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Dec 02

Bold action rescues Joy’s House

By Feature, Fundraising

By Lynn Sygiel, editor, Charitable Advisors

The warning signs were out there, the proverbial perfect storm brewing on the horizon. And Cayla Rosine, the vice president of finance and operations at Joy’s House in Indianapolis, was worried.

“We were drawing on our line of credit, and we’ve never done that before. This was serious,” said Rosine of a critical juncture last summer when Joy’s House found itself staring at a potential shortfall that threatened to shutter the organization just as it was approaching its 20th anniversary.

Joy’s House provides caregiver services for adults with life-altering diagnoses and like many nonprofits, relies on donations and traditional government funding sources. When those funding streams change quickly for the worse, nonprofits and social enterprises generally lack the extra funds on hand to make up the difference. Unlike traditional businesses, it’s hard for a small nonprofit to develop a rainy-day fund when donors and investors expect most of the money to go toward programming.

Joy’s House accepts Aged and Disabled (A&D) Medicaid waivers, the CHOICE program and long-term care insurance. But changes in Medicaid reimbursements, state funding and declines in donations put Joy’s House in a financial bind.

The potential shortfall, however, is only part of the Joy’s House story. The organization’s proactive approach and what it learned about itself and the community offers ideas for other nonprofits seeking to avert a crisis.

Rosine has worked at Joy’s House for 21/2 years and knows what it takes to run the organization: about $1.5 million a year. When the financial picture darkened, she had a hard conversation with Joy’s House founder and CEO/president Tina McIntosh.

The Joy’s House board was hoping things would get better based, Rosine said, on 2018 being better than 2017. Joy’s House has two sites, one in Broad Ripple on the Northside that opened in 2000, and a Southside center that opened in 2014 near the University of Indianapolis.

Joy’s House isn’t unlike many human services nonprofits facing financial challenges. Government contracts have not kept up with the cost of services. Many nonprofits reporting receiving roughly 70 percent of direct program costs, according to a 2018 report commissioned by the Alliance for Strong Families and Communities. Nearly one in eight organizations have liabilities that exceed their total assets.

Sarah Shadday, the center’s outreach coordinator, said according to AARP, Indiana ranks 46th in the nation when it comes to Medicaid and state-funded spending. The state also ranks 51st for long-term services and supports.

“Our society in general does a really poor job of caring for our aging adults. We’re not respecting the amazing people they are now, and the amazing things they have done with their lives. We have people here who have birthed 12 children, we have Ryan White’s primary care physician in this house right now. Just to cast them aside because of a diagnosis. It’s asking a really hard question of the community,” she said. 

Earlier this year, Joy’s House already had made some tough decisions. It reduced staff and eliminated its WIBC radio show, “Caregiver Crossing,” which was transitioned as a podcast in August.

Unfortunately, the Joy’s House board realized, those cost-cutting measures weren’t enough and in late summer, the decision was made to start a critical fundraising campaign, a somewhat unusual move for a nonprofit.

“Tina (McIntosh) would talk about how when they were thinking about the idea of the critical fundraising campaign, she Googled it. There’s nothing out there. Nonprofits just don’t do the critical,” said Shadday.

“The decision to launch this campaign was not made lightly. A critical campaign is not something you can do multiple times in your organization’s existence; it was a one-time shot. It was a pivotal time for Joy’s House and the campaign would help make it or break it,” said board treasurer Lisa Curry, who is a director in Katz, Sapper & Miller’s Healthcare Resources Group, an Indianapolis-based accounting firm.

Board chair Corrine Walter said the board saw the incremental challenges facing the organization and asked three critical questions: Are we needed? Should it be us providing this service? Do people care?

The campaign was covered by local media and in September, the center launched a fundraising campaign. In multiple stories in the local press, headlines painted a bleak picture if the organization didn’t generate the necessary community support.

