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It's not necessary that you completely understand the intricacies of philanthropic
giving in the U.S. – or elsewhere in the world – to be a successful grantseeker.
However, it is good to know the general lay of the land, to recognize significant
trends that have occurred or are occurring, and to be able to tap into that
knowledge when speaking with potential donors or grantmakers.
Throughout this series, we will focus on specific types of grantmakers: foundations,
corporations and corporate foundations, and associations that have grantmaking
programs, as well as on federal, state, and local government funding agencies.
We will discuss methods for gathering information about these funding sources,
and how best to approach these grantmakers.
Facts and More Facts
Part One
To help you form a mental picture of what philanthropy looks like in today's
ever-changing world, let me share with you some significant charitable giving
facts. All of this information comes from Giving
USA. You can gather many more statistics by ordering their publications
(which are excellent). Here's a sampling of the kind of information you can
get from Giving USA 2007, the most recent Annual Report
on Philanthropy:
- U.S. charitable giving reached a new record of $295.02 billion in 2006
(the 2007 numbers won't be released until July 1) .
- Total charitable giving increased by $35 billion between 2005, when the
total was $260.28 billion, and 2006.
- Giving by individuals is always the largest single source of donations,
according to the report. Individual giving rose by 4.4 percent to an estimated
$222.89 billion and accounted for 75.6 percent of all estimated giving in
2006.
- Foundation grantmaking, which accounted for 12.4 percent of all estimated
giving in 2006, rose 12.6 percent to $36.5 billion as recorded by the Foundation
Center and reported in Giving USA 2007.
- Donations by corporations and corporate foundations were estimated to be
$12.72 billion in 2006. This is a decline of 7.6 percent from 2005. This
decline reflects a leveling off from the extraordinary gifts made in 2005
for disaster relief as well as a slow-down in the rate of growth for non-disaster-related
corporate giving.
The 2006 estimates from Giving USA 2007 also provide information
regarding the types of recipients supported (i.e. religious congregations,
culture and humanities, education, etc.). It is interesting to review these
trends and take them into consideration when developing your organization's
fundraising objectives.
These statistics, interesting as they are, only provide the first layer – or
the foundation – of understanding the workings of the philanthropic world and
how it affects your very specific fundraising situation.
Learning from the Master
Well over thirty years ago, I was fortunate enough to be loosely mentored
by a man who had years and years of major donor and foundation fundraising
experience. Although I never had a lecture from him, or even a working session,
I learned a lot just from shadowing him. I don't think I realized
how much at the time.
One of the things he taught me was the importance of understanding the larger
picture, but also knowing how to apply that picture to the everyday challenges
of fundraising.
So, while understanding the trends in giving at the national (and even international)
level is helpful, the only way to really apply this information is to narrow
your focus and make reasonable adjustments that reflect your situation.
For example, you will note that corporate giving declined by approximately
7.6 percent in 2006. You could simply apply that decline in giving
to your own bottom line corporate fundraising, reducing your projections by
7.6 percent. Or, knowing that a reduction in giving is imminent, you could
adjust your approach and instead of soliciting the most obvious corporate grantmakers
in your locale, focus instead on businesses that have not given in the past,
and may not be on anyone's radar. In other words, knowing full well that corporate
giving is going to decrease, you fling a broader net rather than continuing
to fish in the same spot. Then, perhaps, the revenue you generate from local,
regional, and national corporations will remain the same, or even increase,
rather than decrease.
Over the next six weeks or so, we will be exploring the philanthropic landscape
as we know it in North America. We'll talk about individual major donor giving,
private grantmakers, and government grantmaking agencies. However, as we explore
the big picture, practical suggestions for applying what we learn from the
big picture will always bring us back home – because, after all, that's where
we have to go to raise the funds we need to continue to build healthy organizations.
Tracks to Success is edited by Katy Mulcrone.
Questions, comments, suggestions, and useful tips for other Tracks readers
can be sent to her at katy@grantstation.com.
If you would like to suggest a topic for a future Tracks
to Success series, or if you are interested in writing
a series for us, please email
Katy, or call our toll-free number: 877.784.7268. |
