The Patterson Foundation welcomes Connor LaGrange as its next Fellow

Posted on March 12, 2021 by Andy Ware

By The Patterson Foundation

The Patterson Foundation, in partnership with the Indiana University Lilly Family School of Philanthropy, has selected Connor LaGrange to become its next Fellow. This is the third year of the Fellows Program—a year-long opportunity for aspiring philanthropists to gain experience and learn innovative philanthropic principles while contributing to initiatives strengthening people, organizations, and communities.

The Fellows Program is an opportunity provided by The Patterson Foundation under its Advancing Philanthropic Leadership initiative. This initiative encompasses a series of creative efforts developed in collaboration with the Lilly Family School of Philanthropy—the world’s first school dedicated solely to the study and teaching of philanthropy—to strengthen the capabilities of emerging philanthropic leaders.

Connor LaGrange

“The Patterson Foundation is excited to welcome Connor LaGrange to the Suncoast as the next Fellow,” said Debra Jacobs, president and CEO of The Patterson Foundation. “Over the past two years, the astute Fellows from the Indiana University Lilly Family School of Philanthropy have had the opportunity to immerse in The Patterson Foundation’s approach to philanthropy while investing their knowledge and experience for the greater good.”

Through its partnership with the Lilly Family School of Philanthropy, The Patterson Foundation aspires to share the knowledge and insights gained through its collaborative work with the next generation of community, corporate, and private foundation leaders. Since 2010, The Patterson Foundation has strengthened people, organizations, and communities by focusing on issues that address common aspirations and foster wide participation, along with ways organizations learn and share as they evolve.

“The Patterson Foundation Fellows Program is an unparalleled opportunity to learn and work with a truly innovative foundation,” said Hannah Saeger Karnei, inaugural TPF Fellow and graduate of the school’s Master of Arts in Philanthropic Studies degree program. “Through my time in Sarasota I’ve had the opportunity to grow exponentially both personally and professionally, and I look forward to bringing a new Fellow into this challenging and rewarding experience.”

LaGrange will bring a strong blend of academic and professional experience in the philanthropic sector to his new role. His background includes working with multiple nonprofit organizations to develop and implement educational and human services initiatives. He served in a fellowship with a movement design studio that helps build movements for social change and was an international intern with a nongovernmental organization in Kenya.

LaGrange is expected to earn his Master of Arts in Philanthropic Studies degree from the Lilly Family School of Philanthropy in May 2021. He earned his Bachelor of Arts degree in Communications Studies from the Indiana University School of Liberal Arts at IUPUI in May 2019.

“I am overjoyed at the opportunity to become a part of The Patterson Foundation family and connect with the people in the greater Sarasota area,” said LaGrange. “This fellowship will offer the opportunity for continued learning, sharing, and evolving, and creates a space for me to learn to ask bold questions and chase after making our shared aspirations a reality. I look forward to a year in Sarasota and to working alongside people who are actively changing the world for the better.”

For more than three decades, Indiana University and the Lilly Family School of Philanthropy have prepared students and practitioners to become thoughtful, skillful leaders who inspire change. Students enrolled in its Master of Arts in Philanthropic Studies degree program learn through a combination of in-depth research, study of the history, culture, and values of philanthropy, and hands-on professional practice in areas such as fundraising, volunteering, and civil society.

Beyond the Fellows Program, the Lilly Family School of Philanthropy and The Patterson Foundation have collaborated on additional endeavors through the Advancing Philanthropic Leadership initiative. This includes two learning electives teaching students about network building, values-driven work, systems thinking and the importance of communication. These electives have been offered to students currently enrolled in the Lilly Family School of Philanthropy and its alumni network.

“We continue to be impressed by the innovative, strategic approach The Patterson Foundation employs as it strengthens opportunities for the people and communities it serves, and we are pleased to join them in this ongoing partnership,” said Amir Pasic, Ph.D., the Eugene R. Tempel Dean of the school.

“The Patterson Foundation is committed to engaging and inspiring future philanthropic leaders, and we thank them for their willingness to share their expertise with our students and alumni. As a Fellow, Connor will gain valuable insights and experiences that will serve him well throughout his career, and Connor’s knowledge, ideas, and passion for changing the world will enable him to make significant contributions to advancing the goals of the foundation and its partners.”

LaGrange will join The Patterson Foundation in Sarasota, Florida on July 7, 2021. Future graduates of the Lilly Family School of Philanthropy’s master’s degree program will be eligible to apply for future cohorts of the Fellows Program.