Stories that appeared in local media in the fall

IBJ: Broad Ripple not-for-profit launches emergency fundraising campaign

RTV 6: Money woes could force Joy’s House to close after 20 years

Indy Star: Joy’s House helps Charlene stay at home. It could close and send her into a nursing home.

Fox 59: Broad Ripple nonprofit needs to raise $559K to avoid closing

WISH: Broad Ripple nonprofit facing closure after 20 years

RTV6: Joy’s House receives $100,000 donation, inches closer to monetary goal to keep doors open

The response and results were overwhelming.

While the campaign’s goal was $559,000, Shadday said by the organization’s 20th anniversary on Nov. 1, it had actually raised $720,000, and that figure is still growing. But she said more importantly, it provided validation.  

“In a typical year we have 700 to 800 donors, which include foundations, donors and individual gifts from people. And in this eight-week time frame, we had over 1,000 donors and half of them were brand new,” she said.

Rosine said she hadn’t seen so much activity that saw even neighbors stepping up.

“There’s a church nearby that called and said, ‘You’re our neighbor. We cannot let this happen.’ The church members took up a special collection and sent a check. It was overwhelming in a good way. It made us emotional at times to see that people do care,” she said.  

Shadday had a similar story. After an article ran in The Indianapolis Star, an Eastside woman drove to Broad Ripple and announced her desire to help the effort. The center’s senior vice president of care services happened to be covering the front desk for the receptionist and talked with the woman who shared how much the organization’s mission spoke to her.

“When the woman left, they opened the envelope and found $1,000 in cash. This woman had never heard of Joy’s House, 24 hours before,” she said.

While the nonprofit has utilized social media, they witnessed its power and ripple effect. They also saw caregivers who already had so much on their plate become part of the army that spread the word.

While the campaign ran from Sept. 1 to Nov. 1, the Joy’s House lobby became a bit of a merchandise center. One local donor, Best Boy & Co., provided jars of whole grain mustard for Joy’s House to sell onsite, and the company sold it in other area retail shops to benefit the campaign. Another donor, Wood Warbler Coffee, provided 50 percent of the proceeds of coffee sold both at Joy’s House and online. There were other in-kind donations as well and local restaurants that provided a percentage of the day’s total sales to benefit the nonprofit.

As board chair, Walter, who is an assistant vice president at Capital Group, saw a positive community response to its internal questions.  

“Our answers to those (internal) questions were all ‘Yes,’” she said.

But it did more than that.

“The critical campaign was a means to shine a light on needs within our aging population, needs for those with a variety of diagnoses, and we wholeheartedly found out the community also said ‘Yes,’” Walter said. “They said ‘Yes’ in their words and in their incredible financial support. We cannot thank our community enough for their support during this campaign for the many years to come.”

According to Rosine, some of the campaign funds eliminated the center’s line-of-credit debt and got the checking account up to 60 days operating and beyond. Additionally, after a board vote this month, a portion will be set aside as a board-advised fund.  

“We’ll have an endowment light. We won’t touch the principal balance unless we absolutely have to, and we’ll have to go through the board for that approval. It’s kind of an emergency fund, if you will, but also the interest that we can generate on that will help us with our direct cost variable, so we have (dollars) to keep the lights on, heat on, things like that that don’t change whether we’re doing well financially or not. That’s the intention for those funds.”

McIntosh, who began a medical leave as the campaign wrapped up, wrote in a blog post: “This campaign has opened up conversations that needed to happen – about partnerships, opportunities, and how to do things better, not just at Joy’s House, but in our city and state. We are excited for the possibilities that will come in the near future. And we are grateful for the team that is being assembled to look at long-term sustainability for Joy’s House.”

What will change?

In Kim Klein’s book, Fundraising in Times of Crisis, she explains that an organization can survive a time of crisis, and even grow, if it addresses the changes that need to be made while not sacrificing its mission. The tendency for most nonprofit organizations is to determine how to cut corners rather than how to raise more money. She encourages the implementation of diverse fundraising techniques as the solution.

