, will provide his perspective on the impact of the economic crisis on the philanthropic sector – both foundations and service providers – and the challenges and opportunities these turbulent times present for the future.

This 60-minute program will be at the Foundation Center-Atlanta on Tuesday, Oct. 13, starting at 2:30 p.m. To read Mr. Smith's biography or sign up to attend, please see our Events Calendar.

Can't get to this event in person? Attend the program virtually via the window below, either during the program or after it's happened. This program also will be taped and posted to our web site later this month.

Pattie Johnson, Director, Foundation Center-Atlanta

From the Answer Desk: Contingency and Scenario Planning: What's the Difference and How Do Nonprofits Get Started?

A: Both are structured ways for organizations to think about the future. In the context of planning, the terms "contingency" and "scenario" are sometimes used interchangeably. In simple terms, a contingency plan can be described as your organization’s “Plan B” or "worst case scenario" and is often tied to something specific, like a natural disaster. They are also sometimes called business continuity plans or disaster recovery plans. Scenario planning, on the other hand, is a “strategic planning method expressly developed to test the viability of alternative strategies," according to Mal Warwick in his book, Fundraising When Money is Tight. Warwick suggests six steps for creating an effective scenario plan, starting with exploring answers to the question, "What keeps you awake at night?," to draw out fundamental issues, and concluding with testing your strategic choices using “what-if” reasoning. Warwick describes scenario planning in detail and goes on to suggest Peter Schwartz’s classic 1991 book, The Art of the Long View, for further reading. (Listen to our February 2009 podcast with Mal Warwick here.)

In the July 2, 2009 Chronicle of Philanthropy article “Worst Case Scenarios,” author Ben Gose advocates that forming a contingency plan can help a nonprofit navigate the recession more successfully. Offering tips ranging from setting priorities and identifying "trip wires" (actions to take when revenues drop, for example), Gose cautions that organizations must come to terms with the fact that “painful decisions will still have to be made.” However, Mr. Gose goes on to note that during contingency planning “a charity may find that a program it considered cutting is in fact worth saving, and that finding can make a compelling story for donors.”

Additional resources:

Financial Scenario Planning for an Uncertain Future
Slides from a presentation made by Emil Angelica at the June 2009 annual conference of Dance USA.

Nonprofits Assistance Fund Scenario Planning Worksheet
A "step by step guide to nonprofit contingency planning."

ScenarioThinking.org
Open community on scenario thinking and scenario planning where you can publish scenarios, reflect on the planning processes and share online resources about scenario planning in a democratic and inclusive manner.

Do you have a question? Ask Us!

Robert Bruno, Reference Librarian, Foundation Center-New York

Tips for Nonprofit Survival from Grassroots Fundraising Journal

I came across an interesting article recently in the March/April 2009 issue of Grassroots Fundraising Journal. In “5 Tips for Nonprofits to Survive & Thrive Now and into the Future” Kim Klein discusses her thoughts on events leading up to the current economic downturn before giving her tips for nonprofit survival. In spite of the current situation, she feels that “…most nonprofits will survive and some will thrive in this next period.”

Klein feels that we are not in a “crisis”—which she defines as a situation with a definable beginning and ending (or at least easing of the situation) where everyone steps up their pace—staff and volunteers work longer hours, boards meet more often to decide what to do—knowing that the situation is temporary. Instead she views the current economic scene as “…how it is going to be for several years to come. It may get worse before it gets better, but more likely it will get worse and better, better and worse…”.

Her advice is to view these next months as exciting times and an opportunity to hone the organization’s mission, goals, donor base and volunteer pool. She lists five things that nonprofits need to do to raise money during these uncertain times:

• Acknowledge but don’t dwell on the economy in everything you send out. Remind donors that you are doing important work; they already know that these are difficult times.
• Donors are concerned about your financial decisions; let them know you are spending their money wisely.
• Focus on your mid-range donors (gifts of $100-$1,500).
• Look closely at your fundraising procedures. Correct any problems you find.
• List the 50 people most important to your organization and think about how you are going to interact with these people next: ask for a donation, ask for introductions to other donors, etc.

These are things that we as nonprofits should be doing all the time, but they are more important than ever now.

For more information about the effects of the economic downturn on nonprofits and fundraising, see our Focus on the Economic Crisis page.

Let us know your ideas for surviving the current economic situation.

Originally posted by Kayron Bearden, Reference Librarian, Foundation Center-Atlanta 

Listen! Michael Seltzer Discusses How to Downsize a Nonprofit

Writer, educator, and nonprofit leader Michael Seltzer brings more than forty years of experience to this conversation about sensitive issues raised in his recent PhilanTopic post, Strategies for Hard Times: How to Downsize a Nonprofit.

Sitting down with Cynthia Bailie, director of the Cleveland office and special online initiatives at the Foundation Center, Mr. Seltzer circles the conversation about cost-cutting, collaboration, and staff development back to the hard question, "How can nonprofits handle workforce reductions when all else fails?"  Listen!

From The Answer Desk: How Can Nonprofits Avoid or Address Financial Emergencies?

A: There is no one-size-fits-all answer to this question, but here are 10 suggested resources that may be helpful. If you have recommendations, please let us know by leaving a comment.

1. It is critical that your organization develop and closely monitor a sound fundraising plan that includes detailed outlines for securing a diverse array of support and revenue. Learn how at our free class, webinar, or full day seminar.

2. 20 Emergency Funding Sources for Nonprofits. From Fieldstone Alliance, this web page includes "sources that can be accessed quickly, usually within 30 days," along with this note of caution, "Not all of these sources are available to all nonprofits, and some of them carry great risk." The strategies included are detailed in these categories: cash flow management, contributed income, earned income, debt financing, and existing assets.