A lesson in board engagement and fundraising

Posted on March 9, 2021 by Bill Stanczykiewicz

By Bill Stanczykiewicz, Ed.D.

An unfortunate comment by a dedicated board member can teach all fundraisers a career-long lesson about the importance of board engagement and fundraising.

The new leader of a struggling nonprofit organization asked board members to think about colleagues, friends, neighbors, and family members who might be interested in donating to the nonprofit. One long-time board member offered to have a coffee-and-dessert event in her home, invite neighbors and other friends, and encourage them to join her as a donor to her favorite charity. After the board member provided this initial burst of inspiration, the new executive director would give specific information about the nonprofit’s programs and how donations would make an impact.

The board member selected a Sunday evening for the event, and many of the invited guests accepted her offer to attend and learn more. So far, so good.

<span style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" data-mce-type="bookmark" class="mce_SELRES_start"></span>The evening arrived, and so did the guests, who mingled for several minutes before being called into the house’s large parlor. With everyone assembled, the board member welcomed everyone to her home, expressed hope that they had enjoyed the dessert and coffee, and offered additional pleasantries before transitioning to the main point of the evening.

“I am so glad that you are interested in learning more about (the nonprofit that she described by name),” the valiant volunteer said. “I have been on this board for a long, long time although–quite frankly–I don’t know what the heck they do. In fact, the organization is rather confusing. Anyway, I hope you’ll join me as a donor, and fortunately, our new executive director is here to provide you with the details you need to know.”

The swirling sound the executive director could hear was not leftover coffee being discarded but the energy in the room going down the drain. The blank looks on the faces of the evening’s guests revealed that any interest they might have had in learning more about the nonprofit had dissipated following the board member’s deflating remarks.

While fundraisers might be quick to fault the board member for her faux pas, any blame needing to be assigned belonged to the executive director. The board member was a volunteer whose only in-person contact with the nonprofit totaled just six board meetings per year. The board member also took the extra step of preparing her home and hosting a pleasant evening on behalf of the nonprofit.

Meanwhile, the executive director was the full-time staff person spending every working day at the nonprofit organization. Therefore, the executive director was responsible for ensuring that the board member was fully informed and fully prepared to welcome her guests with an enlightening message that, instead, was marked by confusion.

Purposeful Boards, Powerful Fundraising

The Fund Raising School offers 30 public courses as well as custom training around the world, and course participants often spend significant time offering questions and concerns associated with a lack of fundraising engagement from their respective board members. This phenomenon is not surprising since, according to BoardSource, only 40 percent of nonprofit CEOs report that their boards are actively engaged in fund development.

The Fund Raising School has responded with a course designed for one staff member (either a fundraiser or the CEO) and one board member to learn practical essentials for recruiting and retaining the right board members while ensuring that the board and the staff are fully aware of expectations for board member donating and fundraising. The two people attend for the price of just one registration fee, and a board member is required to participate so that the course’s learnings can be shared with the rest of the board in a peer-to-peer environment.

In addition, the course is taught in live online sessions, once per week over four weeks, with each session lasting only three hours. This schedule is designed specifically for board members who work full-time and would not be available to leave work and leave home for at least two full days to attend the course.

Nonprofits need to include and oversee fundraising expectations when recruiting and guiding board members, and fundraisers need to ensure that they are equipping their board members for fundraising success. After all, fundraising and coffee and dessert are so much more enjoyable when the board of directors is fully engaged.

Learn more about Purposeful Boards, Powerful Fundraising »

Bill Stanczykiewicz, Ed.D., serves as assistant dean for external relations at the Indiana University Lilly Family School of Philanthropy, where he also directs The Fund Raising School.

What are philanthropists looking for in 2021?

Posted on March 5, 2021 by Andy Ware

By Kaky Grant

As we set our sights and pin our hopes on 2021, philanthropists are looking to the social sector to express their closely held values and solutions to the world’s most urgent problems. What are they looking for as they engage in their philanthropic endeavors this year?

A curiosity about the stickiness of innovation

All sectors saw profound innovation in 2020 as businesses, governments, and nonprofits adapted their models to meet community needs and stay connected. Philanthropists watched in awe of nonprofit leaders who continually adapted their programs over the year. COVID accelerated innovation that had been on the hearts and minds of many in the sector.

