Sustaining Democracy: Nonprofit Endowment Stability

September 11, 2025

from the desk of
Nancy E. Peterman
Partner

What Are YOU Doing

Dr. Francis Collins, a physician and former Director of the National Human Genome Research Institute, has spoken about the “compassion deficit” in our society today. This reminded me of an informal gathering of non-profit leaders I attended. One executive said she believes a growing segment of society feels that non-profits supporting the poor, the chronically sick or disabled, and the undereducated or underemployed are becoming irrelevant. Arts and science education were also mentioned as being at risk. Many attendees expressed ongoing and increased anxiety about the future of their organizations, which do important and necessary work. Some, who receive part of their funding from the federal government, said they had already written off those contributions and foresee a resulting reduction in services essential to the community. The follow-up question to these leaders was, “What are you doing to counteract this trend?” Interestingly, there were several good answers, excerpted below.

1) Continue to communicate the good work of your organization. Don’t hesitate to correct misinformation.

Messaging is essential to ensure people clearly understand your organization’s mission. It may be necessary to review your mission and vision to confirm their relevance. Consistency is also vital. Your board, staff, and even those you serve should be trained on how to effectively promote what you do.

2) Focus on results, and why those should matter to all of us.

Sometimes, the benefit to overall society may not be immediately obvious. One leader described a city-wide program that formed a coalition among various non-profits and agencies to house unsheltered individuals with chronic medical conditions such as diabetes. Local hospitals observed an immediate drop in emergency department visits from this group. Helping the homeless might not have been a priority for some citizens, but reducing emergency visits can save healthcare costs. A less crowded emergency department means staff are available to handle other critical cases from the broader community.

3) Ask those who support you to help you network beyond your usual circles of influence.
It is easy to engage in conversation with those that support you and difficult to pay attention to the words of those who don’t. Listening to other voices can help you better shape your message and correct misinformation. You might find common ground, which could lead to more supporters and financial backing.

4) Take a vacation.

This response caught me off guard, but it was pointed out that feeling like you’re constantly fighting can be draining. One person shared that he made a point of taking time off to get a physical exam so he could discuss with his doctor how to handle the stress he was experiencing. If you can’t physically get away, consider taking a break from news, screens, and toxic people. The benefits of being outdoors, exercising, exploring the arts, or doing something different have been well-documented. And taking time away from your job might give you the creativity and energy needed to get through.

Jaci Thiede was struck by this news.

“I recognize and appreciate that a college degree isn’t right for everyone. But I’ve been involved in higher education fundraising for over 31 years, so it’s not surprising that this article struck a chord with me. The Lumina Foundation committed fully to a single goal: increasing the percentage of Americans with a college degree or credential from 38% to 60%. After 17 years, they’re close—currently at 55%—and now they’re aiming even higher… targeting 75% by 2040. It’s an ambitious goal, but WOW, what an impact Lumina is making! Hats off!”

Foundation With One Objective: College Degrees

When James Merisotis joined the Lumina Foundation in 2008 as CEO and president, he had convinced the board that the foundation should shift focus to one objective — lifting the share of Americans with college degrees, certificates, or industry credentials from 38% to 60%.

It’s rare for foundations to pour themselves into moving the needle on a single measure. Success is rarer still. San Francisco’s Tipping Point Community recently poured $100 million into a bid to cut chronic homelessness in the city by half. It fell short.

Lumina, by contrast, reached its magic number — or at least came close enough to declare victory. Those holding college or other credentials now account for 55% of adults — 5 percentage points shy of Lumina’s goal. After four years of what Merisotis describes as R&D, the initiative focused on encouraging states and institutions to set attainment goals and then work to increase affordability, enhance the quality of offerings, and boost the often small share of students who complete their program of study.

More here.

Big Gifts and the New Tax Law: Boom Now, Bust Later?

David King has no problem disagreeing.

“They say gifts have been slow because mega donors are waiting for tax changes. I hate to disagree with the all-knowing “they,” but I’ve known over a dozen people who made gifts of $50 million, and contrary to what “they” think, in every case it was going to take years (if ever) for these donors to see the full tax deduction of the gifts because of deduction limitations. So, their timing was not impacted by waiting on a minor tax law change.”

Some experts suggest that nonprofits helping high-earning donors better understand the implications of the recent tax law could see increased donations in 2025. However, economists predict that these same donors might reduce their giving starting in 2026 due to the new rules — although some warn that it’s too early to know how donors will actually respond.

Because new provisions like the cap on charitable deductions for itemizers won’t take effect until 2026, donors are motivated to make their significant gifts this year. It’s crucial for fundraisers to be well-informed about the law’s implications so they can discuss it with donors. Communicating these points can be done through various methods — emails, letters, calls — but the main goal is to share the information effectively.

There is historical evidence to suggest donors will give more this year. Research has shown that the passage of the Tax Cuts and Jobs Act in 2017 led donors to contribute $4 billion in advance of the law taking effect, resulting in a boost in giving. COP, 7-31

Giving Tuesday is December 2!

Jaci Thiede is ready for year-end giving.

“I’m a planner, so this article was music to my ears. A former boss of mine used to say that as soon as everyone went back to school, it was basically already the holidays! So true. Take some time now to think about year-end giving strategies and make your plans. Consider divvying up the different articles among your team and then getting together to discuss everyone’s ideas over a working lunch. The time you spend planning now will pay off by December 31st!”

Savvy fundraisers start planning months in advance for a successful year-end campaign. Giving yourself ample time to prepare is even more important now, with tax-law changes likely to affect giving next year. We’ve told you that the changes will encourage wealthy individuals to give more before the changes take effect.

Now is the time to start designing your strategy for November and December — and to strengthen your ties with donors before you make your year-end appeal along with educating them on the new tax laws.

Here is a collection of articles that will help you lock in more gifts before the clock runs out on 2025. You’ll also find tools for planning an effective campaign and proven tactics to boost year-end results.

We Know Colleges & Universities
For more than 35 years, Alexander Haas has been a fixture in the nonprofit community. We are honored to have worked with so many large and small college and universities; both public and private institutions, across the country. These schools that help mold today’s young adults into tomorrow’s leaders. Take a look at our list of higher education clients, past and present.

A Fresh Approach to 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 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.

from the desk ofNancy E. PetermanPartner

from the desk of
Nancy E. Peterman
Partner