So, what are the changes are on the horizon?  

Improve marketing

For the past seven years, a large portion of the center’s marketing budget went toward producing the radio program. Transitioning that to a website-based podcast significantly reduced the cost, and going forward, it will refocus it. Some of its marketing budget will be for referral marketing to ensure the centers are at capacity.

“We really want to get the word out about what we do so that people will know we’re here, which leads to assessments and leads to guests,” said Sarah Shadday, Joy’s House outreach coordinator. “For me, it’s making it strong referral marketing and strong community outreach.”

“Part of what this campaign did and will continue to do is really is kick us in the butt a little bit about marketing – what is important, what are the best practices and how do we keep this campaign momentum that put us in front of all these people who had never even heard of Joy’s House.”

Tell a more relatable story

There is a perception that most of the nonprofit’s clients have dementia. Part of the work is to change that stereotype. In reality, the nonprofit hosts clients who cannot stay home alone because of health and safety concerns. While some are living with dementia, others have multiple sclerosis, Parkinson’s disease, are stroke patients or have other medical challenges.

“We are an adult-care facility. We have guests in their 20s and 30s. Yes, it’s your mom with dementia, but it’s also your brother with a traumatic brain injury or his sister with autism or an aunt with Down syndrome. So really highlighting those individual stories to show that we’re relatable,” said Shadday.

Ongoing fundraising

One of the things learned is that donors need to be cultivated on an ongoing basis. Getting the donors is part of the effort, but donor retention requires long-term engagement.

“We have to be really careful of making sure that people don’t see that campaign as the end all and be all. ‘Oh, now we’re great.’  The campaign helped us to continue, and in continuing, we need your help,” said Shadday.

“This might sound silly, but if we don’t ask people to help us, then they’re not going to. They’re not going to know that we need their support for this important work. I know that sounds really basic, but I feel like in the last few months, we had done so much better at just saying, ‘Hey, remember us, we want to still be here.’ Not in a critical campaign fundraising way, but in a more sustainable ongoing,” said Cayla Rosine, the vice president of finance and operations.

Develop network of other adult day cares

In 2014, the National Adult Day Services Association (NADSA) identified 5,685 day programs operating in the United States, up from 4,601 in 2010. This rapid growth is based on the increasing number of people who are getting older and require community-based solutions. Nearly 78% of these centers are operated on a nonprofit or public basis.

Joy’s House staff said other centers are not the competition and see banding together to support each other’s efforts. To that end, they have just started an internal discussion.

“These are our friends, how do we work together to make each other better?” said Rosine.

Dec 03

Why you need to know about donor-advised funds

By Feature, Fundraising

By Lynn Sygiel, editor, Charitable Advisors

Michele Thomas Dole has spent her career helping others realize their philanthropic dreams.

During the day, she is a senior trust officer at Fifth Third Private Bank. She advises clients about trust administration and estate planning, and builds client relationships to help accomplish their financial goals. For the past 15 years, outside of work, she has been an adjunct faculty member at the Lilly School of Philanthropy and has helped design curriculum for both the school and the Women’s Philanthropy Institute.

She admits much has changed in the field of philanthropy, and her daily work experience keeps her teaching relevant. Among the most striking change during her tenure is the ubiquity of donor-advised funds (DAF).

Last year, the number of donor-advised funds in the U.S. rose to nearly a half million. Some predict that in the next five years, donor-advised funds will be among the top five U.S. charities. Given this growth, she believes nonprofit staffs and boards should be well versed in the nuances of this tool.

“It is astonishing to me how pervasive donor-advised funds are. It feels like they are touching every aspect of charities. They’re just so much more commonplace than they were 10 years ago,” said Dole. And her students have kept pace. She finds that they are wholly aware of donor-advised funds and many have stewarded donations made with these grants.

