All posts by Elisa Shoenberger

The National Study of Congregations’ Economic Practices

Fundraising Insights

What is this Report?

Religion still remains the number one category of giving in the US, however it has been declining in recent years. Most studies have focused on individual givers but the institutions themselves have not been studied. This report tries to correct this gap with a study of how congregations work. The report looks at how they handle their finances as well as where they receive their funding.

Congregations varied from 10 to 35K people with revenues ranging from $3K to $41M. They used a sample size of 1,231 congregations.

What are Key Findings of this Report?

  • Most of congregation funding comes from individuals (81% on average). 40% get about all of their revenue from individuals. That’s higher when considering that 68% of total contributions come from individuals in the US (though the number does not include gifts from family foundations or corporate gifts from a person’s company). Other revenue streams include 2% from government grants and 12% from non-government grants.
  • The 78% of gifts from individuals are given during services. Of congregations studied, 92% “pass the plate” and 26% have a special offering box in their space. And 50% of congregations receive gifts digitally during service such as a mobile device app, text-to-give, or a special kiosk. Researchers found that there was a positive relationship between congregations with digital technologies and fundraising growth in revenue and size, but further research needs to be done.
  • 55% of congregations have a recurring contributions option for their congregants. However, 15% of those congregations do not receive recurring gifts.
  • 64% of congregations have specifically asked for a pledge of a specific amount, but few regularly teach about giving. 36% teach on the topic quarterly and 35% annually. The researchers note: “Giving is often ritualized or routinized within congregations although it is rarely addressed explicitly.” However, researchers note that congregations tend to lag behind nonprofit counterparts in acknowledging and thanking their donors.
  • 57% of congregations offer opportunities for their congregants to support other nonprofits, locally, nationally, and internationally. Congregations contributed an average of $25,142 for mission-related causes. On average, congregations spend 19% of their mission resources internationally. Evangelical congregations spent more compared to other denominations. Many congregations spent more on physical needs than spiritual needs, except for Other denominations which was split between the two categories. The report notes: “These numbers demonstrate that while congregations are classified by tax laws as having a primary religious purpose – providing religious education and services, congregations are engaged in extensive mission activities both locally and around the world.”

What Can I Do as a Result?

  • Improve the process of giving. While Giving USA has reported a decline in religious giving over the past several decades, researchers found that although indicators suggest congregations are declining, “overall more congregations in the United States are growing than declining.” Instead, their report shows there is a lot of opportunity for congregations to improve their giving processes.
  • Evaluate stewardship practices. Congregations have room for growth in their fundraising revenues. Congregants have been giving to congregations without direct prompting, aside from passing the plate in services. For example, thanking donors in a timely manner can better engage their donors and potentially keep them.
  • Consider asking for gifts directly as well as providing multiple ways to give. Some congregations already have different digital options to give but other congregations may want to consider investigating digital options.
  • Communicate the impact of giving. While the majority of congregations have the option for recurring donations, they should make it clear why those donations can be so powerful. A 2016 study found that donor retention from monthly giving is 90% compared to the average of 46%.

Additional Resources

The New Normal: Trends in UHNW Giving 2019 by Wealth – X

Fundraising Insights

What is the Report?

The report focuses on the philanthropic interests and inclinations of Ultra High Net Worth (UHNW) Individuals around the globe. It looks at their giving patterns, areas of philanthropic focus, as well as other trends.

The report defines UHNW as those with a net worth of $30M+, and UHNW individuals who have demonstrated interest in philanthropy with gifts of at least $50K in a five year period from 2014-2018.

What are the Key Findings from the Article?

