Reviving Generosity: The Heartbeat of Civil Society

18 December 2024 

Philanthropy New Zealand Blog

Eva attended a US Philanthropy webinar last week hosted by Giving USA, The Generosity Commission and The Giving Institute.  

Key Speakers: 

Alice Ayres, President and CEO, Association for Healthcare Philanthropy (AHP) 

Sue Cunningham , President and CEO, The Council for Advancement and Support of Education (CASE) 

Nathan Dietz,  (Do Good Institute) 

Mike Geiger, President and CEO, Association of Fundraising Professionals (AFP) 

Wendy McGrady, Chair of the Giving USA Foundation (Giving USA Foundation)  

Key Points from Speakers 

Data and Trends: 

Existing research shows volunteer and giving numbers have been declining overall for years.  Kelli Gabbert from the Generosity Commission noted that there may be a “dollars up, donors down” situation – where more is given by a smaller number of donors.  When the donor pool shrinks, smaller, local organisations lose out most of all.  There was some discussion about the sector’s over-dependence on a small number of the same high net worth givers and how this leads to unhealthy competition in the charitable sector.  Instead, there is a need to expand the range of ways that money is raised, supporting capability in the sector (effective fundraising practices), better understanding how and what we measure as philanthropy/giving (both formal and informal) and collaborating on research.   

Bequests: 

Is the biggest growth in generosity, bequests? In the middle of a cost of living crisis for an ageing population bequests are perfect. Globally bequest income is forecast to grow to $150 billion by 2045. It already provides $43 billion in USA 

Bequests are up 4.8%, yes! Largest growth % YoY per Giving USA 2024-- although adjusted for inflation that's flat at 0.6%, but still stronger than other sources which grew at a lesser % (and therefore decreased when inflation-adjusted). But you are right, considerable growth opportunity, empowering to promote and compelling to a wide range of humans who may not feel outright giving is accessible to them. Also why the Charitable Giving Coalition's work right now is so vital. 

Identified contributing factors to donor decline included: 

• Economic prosperity 

• Declining religiosity 

• Tax incentives 

• Declining trust in institutions 

• Social (dis)connection 

• Demographic shifts and generational succession 

• A rechanneling of giving. 

There was some discussion about the intergenerational wealth transfer that is happening / about to happen, and the need to particularly understand, inspire and engage with the next generation.   Younger generations engagement and giving may not be reflected in the current data we collect – e.g. 1:1 giving, crowdsourcing, volunteering.   

“There is this whole universe of giving and generosity that we’re not tracking well.  If we can really engage these people, we could have a better idea of what is actually happening / what we are counting – formally and informally. People thinking of generosity differently.” 

“Generosity is an innate human trait - we need to think about how to engage with different generations and cultures.” 

The impact of fewer donors is felt not just in the reduction of money but “when fewer people give to and volunteer with nonprofits, we miss out on the diverse perspectives, social connection, and the practice of civic engagement.” 

Key Recommendations made in the report and by speakers: 

• Research 

• Culture 

• Practice  

• Policy 

Research and Campaigning 

Research and a campaign on inspiring generosity is needed – integrating it into popular discourse – and encouraging a whole of society involvement (e.g. government, business, etc.). 

Sue from CASE shared insights work that her organization had done.  She noted that there was a small decline last year, giving to education – $61billion globally, and a general trend upwards.  They had been tracking alumni engagement and developing metrics, communication and marketing.  There is a need to look deeper than what is just happening philanthropically, e.g. alumni engagement goals - alongside philanthropic engagement.   

They are involved in engaging and building a relationship with students even before they are enrolled.  There is an opportunity to celebrate creativity, student giving days, etc.  Here’s a link to their insights report and this report, while specific to alumni, includes concepts and metrics of engagement can be adapted across various segments of mission-driven and nonprofit work.  This report sets out new brand and reputation metrics, which were likewise  designed for education but are adaptable to health and other arenas. 

“If we count more forms of generosity, will it inspire more?” Generosity USA is doing more research re the shifting changes in giving.  Who: academics, civil society, donors, professionals etc. – contributing collectively. 

Expanding definition of philanthropy and what it means to be engaged 

• Measuring different methods of generosity and how do we do that? There is a need to collaborate on research and use the same language – common definitions. 

• Not just dollars.  Dollars are important but not the only thing – time and talent is also important.   

Australians can measure philanthropy. 

How do we measure in a new way? 

• Giving USA – we are looking at new research – what people think of as generosity – and what people think of as that. 

• Moving the needle – growing the 2% 

• Now is the time. 

• Tax policy change this year – should be factored into it. 

• Notwithstanding the economy, this could be the time to do something. 

• Giving Tuesday – type programme – then measure it 

• Create a movement. 

Start with a conversation, we have partnerships 

“A coalition of data collators” 

• How we collect, where we collect, etc and how we are then using it. 

• How we work together to create better generosity. 

Philanthropy and education: Inter-generational alumni data – can analyse and see what messages are working with which cohort/ generation 

• Area that leads to the most donors - = volunteerism 

• But with alumni it is small re volunteering 

It moves us away from saying that alumni engagement can only be measured through alumni giving, so even to stand still is difficult.  Depth of contribution – huge miss.  Measured, etc. informed. 

How do engagement differently? 

A lot of critically important things: 

• Annual Reports: data recorded.  We don’t say as much, we have just changed thousands of lives for the better – this is what this looks like – case study – gratitude – their voices.   