3. Adapting to Change: 22 Structural Strategies for Nonprofits. Also from Fieldstone Alliance, this web page includes 22 ideas "involving organizational change. When major external change happens, it’s important to look internally to revisit and, if necessary, revise your mission and approach in order to serve the community in the best way possible." Ideas, opportunities and action steps are displayed  in the following categories: general advice, modify mission, modify organization structure, and modify organization culture.

4. And Now for Something Different About Nonprofits and the Economy 1/1/09. This article from Jan Masaoka in Blue Avocado, advises, among other things, that organizations give themselves permission to "declare an emergency. An emergency doesn't mean people should panic...an emergency means considering the bold and wacky ideas that are either brand new or used to be off the table." She goes on to advise nonprofits to "ask for help even if you don't know what would help." 

5. Coping with Cutbacks. A book by Emil Angelica and Vincent Hyman that offers "immediate help with 185 specific cutback strategies." 

6. RFP Bulletin from Philanthropy News Digest. Broaden your search for funding. RFP Bulletin lets you search by subject through notices of awards that can be applied for immediately. You can activate a free e-mail subscription to RFP Bulletin and have it delivered weekly.

7. Foundation Directory Online Professional can be used to search for grantmakers that provide "emergency funds" using the "type of support" index. It is available by subscription or for free use at more than 400 Foundation Center locations. In addition, you should consider contacting any of your organization's current foundation supporters and asking for assistance.

8. Philanthropy Chat: How to Downsize a Nonprofit [podcast] features writer, educator, and nonprofit leader Michael Seltzer discussing cost-cutting, collaboration, and the hard question, "How can nonprofits handle workforce reductions when all else fails?"

9. Live From Navigating Your Nonprofit Through Challenging Times. Replay this live blog post and get play-by-play details from an April, 2009 seminar hosted by Business Volunteers Unlimited, The Center For Nonprofit Excellence and The Nonprofit Finance Fund. Topics include the importance of not being short-sighted in a recessionary economy and how to separate "symptoms" from "problems" within your organization.

10. Managing in Tough Times: 7 Steps, from the Bridgespan Group, advises nonprofits to make contingency plans for worst case financial scenarios, to identify who are the top performers at your organization and take steps to keep them that way, and to communicate openly and often with board, staff, and other key people about the organization's financial realities.

Do you have a question? Ask Us.

Katie Artzner, Online Librarian, Foundation Center

 

Read the New Research Advisory on Foundations and the Economy

Findings from the Foundation Center's recent survey of the largest foundations in the country show that nearly two-thirds of the more than 1,200 respondents expect to give fewer or smaller grants in 2009. According to Foundations Address the Impact of the Economic Crisis, foundations are also looking to provide more technical assistance, emergency or bridge funding, and advocacy for the nonprofit organizations they support. Among the foundations responding to the survey, close to 40 percent also plan to draw at least in part on their endowments to fund grants and another 14 percent will reallocate grant budgets to fund economic crisis grants.

"Foundations are not rolling over in the face of adversity," said Steven Lawrence, the Center's senior director of research and author of the advisory. "The new survey shows foundations being creative, strategic, and willing to dig deep to ensure that their agendas move forward while this crisis persists."

This Foundation Center research advisory is the fifth in a series that explores the impact of the economic crisis on foundations and the nonprofit organizations they support. Read a summary of the new report in our press release or download it in full at no charge from the Gain Knowledge area of the Center's web site.

Applying for ARRA 2009 Funding: Resources and Links

With the assistance of New York City Council Member Gale A. Brewer, we're able to share these summaries of  programs to which nonprofit organizations and other non-governmental agencies in New York can apply for stimulus funds under the American Recovery and Reinvestment Act. These include:

- Energy Efficiency and Conservation Block Grants
Purpose of funds: To assist in implementing strategies to reduce fossil fuel emissions and reduce the total energy use of the eligible entities
Federal Agency: U.S. Department of Energy
State Agency: New York State Energy Research and Development Authority (NYSERDA)
Eligible entities: States, municipalities, nonprofit organizations, and public-private partnerships

- Broadband Technology Opportunities Program
Purpose of funds: To expand broadband services to unserved and underserved areas and improve access to broadband by public safety agencies
Federal Agency: National Telecommunications and Information Administration 
State Agency: New York State Chief Information Officer / Office for Technology
Eligible entities: Municipalities, community organizations, nonprofit organizations, and for-profit entities

- Housing/Community Development: Neighborhood Stabilization Program
Purpose of funding: To address home foreclosure and abandonment
Federal Agency: U.S. Department Housing and Urban Development
State Agency: NYHOMES
Eligible entities: States, units of general local government, nonprofit organizations, and consortia of nonprofits

- Health Information Technology: Health Care Information Enterprise Integration Research Centers
Purpose of Funds: Provide assistance to institutions of higher education to establish multidisciplinary centers for multidisciplinary research on health delivery
Federal Agency: National Institute of Standards & Technology (NIST)
State Agency: New York State Foundation for Science, Technology and Innovation
Eligible entities: Institutions of higher education, public-private partnerships, for-profit entities, and nonprofit organizations

- Coastal and Marine Habitat Restoration Project Grants
Purpose of Funds: Provide financial and technical assistance to shovel-ready projects that target the restoration of marine and coastal habitats and that result in the creation or retention of restoration-related jobs
Federal Agency: National Oceanic and Atmospheric Administration
State Agency: Department of Environmental Conservation
Eligible entities: Institutions of higher education, nonprofit organizations, commercial (for-profit) organizations, U.S. Territories, and state, local and Indian tribal governments

We'll be including additional information for nonprofits and individuals in upcoming posts. We suggest you review this information quickly, since some deadlines are already approaching. Have additional information to share? Please post to this blog.