  • In 2018, Ultra High Net Worth Individuals gave $153B to philanthropic causes. This total includes UNHW in North America, which gave almost half of that total with Europe coming in second, followed by Asia. North America’s share is credited to the strong philanthropic history while Europe and Asia are developing their philanthropic cultures.
  • Collaboration is key for relationships with UNWH individuals. Ultra-wealthy donors want to “co-create” with their nonprofits. They want to volunteer in different capacities including serving on boards.
  • But collaboration isn’t just between donors and nonprofits. Ultra-wealthy donors are working with advisors and/or bringing in family and others for decision-making. There’s even interest in pooling resources or finding peer groups, like the Founder’s Pledge.
  • Generational differences in philanthropy are becoming apparent. The next generation is more active in giving and volunteering at an earlier age and they give to fewer causes in comparison to their elders.
  • Education is the favorite area for support by the ultra-wealthy. Almost 9 in 10 people directed their money to educational causes with a minimum gift of $50K. The next three most popular areas were social services, healthcare and medical research, and arts and culture. In contrast, the 2019 Giving USA report found that the top three giving areas in the US were Religion, Education, and Human Services. Arts & Culture was 8th.

What Can I Do as a Result?

  • Approach ultra-wealthy individuals with ideas on how to collaborate. Find out what their passions are and consider finding a position on a board, committee, etc. that may be of interest to them.
  • Recognize that philanthropic decisions might not be made individually, but collaboratively. A single person may not be making the decision about a gift; the decision may include a spouse or family members. Ask your prospect how they make financial decisions and make sure to include all decision-makers.
  • Consider offering opportunities for gifts with pooled resources or other collaborative giving. Not only do people make collective decisions about philanthropy, they are giving together. Figure out how your organization can make it easier for families and/or friends to give together, whether it’s pooling money into a single fund, encouraging giving circles or other collaborative giving vehicles.
  • Figure out ways to engage younger UHNW individuals early on. They may not be able to give as large a gift right now as older generations can, but your organization will want their loyalty for future gifts in 5-15 years.

Additional Resources

The End of a Decade of Prospect Research and Fundraising

Fundraising Insights

As we near 2020, there’s going to be a lot of think pieces about the top moments of the past decade. There’s a meme out there where people are posting photos of themselves from 2009 compared to 2019.

So, we decided to turn the lens to prospect research and fundraising in general over the past ten years. What has changed in the field? What has stayed the same? This is list is no means definitive, but a contemplation of some of the big changes in the last ten years.

Data, Data, Everywhere

It’s probably hackneyed to say we live in the age of Big Data but it’s true. In 2018, Forbes reported that we create 2.5 quintillion bytes of data each day and that it would likely accelerate. A 2015 Atlantic article makes it even clearer, people upload 1.8 billion images every day (that’s in 2015): “Another way to think about it: Every two minutes, humans take more photos than ever existed in total 150 years ago.”

Handling that data is part of the challenge that companies and nonprofits have had to deal with. Wealth screenings have become part of the norm as a way to take advantage of the incredible amount of data. Data scientists are eagerly sought for in many fields including the nonprofit world. Organizations are either hiring third parties to help analyze their data or they are developing talent in-house.

Now as we close out the decade, we are starting to see the rise of artificial intelligence in fundraising that might help facilitate different parts of fundraising. Cleveland Clinic developed an automated system to assign potential donors to fundraisers; previously two people did this full-time. Commercial products are available at many stages of the fundraising process such as helping gift officers write first contact emails to developing a gratitude score. While there’s definitely many concerns about how AI will impact prospect research, prospect management and other roles, the use of technology to move fundraising along is not itself new.

These new technologies and availability of data means that prospect research has been taking a more proactive role in our organizations and the field. We have to communicate our value to gift officers and advancement staff to show that we do more than “google.” While I’m not sure when prospect management became a larger force in the field, but I imagine it became even more prevalent in this age of Big Data.

Rise of the Privacy Laws

But as we see the rise of Big data, governments are beginning to worry about how that data is used and how informed the public is about it. In 2016, the UK’s Information Commissioner’s Office (ICO) fined nonprofits for wealth screening because the charities did not inform or receive the consent of their donors. To say the least, this incident had repercussions for prospect research throughout the UK and elsewhere. Moreover, this occurred before the European Union’s General Data Protection Regulation became law on May 25, 2018 that made the EU’s data regulations even stronger.

While the US has a different attitude towards privacy, California’s newest privacy law will go into effect at the beginning of 2020. How governments regulate company’s use of data will certainly have an impact on how people think about their data being used by third parties.

