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The outlook for giving

By Sponsor Insight

By Una Osili, director of research, Lilly Family School of Philanthropy

Looking for some good news to start off the year? Nonprofit organizations and the people they serve can find encouragement in the anticipated charitable-giving climate.

Giving in the U.S. will grow by 3.6 percent in 2017 and by an additional 3.8 percent in 2018, according to The Philanthropy Outlook 2017 & 2018 produced by Indiana University Lilly Family School of Philanthropy researchers and presented by Marts & Lundy, a leading fundraising and philanthropy consulting firm. The Outlook generates projections for year-to-year growth rates in overall giving; giving by type of donor; and giving to education, health, and public-society benefit nonprofits.

All types of donors are expected to increase giving in both years:

  • Growth in giving by foundations will lead the way (5.9 percent in 2017 and 6.0 percent in 2018).
  • Estate giving is expected to increase by 5.4 percent this year and 5.2 percent next year.
  • Giving by individuals is predicted to grow 3.0 percent and 3.2 percent respectively.
  • Giving by corporations will lag behind the other sources of giving, rising by just 2.4 percent and 2.7 percent respectively.

Health, education and public-society benefit organizations — the three types of nonprofits addresses in the report — are all expected to see considerable. Giving to health is predicted to grow by 8.5 percent in 2017 and 7.9 percent in 2018. Giving to education is projected to rise 6.3 percent in 2017 and 6.0 percent in 2018, continuing recent years’ trends. Philanthropic support for the public-society benefit subsector, which includes United Ways, human and civil rights nonprofits, national donor-advised funds, and other similar types of organizations, will also be strong, with growth of 5.2 percent and 5.4 percent, respectively, boosted in part by continued growth in contributions to donor-advised funds.

Marts & Lundy President and Chief Executive Officer Phil Hills counsels that “The increase in philanthropic support across the entire sector provides organizations with the opportunity to increase services in a time of expanding need. For education and health, access and innovation will likely be significant issues to address. Student debt, rising costs of patient care and the need to continue funding for life-changing research will continue to be focal points for giving.”

The Outlook indicates that continued growth in the overall economy, as reflected in the value of stocks, Gross Domestic Product (GDP) and household income, will drive the rise in philanthropic giving this year and next. Explanations of the economic factors and conditions likely to influence the predicted changes, implications of the results, and suggestions for nonprofit professionals and fundraisers in light of the anticipated giving climate are included in the report, which is available free of charge at www.philanthropyoutlook.com.


una Una Osili is director of research and professor of philanthropic studies at the Indiana University Lilly Family School of Philanthropy and professor of economics at IUPUI.

Considerations for choosing your nonprofit’s fiscal year end

By Sponsor Insight

By Nikki Kubly, director, BKD

Throughout the years, I’ve received questions from not-for-profit organizations (NFP) regarding the costs and benefits of changing to a fiscal year-end. I’ve seen organizations transition from Dec. 31 to fiscal year-end for many reasons, but the overarching motive is the budget challenge. Many organizations with individual-driven contributions receive a majority of revenues in the fourth quarter of the calendar year. With a calendar year-end, many NFP organizations are waiting for generous donors to contribute last-minute for personal tax reasons.

This article touches on some of the benefits and costs of changing to a fiscal year-end.

The IRS states a fiscal year should coincide with the organization’s natural operating cycle. These are some example questions:

  • What is your organization’s most significant quarter for revenue generation?
  • Do you rely mostly on individual giving, traditionally taking place near the December 31 year-end?
  • Are you an educational institution where a significant portion of tuition is generated in the fall?
  • Are revenues mostly generated in the summer months,g., zoos?
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Fundraising predictions for 2017

By Feature, Fundraising

Fundraising in the UK received several hammer blows in 2016, on top of a continuation of strong negative currents for some income streams, and uncertainty over Brexit and worries over the US elections didn’t help our donors or trustees confidence either. The resultant mood around our Top Table gatherings of the leading fundraisers was sometimes grim, but as the resourceful and optimistic natures of fundraisers kicked in new trends and possibilities began to emerge on which I have based my predictions for 2017.

