Recently, the Giving USA 2020 report was released. Giving USA, the longest-running and most comprehensive report on charitable giving of its kind in America, is published by Giving USA Foundation. It is researched and written by the Indiana University Lilly Family School of Philanthropy at IUPUI. The report paints a picture of an uneven charitable giving landscape, with plenty of caution flags and opportunities for nonprofit leaders. A note of caution in reading the report since the country has experienced significant challenges in recent months. Key findings from the report include:

• American individuals, bequests, foundations and corporations gave an estimated $449.64 billion to U.S. charities in 2019, placing it among the highest years ever for charitable giving

• Total charitable giving rose 4.2% measured in current dollars (2.4% adjusted for inflation)

• For only the second time since Giving USA data began to be published in 1955, individual contributions constituted less than 70% of charitable giving.

• There is a clear trend downwards in total donors and greater disparity in gift size as the report shows $6.57 billion in mega-gifts (defined as $300 million and above). This trend has been referred to as “Dollars up and donors down.”

A few of my own thoughts and observations in reading the report:

• The widening gap between "mega-gift" philanthropy and individual giving bears watching because of its potentially negative consequences for small-mid size nonprofits.

• "Dollars up, donors down" is not a formula for success for the vast majority of nonprofits

• Proposals for a universal charitable giving incentive are vital to engaging greater numbers of donors in philanthropy, particularly at the grassroots level and particularly for younger generations. Bonus Takeaway

• Savvy nonprofits will pay close attention to the continued rise of Donor Advised Funds (DAFs) as philanthropy's fastest growing vehicle and invest time and resources in strategies to engage DAF sponsors and holders.

If your leadership team and/or Board would like to connect to discuss your fundraising effectiveness or explore our signature “Demystifying Donor Advised Funds” workshop, let’s connect!

A strategic plan serves as a roadmap to enable an organization to set priorities and measure progress. It informs the direction of the organization, generates heightened engagement and ownership of the mission, and inspires staff, Board, volunteers, and the community to envision bold possibilities. While the final plan document may take a variety of forms, I have found that there are three keys at the outset to chart an effective strategic planning course:

• Purpose:

Starting with the "why" enables an organization to understand the context and environment in which the planning will occur. Has a previous plan term expired? Is the organization preparing for an expansion? Is there an internal or external challenge confronting the organization?  

• People:

Any planning process is only as effective as the leaders who will embrace and own it. Who will you include in the planning? Who will "own" the planning effort? How will you capture the critical perspectives of internal and external stakeholders? Who will facilitate the process?

• Process:

In order to respond quickly to new opportunities and flexibly adapt to changing circumstances, many leaders (myself included) now favor shorter strategic framework processes over formal long-term strategic plans. In consultation with their facilitator, nonprofit leaders should evaluate the planning processes that have worked well with their team in the past and the type of process needed to confront the challenges of today.      

Against a backdrop of countless challenges for nonprofit leaders and Board members, strategic planning can sometimes seem like a daunting undertaking. However, if you begin with the 3 P's of Purpose, People, and Process, you can set your organization on a path towards a successful outcome. If you or your team are ready to think about strategy, let's connect!

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