IRF Update - July 5, 2012

Upcoming Free Webinar: How to Benchmark with the IRF Data Book

CASE will offer two free 30-minute webinars this July on how foundations can use data from the FY11 IRF Data Book Survey to benchmark against their peers. Register for one of two webinars below:

• Tuesday, July 24, 3 p.m., ET
• Thursday, July 26, 3 p.m., ET

Webinar participants will learn how to select benchmarking peers, create charts and graphs and generate comparison data using the CASE Benchmarking Toolkit.

Important note: To participate in a free webinar and access the CASE Benchmarking Toolkit, your foundation must have completed the FY11 IRF Data Book Survey. If you have any questions, please contact Heather Harmon at hharmon@case.org or 202-478-5622.

CASE plans to launch the FY2012 IRF Data Book Survey in late August or early September.

Report: Charitable Giving Climbing Out of Great Recession-Fueled Trough

Charitable giving from individuals, bequests, corporations and foundations in the United States grew from about $287 billion in 2010 to more than $298 billion in 2011, an increase of 4 percent in current dollars, according to recently released results by Giving USA Foundation. Giving to education rose 4 percent to nearly $39 billion.

Giving USA Foundation Chair Jim Yunker says the results indicate that charitable giving appears to be "climbing out of the trough that resulted from the Great Recession."

However, charities still face ongoing challenges, according to Patrick Rooney, executive director of the Center on Philanthropy, which is a research partner of Giving USA Foundation.

"In the past two years, charitable giving has experienced its second slowest recovery following any recession since 1971," Rooney says.

CASE President John Lippincott says the Giving USA figures for 2011 were in line with the 4.4 percent increase CASE members predicted in the January 2012 CASE Fundraising Index.

"I think our members have adjusted to the reality, which is modest growth in giving," Lippincott says. "However, giving is growing again, and our members are predicting 4.6 percent growth in the 2012 calendar year, which will take us back to the high point in 2008 of $31.6 billion in current dollars."

He adds, "Last year, I described the mood as cautious optimism with emphasis on the caution. This year, I would place the emphasis on optimism, although still cautious."

Key findings of the report:

• Individuals accounted for 73 percent of total giving-nearly $218 billion.

• Individual giving as a percentage of disposable personal income remained at 1.9 percent in 2011, the same as in 2009 and 2010.

• Giving by corporations was flat at $14.55 billion when compared to the 2010 estimate. This represented 5 percent of total giving.

• Gifts from estates were an estimated $24.41 billion in 2011, a 12.2 percent increase over 2010 and 8 percent of total giving.

• Grant-making by private, community and operating foundations increased 1.8 percent in 2011 to $41.67 billion. Giving by foundations represented 14 percent of total giving.

• Educational organizations received 13 percent of charitable donations in 2011.

Giving USA's annual estimates are based on econometric studies using tax data, government estimates for economic indicators and information from other research institutions. Sources of data include the Internal Revenue Service, CASE and others.

Nonprofits Say Annual Giving Revenue, Donor Numbers Grew in FY2011

Nearly 70 percent of respondents to a new survey on annual giving say their organizations raised more during fiscal year 2011 compared to 2010, and more than 60 percent say they saw an increase in the number of donors.

The 2012 Survey of Annual Giving Programs by the Annual Giving Network features responses from annual giving professionals at nonprofit organizations worldwide in education, arts and culture, health, human services and environment. Nearly 90 percent identified themselves as educational organizations.

"With a majority of the responding organizations identifying themselves as educational, it's likely that the survey provides a more accurate depiction of this sector," writes Dan Allenby, founder of the Annual Giving Network and assistant vice president for annual giving at Boston University.

A significant finding of the survey is that direct mail appeals accounted for the largest source of donors at most organizations (60 percent) as well as the largest source of annual giving revenue at most organizations (73 percent).

Other key findings:

• Direct mail is viewed as the top strategic priority for annual giving programs with 94 percent citing it as important or very important.

• Personal outreach by staff, volunteer engagement and board giving are seen as higher strategic priorities than any marketing program or tactic with the exception of direct mail.

• Most annual giving programs have relatively few staff members and modest budgets.

• Annual giving is a relatively stable field with the majority of staff viewing it as a potential long-term career.

• New media and technology, such as social media and texting, remain relatively low strategic priorities in the field.

The Annual Giving Network surveyed more than 260 organizations worldwide.

Headlines

Rebuilding Mr. Jefferson's University
Inside Higher Ed, June 27, 2012
The University of Virginia's Board of Visitors unanimously voted to reinstate President Teresa Sullivan, reversing its June 10 decision. The controversy has highlighted the challenges faced by public universities. The article notes that institutions will be examining the structure of their governing boards and how decisions are made. Faculty members at the University of Virginia have called for a faculty voting position on the board.
Full Article 

Question in U-Va. tumult: What should premier public universities be?
The Washington Post, June 23, 2012
The recent controversy at the University of Virginia highlights the tension in the relationship between major public universities and the state authorities who legislate their funding. The accountability movement that has become popular in today's politics is being directed more and more at higher education. University governing boards are expecting institutions to act more like corporations, which some believe goes against the mission of public universities.
Full Article

At 150, land-grant public universities struggle to return to roots
The Washington Post, June 22, 2012
The 150 year anniversary of the Morrill Act is approaching. The Morrill Act, signed into law during the Civil War, established more than 70 land-grant universities to create greater access to higher education in America. State funding has fallen from two thirds 20 years ago to one third the cost of higher education today. Some are pushing to restore support for public higher education.
Full Article

For Many State Budgets, a Year of Relief
Stateline, June 11, 2012
Numerous states were hit hard by the recession and were forced to cut the budgets of some of their services, such as higher education, to close budget gaps. Now budgets in many states have started to show signs of recovery. While the states' fiscal conditions tend to be improving, most states are still concerned by the recession, and many lawmakers are reluctant to significantly increase spending or cut taxes too quickly.
Full Article

IRS Urged to Reduce Paperwork Burden on Charities
The Chronicle of Philanthropy, May 16, 2012
During a hearing held by the House Ways and Means Committee, nonprofit officials told members of Congress that they believe they are spending too much time and money answering questions of the Form 990. The hearing is the first in a series of sessions to gather information regarding nonprofit regulations and oversight. Lawmakers also briefly discussed the charitable deduction.
Full Article

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