Naturally these are also flavoured by our experience as consultants and it may be significant that the first three proposals we have sent out in 2017 are all in response to organisations expanding their international reach in one way or another.

  1. Overseas expansion

So, the first prediction is that international NGOs will step up their fundraising in new countries and new continents. This trend we saw take off in 2016 as we did market entry analysis in Latin American, Africa and East Asia. This is a step change from expansion across Europe which was perhaps stage one in the process of NGO globalisation.

We see this not just as asking local staff to raise funds where they happen to be, but the setting up of fundraising offices worldwide, the training of staff and investment in research and a variety of fundraising techniques.

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James Bond of philanthropy’ gives away the last of his fortune

By Feature, Fundraising

By Jim Dwyer, reporter, New York Times

As it happens, Donald J. Trump is not the only person to announce plans to shut down a personal philanthropy, just the best known.

This is the story of a man who made and kept that same promise.

Nearly five years ago, Charles F. Feeney sat in a cushy armchair in an apartment on the east side of Manhattan, grandchildren’s artwork taped to the walls, and said that by the end of 2016, he was going to hand out the last of a great fortune that he had made.

It was a race: Mr. Feeney was then 81, and Atlantic Philanthropies, a collection of private foundations he had started and funded, still had about $1.5 billion left. Flinging money out the window or writing checks willy-nilly was not Mr. Feeney’s way.

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On philanthropy: Seven trends in philanthropy to expect in 2017

By Feature, Fundraising

By Bruce DeBoskey, The DeBoskey Group, The Denver Post

Last year was a great year for philanthropy. It included record levels of giving and impact investing and more strategic approaches to charitable efforts. This year, 2017, will likely launch its own unique trends. I’ll be watching for these highlights:

1. Reduced tax incentives for giving

Many knowledgeable observers predict that Congress will reduce income tax rates for the wealthy — thereby decreasing the tax savings from charitable deductions. Many also expect the estate tax will be eliminated — reducing the tax incentive to make final charitable contributions.

Some predict the new administration will seek to limit or even eliminate charitable deductions. Others expect that changes will be made to donor-advised funds — implementing payout requirements similar to those required of private foundations.

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Summer 2017: Asking some big questions

By Sponsor Insight

By Jamie Levine Daniel and Suzann Lupton, School of Public and Environmental Affairs at IUPUI

Creative placemaking refers to a collaborative process we can use to help shape public spaces in order to maximize shared value. More than just promoting better urban design, creative placemaking facilitates creative patterns of use, paying particular attention to the physical, cultural and social identities that define a place and support its ongoing evolution.

Installation of public art, such as the murals along the sides of building in the Mass Ave. District, and community beautification projects are just a couple of examples of how Indianapolis has embraced this evolving field.

With community-based participation at its center, an effective placemaking process capitalizes on a local community’s assets, inspirations, and potential, and results in the creation of quality public spaces that contribute to people’s health, happiness and well being.

Many organizations across the state are interested in helping to build strong, creative communities. Not as many, however, understand the physical, financial and human resources needed to lead these efforts.

To address this need, the Indiana Arts Commission recently created the Capacity Building Partnership Program. The goal of the program is to develop and support initiatives that “further develop the professional skills of the staff of cultural organizations, community leaders and individual artists” and strengthen the connection between people and the places they share.

One project of this program is a placemaking capacity-building workshop organized and hosted by SPEA at IUPUI and presented by several Indiana organizations with deep knowledge and experience in placemaking. One goal of this workshop is to move the discussion of programs and service provision away from inputs and outputs, and toward a broader conceptual discussion.

Of course, understanding the basics is important and questions of interest include: Should we do this? Who is this for? Who wins and who loses if we allocate resources here? If we decide to move forward with an initiative, what happens after the program ends? How will we know if the initiative did what we wanted it to do?

To address these questions, the workshop will include a Creative Placemaking 101 session and “Lighter, Quicker, Cheaper,” a session designed to generate low cost, introductory creative placemaking actions. Local stakeholders Big Car, Prosperity Indiana, the Harrison Center, the Hamilton County Convention and Visitor’s Bureau, the Polis Center, Indiana Housing and Community Development, the Office of Community and Rural Affairs are among the organizations that will help lead those discussions.

