Lexington, KY - Welcome to Geared Giving, a new column on philanthropy. In this column, I will share information on trends in global and local giving, give tips on effective philanthropy, and report on local and national fundraising campaigns.
I'd like to kick off the column by addressing giving in today's economy. With wealth indexes down 20 percent to 40 percent, are donors still giving?
A January survey by Cygnus Applied Research found that more than 52 percent of donors expect to give at the same levels as last year, and only 17.5 percent said they would give less. However, 30 percent are still undecided.
The nation's foundations lost nearly $150 billion in assets last year, or almost as much as they have given away over the last four years, according to a new study by The Foundation Center. This report determined that foundation giving for 2008 nonetheless held steady at an estimated $45.6 billion, falling by just one percent on an inflation-adjusted basis. But most foundations are just beginning to face lower payouts for this year and the next. Likewise, corporate giving faces steep challenges as the bottom line is being slashed across the board.
We are seeing evidence that donors are looking for creative ways to give back. Volunteerism is on the rise among unemployed Americans. Several major law firms across the nation are allowing summer associates and young lawyers to increase their pro bono services rather than have them leave the firms. Some foundations have even been considering gifts of real estate in their portfolios rather than reducing their cash or market positions.
You don't have to look far to see how locals are doing their best to keep giving back to our community. Toyota Motor Manufacturing Kentucky expanded their annual Volunteer Day from two days to five days this year. This meant an increase from 120 team members to about 400 team members. "Normally these team members would be producing vehicles, but due to high inventory levels, the Georgetown plant was idle that week," said Diane Newcomb, assistant manager, community services. The team members performing community volunteerism received their normal pay, but instead of attending classes and other duties at the plant, they assisted a variety of nonprofits around the Bluegrass, including Lexington, Georgetown, Frankfort, Louisville and Berea.
John and Janet Darnell, owners of Caudill's ClimateMaster, are loaning their employees to local charities to keep them busy when work is slow. "Originally, we had a dual purpose in mind," said John Darnell. "We wanted to do something for the community and at the same time provide for our employees in this time - to keep them earning a paycheck. But one of the biggest benefits has been the effect on our employees. It has made them more thankful for what they have." Caudill's employees have gone to eight nonprofits, including Habitat for Humanity, the Catholic Action Center and the Hope Center.
Lexington mom-turned-author JD Lester published her first children's book, Mommy Calls Me Monkeypants, in January. She donated author copies to the Carnegie Center for Literacy and Learning. Lester said she has learned that there is much potential good that can come from having a viable product in the marketplace. In her case, sharing donated author copies is a win-win way to profile her book, while allowing non-profit groups to retain sales revenue. "If a sleep-deprived mom with a silly book idea can give back, I'd say anyone can," Lester notes.
What can you do? First, adjust your thinking. Yes, your portfolio has taken a hit, but continuing to support your favorite charity is still possible. You may be worth less, but don't you still have enough to make a difference to those less fortunate?
Second, consider your skills and talent. Individually or through your company, offer up strategic planning skills, legal, budget or finance knowledge, and marketing talents. Perhaps you have already bought ad space. Why not let your favorite nonprofit use the space for a PSA?
Third, consider collaborating with other like-minded donors. Together, you can achieve even greater impact. For example, Blue Grass Community Foundation put together a group of funders to make emergency relief grants earlier this year. Giving circles are increasing in popularity for this very reason.
Shifting gears, let's talk about the current buzz in philanthropy - the so-called "Mystery Donor." Some $68.5 million in anonymous gifts have been made to at least a dozen universities across the country in recent weeks. It is unknown as to whether the gifts came from the same donor, as in each case the donation is made with the caveat that the beneficiary cannot try to discover the donor's identity. Gifts include $10 million to Michigan State, $8 million to Purdue, and $7 million to Iowa. Southern Mississippi, UNC at Greensboro, and Maryland each got $6 million. The University of Colorado at Colorado Springs received $5.5 million.
All of these schools are headed by women. Since only 23 percent of college presidents are women, the odds are stacked against randomly selecting these schools. Spokespersons for Oprah Winfrey and for the Leona Helmsley estate have denied involvement. Helmsley was suspected initially as her estate gave away $136 million in April to various causes.
Anne E. Nash, a Lexington attorney, is the former CEO of Blue Grass Community Foundation, director of complex gifts for The Nature Conservancy, and now runs MyGivingAdvisor, LLC, a national philanthropic consulting firm. Send philanthropic news and comments to: anne.nash@bizlex.com.