Disrupting Philanthropy: Technology and the Future of the Social Sector

Networked digital technologies are transforming philanthropy, making it easier for "donors and doers" to find, support and work with one another to address social problems, a new monograph says.

But inequities of access and capacity also keep many individuals and institutions from benefiting from information networks, says Disrupting Philanthropy: Technology and the Future of the Social Sector.

"Philanthropy is an industry driven by passion and data, and networked technologies have the potential to harness that passion in ways we've barely begun to imagine," says Edward Skloot, co-author of the monograph and director of the Center for Strategic Philanthropy and Civil Society at the Sanford School of Public Policy at Duke University.

The 53-page monograph, published by the center, looks at the ways networked digital technologies are "enabling donors and doer to access vast amounts of data from governments and the social sector, reshaping ways in which they connect with one another, and transforming how social change is produced," the center says in a statement.

Read the full Philanthropy Journal article here.

Corporate Citizenship Remains Priority

Despite an economy that has eaten away at corporate profits, most U.S. companies are making no major changes to their corporate-citizenship efforts, says a new report from Boston College Center for Corporate Citizenship and the Hitachi Foundation. [SOURCE]

Among the minority that say they will change their practices, almost four in 10 plan to reduce their giving, over a quarter plan layoffs and two in 10 will reduce spending on research and development for sustainable products.

Most of the 756 executives surveyed for the report say the corporate sector should be more involved in addressing major societal issues, with almost two in three saying businesses should step up their involvement in the health-care debate.

Seven in 10 companies say the driver behind their corporate-citizenship involvement is boosting their reputation, with an equal number saying it fits their corporate culture and values.

"This survey shows that business leaders understand that corporate citizenship entails great responsibilities as well as extensive rights," Barbara Dyer, president and CEO of the Hitachi Foundation.

Large companies are more likely to maintain their corporate-citizenship efforts during the recession than their smaller counterparts, but large companies are more likely to lay off staff than smaller companies.

What is happening with your corporate employer as it relates to being a good corporate citizenship from a BDPA perspective?

Nonprofits Reviewing Investment Management

Charitable foundations and endowments are assessing the overall process for managing their investments in the face of ongoing volatility in the capital markets, a new poll says. Among 160 U.S.-based nonprofits polled by SEI, none of them SEI clients, 31 percent of those using consultants to manage their investments said they were looking at other options.

Read the rest of the Philanthropy Journal article.

NOTE: BETF Investment Committee seeks to achieve a 4.5% return on investment. This committee is chaired by BETF Director Lydia Barron.

‘Giving Identity’ Seen as Vital for Fundraising

Crossposted from Philanthropy Journal

By helping existing and potential donors develop a "giving identity" for themselves, nonprofits can encourage supporters to give their time and money, a new study says.

Giving can be spurred by changing the context in which people give, says the article, published in the August 2009 issue of Stanford Knowledgebase and written by Jennifer Aaker of the Stanford Graduate School of Business and Satoshi Akutsu of Hitotsubashi University.

When soliciting a donation for a cause that has a personal or emotional connection, for example, approaching a donor in a personal setting may elicit a better response than a workplace meeting.

Making prospects aware that other members of their social profile have given to the cause tends to elicit a larger donation, the article says.

And giving can be increased by asking a prospect to volunteer time before asking for money.

The mere act of giving also can affect a person's "giving identity" by making them see themselves as a giver of a particular type.

Among people who say they do not plan to give or volunteer, the most common reason is that they are unable to find the right opportunity.

By making opportunities available and by adjusting the "ask" to fit different giving identities, nonprofits can improve their fundraising, the paper says.

Read the full article.

Corporate Philanthropy Can Boost Education

By Michael Inganamort

As American philanthropy continues to expand and corporate foundations seek to address increasingly complex societal problems, these resources can and should be applied to an area that directly affects our national security and quality of life -- educational competitiveness.

When it comes to the United States' ability to compete with other countries in the areas of math and science, alarms bells have been ringing for years.

A critical examination of the United States' technological infrastructure and its promotion of math and science education suggests the country is steadily losing its competitive edge.

While less than one-third of American undergraduate students earn degrees in science and engineering, nearly 60 percent of Chinese students and roughly two-thirds of Japanese students received degrees in these fields.

These choices are not without consequences.

Read the rest of the Philanthropy Journal article here.

The Cycle of Giving in Challenging Times

By Veronica Meury

Today, as individuals and businesses face challenging and troubling economic times, charitable foundations shouldn't underestimate the power of personal touches in every phase of their giving programs.

As the executive director of a relatively new foundation that supports technical education, I have learned that creating a long-term sense of community between donors and recipients establishes and extends the cycle of giving far beyond the dollars donated.

Almost everyone agrees that the Internet has made it easier to contact new generations and segments of donors, but it is also easy to overlook personal touches.

Read the rest of the Philanthropy Journal article here...

Nonprofits Should Fight for Federal Funds

The Obama Administration budget contains several programs of crucial importance for nonprofits, but it's not all peaches and cream. Some of the budget lines expressly dedicated to nonprofits are "bubkis," Yiddish slang for "nothing." Nonprofits should not get lost fighting over next to nothing while the big dollars slide by their radar screens.

Read the rest of the article here.

Corporate-Foundation Giving Flat

Philanthropy Journal reports that grantmaking by corporate foundations held steady last year, but was unable to keep up with inflation and is expected to fall this year, a new report says.

Grants awarded by the nearly 2,500 corporate foundations in the U.S. totaled an estimated $4.4 billion in 2008, up 0.8 percent from 2007, but down about 3 percent after adjusting for inflation.

And with over half of corporate funders anticipating a further decline in giving this year, overall funding for the sector is likely to fall in 2009, says the report from the Foundation Center.

Much of that decline is due to the effect of the recession on corporate profits, particularly in the banking and financial industries, which have accounted for about a quarter of corporate giving in recent years.

Since 1990, giving by corporate foundations has grown at a cumulative rate of 90 percent, significantly slower than community foundations, which posted a growth rate of 479 percent, and independent foundations, whose giving grew 209 percent over the same period.

Corporate-foundation giving now accounts for 10 percent of all foundation giving, down from a 17 percent share in 1990.

About one in four dollars awarded by corporate foundations are allocated for education, more than any other recipient group, followed by public affairs and society benefit, which garnered 20 percent, and human services, which received 10 percent.

Bank of American Charitable Foundation awarded a total of $188 million in grants in 2007, more than any other corporate funder, followed by Sanofi-Aventis Patient Assistance Foundation, which gave $177 million, and Wal-Mart Foundation, which awarded $111 million.