Communities of Color Find More Prominent Role Within Philanthropy Sector

As the U.S. population shifts, with ethnic and racial groups growing faster than the overall American population, the W.K. Kellogg Foundation has found the face of philanthropy is rapidly changing to become as diverse as the country’s population. The new report, “Cultures of Giving: Energizing and Expanding Philanthropy by and for Communities of Color” commissioned by the W.K. Kellogg Foundation, with major funding by the Rockefeller Philanthropy Advisors, shows how philanthropy is evolving, with some of the most significant growth stemming from identity-based philanthropy -- a growing movement to spark philanthropic giving from a community on behalf of a community, where “community” is defined by race, ethnicity, gender or sexual orientation.

This report explores current shifts within the philanthropy sector and showcases key learnings, best practices and successful models to promote and enhance philanthropy and giving among communities of color. Among these learnings, the report reveals several factors catalyzing the current evolution of philanthropy:

1. The face of philanthropy is rapidly changing to become as ethnically, culturally and socioeconomically diverse as our country’s population.
2. Collective power, action and resources exist within communities of color that conventional philanthropy has not fully recognized, embraced and partnered with to bring about change.
3. Understanding and supporting this emerging area of philanthropy are becoming increasingly essential for any foundation, funder or donor who wants to drive social change.

This report shares WKKF’s journey so that others might learn from both their successes and mistakes, and it challenges fellow funders to consider new ways to collaborate with and advance the impact of identity-based philanthropy: by providing seed support and other forms of assistance, by embracing identity-based funds as critical partners in the sector and forging stronger connections within communities of color and with other philanthropic leaders, by diversifying the leadership of mainstream philanthropy to reflect changing demographics and by shifting practices to reflect what communities of color are teaching about the future of giving and how funders can positively impact the country’s most vulnerable children and families.

The report is also intended to inspire everyday givers ... no matter their background ... to embrace their power as philanthropists.

Why Millennials are the Perfect Donors

by Liz Braden

In my humble opinion, Millennials bring together all of the aspects of a perfect donor. At Building Tomorrow and in general in my watching of the fundraising world, I have seen Millennials do some amazing things by giving their time, talents, and resources to others and to causes they believe in.

Click here to see three reasons that Millennials are the perfect donors.

Africa-Funded Philanthropies Discuss Collaborations During Lagos Meeting

Africa’s philanthropy landscape became the focus of the Tony Elumelu Foundation (TEF) and World Bank-hosted convention of Africa-funded philanthropic organizations in Lagos earlier this month.

The meeting, which reviewed the priorities and programs of related foundations, had participants deliberating opportunities for specific collaborations as well as ensuring an effective enabling policy and legal framework for philanthropy at the country level.

“These are unique times for Africa,” said Founder of TEF, Tony O. Elumelu.

“What this convening platform will do is create a collaboration framework for the emerging class of African-funded foundations, so that together, these institutions can have the same kind of impact that organized American philanthropy has had over the last century.”

Participating philanthropic organizations included the Brenthurst Foundation, the FATE Foundation, Kagiso Trust, the Kenya Community Development Foundation and the Made-in-Africa Foundation.

Others are the Motsepe Family Foundation, Nelson Mandela Children’s Fund, Thabo Mbeki Foundation, The Tony Elumelu Foundation and The Wellbeing Foundation.

These foundations represent a combination of those established by high net-worth Africans, political leaders, and endowed community grant-making organizations.

Read the rest of The Guardian article.

IRS Ends Exemption for 275,000 Nonprofits

The Internal Revenue Service (IRS) has been very vocal about the fact that they intended to revoke the tax exemption for any nonprofit organization if they didn't meet legal requirements to file annual tax forms.

The IRS was true to their word.

Over 275,000 nonprofit organizations were placed on the agency's Automatic Revocation of Exemption List last month. [SOURCE]

The Urban Institute’s National Center for Charitable Statistics analyzed the list of delinquent nonprofit filers that the IRS released last year. Roughly 90 percent of them had never filed a tax return suggesting that they had never raised $25,000 in a year.