Reimagined execution of programs offered creative expressions of organizations’ missions. Philanthropists are curious about the stickiness of these innovations: Will nonprofits permanently keep the changes they made? What makes sense to let go of? Does the culture of accelerated innovation stick around as a driving ethic of the social sector? What investments are needed to support this quick-paced innovation?

Collaboration is key

In the spirit of innovation, many nonprofits sought partnerships to implement their programs in a time of crisis, many of which may have seemed unimaginable before 2020. I have heard many funders say the scale of collaborations is historic as they have received countless collaborative proposals.

Funders noted that partnerships embody the sector’s best characteristics, capturing the spirit of innovation, acting on urgency, leading with humility, and keeping their constituencies first in mind.

Getting proximate

Positioning oneself close to the issues and people most affected by injustices and inequities is undoubtedly not a new philanthropy phenomenon. It is one that has gained much traction in the last year. Philanthropists are interested in building a diverse network of relationships to have a more holistic understanding of a community issue, a societal movement, or a nonprofit sector.

Investing in executive leadership with lived experiences of those the nonprofit serves is an effective strategy for philanthropic impact, a tactic we saw in McKenzie’s Scott’s unprecedented generosity. Similarly, there’s no better way to get to know an organization or build understanding around an issue than to “roll up your sleeves” and volunteer.

COVID has made this more challenging to do safely; donors find creative ways to engage virtually through webinars and Zoom calls. The notion of just passing dollars along to solve problems is viewed as only one tool in the philanthropy toolkit. More informed voices are needed to advocate and build awareness around the issues to bring greater amplifications to dollars given.

Stick to the mission

Ancient Greek philosophers used the words “know thyself” as a guiding ethic, and they still resonate today. The savviest philanthropists use a similar mantra in engaging in their philanthropy as their motivational values guide their choices. Likewise, they expect the same ethic applied within the organizations they support.

During turbulent times, there is a temptation to deviate from mission and vision to find footing in the current environment. Philanthropists are looking to invest in organizations that do what they do best. While the savvy donor applauds innovation and adaptability, they expect their nonprofit partners to stay within the guardrails of their mission.

Invest in solutions to urgent needs

The magnitude of the needs in our world can be overwhelming. There is an urgency to solve issues such as public health, poverty, and climate change unlike ever before. In the last year alone, we’ve witnessed a pandemic, racial unrest, catastrophic wildfires, and a challenge to our country’s democracy.

The narrative of “giving while living” is garnering much more attention. Philanthropists ask themselves “If not now, then when?” and “If not me, then who?” They’re seeking organizations and movements that are addressing the pressing needs of today that also align with their values system.

I am hearing more and more conversations among philanthropists centered on imagining a better world that will be inherited by future generations and how they can effectively deploy their funds today.

A place of hope

Philanthropists are inherently optimistic and believe in the power of humankind to help one another. Philanthropists are looking to engage in the nonprofit sector by giving, volunteering, and advocating as an expression of their hope and optimism they see in each other, their communities, our country, and our world. The social sector offers a bright light and beacon of hope as we find our way forward.

Kaky Grant is a master’s student at the Indiana University Lilly School of Philanthropy. She serves as the principal of Grant Philanthropic Advisors based in Charleston, SC. When not studying or working with donors, she enjoys being with her family, playing outside, and connecting with her nonprofit community.

Donor fatigue; is it real?

Posted on February 26, 2021 by Andy Ware

By: Kristi Howard-Shultz

Over the last year we’ve heard a lot about fatigue—pandemic fatigue, COVID fatigue, Zoom fatigue. You may be experiencing all of these and more including donor fatigue.

To explore this long-standing concept, I visited with Tim Seiler, Ph.D. As a professor, he hears this listed as one of the biggest and most common challenges among fellow fundraisers.

The question is, while you may be feeling it, is it real?

Where and how have you heard this?

Over the last several years giving trends indicate fewer donors are giving more. That said, you may be in touch with less donors more often and be hearing this from them. Honor those donors’ experiences and wishes and dig deeper.

If you are hearing this, now may be the time to send a donor satisfaction survey. On a broader scale, you can then identify causes, work to address the findings, and be sure to prevent donor fatigue moving forward.

Are the majority of your conversations solicitations?

Solicitation is one element of the donor life cycle. Are you neglecting the others?

Are you working on retention?
What can you do to strengthen cultivation and stewardship?
What are you doing to identify new donors and expand your reach?
How do you value and prioritize activities all along the donor life cycle?
How can you build a relationship with donors versus simply having transactions?