These changes require prospect research to think about how we conduct our work and how to ensure we are complying with these laws and communicating the importance of our work to our organizations and their stakeholders.

New Gift Vehicles

We’ve also seen the rise of new giving vehicles in the past decade. While Donor Advised Funds (DAFs) are not new in fundraising, their popularity has accelerated especially in the last few years. In 2018, contributions to DAFs totaled $37.1 billion, a 20.1% increase from 2017. The Chronicle of Philanthropy reported that Eileen Heisman, president and CEO of National Philanthropic Trust, speculated it was because of the new tax law and the strong economy in 2018. Donor advised funds present new challenges for prospect researchers since there is less information available compared to a foundation.

Social media fundraising, specifically Facebook Fundraisers, have exploded. In September 2019, Forbes reported that Facebook Fundraisers had raised $2B, including $1B in the last year. Social media has made fundraising more personal; people can ask their friends and family to contribute to their favorite cause for their birthday (or another event). However, how the data is used and maintained is a significant question. Figuring out how to deal with social media is another challenge for the industry. Should we use social media in the first place? Is it reliable enough or is it just another data point?

While it’s not a giving vehicle per se, it would be remiss not to mention Giving Tuesday. Now in its eighth year, Giving Tuesday was created as a balm against Black Friday and Cyber Monday. It has been so popular that the organization behind it has now become an independent organization. Last year efforts raised $380M, but Giving Tuesday has done more than raise funds, people are encouraged to get involved in different ways with their community.

Last but not least, cryptocurrencies are also becoming a part of the fundraising scene. While they constitute a small percentage of overall fundraising, some nonprofits accept multiple cryptocurrencies. Fidelity reported that it has received $100 million in cryptocurrencies since 2015! Cryptocurrency millionaires appear to be a different kind of donor and it will be interesting to see how the fundraising industry pivots for this new class of donors.

What Hasn’t Changed?

While we have discussed a few ways that fundraising and the prospect research field have changed in the past decade, there is one critical thing that has not changed. Despite all the fancy tools and bytes of data, fundraising is still about relationships. Development officers still have to get to know donors and prospects, learn what makes them tick, and figure out how to engage them for their organization.

At Aspire Research Group, we work with quite a few organizations that have been raising millions for years with talented teams of gift officers. Why do they reach out to us? Because they want to break through to the next level of fundraising, raising even more money to fulfill their missions.

At some point it’s not enough for an organization to be great at relationship-building. When prospect researchers and development officers work together, miracles can happen! Prospect researchers uncover hidden gems, qualify possible prospects, and become part of the prospect strategy process and discussion. When researchers and development officers work as a team, communicating needs and information, so much more begins to happen.

Effective relationships are critical throughout the organization. Researchers especially should have great relationships with the Information Technology Services department that can help facilitate data uploads and downloads for wealth screenings, data analytics projects and more. Development officers need to work well with stewardship officers to ensure donors stay connected while they move on to other prospects. And so forth.

How will fundraising change in the next decade? While the next decade will bring new and unexpected advances, we know that relationships–internally and externally-will remain the key constant in the industry.

Top Aspire Blog Posts

What Can You do About Data Security at your Nonprofit? Plenty!

Fundraising Insights
Internet, Security, Password, Login, Computer

Reports of new data breaches have, unfortunately, become more and more common. Recently, UniCredit, an Italian bank and financial services company, revealed that it had a data breach involving 3 million customers. The source of the breach was a compromised file created in 2015.

Many times the cause of data breaches is as simple as an unchanged password. The Washington Post reported that the Dropbox breach that revealed the emails and passwords of over 68 million Dropbox users was the result of an employee using the same password from another website that had been hacked. Other stories tell of people using “Password” or “12345678” or similarly easy to guess passwords.

It’s easy to think that these data breaches won’t happen to nonprofits, but nonprofits are targeted, too. Save the Children was hacked twice in 2017 and lost more than $1M to an email scam.

In fact, charities can be attractive targets because they have personal information, sometimes medical information, as well as financial information. In an article for Insurance Business Magazine, Frank Tarantino, Charity First Insurance Services, Inc., notes that healthcare and higher education are particularly at risk but all nonprofits need to be prepared.