Additionally, the workshop will examine some of the assumptions that are made about programs and service delivery; hone external and political environmental assessment skills (e.g., asset mapping, building social capital, assess the political climate, creating alliances); and building networks that cross local, regional, demographic and wealth boundaries.

The workshop’s focus is on arts and culture, using the lens of creative placemaking, but this approach can be used to examine public and nonprofit service delivery across subfields.

If this piques your interest, keep an eye out for the early summer 2017 event. We will have complete details of time, location and registration information finalized in January.


julie Jamie Levine Daniel is an Assistant Professor of Nonprofit Management at the IU School of Public and Environmental Affairs at IUPUI. She holds a doctorate in public policy and management from the John Glenn School of Public Affairs at Ohio State University.

suzann Suzann Lupton is a Clinical Assistant Professor of Nonprofit Management and Director of Academic Affairs at the IU School of Public and Environmental Affairs at IUPUI. She is a doctoral candidate in philanthropic studies at IUPUI and a graduate of the Robert H. McKinney School of Law.

Bouquets make a difference

By Feature, Programming

By Lynn Sygiel, editor, Charitable Advisors

At Random Acts of Flowers (RAF), recipients of the arrangements are touched and surprised.

“The calls we get from these recipients, they just make you weep because you know what that arrangement looked like. You know it was not a big extravagant bouquet, it was a tiny little happy, made-with-love arrangement to a stranger,” said Alison Kothe, Indianapolis’ RAF executive director

One Eskenazi Hospital patient called the week after a delivery and left a voicemail saying, “‘They’re making me go to this rehab place way out on 38th Street, but they cannot make me not take my flowers. They may kick me out, but I’m taking my flowers.’ It was so cute, and it was wonderful to think that a week after we made the delivery, her flowers were still well enough to go to the rehab place,” said Kothe.

Volunteers have a similar reaction. Recently two Indianapolis-based Avant Healthcare employees were involved in a corporate team-building activity.

Their experiences were similar.

“By the end of the day, after you’ve sorted through all that has come in, it’s beautiful to see all the “new” flowers put together that are ready for bouquet arrangements. It was so much fun volunteering at RAF,” said Abby Flick, an Avant Healthcare employee.

“What an amazing organization. I love the idea of brightening up the day of someone in need with beautiful flowers,” said her colleague, Jamie Burns.

How does Random Acts of Flowers choose its cities?

Founder Larsen Jay said there are four things they look when selecting cities.

  • Is it a place where a lot of events are held? Galas?
  • Is there access to health care facilities?
  • Is the community known for philanthropy and volunteers?
  • Is there potential for long-term sustainability?

Each new branch gets help from the national organization to set the course. With an eight-year track record, Kothe said they know what works and doesn’t. work. Each potential local site has to present a plan to the national board for approval.

“They know what doesn’t work. They’ve been very helpful steering us away from doing things that people suggest that they know are just not going to fly,” Kothe said.

Marketing materials are provided for each local site from the national office, helping provide a consistent look from bureau to bureau.

According to RAF, each arrangement costs $17, which includes overhead costs. Indianapolis raised $100,000 from donors before it opened its doors. Start-up costs vary from city to city, and depend on a lot of factors, including real estate. In the first year, Indianapolis gets $50,000 each quarter from the national organization to help ensure the branch’s success.

Locally, one way each bureau raises income is through sponsorship cards., the cost of which can be underwritten by companies and organizations. Each bouquet is delivered with a card that includes the volunteer who made the arrangement and the source of the flowers.

Kothe has a wish list for the organization:

  • An individual with clout with Roudebush Veteran Affairs Medical Center, so that RAF can begin to deliver arrangements to the veterans.
  • Community groups willing to donate vases. Must be between 4 and 9 inches tall.
  • Six corporate sponsors for delivery cards for the six months remaining in RAF’s fiscal year.
    Cost: $1,000 per sponsor for 1,000 cards
  • A sponsor to underwrite the annual cost of “gas money” for the RAF van. Cost: $3,000 annually
  • An individual or sponsors to underwrite the cost of the composting effort.Cost: $5,000 annually
  • A sponsor for RAF’s volunteer appreciation event.Cost: $1,500

If you are interested in contributing, visit http://indianapolis.randomactsofflowers.org or email Alison Kothe at alison@rafindianapolis.org

The healing power of flowers

By Feature, Programming

By Lynn Sygiel, editor, Charitable Advisors

Over the ages, flowers have taken on symbolic meanings. Ancient Greeks, Romans, Egyptians and Chinese refer to the use of flowers in their stories and myths. The Greeks considered flowers to be of particularly high importance and associated them with the gods.