• We are professionals, need to do the right things.   

• Gratitude – a healing thing – UCLA – acute patients – with coronary – those who expressed gratitude had better health outcomes.   

• What we are doing is changing the world. 

• “My wish – remember why we are doing it, and we talk about it a lot”.  An important part of stewarding donors. 

Practice 

We are in a time of transition, shifting practices is part of this change.  What are you seeing? 

Funders and business leaders can promote giving and volunteering by shaping priorities and inspiring action: 

• Utilize all of philanthropy’s resources, tangible and intangible, in support of everyday giving and volunteering 

• Support community foundations to take a leading role in encouraging giving and volunteering 

• Reinforce the leadership role of business to encourage their volunteerism and giving. 

Reframing impact 

When you go back to the mission and ask – how can I do this better / inspire better partnerships.   

Healthcare organisations are thinking differently about their own mission.  No longer just talking about “the box / name on tower / investing in research” – still talk about – but on top can talk about making food pharmacies and addressing food deserts, raising financial capability, money for dentistry – inspires people who care about social justice, etc. – different group of donors. 

How use tech, community, define community – to create 1:1 environment that people trust. 

• How fix that?  1:1 conversation – technology – e.g. TikTok – feels like a 1:1  

• Social media influencers, Fortune 500 companies 

• How organization generates that trust in new ways 

• Huge donors and smaller donors can do this. 

• Listen to your kids. 

Trust in NGOs have fallen.  Disconnection.  Can’t trust what you don’t know. 

• Everyone can see themselves in your work.  Authentic, trust. 

• Don’t just celebrate big gifts but celebrate all gifts. 

Opportunities for engagement and partnership – state/federal. 

• Australian Productivity Commission report and targets mentioned 

• UK – Tax on independent schools – VAT – huge impact 

• British Government – looking at building philanthropy 

• AFP/AHP, etc.   

• Tax Cuts and Jobs Act – consideration re charitable levers/deductions 

• Argue against endowment taxes – also considered in Singapore – that government sees the importance of building endowments 

How can we produce the most productive environment for celebrating and growing philanthropy? 

How do we engage everyday donors?  How keep fundraising professionals motivated / incentivized? 

• Pool of major donors gets smaller, so all chasing same donors.  Unhealthy and competitive environment for fundraisers.  These are older donors [pre-1981!], eventually passing on that wealth – often family, typically younger - How they view philanthropy is very different perspectives.  The sector is overly reliant on major donors – not a sustainable long-term strategy.   

• New approach: Focus on the diversity and equity work.  Donors reflective of community.  Strengthens authenticity and trust, and quality of decisions. More engaged donor base that is reflective of the rich society we live in – grow this area. 

• Transformational gifts: support multiple interests and institutions. 

Language 

• Some donors don’t think of themselves as philanthropists and don’t talk about their giving. 

• “social investor” not a philanthropist – from NZ Australian conference a few years ago. 

• A while ago, I read an article about people who were asked if they defined themselves as a "philanthropist". The answered really ranged by generaltion and their own understanding of the word. In the context of the varied ways of giving, perhaps our movement can include an awareness campaign (through ALL the channels) about what it means to give and to be a philanthropist. The change in the percentage of people who identify as a "philanthropist/giver" could be one of the metrics we track. Just a thought about the giving movement...thanks Wendy for labeling it as such. 

• Our Lindauer team did focus groups with younger people coming into the field of advancement and discerned quickly that the term philanthropy was seen as elitist. I happen to love the term giving as more inclusive. Everyone can give, in the broadest and deepest of ways. And relevant to Sue's story right now -- the young person who said "I see myself as a social investor." 

We have to make our sector welcome for everybody. 

• So much potential for communities of colour to grow philanthropy  

• Tyrone Walker’s book – need to show-case and share these stories with everyone 

• Possibility to have impact / make a difference 

• Focus – youth, equity and inclusion 

If we build connection between everyday donors – make sure we are talking to THEM NOT JUST MAJOR donors.  Talking to people how they want to be spoken to – e.g. social media, newsletter, lunch? 

Measurement 

• Hard to measure impact / outcomes 

• Ripple effect of giving – not just my life – my family, my network…. 

• What we count, how we count, how we are more inclusive 

• How are you thinking about the philanthropic sector? 

• What should you be keeping in mind in the next few years? 

Policy 

We should promote local, state, and federal policies that will incentivize giving and volunteering. 

• Increase the availability of the charitable contribution tax deduction 

• Sufficiently fund the IRS Exempt Organizations division and state charity regulators and simplify regulatory compliance. 

Next Steps 

• A national conversation to share the Generosity Commission report and encourage steps to revive generosity.  Emphasise the impact of philanthropy. 

• Curriculum: “Elevating Impact” – the theme – how do we provide education by introducing fundraisers to best practice and help effectively fund missions and how to access particular fidelity funds (DAFS).  Identify experts to help build this curriculum. 

Recommendations for a US audience: 

1) sign the Charitable Giving Coalition's Giving Tuesday letter to Congressional Leaders - https://forms.gle/EmKUFnytoDAh81nU6.  

2) The second is join and support the Charitable Giving Coalition - https://forms.gle/Z4km43x5VLMX9d826. 

Further resources: 

Documentary on Netflix based on Putnam's Bowling Alone called Join Or Die.:  https://www.joinordiefilm.com/  

Podcast: https://podcasts.apple.com/us/podcast/today-explained/id1346207297?i=1000678444712