Some personal relationships last a lifetime. Many of them end, however, and people move on. The same is true in funding relationships. Donors and nonprofits must anticipate and prepare for the eventual end of most grants. Major gifts are the lifeblood of nonprofits — enabling them to pay overhead, hire workers and implement the programs…
Increasingly, charitable donors are interested in “impact investing” with their philanthropically committed capital. They seek more creative ways to align their investments with their missions. Earlier this year, in “All investing is impact investing,” I discussed the growing recognition that grants and investments can generate both financial returns and social impact. In this column, I…
In the United States, nearly $1 trillion is committed to philanthropy — sitting in foundations, donor-advised funds and elsewhere. Donors have transferred ownership of these funds to separate entities and received their tax deductions. Yet only a small percentage of those funds is expended on charitable donations for the public good. The great majority of…
During the holiday season, our mailboxes are overflowing with catalogs, holiday cards — and requests for donations. Our voice message boxes are not much farther behind. At this time of year, when people are feeling particularly generous, nonprofits work hard to raise needed funds for the upcoming year. Although critically important to nonprofit budgets, most…
In 2013, contributions to U.S. nonprofits grew to more than $335 billion — approximately 2 percent of the nation’s gross domestic product. Of that sum, only 5 percent came from corporations. There are solid business reasons why this number should be larger. New studies demonstrate that corporate social responsibility helps not only the world, but…
The first community foundation was created 100 years ago in Cleveland. Within five years, additional community foundations sprung up in Boston, Chicago, Buffalo, Milwaukee and Minneapolis. Today, there are more than 700 community foundations in urban and rural communities across the United States. With more than $50 billion in combined assets, they distribute an estimated…
In international microfinance, small loans are made to help people in developing countries lift themselves out of poverty. This concept also works domestically. In the U.S., nonprofit microfinance organizations help low-income people start businesses, create jobs, alleviate poverty and improve their opportunities. Traditional financial institutions were created to help people who already have money or…
In the philanthropic universe, there are many ways to give. The challenge becomes selecting the tool that best helps donors meet their unique philanthropic goals. The fastest-growing tool in this arena is the widely acclaimed donor-advised fund. More than 200,000 DAFs have been created, with an estimated $50 billion now under management. DAFs are 501(c)(3)…
Being fully “engaged” at work profoundly influences an employee’s willingness to learn and perform, and has real impact on a company’s bottom line. Engagement is defined as an employee’s positive or negative emotional attachment to a job, to colleagues and to an organization. Unfortunately, 71 percent of employees in the United States are either “not…
Millions of generous Americans donate to charities as individuals or as part of a family or business. At the same time, many other people buy into myths about giving — myths that undermine their willingness to give (or give more) to worthy causes. Some of the common excuses I’ve encountered over the years: I don’t…