“Healthcare related organizations store vast numbers of medical records, social security numbers, and credit card details. This information is very valuable to hackers to either sell on the black market, or to use the information themselves to apply for credit cards, loans, or to participate in any other type of fraudulent activity,” he says.

Since fundraising is all about good relationships with donors and prospects, nonprofits have an extra incentive to protect their donors’ data.

What Can We Do to Protect Our Data?

Does your nonprofit have a data security policy in place? Know it and use it! If your organization doesn’t have one, you might want to suggest developing one.

You may be wondering, what can you do personally to protect your organization’s data?

Here are a few tips:

  • Do NOT Email Donor and Prospect Information. Email is NOT a secure method to transmit data, most especially Social Security numbers and medical records, even if it is to another employee. Many nonprofits have an internal shared drive where files can be saved and retrieved. At Aspire we securely share donor prospect information with clients using DropBox, cloud-based file sharing software. Consider how to transmit data securely when working with anyone outside of your organization, such as consultants, marketing companies, etc.
  • Create Strong Passwords. Here are some strong password tips. Moreover, change them periodically. Many organizations may require passwords to be updated every few months. If remembering your passwords is challenging, consider using a password manager that helps secure and manage all your passwords.
  • If a password gets compromised, change it. If you use the same password for several accounts or websites (which isn’t advisable), and one of them is compromised, you should change them all immediately to prevent what happened to Dropbox happening to your organization.
  • Run anti-virus software constantly on your computer. That way, you can stomp out the problem in the first place. Some anti-virus software will also advise on what websites to open, so it’s good to heed their warnings. Make sure to keep your software up-to-date since threats keep evolving and anti-virus software companies are constantly fighting back.
  • Keep your computers secure with passwords. Many nonprofits issue laptops to their employees. These laptops can be easily stolen if left unsecured in public places. Moreover, the computers should require login and password information that you should use every single time! If the computer is physically stolen, it’s harder for the thieves to access the data on the computer.
  • Find out what the policies are with your third-party vendors. Your organization might be buttoned up tight against data breaches, but that may not be enough. Talk with vendors and other third parties to find out what they are doing to secure data for their customers.

These are just a few ways that you can help to safeguard the data of your organization. Learn more with the resources below. Why bother? Because your donors, prospects, and beneficiaries are worth it!

Additional Resources

“Almost GDPR” California’s Privacy Laws and What It Means for Nonprofits

Fundraising Insights

What is this law?

The California Consumer Protection Act (CCPA) will go into effect on January 1st, 2020 and enforcement begins July 1, 2020. Many are calling it “almost GDPR,” after the European Union’s recent General Data Protection Regulation that made their privacy laws stricter that went into effect in 2018.

The law gives Americans the right to find out what data is being held by companies and to delete it on demand

What are the key findings about the law?

  • Similar to GDPR, personal data is any identifiable information such as name, address, phone number, etc.
  • The law applies if your organization is based in California and/or if there are California residents in your database, regardless of where you are located.
  • The new law will provide people with five new rights regarding their personal information. Pillsbury Law provides a nice roundup:
    • The right to know what categories of personal information is collected, where it is collected, if the collection is sold or disclosed
    • The right to request a copy of the personal information collected in the past 12 months before the request
    • The right to have the information deleted (though with some exceptions).
    • The right that personal data not be sold to third parties.
    • The right not to be discriminated against because the person has exercised their rights
  • Pillsbury law points out that the new law applies to any California resident “and eliminates the restriction of transacting for personal, family or household purposes. It also expands the definition of “personal information” to include any information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household.”
  • Privacy policies need to be updated to include the following:
    • Description of the new rights for California residents
    • Description of how to submit a request for personal info or deletion request, an opt-out page
    • “A list of all the categories of personal information that have been collected in the past 12 months”
    • Sources of the categories of information collected
    • The purpose of each category being collected
    • “A list of all categories of personal information” sold in the past 12 months
  • However, the law apparently does not apply to everyone. Fortune writes: “Like GDPR, it will take some time to figure out how the new rules will be enforced but that doesn’t mean organizations can be complacent about compliance.” However, whether nonprofits fall in those categories is an open question.
  • There is concern that the CCPA does not have strong enough penalties for violators. Penalties can be up to $7,500. There’s also a “cure provision” that allows companies time to make amends that may defang the ability of people filing class action lawsuits.

