atlanta

August 7, 2024

kevin smyrl web

From the Desk of

Kevin Smyrle ¦ Associate Partner

Major Gifts Are Up…But Uncertain Times Means Attention is Necessary

You may recall in my last column, I discussed the role of technology, specifically AI, in the world of fundraising. While it’s an incredibly powerful tool, I hope we all agree that AI cannot replace the value of human connection in building relationships between our donors and our organizations. As I write this, the Dow Jones has experienced a significant drop followed by a rebound and is within 100 points of where it stood a month ago. The tech-heavy NASDAQ also has dropped, but historically, it continues to gain in value year over year. Who would’ve thought just a few short weeks ago that much of the NASDAQ decline would be due, in large part, to AI, as many AI Chip manufacturers and AI focused technology companies are experiencing retractions?

It’s no secret that economic uncertainty and market downturns can significantly impact philanthropy, especially major gift philanthropy. Many investors are fleeing to “safety” today, but most of our organizations don’t have the equivalent of a safe haven during rough economic patches. This doesn’t mean that major gift fundraising should be put on hold. However, let me suggest that, maybe we do have options after all. No, an AI bot can’t bring gifts to fruition or add to our organization’s bottom lines, but a robust pipeline can. In fact, it’s precisely during uncertain, challenging times that a strong pipeline becomes essential.

A well-cultivated major gift pipeline requires consistent attention, nurturing, and strategic planning. It’s about identifying potential major donors, building relationships, understanding their passions, creating and maintaining genuine connections. While AI can assist in identifying prospects and tracking interactions, it cannot replace the art of human engagement. If your organization has spent the necessary time and energy cultivating a robust pipeline then you, at least, have a little less to worry about.

But if you are like some organizations, then you’ve had some good years while the market was roaring. Savvy donors used appreciated assets to make gifts, several gifts came in earlier than you anticipated, and perhaps even at much higher values. Too often this happens at the expense of the major gift pipeline. It’s precisely in these times that we need to redouble our efforts to fill the pipeline. Give extra attention to the annual fund, increase qualification and cultivation efforts, be creative with planned giving. The hard part is balancing this work with the need for cash in the door now. Double down on your data and work with engaged prospects that love your organization. Volunteers, consecutive donors, and grateful recipients, if appropriate.

In times of economic uncertainty your supporters know their support is needed. Don’t be afraid to communicate openly and honestly with your donors. Keep them informed about your organization’s challenges and successes. You’ll likely find some gifts you weren’t expecting and continue to build your pipeline that will ensure your organization’s future success.

First Quarter Major Donors Drive Increased Giving

According to a report from the Fundraising Effectiveness Project, the amount donated in the first quarter of 2024 grew 4.1% over the same period in 2023. The growth, however, was driven primarily by major donors rather than everyday donors who give small sums. The number of donors year over year dropped by 1.3% for all donor types. This is better than the huge 10.3% decline in donors in 2022.

Key Findings

The first three months of this year saw big decreases for certain types of donors compared with the overall number. People who donated $100 or less (micro) had a 10.4% drop. Those who gave $50,000 or more had a 0.8% decline. The giving groups in between had declines in the high 4% or low 5% range. When looking at the total amount each group gave, micro donors accounted for only 2.8% of total dollars raised, whereas supersize donors accounted for 48.6%.

International and foreign affairs saw a 9.5% increase. Education was up 5.2%, and environment and animal causes were up 2.9%. Giving to the arts dropped 10.9%, and religion related causes saw a 4.6% decline.

COP, 8-

What Gen X & Millennial Leaders Want

For some young people working in nonprofits, their organizations and leaders seem out of touch. Top officials, they believe, are too consumed by their legacy and the hunt for grants. They feel radical change is needed now — in how philanthropy dispenses money, how organizations fight crises, and how staff is managed — but they don’t yet have the power or resources to make it happen. They have big ideas, but they’re still being treated like kids.

The Chronicle of Philanthropy recently spoke with three young nonprofit leaders exploring divides in the country — including a generational divide playing out in organizations across the country. As younger millennials and members of Gen Z, the three have witnessed the effects of multiple crises — the Great Recession, climate change, a pandemic — from an early age. They are eager to do good, but they work in ways that are unfamiliar, even off-putting, to older generations.

Whether this is your generation or not, this insightful read sheds light on understanding how younger colleagues work and what they want from their jobs.

Go here to read more.

Alumni Client News

South Arts announced 4 new board members and welcomes: Moni Basu (Atlanta, GA), director of the MFA in Narrative Nonfiction and the Charlayne Hunter-Gault writer in residence at the University of Georgia’s Grady College of Journalism and Mass Communication. Yvahn Martin (Oakland, CA), an expert digital marketer, brand manager, and e-commerce technology professional. Meg Reid (Spartanburg, SC), Executive Director of the Hub City Writers Project in Spartanburg, South Carolina, and the Publisher of Hub City Press. Keith Summerou r (Atlanta, GA), founder of Summerour Architects. Via email


Girl Scouts of Greater Atlanta (GSGATL) appointed two director-at-large appointments to the Board of Directors. New appointees include: Hilda Abbott – RudHil Companies, Founder and CEO. Abbott serves on the Board Development Committee. Carolyn Stafanco, PhD – Baret Leadership Consulting, Founder and CEO. Stafanco serves on the Fund Development Committee. MetroAtlantaCEO.com, 8-1


Spruill Center for the Arts was awarded a Bridge Grant from Georgia Council for the Arts, a strategic arm of the Georgia Department of Economic Development, for fiscal year 2025. The Bridge Grant provides funding for operating support to nonprofit arts organizations, many of which were negatively affected by COVID-19. As part of this year’s Bridge awards, 204 entities in 44 counties will receive more than $2.6 million in funding. MetroAtlantaCEO.com, 7-16
 



Grant Opportunity

Gwinnett County is accepting applications for its Nonprofit Capacity Building Grant . The grant program provides financial assistance to nonprofits negatively affected by the COVID-19 pandemic. The Gwinnett County Board of Commissioners allocated $5 million in American Rescue Plan Act funding to help nonprofits increase their effectiveness and enhance their impact on the community. Funding will be awarded to organizations providing services in food security, housing, health and wellness, youth, literacy and learning and cross-cutting barriers to access like transportation or culturally and linguistically responsive services. Nonprofits can apply for assistance for capital support or operational support. technical assistance and learning modules to grow the organization’s capacity.

Applications run from Aug. 1 to 30 and can be accessed in the grant application portal. For more information on the grant, go here. MetroAtlantaCEO, 7-26

We Know Atlanta Nonprofits

For more than 35 years, Alexander Haas has been a fixture in the Atlanta nonprofit community. We are honored to have worked with some of the largest, and some of the smallest, organizations that help make Atlanta a better place to live.
 

A Fresh Approach to Nonprofit Fundraising

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 unique needs, wants and abilities. We work hard and expect you to do the same. Together we can help you transform your organization, your fundraising, and the people you serve.


Whether your need is Capital Campaign, Campaign Strategy Study, Annual Fund Campaign, Major Gifts, Leadership Annual Giving, Planned Giving or all of the above, we take a fresh approach to nonprofit fundraising.