In pursuit of process improvements and increased efficiency, you may actually be doing more harm than good. An audit of your current operations plan can help you answer these tough questions. Personally, I like to color code mine so that I can quickly and easily see that I am giving my utmost attention to developing a deep connection with donors.

As a fundraiser, are you experiencing fundraiser fatigue?

In 20 years of fundraising, I have never had a goal lowered. The demand for resources grows all of the time. While achieving this growth is wonderful for your mission, allowing you to serve more and better, it can be a daunting task.

Rather than focusing exclusively on the metrics of fundraising—the bottom line—center your attention around fostering a sense of community among donors to grow giving and retention. Notice if you may be experiencing “death by” events or campaigns. Are you spending most of your time setting up tables and chairs or running virtual event registration?

Work toward the goal of evaluating soft costs for each event and campaign. Soft costs are, arguably, the most important (and most often omitted) figure when calculating net revenue. When staff time is used effectively, everybody wins.

Whether donor fatigue is a myth or fact in your organization, the feelings are real and we can do something about them!

Kristi Howard Shultz, founder of Kristi Howard-Shultz Consulting, is a nonprofit executive that leads with head and heart. With 20+ years of experience working for nonprofits including nationally-known, time-tested institutions like The Boy Scouts of America, Big Brothers Big Sisters, and Boys & Girls Clubs, she has worked in nearly every capacity of fundraising throughout her career. She has a proven track record of success in board and fund development, campaign management, and capacity building. She has built a strong reputation within the community and is sought after for her industry expertise and thought leadership. Kristi is a natural relationship builder who loves to put plans into action. Championing “firsts” for organizations is her specialty.

The outlook for charitable giving

Posted on February 19, 2021 by Andy Ware

After the unprecedented events of the past year, fundraisers, researchers, and nonprofit leaders have many questions about what the upcoming years will look like for charitable giving. In this post, we will explore the outlook for charitable giving in 2021 and 2022 using our forecasting model, and by providing information about how broad economic conditions may alter the philanthropic landscape.

Before we get started, it is important to note that no forecast model can project future conditions with absolute certainty, and all models have a margin of error. While the predictions below are based on scientific methodology, there are limits to the use of such methodology to predict future outcomes.

As multiple studies have shown, forecasts are affected by at least three conditions: the number of future predictions made, unpredictable events or shocks, and the stability of the underlying variables used in the model. By working with relatively stable variables and limiting the number of predictions made, we have created the best possible conditions to calculate these changes.

However, it should also be noted that we are still in unprecedented times, with higher levels of uncertainty than we have seen in the past. No model can factor in certain unforeseeable future events, such as natural disasters and sweeping legislative changes that could arise.

What is the outlook for charitable giving?

After the highly unusual 2020, existing data indicate that Americans should expect broad philanthropic growth in the coming years as long as the Gross Domestic Product (GDP) in 2021, with a slight tapering in 2022, as is currently expected. Many experts and government organizations such as the Federal Open Market Committee have agreed that the GDP is likely to grow in 2021 as long as vaccines continue to be administered as planned.

The nonpartisan Congressional Budget Office (CBO) also suggested that the GDP is on track to recover to levels seen before the pandemic by midyear of 2021, although the high levels of unemployment ushered in with the pandemic are likely to decline more slowly.

The growth in GDP in 2021 is expected for certain sectors such as equipment and software, technology, e-commerce, and healthcare—an extension of the K-shaped recovery that started in 2020.

In order to achieve the highest level of accuracy in our forecast, we partner with the University of Pennsylvania Wharton School of Business, which provides data using the Penn Wharton Budget Model for select economic variables used in producing the estimates.

Conditional on economic growth in 2021, here are the projections for charitable giving in 2021 and 2022, according to our models. We emphasize that charitable giving projections may vary depending on the underlying economic conditions. If the U.S. economy grows more slowly in 2021 and there is continued uncertainty regarding health conditions, this will likely lead to a less favorable outlook for giving.

Total giving is anticipated to rise 4.1 percent in 2021 and 5.7 percent in 2022.

Giving by American individuals and households is predicted to increase by 6.0 percent in 2021 and by 3.9 percent in 2022. Giving by individuals/households includes cash and non-cash donations to U.S. charities contributed by all American individuals and households—including those who itemize their charitable contributions on their income taxes and those who do not.