About one-quarter of them got tax exemptions before 1980 and may have gone out of business without telling the IRS.

The nonprofit sector was reduced about 17% by this action ... there are now about 1.3 million charities, trade associations, membership groups and labor unions.

The IRS isn’t done trimming its list of officially registered nonprofits. Moving forward, the tax agency plans every month to release the names of groups that fail to file their paperwork.

Bill and Melinda Gates Foundation Giving Plans for 2011

The Bill & Melinda Gates Foundation gave out far less money in 2010 than anticipated because staff members were given the option of distributing some of their grant dollars in later years, according to the fund’s chief executive, Jeffrey Raikes.

The world’s largest philanthropy donated $2.6-billion last year, compared with $3-billion in 2009, because program officers decided to hold off on distributing about $500-million in grants. That money is now available for 2011.

Read the rest of the Chronicle of Philanthropy article

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Where Wal-Mart Donated in 2010 (Washington DC)

Wal-Mart may have only recently announced plans to open stores in the District of Columbia, but the company's charitable foundation has been an active funder of Washington DC nonprofits for the past few years. Nationally, the company's foundation focuses on giving in four main areas: education, workforce development/economic opportunity, environmental sustainability and health and wellness.

The company and the foundation recently announced an additional focus on fighting hunger, with a pledge to spend $2 billion by 2015 to support hunger relief in America.

Read the rest of the Washington Post article.

The Effect of the Economy on the Nonprofit Sector: A June 2010 Survey

BETF is a valued partner of Guidestar. We participated earlier this year in a survey measuring the impact of the economy on the nonprofit sector.

Public charities and private foundations continued to take a beating during the first five months of 2010. Some 40 percent of participants in GuideStar's first nonprofit economic survey for 2010 reported that contributions to their organizations dropped between January 1 and May 31, 2010, compared to the same period a year earlier. Another 28 percent said that contributions had stayed about the same, and 30 percent stated contributions had increased.

"The Effect of the Economy on the Nonprofit Sector: A June 2010 Survey" presents these results and more. Among the other findings:

• Eight percent of respondents indicated that their organizations was were in imminent danger of closing.
• In order to balance budgets, 17 percent of respondents reduced program services, and 11 percent laid off employees.
• More than 60 percent of participants reporting decreased contributions attributed the drop to a decline in both the number of individual donors and the size of their donations.
• Among organizations that use volunteers, 17 percent used one or more in what had formerly been paid positions.
• About a third (32 percent) of organizations increased their reliance on volunteers, whereas 9 percent experienced a decline.

Chuck McLean, GuideStar's vice president for research, and research assistant Carol Brouwer conducted the survey, analyzed the results, and prepared the survey report.

Download your free copy of the report.

After you read the 11-page report ... please return and share your COMMENTS and insights with us.

For Thousands of Nonprofits, May 15 Is the IRS Deadline to Worry About

Last year, GuideStar warned, "Half a Million Nonprofits Could Lose Their Tax Exemptions." This year, the number is down to 350,000 or 400,000, but the rest of the message is the same: hundreds of thousands of nonprofits are scheduled to lose tax-exempt status because they failed to file annual returns with the IRS.


The Pension Protection Act of 2006 requires the IRS to revoke the federal tax exemption of any organization that has failed to file three consecutive annual returns (Form 990-N, 990-EZ, 990, or 990-PF). Nonprofits that wish to have their exemptions reinstated will be required to re-apply to the IRS for tax-exempt status. This process can take several months.

Read the rest of the GuideStar article...

Young Professionals Get Involved in Philanthropy

By Bess Langbein. Bess Langbein is the executive director of the Community Foundation of Anne Arundel County. She can be reached at bess@cfaac.org

Young professionals do actually meet face-to-face, not just on Facebook. Now that isn't to say we don't use Facebook - we do. We know it is a tool we can use to build our network as well as find opportunities to get involved in our community and connect with like-minded peers. And, okay, I will admit, we also use it to post pictures of ourselves looking spiffy at weddings.