Established and managed mainly through community foundations and Jewish Federations in the mid-1930s, for decades they were typically known as community trusts. It wasn’t until some 60 years later that national sponsors emerged. Fidelity Charitable was the first, according to Tony Oommen, a planning consultant for the company. He is one of 12 professional advisers for the company and is based in Chicago.

With the advent of national charity sponsors, donors everywhere had access to this tool, however, it wasn’t until 2006 that it burgeoned.

“Prior to the last 10 years, donor-advised funds weren’t really on the radar of most people. This was in part because there was no actual definition of a donor-advised fund in the IRS code until 2006 with the enactment of the Pension Protection Act.

“Before that it was really just a program within a public charity, where a donor contributed and then recommended where those grants were going,” said Oommen, who has been a financial adviser for over two decades.

“I think that’s where it really picked up. People became more aware that this could be something that could simplify charitable giving. In Fidelity’s case, it was based on the idea of democratizing charitable giving. And Fidelity, as a private company, could take company capital and sink it into a nonprofit to provide resources to develop a program.”

Nationally, contributions to donor-advised funds have increased as a share of total giving over the past decade. For 2017, donors contributed $29.23 billion, or the equivalent of 10.2 percent of individual giving.

The 2006 IRS definition is a legal statute, specifically defining an account or program. The Treasury Department followed with a study to determine if there were abuses or potential abuses in order to craft future legislation and regulations. The study results released in 2011 found no major infractions, Oommen said.

Since then, what donor-advised fund sponsors have been waiting for are potential regulations. The most meaningful IRS guidance, according to Oommen, came last December when the IRS released a notice, known as 2017-73. The notice sought public comments on excise taxes in certain situations. Actual regulations, however, have not yet been released.

Interestingly, Indiana the 17th largest state by population, ranks fourth in the U.S. for donor-advised fund charitable sponsors, according to the National Philanthropic Trust report. There are 58 in the state.

In Indiana, the Lilly Endowment began its GIFT Initiative in 1990 to launch and develop community foundations across Indiana, which contributed heavily to the number. Community foundation program officers can be eyes and ears on the ground.

Dole cited a recent family that was in process of establishing a donor-advised fund. They hadn’t determined their primary areas of interest nor the charities they wanted to support. She recommended the community foundation establish the fund because as a local foundation it would know the family’s  ‘backyard.’ A program officer would know whom to call at the local charities if the family wanted to tour to learn more. She also recommended that the family prepare questions before the tour.

“For people who want an opportunity to teach and impart their family’s values on the next generation, donor-advised funds are another tool that can bring families together to do the kind of thoughtful philanthropy they want to.”

According to Oommen, the main reason this vehicle has become more popular is that it cuts down on the red tape and makes charitable giving simpler. It provides one receipt for all annual gifts and reduces the barriers for people who want to make a difference and execute their good intentions. But he sees it as more than that.

“It’s easy and tax efficient,” Oommen said. “The vast majority of people that give money to charity give cash. But cash is the most expensive asset to give to charity because in almost all cases, the donor has had to realize taxable income or just ordinary income or capital gains tax to free up cash to give.”

With a donor-advised fund, contributors can choose appreciated long-term capital asset instead. The charity sponsor can sell it and then liquid assets are available for grant making.

“A lot of people don’t get good advice, and they never really run through the math of what a difference that makes,” he said.

The second reason, according to Oommen, is that an individual can give more in years when it’s tax advantageous to do so and set aside money for future giving. Some people, too, can set aside a retirement distribution by giving income that is being taxed higher while they are still working and set aside for future distributions.

“So the implication of that is that you can give more in a year when it’s advantageous to you to do so from a tax perspective and set aside money for future distributions to charities,” he said. “The whole idea is simplicity.”

In that vein, Fidelity banded together with three other donor-advised fund sponsors – Schwab Charitable, Kansas City Community Foundation and BNY Mellon Charitable — to create a widget. A nonprofit can add it to its website. Called DAF direct http://dafdirect.org/, when hyperlinked, it preloads the charity’s information for the donor and all the donor has to do is key stroke the dollar amount.