Giving by foundations is predicted to decline slightly by 1.0 percent in 2021 and then grow by 8.8 percent in 2022. Giving by foundations includes grants to U.S. charities made by all U.S. foundations. Community, private (including family), and operating foundations are among the types included in this prediction.

Giving by estates is predicted to increase by 1.1 percent in 2021 and by 11.9 percent in 2022. Giving by estates includes cash and non-cash donations (estates) to U.S. charities contributed by all American estates—including those that itemize their charitable contributions on their estate taxes and those that do not. Giving by estates can vary greatly from year to year. This volatility is mostly due to very large bequests made by a few estates in a given year. Therefore, a significant increase in giving by estates one year will suppress the rate of growth in giving the following year. The projected increase in estate giving in 2021 and 2022 will hold unless substantially large gifts are made in 2020 or 2021.

Giving by corporations is predicted to increase by 4.3 percent in 2021 and by 6.4 percent in 2022. Giving by corporations includes all IRS itemized cash and non-cash donations to U.S. charities contributed by all American corporations and businesses and their foundations.

What is driving this growth?

Charitable giving is driven by economic factors such as growth in the GDP and in the Standard & Poor’s 500 Index (S&P 500) for all four sources of giving.

Individual and household giving is influenced by growth in the S&P 500, especially giving by those with median and higher levels of income. A large body of work demonstrates, with few exceptions, that as income and wealth increase, so do the amounts that households give to charity.

Estates are also impacted by the health of the stock market. The amount that an estate bequeaths largely depends on asset health at the time of the donor’s passing. If the growth in assets held by estates grows quickly, more will be given in the form of estates.

In addition, giving by foundations is impacted by current and preceding years’ GDP and S&P 500. Since foundations typically budget their giving based on asset growth, trends in the prior year’s S&P 500 impact giving in the current year. Finally, corporations are impacted by the growth in the GDP and S&P 500, which represent the health of many of the largest corporations.

Factors that could potentially influence the forecast

The availability of vaccines for COVID-19 and the timeline for when they will be received may have an impact on the economic outlook. For instance, the International Monetary Fund improved their economic outlooks for 2021 in January 2021 as compared with October 2020, based on the hope that vaccines would largely be distributed in advanced economies by summer 2021 and the rest of the world by the end of 2022.

However, experts from the IMF acknowledge that the coming years bring increased uncertainty, including new variants of the virus that causes COVID-19, and policy challenges as countries await an end to the pandemic.

Market volatility could also have an impact on the forecast. However, some experts think that rapid changes to the market similar to those seen in early 2021 are unlikely in the future, especially given new tools that hedge funds may use to identify unusual market activity.

In addition, a statement by the U.S. Securities and Exchange Commission addressed recent volatility in the stock market and announced a plan to partner with regulatory organizations to review the recent events and investigate any potential wrongdoing.

In 2021 and 2022, donors may respond to potential policy changes ushered in by newly elected federal and state representatives. At the federal level, President Biden’s tax plan, first presented during his 2020 campaign, aims to increase federal revenue by increasing taxes on high-income households and corporations while simultaneously reducing the tax burden on lower- and middle-income households.

The plan focuses on increasing tax revenue by increasing the tax rate for the highest income bracket, increasing social security taxes, changing capital gains taxes, capping itemized deductions for high-income households, and expanding the estate and gift tax.

Some analysts estimate that the changes in Biden’s tax plan would dampen charitable giving, while others contend that aspects of the law such as the increase on capital gains taxes would be an incentive for individuals to give more to charity.

The plan also proposes repealing provisions of the 2017 Tax Cuts and Jobs Act that were estimated to negatively influence charitable giving such as the $10,000 cap on state and local taxes. However, the lower cap on itemized deductions and the return of the Pease amendment would lower the value of the charitable deduction for some high-income itemizers, and may dampen giving.

New legislation may also have an impact on charitable giving in the coming years. For instance, in October 2020, philanthropist John Arnold and professor Ray Madoff launched the Accelerate Charitable Giving initiative, which advocates for changes to tax law to encourage private foundations and donor-advised fund account holders to give more to charity each year, and recommends a non-itemizer deduction for charitable giving.

Other organizations, such as the Minnesota Council for Nonprofits and the Institute of Policy Studies, are also arguing for new regulations and government incentives to encourage charitable giving. These proposed changes to policy could shift charitable giving in 2021 and 2022, making this an important area to watch.

Note: All growth rates are based on predictions for giving in inflation-adjusted 2019 dollars using 2020 as the base year.