Many young professionals are seeking an opportunity to learn more about the community in which they live and to give back in a fun, meaningful and productive way. They can connect with causes and charitable efforts through Facebook, but the real work is done offline.

"I think it is important to educate ourselves and our peers on the issues in our community, learn more about philanthropy and get involved," said Hall Chaney, project manager at Chaney Enterprises and a founding member of Next Gen of Anne Arundel County, a new giving circle comprised of young professionals hosted by the Community Foundation of Anne Arundel County. Recently, Next Gen hosted a kick-off event at The Grandview, located at the Annapolis Towne Centre at Parole. All of the advertising for the event took place on Facebook, and more than 70 people attended to learn more and join the giving circle.

Read the rest of the article here.

2010: Daunting Challenges Face the Nonprofit World

The nonprofit world is about to face the toughest year in its history. By every measure, 2010 could be far more painful for charities and the people they serve than any other they have known.

Already many charities have been weakened by one of the longest recessions America has witnessed.

The Chronicle of Philanthropy's annual ranking of the 400 charities that raise the most money found that, by year's end, the nation's top organizations expect a median decline of 9 percent in donations, meaning half will see giving drop even more starkly.

The search for money to finance charitable work will grow more competitive than ever, as state governments and private foundations cope with coffers that have dropped sharply in value over the past two years.

Read the rest of the Chronicle of Philanthropy article here.

Donation Shifts Trouble Nonprofits

by Lindsey Robbins

Among the biggest challenges nonprofits face is covering their overhead when donors increasingly target their gifts to the charity's specific projects and programs, rather than the groups themselves.

"There is a movement away from the traditional notion of charity, or giving money in good faith, to social investing, where you actually see results," said Jeff Mason, vice president of Social Solutions in Baltimore, which provides performance management software to nonprofits in the human service area.

At a recent conference for nonprofit organizations in Washington, foundations and grant makers suggested that nonprofits may have better luck soliciting funding if they find ways to talk about what their organizations do and whom they serve with more than just numbers.

Mason said his software can help nonprofits take that tack. More funders are focusing on the outcomes of a nonprofit's work rather than how many people it serves, he said. They're looking for clear goals, indicators of program progress, methods of collecting data on program outcomes and evidence of nonprofits using these data to refine their service.

"Most nonprofits have great intentions but no good, clear understanding of the impact of their programs," Mason said.

Read the rest of the Maryland Gazette article here.

American Charities May Not Have a Happy Holiday

American charities have weathered a significant drop in giving this year, and while they're hoping for a holiday miracle, a recent survey shows they will probably see a decrease in year-end generosity.

In light of the economic downturn, only 38 percent of Americans say they are more likely to give a charitable gift as a holiday present this year, compared to 49 percent last year, according to a survey conducted by Harris Interactive to be released Monday.

Some of the biggest U.S. charities say they are budgeting for a disappointing Christmas.

Read the full Associated Press story here.

Community Foundations Saw a 27% Drop in Asset Value

Community foundations suffered steep investment losses last year, ending a five-year streak of positive returns and damaging their purchasing power, according to a new report from the Council on Foundations, an organization that represents grant makers.

A survey of 200 council members found a median return of -27 percent for community-foundation investments in 2008. The dismal performance brought down the industry’s median return over the 20 years ending last year to 7.9 percent.

Assuming a 5.5 percent spending rate, and taking into account the period’s average annual inflation of 2.8 percent, community foundations have fallen short of the returns needed to maintain their purchasing power, the report says.

Read the rest of the Chronicle of Philanthropy article

Big Nonprofits Predict 9% Drop in Donations

The nation’s largest nonprofits, including prominent universities, hospitals, and foundations, are expecting a 9 percent decrease in donations in 2009, according to a survey by the Chronicle of Philanthropy.

It’s the steepest drop the publication has reported in the 17 years it has surveyed the 400 largest charities in the country.

While many of these groups, from the United Way and the Salvation Army to Harvard University, saw fund-raising increases in 2008, their donors had not yet felt the full force of the economic downturn and the stock market’s dive, according to the survey. Many are expecting far leaner times through 2010.