But the language of flowers, floriography, can convey simple and complex messages. Random Acts of Flowers (RAF), a nonprofit started in 2008 in Knoxville, Tenn., uses flowers as part of its simple mission: improve the emotional health and well being of individuals in health care facilities by surprising residents with recycled flowers, encouragement and personal moments of kindness.

The Indianapolis bureau, the organization’s most recent, opened in October. Renting space on East 54th Street on the city’s Northside, its purple storefront is an eye catcher. The response has been unbelievable, according to Alison Kothe, Indianapolis’ executive director. Kothe was hired in June to launch the operation, and since then, has focused on the joy of giving flowers.

[content_box box_type=”normal”]Locally, weekly flower donations come from McNamara, Kennicott Brothers Wholesale, Marvin’s Wholesale, FTD/Proflowers, Fresh Market, Flanner & Buchanan, Crown Hill Funeral Home & Cemetery, Royal Creations, Conkle Funeral Home, Leppert Mortuary, Laurel Hall, Posh Petals, JW Marriott, Lilly Lane Flowers and George Thomas Florist.[/content_box]

While she admits the logistics are complicated with a lot of moving parts, the idea of delivering flowers to people in need is not. “I call it a deceptively simple concept,” she said.

Living in Knoxville, Tenn., in 2007, RAF founder Larsen Jay landed in the hospital after a life-threatening accident. As a young filmmaker in his 30s, Jay didn’t typically receive flowers. But while recovering, he noticed how flowers sent from friends gave him a psychological boost. He also realized during his stay how many people on his hospital floor didn’t receive flowers and had few visitors.

So the next year, he founded Random Acts of Flowers, an attempt to make a difference for those in need. An RAF survey revealed that 81 percent of recipients surveyed had received no other flowers. Recent research also shows that flowers help reduce the length of hospital stays and lowers blood pressure.

RAF now has five branches – Knoxville, Tampa Bay (2013), Evanston, Ill., (2015), Menlo Park, Calif., (2015) and its newest in Indianapolis.

Why Indianapolis? Five years ago, Betty Stilwell, then chief philanthropy officer at IU Health, mentioned the organization to Kothe. Stilwell said she had been talking with Jay Hicks, president and CEO of Prime Care Properties and Management. After meeting RAF’s founder and joining its national board, he thought Indianapolis was ready to become involved.

“Hicks was really the mover and shaker behind the Random Acts of Flowers in Indianapolis,” Kothe said. Once the commitment was made, things moved quickly. The first seed-money house party was in March of this year, and the new 501(c)3 moved into its space in September and started deliveries the next month.

As of early December, over 1,245 arrangements had been delivered to area hospitals and nursing homes.

In July, Kothe and Lindsay Potter, RAF’s program manager, traveled to Knoxville for training. Immersed in the details of the operation, they had a series of hands-on trainings. And one thing they learned was to be cognizant of the differences between delivering to a hospital or a nursing home.

“One of the things that I thought was particularly impressive about the Knoxville ethos is that you cannot obviously deliver to entire hospitals in a single delivery, but nursing homes are different. It’s more of a community, and we want everybody to have an arrangement,” she said.

“Ideally, in the best of all worlds, all of our deliveries would go to people in need, but because of the nature of hospitals, we have no idea who’s going to be in what room,” she said. As the organization gets rooted, Kothe wants to work more closely with hospital personnel to identify patients who really need a boost.

Another group that’s on the priority list is the veterans hospital. In all RAF branches, Veterans Day has special significance. Locally, Roudebush Veteran Affairs Medical Center is not yet on board, but Kothe is hopeful that an influential community leader can help her expedite the approval.