What can I do as a result?

How do I prepare myself and my organization?

  • Check your database. Do you have any constituents with a California address? You might need to update your privacy statement and create a procedure to handle constituents’ request for their data. You’ve been meaning to review your privacy statement anyway, right?
  • Ask an expert! Your organization probably employs an attorney, in-house or out-sourced. Ask your attorney about your organization’s legal obligations and for advice on achieving compliance. They might even have information published for you to read.
  • Consider donors’ expectations. Like GDPR, it will take some time to figure out how the new rules will be enforced, but that doesn’t mean organizations can be complacent about compliance. Donors may expect companies to be in compliance so you want to balance those needs and expectations with your organization’s needs.
  • Do you raise money from technology and data companies? The new tech law may impact tech and data companies’ perception of their earnings and may have an impact on their philanthropy and sponsorships.
  • Recognize that this could be a trend you probably don’t want to ignore. There have been rumors that the California law might lead to the creation of a federal law that would cover all Americans, but that remains to be seen.

Note: Aspire Research Group LLC and its researchers are not attorneys, so please do not take this information as legal advice. Compliance with privacy laws is important and often complex. If you have legal questions,you are strongly urged to consult an attorney.

Additional Resources

Global Wealth 2019: Reigniting Radical Growth by Boston Consulting Group

Fundraising Insights, Wealth & Philanthropy Intel

Another Report of Global Wealth Decline – What Can You Do Now?

What is this Report?

The Global Wealth report is an annual report about the global market sizing and global wealth-management industry. The market sizing review “encompasses 97 markets that collectively account for 98% of the world’s gross domestic product.” The analysis of the wealth-management industry is based on data from over 150 wealth managers.

The Boston Consulting Group (BCG) report uses the following wealth based segments: retail (less than $250K); affluent ($250K-$999K); lower High Net Worth (HNW) ($1M-$19.9M); Upper HNW ($20M-$99M); and Ultra HNW (more than $100M+).

What are key findings from the article?

  • Global wealth indicators suggest a slowdown in global wealth. “2018 was the worst year for stocks in a decade” per the report. Global personal financial wealth is slowing down; it only grew by 1.6% in 2018 compared to 7.5% in 2017
  • North America saw a -0.4% decline in 2018 while Western Europe saw a modest increase of +0.6%. Asia as a whole saw an increase of +7.1% in asset growth, compared to +11.5% in 2017.
  • Although stock was down, the report points out that the last five years showed a “substantial increase in global wealth overall.” Investable assets such as investment funds and equities grew and “now account for 59% ($122 trillion) of all personal financial assets.”
  • The number of millionaires are still growing to 22.1 million in 2018 with a rise of 2.1% per year. This group holds 50% of global personal financial wealth. The largest concentration is the North America. Between 2018 and 2023, BCG predicts Asia (excluding Japan) will see the fastest growth in millionaires with 10.1%.
  • UHNW individuals with net worth of $100M+ are expected to see their wealth grow the most with an 8.6% increase.
  • While many wonder about economic downturn, BCG’s analysis suggests that wealth will have a modest growth rate of 5.7% from 2018-2023 with the concentration in North America and Asia.
  • Finally, BCG believes that there is an underserved market in the affluent segment that wealth managers need to do a better job of attracting, serving, and keeping as customers.

What can I do as a result?

  • Recognize that there may be a global economic slowdown. In 2018, Capgemini also reported a 3% decline in world wealth; BCG reported a slower growth of 1.6%. There seems to be an impact on giving since Giving USA found that total giving declined by 1.7% in 2018.
  • Focus on the affluent wealth segment (net worth of $250K-$1M). In response to the recent Giving USA report, The Chronicle of Philanthropy recommends that nonprofits seek out the smaller-dollar donors. Clearly, fundraising and wealth management organizations have been underserving the affluent wealth segment, which has potential for both industries.
  • With increased wealth management guidance, the affluent segment may expect fundraisers to accommodate more complex gifts such as trusts, Donor Advised Funds, and more. Consider how you can improve your capacity for these gifts, whether it is a relationship with a consultant, support from your community foundation, or improved database procedures.
  • Gift officers and their institutions should continue to look to build their relationships with Asian constituents and figure out how to be more donor-centric to these populations, just as wealth managers need to be more customer-centric with affluent wealth segments. You might consider targeting continuing education dollars to the subject.

