September 17, 2024
From the desk of
Arthur C. Criscillis, Ed.D. ¦ Managing Partner
Making the Case
In seeking philanthropic support, we present to our prospects specific funding objectives. It could be a building project of some sort. The funding objective could be programmatic or something in support of people. The specific objectives are legion. That having been said, they are united in that they require a well-stated, compelling case that states whey this objective is needed and why it is needed now.
In making the case for support, we really need to answer one basic question: “So what?” We need a new building? So what? We need support for a specific academic or student program? So what? In answering that question, we will be telling the prospect why what we are asking that prospect to support matters in human terms. Yes, there will be academic/programmatic benefits, but take the next step. How does this help to make lives better? How does this impact society or communities? In short, what is the impact?
In presenting the impact, we need to distinguish between the impact on people vis a vis the impact on the college or university. The former is the end. It’s what we are about. It entails our mission. The latter (impact on the college or university) is a means to an end—the end being to impact people. In short, our colleges and universities are not ends—they are means; they are instruments in making positive changes in lives. That is not to suggest that discussing how a gift can make our colleges and universities stronger or even more competitive is unwarranted. When we do so, we need to make explicit how that enables us to execute our mission (educating students, advancing knowledge, economic development, service to society) even better, because at the end of the day that is what donors want to know—that they are having an impact on people.
When we present our priorities, they almost always fall into one of three baskets. The first is when we ask them, in making their gift, to help us to do more of something that we are already doing well and that has an impact. The second is when we ask them to enable us to do even better something that we are currently doing so that it can have a greater impact. The third is asking them to enable us to do something new that will have an impact on people in ways that we have not been able to date. More, better, new—our funding objectives typically fall into one of the three and knowing which can help us to more clearly make our case.
Foundation Investments Rebound
A report from the Council on Foundations and the Commonfund Institute says that private foundations reported an average 12.6% increase in asset values compared with a 12% decrease in 2022, while community foundations reported a 14.1% increase compared with a 13.3% decrease the previous year.
Other Key Findings
The 10-year average annual return remained relatively unchanged with private foundations reporting an average 7.1% return, compared with 7.3% in 2022, and community foundations reported 6.2%, compared with 6.4%.
Giving to community foundations retreated for the second consecutive year, with 51% reporting that giving had decreased in 2023 compared to 63% in 2022, while 36% reported an increase compared to 29% the previous year.
The share of foundations reporting environmental, social, and governance (ESG) criteria was broadly unchanged in 2023—27% of private foundations and 26% of community foundations, compared with 28% and 26% in 2022. Only 7% of private foundations and 16% of community foundations anticipate adding ESG criteria to their investment policies in the coming year.
The report can be found here. PND, 9-4
A Look into Capacity Building Goals
Most Kenneth Rainin Foundation grantees did not achieve their capacity building goals, because of flawed assumptions concerning time, resources, and the conditions necessary for success, a report from the foundation finds.
And while the Rainin Foundation provides support for arts organizations in the San Francisco Bay Area, the report offers a glimpse of how like organizations are operating throughout the US.
The report finds that a focus on organizational growth over stability proved misguided and that an organization’s readiness across a broad array of metrics—staffing, technology, board support, among several others—as well as the rightsizing of goals, were equally critical to success. According to the report, 16 of 21 organizations (76%) did not achieve their original goals.
With 67% of participating organizations operating with budgets of $1 million or less—and 48% with $500,000 or less—the report found common “systemic headwinds” that prevented grantees from realizing their capacity goals, including the pervasive reliance on sweat equity (unpaid and underpaid labor), staff members doing multiple jobs, frequent staff turnover driven by an inability to provide a living wage, and a permanent struggle to increase visibility.
The report can be found here. PND, 9-10
We Are Celebrating a Milestone!
Please join us in congratulating David Shufflebarger on his 30th Anniversary with Alexander Hass. Shuff has been a bedrock foundation for all that we have accomplished at the Firm and has been a mentor to each and every one of us.
“He is always talking about retiring and I’m always saying ‘no Shuff, just one more year’. I cannot imagine this firm without him. Congratulations Shuff, it is an honor and a pleasure to call you colleague and friend,” said David King, CEO & President.
Welcome New Client Partner
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Our services aren’t cookie cutter. We don’t operate with a boilerplate, merely changing names and locations. We craft each and every service we provide to match your organization’s unique needs, wants and abilities. We work hard and expect you to do the same. Together we can help you transform your institution, your fundraising, and the community you serve.
Whether your need is in Capital Campaign, Annual Fund Campaign, Major Gifts, Leadership Annual Giving, Planned Giving or all of the above, we take a fresh approach to nonprofit fundraising.
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