“It’s a shame, but we’re plugging away with the local staff through the bureaucracy. Vets are by far the most appreciative — not only are they in the hospital for longer periods of time, but almost all of them are far away from family. If ever there is a constituency that could benefit from all elements of the effort — the color, the joy, the interaction with a person being kind — it is vets,” she said.

Volunteers make up the nonprofit’s workforce. So far, 130 volunteers are orientated and trained. Potter would like that number to be 250.

In its first year, the group plans deliveries twice a week of 50 to 75 arrangements. Its first crew of 10 volunteers had a production goal of 100 arrangements or 10 per volunteer. But no matter how enthusiastic the group, Kothe said, after seven arrangements, the enthusiasm wanes. What she and Potter don’t want is for the task to become drudgery.

After potential volunteers complete an application online, they attend an hour and a half on-site orientation and training session. With a small conference room, Potter likes to limit the group to seven, with a maximum of 10. Training sessions are offered on days when volunteers are arranging, so that each new volunteer can also get hands-on training. New sessions are planned this month and in January and are posted on RAF’s Facebook page.

“If people want to do arranging, then the first time they do an arrangement, we have them work with Emily, who’s our program coordinator, and comes from a floral background,” said Potter.

Corporations have also found value in volunteering. Avant Healthcare is one that recently took advantage. The company encourages employees to give back to the community. Besides annual volunteer hours, at the Indianapolis-based company, departments can take advantage of a team-building activity.

Pam Schiefelbein, director of strategic operations and training at Avant Healthcare, was part of the team that recently volunteered for RAF. “From the time we walked in the door, to the minute we left, we felt welcomed and appreciated. As we learned more about the nonprofit, we realized that our goals were identical — we each want to have a positive impact on the patient,” she said.

Recycling is key to the effort.

Vases, all donated, have some size requirements, but have come from a variety of sources. Recently, Second Presbyterian Church and Woodstock Country Club offered spare vases. Individuals, too, have shared their excess containers.

“We focus on a certain size. So for instance, a little bud vase cannot be used because it doesn’t create a beautiful arrangement. We cannot use a coffee cup either. If we’re making 100 deliveries, we’ve got to be economical in terms of the size of vase, so we can fit it into the cart,” said Kothe.

Flowers are donated, and picked up by the volunteers. Local donors include florists, funeral homes, grocery stores and event venues.

On Mondays, one of the volunteers heads to Richmond early in the day, where FTD/ProFlowers has its home office. The volunteer fills up the van with boxes and boxes of flowers, and not only brings those flowers back, but also picks up from local contributors.

While some volunteers come with many, many years of floral experience, it is not mandatory. RAF has requirements about height and width and how many flowers for each arrangement, which isn’t necessarily universal in world of floral arranging said Potter.

What isn’t used is composted, with future hopes to generate income.

“Ultimately it would be nice to sell it because amazingly there are very few nurseries that do organic composting. They buy organic compost materials, but they don’t do it on their sites,” said Kothe.

While Potter has worked for other nonprofits, she believes that every week RAF lives up to its mission.

“Every week, we do what we say we’re going to do, and it’s easy to measure it. I’ve worked in places where you’re working hard, and you’re doing all these wonderful things, but you never know if you’re making the impact that you want to be making.”

Locally, RAF plans to further research the effect. Dr. Burke Mamlin, a board member, is a researcher at Regenstrief Institute in Indianapolis, and went on the first Eskenazi Hospital delivery.

“He had read the literature that a growing body of research indicates there is a real psychological benefit. He was so excited about just the visceral reaction that he saw among the patients, that he has taken it upon himself to take this research to the next level. He wants to try to determine what exactly is the biological phenomenon that occurs that creates shorter hospital stays, blood pressure lowering and recovery rates. That would be very exciting,” said Kothe.

Kothe said RAF is a no brainer.

“There’s no downside to it. It’s not political, it’s not religious, and it’s not anything but bursts of joy in people’s lives that have none. And then there’s the personal contact, the encouragement.”