"These are the most successful charities. If they are going to see a decline of 9 percent, the smaller, scrappier charities that don’t have all that going for them are going to be having a much harder time," said Stacy Palmer, editor of the Chronicle of Philanthropy.

Read full Boston Globe story.

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' Budgets Down; Needs Up

Local nonprofits are unimpressed by economists' prognostications that the recession is ending.

Donations are falling, and agencies are looking for creative ways to find new donors and dollars. If they don't succeed, half think they will have to cut services when people are needing it most. Seventy percent of them reported requests for help are up in a recent poll by the Georgia Center for Nonprofits, while 61 percent said donations were down.

In the economic scramble, many nonprofits are seeking new ways to raise money, such as through Web sites and electronic social networking, and they are trying to find more grassroots donors to give small amounts.

Click here to read the rest of this Atlanta Journal-Constitution article.

Give By The Click

By Betsy Brill

In an age of packed schedules and dwindling funds, we may not feel we have the time or money to devote to charitable giving. Fortunately for the thousands of nonprofit organizations struggling to provide critical services to our communities in this challenging economy a new wave of young and innovative social entrepreneurs has created inventive Web applications to accomplish the seemingly impossible: to spur charitable giving during a recession and to allow us to give without even opening our wallets.

These Web applications are experiments in social enterprise -- turning profits while creating forums for social change. Unlike the much-publicized charitable giving applications created by Facebook (Causes) and Twitter (TwitCause), these enterprises allow us to give while saving time -- and even money--as we multi-task our way through our daily lives. They also have the potential to supply a sustainable and reliable funding source -- however nominal -- for nonprofits for which every penny truly counts.

Read the rest of the Forbes article.

Andrea Taylor Claims Microsoft Success Driven by 'Constant Learning'

I am hoping that BDPA Education and Technology Foundation (BETF) can create a strategic alliance with Microsoft. In order to do so we will need to receive the blessing of Andrea Taylor, Director of Community Affairs at Microsoft. Her team manages the Giving Campaign and Employee Engagement. She develops strategy and oversees implementation of Microsoft's Unlimited Potential Community Technology Skills program, a global initiative that promotes digital inclusion and increased access to training in underserved communities.

In the following video we see Ms. Taylor talking with Tom Becker, President of the Chautauqua Institution, about the importance of philanthropy. She discusses her past experiences in the field, and explores the changing nature of philanthropy in light of the recent economic crisis.






Taylor works closely with nonprofit organizations, governments and businesses while making company investments that support economic development by advancing employability and workforce development.

Taylor says that Microsoft seeks to "provide people with a way of thinking...that allows them to be open and receptive to constant learning." That seems to fit our effots with the Student Information Technology Education & Scholarship (SITES) program. Any ideas on how BETF and Microsoft can hook up in the coming weeks?

How Nonprofits are Using Web-based Technologies to Reach Their Goals

by Josh Nelson

A new Hatcher Group report reveals how nonprofits are using new media technologies to advance social change. Based on interviews and a 70-question online survey of 30 nonprofits working on state-level advocacy issues, "New Media & Social Change: How Nonprofits are Using Web-based Technologies to Reach Their Goals" shows what new media tools are being used and how, what's working -- and what's not. The report offers advice and resources to help nonprofits use these increasingly important technologies to successfully promote their agendas.

It's must reading for organizations looking to make a difference, and their funders.

You can click here to view the full report, click here to download it as a PDF file, or send an email for a physical copy.

Read the rest of the article here.

Foundation Center Launches National Education Stimulus Initiative

The Foundation Center recently announced the launch of 'Foundations for Education Excellence', a national initiative it is supporting to engage philanthropic institutions and education leaders across the country in a unified, strategic drive to improve public education.

The cornerstone of this initiative is a new online resource center that will help education funders align their grantmaking — and maximize their overall impact — with funds available through the American Recovery and Reinvestment Act (ARRA).

Read full PNN Online article.