Additional Resources

World Wealth Report 2019 by Capgemini

Fundraising Insights, Wealth & Philanthropy Intel

Global Wealth Declined 3% – Are Major Gifts at Risk?

What is this Report?

The World Wealth Report is an annual report about the wealth of high net worth individuals (HNWI) and the economic conditions in the Wealth Management industry. This year’s report is the 23rd year based on responses from over 2,500 HNWIs in 19 wealth markets, administered between January and February 2019. It measures “HNWI investment behavior including HNWI trust and confidence, satisfaction, comfort level with fees, and personalized services.”

Capgemini defines HNWI as those who have “investable assets of US$1 million or more, excluding primary residence, collectibles, consumables and consumer durables.”

What are key findings?

  • Global High net worth wealth declined 3% in 2018, after seven years of growth. The most affected regions were Asia-Pacific and Europe. North America was mostly flat while the Middle East reported an increase in HNWI population and wealth.
  • 75% of the decline was attributed to Ultra High Net Worth Individuals, decreasing 4% by population and 6% by wealth.
  • Clients want to have an emotional connection with their wealth managers. 28% of HNWI surveyed said that “advisor’s lack of emotional intelligence as the reason they did not connect well.” They are looking for friendly personalities, good listeners, market expertise, risk management expertise and more.
  • In terms of asset allocations, cash became the largest asset class in Q1 2019 due to declining markets. Cash is 28% of HNWI financial wealth, knocking equities to number two. Real estate has been dropped to fourth place, from 16.8% globally in 2018 to 15.8% in Q1 2019. Fixed income is now number three.
  • Top four markets are still the same from 2017 – US, Japan, Germany and China.
  • The world economy seems uncertain due to rising interest rates, the trade war—notably between the US and China, as well as political uncertainty with Brexit and Venezuela, and general market volatility. Notably, CNN called 2018 the worst year for stocks in 10 years.

What can I do as a result?

  • If HNWIs want more emotional connection with their wealth managers, it follows that those traits are necessary for gift officers. In a 2019 article in the Chronicle of Philanthropy, Mark Stuart who was employed by San Diego Zoo Global at the time, advocated for the use of the DiSC personality profile to train gift officers on better connecting with donors and prospects. Being knowledgeable isn’t enough anymore, even when it comes to money. Upgrading your emotional intelligence skills is recommended.
  • While cash is now the largest asset category due to declining markets, HNWIs may be more circumspect about donating their dollars. They may be even more critical in how organizations are using their dollars and it may take more time to communicate the benefits of donating to your organization. However, since North America saw minimal change in total wealth, these concerns may not have taken hold – yet.
  • Real estate has gone down as a percentage of asset class. However, that means those $1M+ houses are now a smaller percentage of giving, which is great for prospect researchers when determining capacity.

Additional Resources

How Does Artificial Intelligence Work in Fundraising and What Should You Do About it?

Fundraising Insights

Alert! You Can Benefit from Artificial Intelligence in Fundraising

What is this Topic?

Image by Gerd Altmann from Pixabay

Artificial Intelligence (AI) has been making waves the past few years, including automated cars and energy efficiency. Now, the AI buzz recently has found its way to the world of fundraising.

Recently at Association of Philanthropic Counsel, Mark Geiger, President and CEO of AFP said, “It’s important to recognize that artificial intelligence is here, and we need to know how to harness it.” In early 2019, iWave presented on its partnership with Gravyty that brought Artificial Intelligence into the world of donor engagement.

In this post, we help you assess the current AI environment and focus on key actions you can take today.

What are key findings?

