The Nonprofit FAQ

What are the current trends in philanthropy in this tough economy?
Since 1998 the Center on Philanthropy at Indiana University has conducted a semiannual survey on trends and expectations in philanthropic giving. The Center's semiannual press releases on the Philanthropic Giving Index are available at http://www.philanthropy.iupui.edu/News/announce.aspx. Full PGI reports are available only to premium service members, and are found at http://www.philanthropy.iupui.edu/Research/fundraising-climate.aspx along with the related (free) Briefing on the Economy and Charitable Giving.

The Center on Philanthropy writes:
The Philanthropic Giving Index (PGI) reveals current trends and future expectations in American philanthropic giving. Nonprofit professionals reported the lowest overall level of confidence in the fundraising climate for U.S. charities in over a decade. The PGI, similar to a Consumer Confidence Index for charitable giving, is now 64.8, a 21.7 percent decrease from just six months ago and a 27 percent decrease since December of 2007. In the 10 years since the study began in 1998, the overall PGI has ranged from a previous low of 72.3 in summer 2003 to a high of 94.6 in December 1999.

Regarding the PGI, Kathryn Keirouz wrote to ARNOVA-L in January 1999:

We hope that the PGI will make an important contribution to the field by focusing on current and expected donor behavior. Other available major sources of information on giving focus on past donations, involve significant time lags, and do not attempt to tie donative behavior to solicitation strategies.

While the Consumer Confidence Index directly surveys consumers, the PGI is based on a national panel of development professionals deemed to be fundraising experts. The panel is chosen to represent a cross-section of the nonprofit sector in terms of industry, revenue size, and geographic region.
...
In addition to assessing opinion on the nation's philanthropic
climate, the PGI survey also details attitudes on specific fund raising tools and strategies.
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The survey also shows how fundraising preferences and attitudes
vary among nonprofit organizations based on annual revenue size, industry, and donor base.

Kathryn Keirouz, Ph.D. is the former Assistant Director of Indiana University's Center on Philanthropy.

In tough times: A lesson for nonprofit fundraising from the for-profit world


Professor Jack Raiton, a senior fellow in OHSU’s Division of Management in the School of Medicine and seasoned blogger on entrepreneurship, notes that the fundraising climate is not so tough on some start-up companies. Why? According to Scott Ring, general counsel for Bessemer Venture Partners, venture capitalists are being more selective about the type of companies they will invest in, favoring those with the most efficient and insightful models for growth through difficult times.

Similarly, Holly Hall of The Chronicle of Philanthropy observes that the most successful nonprofit organizations are those that have worked hard to diversify their fundraising strategy in recent years. In some cases, this includes starting their own businesses so as not to rely purely on donor generosity.

The lesson here? In these difficult economic times, it is the organizations with the most innovative, agile fundraising strategies that will survive - and yes, thrive.



Jack Raiton's full blog post on "Start-up Fund Raising Climate" is available at http://mstblog.ohsu.edu/index.php/2008/11/10/start-up-fund-raising-climate/.

Holly Hall's article, "Giving's Tough Climate" in the June 26, 2008 issue of The Chronicle of Philanthropy, is available at http://philanthropy.com/free/articles/v20/i18/18002501.htm.


Updated 02/19/09 -- YBL