High net-worth donors: Impact on major gift fundraising

By Sponsor Insight

By Angela White, senior consultant and CEO, Johnson Grossnickle and Associates

Major gift donors are crucial for the ongoing sustainability of your nonprofit’s mission. In fact, high net-worth donors often provide as much as 94 percent of the funds for nonprofit campaign initiatives. So, it is important that we understand their giving patterns, preferences and motivations.

The 2016 U.S. Trust® Study of High Net Worth Philanthropy released this week provides nonprofits with valuable insights on this important donor demographic. It is the sixth edition of the biennial study, researched by the Indiana University Lilly Family School of Philanthropy and U.S. Trust.

The report surveyed 1,435 U.S. households with a net worth of $1 million or more (excluding the value of their primary home) and/or an annual household income of $200,000 or more.

On Dec. 7, I have planned a webinar with Una Osili, Director of Research at the Indiana University Lilly Family School of Philanthropy, and Claire Costello, Managing Director of the Philanthropic Solutions Group at U.S. Trust. We will review in depth the findings and discuss how nonprofits can use this data to structure their major gift fundraising program. Please register now to join us!

In the meantime, here are 10 of the key findings from the report:

  1. High net-worth (HNW) Americans are exceedingly generous, with more than 91 percent of HNW households donating to charity in 2015, far surpassing the 59 percent of donors in the U.S. general population.
  2. The average gift size of HNW households ($25,509) is 10 times greater than general population households average gift ($2,520).
  3. The volunteer rate among the wealthy (50 percent) is double that of the general population (25 percent). This is an important figure, as the study found 84 percent of wealthy individuals donate to at least some of the organizations where they volunteer and volunteering HNW households gave 56 percent more than those who did not.
  4. Most HNW households intend to continue to give at this generous level in the future (55 percent) or even increase their giving (28 percent) in the next three years. Just 3 percent of HNW households plan to decrease their giving in the next three years.
  5. High net worth donors gave to an average of eight different charities and a variety of causes. “Basic Needs” were the charitable category supported most frequently, with 63 percent of HNW households having donating to those charities in 2015, followed by religious (49.6 percent) and health charities (40.2 percent).
  6. Religious and basic needs organizations received the highest share of HNW charitable dollars in 2015. Religious organizations received 36 percent of overall dollars given, basic needs followed at 27.9 percent and education received 12.4 percent.
  7. High net worth households were motived to give primarily because they believe in the mission of the organization (54.1 percent). Other top motivators were believing their gift can make a difference (44 percent) and personal satisfaction (39 percent). Only 18 percent of donors said they were motivated to give because they would receive a tax benefit.
  8. HNW donors indicated they believe charitable giving (45 percent) and volunteering (31 percent) have the greatest potential for positive impact on society, far above voting for a political candidate (13 percent) or impact investing (3 percent).
  9. More than half (54 percent) of the HNW donors indicated that they are concerned about the impact their donations may be having, and 78 percent indicated they don’t follow up with charities to evaluate the impact of their donation.
  10. High net-worth donors envision themselves making a charitable bequest, indicating that they expect to leave 12 percent of their wealth to charities – an important beacon of future planned giving opportunities for nonprofits.

angela-whiteAngela E. White, CFRE, has been instrumental in JGA’s success since 1996, when she joined the JGA team. In 2011, she became CEO of JGA, responsible for providing day-to-day leadership to the firm and guiding the JGA staff, while continuing to provide tailored consulting services directly to our clients. White has a high level of expertise in philanthropic consulting in healthcare, education, social services, arts, and faith-based organizations. She also has considerable depth in strategic planning and data analysis.

Design thinking: a human-centered approach to transform work

By Sponsor Insight

By Teresa Tatum, marketing manager, SmallBox

The reality of modern business is one of ever-accelerating evolution and change.

New technologies can uproot and transform entire industries, from new service models to new devices to new ways of working. These realities put tremendous pressure on organizations to adapt quickly.

But evolving just to keep up can be messy and aimless. Rethinking your business, however, should be intentional — and that’s why we at SmallBox use the design thinking process.

Design thinking is a problem-solving methodology that puts people — specifically, your audiences — first. One of the benefits of this human-centered approach is that it’s empathy-heavy on the front end.

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