  • AI may be able to make certain systems more efficient, such as donor identification and outreach. When University of Buffalo implemented Gravyty, “visits are up 70% year-over-year, and overall philanthropy is up 32% year-over-year” according to the Gravyty blog. Gravyty can review lists of prospects and donors to help identify the ones that major gift officers should reach out to instead of wasting valuable staff time doing the same thing.
  • Gravyty’s system, called First Draft, will draft an email for the fundraiser to send including recommendations of where to meet. First Draft may also be a boon to stewardship efforts as well.
  • AI could be used to facilitate board members with prospect identification; AI fundraising assistants can “recommend… those with similar affinity and propensity to donate in their networks” (NonProfit PRO).
  • Another use would be to assist with data hygiene for Capital Campaigns as well as major analyses to help campaigns focus their time and resources.
  • AI has been used to replace essential prospect management and operation functions. Cleveland Clinic used AI to take over prospect management functions, to assign prospects to fundraisers, replacing two full-time staff members. Staff members review the remaining 5% records. Their system also checks all donors against their fundraising database and creates new records if they are not already in the system.
  • Other uses include making recommendations for student calling campaigns, and making recommendations on ask amounts. Experts also predict the development of chatbots for prospective donors and predicting donor’s passions.
  • However, questions remain on whether nonprofits should spend time worrying about AI in fundraising. Zach Shefska of the Fundraising Report Card believes that use of AI in fundraising is overblown since the for-profit sector is still figuring out how to leverage AI themselves. There are other more top of mind issues in fundraising than AI such as “Relationship building, stewarding legacy gifts, and respectful donor communications.” Shefska believes that conversations of AI are too early and that it may be best to return to the topic in 2020 or 2021.

What can I do as a result?

  • Schedule a demo. Since AI is such a hot topic in business and to a lesser extent fundraising, it is worthwhile educating yourself about AI as a whole and some of the new products and services in the fundraising field. Consider doing a demo on the products available such as Gravyty, Blackbaud Guided Fundraising, and ExactAsk.
  • Be prepared for questions. Not only is being informed about what products and uses are available good for professional development, it will help in any questions that might arise from eager Vice Presidents of Development or Presidents.
  • Get AI-ready. However, implementation of AI systems in fundraising is only at the beginning and may not be a necessity to start right now at your organization. As Shefska noted, there may be other essential tasks that need to be prioritized first before AI. If that sounds like you, conquer the fundraising essentials to get your organization AI-ready.
  • Do what AI can’t do. If you are in a field that has seen the automation of some functions, you may want to consider how the human touch provides a value add that AI cannot provide. What tasks in your organization represent important human contact internally and externally?

Additional Resources

Behind a Paywall:

Women Give 2019: Gender and Giving Across Communities of Color Review

Fundraising Insights

“Women Give 2019 affirms that women are generous—all women, across racial and ethnic groups.”

What is this Report?

This report is the “first to explore the intersection of race, gender, and giving.” The report does literature reviews about race and philanthropy and the impact of gender and philanthropy. The report aims to bring all three ideas together and better understand how race and gender impact giving overall, where gifts are going, impact on volunteering and the influence of wealth on both giving and volunteerism.

What are key findings from the article?

  • Race does not have a significant impact on the amounts given to charity. What does have a big impact on gift amounts are income, wealth, education and other factors.
  • Differences in giving between genders is consistent across the race. Across all racial groups, the best performing donors ranked in order are (1) married or cohabitating couples, (2) single women, and (3) single men.
  • Their interviews with six female philanthropists affirmed that women view philanthropy as more than just giving – the idea of time, treasure and talent came up. Giving back was an important consideration for these philanthropists.
  • There are important differences between how different communities give and volunteer.
    • “African American donors may prefer to give informally or to their house of worship; these donors also often focus on civil rights and social justice.
    • Hispanic/Latino donors also appear to give more informally, particularly to members of their family and extended networks.
    • While Asian American donors may be the most diverse group, they largely are interested in an entrepreneurial approach to giving, and focus on the areas of education and faith.”
  • There were differences in the percentages of each population that formally volunteered. In HNW populations:
    • 60.2% of Hispanic populations are volunteering
    • 48.3% of White Populations
    • 45.4% of African American populations
    • 38.9% of Asian American populations.

What can I do as a result?

  • Identify the single women. Have you run a report to identify how many single, female donors you have? These are a high performing donor group. If you have a large group of single, female donors (or you want more), consider ways you can reach out to them to discover how they view your organization and what would help them deepen their engagement.
  • Engage volunteers, especially Hispanics. The Women Give studies continue to demonstrate that women volunteer before “trusting” organizations with their donations and networks. How can you engage women, in formal and informal volunteer opportunities? Decide early on if you want any new engagement program you develop to have fundraising goals.
  • Income is the biggest indicator of major giving. Women and racial minorities are consistently undervalued in our traditional major gift identification practices. Bridge the gap by appending occupational information and qualifying based on high-income professions. You’ll still miss good prospects, but it’s a start!

Additional Resources

Source Notes:

  • The report uses data from the Philanthropy Panel Study (PPS) from 2015, the most recent year of data. The PPS data had 5,954 households with the following numbers of people identifying as racial groups: 627 African-American, 105 Asian American, 636 as Hispanic, 4586 as White non-Hispanic.
  • The report also used data from the 2018 US Trust Study of High Net Worth Philanthropy that had 1,573 households with the following breakdown of self-identifying racial groups: 97 African-American, 134 Asian American, 100 Hispanic, and 1,231 White non-Hispanic. They also did 6 interviews with philanthropic women.

The Wealth Report 2019 by Knight Frank

Fundraising Insights, Wealth & Philanthropy Intel

“How private wealth is shaping property markets globally.”

What is this Report?

The Wealth Report | Knight Frank 2019

The Wealth report is an annual report that looks at how private wealth impacts property throughout the world. It focuses largely on real estate but also talks about luxury items like art, whiskey, and yachts. The report also looks at habits of Ultra High Net Worth (UHNW) individuals.

UHNW is defined as someone with net worth over US$30M. HNW is defined as someone with net worth over US$1 million. Both definitions exclude the primary residence.

What are key findings from the article?

  • Wealth continues to become more global. Ultra High Net Worth Individuals (UHNWIs) are purchasing additional homes in cities and countries. 36% of UHNWIs have a second passport and 26% of them are planning to emigrate permanently.
  • Whiskey has become a valuable collectable by HNWIs. Expert Sami Robertson sees single malts taking the place of wine in people’s hearts and pockets. A bottle of The Macallan 1926, with a hand painted bottle, went for £1.2 million in November in 2018.
  • Knight Frank reports that “Sales of Scotch whisky to India, China and Singapore rose by 44%, 35% and 24% respectively in the first half of 2018 according to the Scotch Whisky Association, with single malts totaling almost 30% of total exports.” Some HNWIs purchase their own casks, paying six- or seven figures. Quality Casks are not easily obtained as many distillers hold on to them. Some companies sell limited numbers to an elite few. The Macallan has an invite only program with costs starting at £35K.
  • While whiskey may be on the rise, the luxury housing market is slowing down across the world. Prices are growing slowly or declining. Notably, cities like Manhattan, London, and Vancouver are seeing a decline. This might reverse those markets to become buyer’s markets.
  • Part of the decline may be due to governments wanting to contain wealth and real estate in their countries. Governments are starting to implement new taxes to discourage foreign interests from purchasing real estate. In Vancouver, taxes are higher for non-residents, subject to an empty home tax, and other disincentives. Other countries, like China and India, are implementing capital controls to keep ownership in the country.

What can I do as a result?

How do I identify and connect with HNWIs?

  • Talk to them about their passions. What do they collect? Whiskey might be a new area of high-end collecting but HNWIs may collect other standbys, such as cars, wine, and art.
  • HNWIs are going to be even more mobile than before with additional passports and multiple properties, in spite of government attempts to contain the wealth. While it may be hard to research and find properties in other countries, guided conversation can reveal multi-country property ownership.
  • Pay attention to how your prospects’ talk about their future as well as the country or countries they live in. As wealth restrictions rise, their worldview about wealth and politics may impact their philanthropic giving.

Additional Resources