Oommen believes this trend of donor-advised funds is going to continue and will increase overall giving. During an economic recession, he said, charitable giving dips. So when times are good, donors can set aside money that can be distributed and help to offset that dip.

But even as popular as these funds are, donors don’t necessarily understand the potential.

“I would say that it is the charity’s duty to understand how to raise funds from people who have these DAFs or will be setting them up. Get educated about it and how the process works. Talk to your donors about why they are using them. Understand the language of those professional advisers.

“Track donors who are making grants from donor-advised funds separately. Somebody who has set up a donor-advised fund account has put some thought in and probably is getting some advice and setting aside money strategically and intentionally for a future distribution.”

It is important, he said, to talk about testamentary transfers using a will or trust. Often he said that gift officers and estate planning attorneys miss donor-advised funds because they aren’t included in the intake questionnaire for a new client.

“It’s just not part of the taxable estate that’s governed.”

But the bottom line is it’s good all around. Oommen emphasizes that Fidelity’s goal is to help increase overall the amount that’s given in the U.S. The percent of GDP – 2.1 percent — has been roughly the same for the past 20 years.

“If that could just move from 2.1 to 2.5 percent of GDP that would be about another $80 million for charitable giving and that’s the concept of growing the pie rather than just slicing up a finite pie.”

 

Aug 06

Mays Family Institute advances deep convictions

By Feature, Fundraising

By Lynn Sygiel, editor, Charitable Advisors

In December of 2014, Bill Mays’ obituary lauded his entrepreneurial savvy and financial skills. Not only had the Indianapolis businessman run successful companies, but he had supported over 100 others by sharing his time, talent and treasures. These weren’t his only accomplishments – he and his wife, Rose, were generous philanthropists who donated to community organizations and educational entities.

So it’s not surprising that when his family and friends sought to honor his legacy and his family’s continued commitment to community and philanthropy, they would seed a project designed to endure.

The name was christened by Indiana University President Michael McRobbie in 2015, and after conversations with Lilly Family School of Philanthropy staff, morphed into the Mays Family Institute of Diverse Philanthropy. And while Lilly Family School’s Dean Amir Pasic didn’t know Mays, together with Mays’ family and Mays’ friend, Lacy Johnson, Pasic shaped the concept and came up with a plan.

“His family and close friend decided that one of the most important pieces of his legacy was his philanthropy, and it should be commemorated and remembered. As they talked to us about memorializing something in his name, it became clear how important diversity and inclusion are in the world of philanthropy,” said Pasic.

 

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A Diversity Speakers’ Series will bring nationally prominent speakers to Indianapolis to examine diversity in philanthropy and nonprofit organizations during the 2018-19 academic year. The events are open to the public. Additional speakers information for the spring will be added.

The Mays Institute Speakers Series schedule.

  • Oct. 4, 5:30 p.m., IMA at Newfields, Helene Gayle, CEO, Chicago Community Trust
  • Oct. 30, 5:30 p.m., Indiana Historical Society, Jim Moore, CEO, University of Illinois Foundation
  • Nov. 6, 7 p.m. Spirit and Place Festival, at Shelton Auditorium, Christian Theological Seminary, Race Matters: Faith & Philanthropy in Black Communities. Starsky Wilson, Dr. Brad Braxton and Aimée Laramore
  • Jan. 15, 2019, 5:30 p.m., Central Library, Susan Taylor Batten, CEO, Association of Black Foundation Executives

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Initially, the Mays family and Johnson endowed scholarships for a graduate and undergraduate student. The first Bill Mays Fellowship for a graduate student will be awarded next year and the Lacy Johnson Family Scholarship for an undergraduate will be given out in 2020. Recruiters have already started attending diverse conferences to spread the word, hoping to attract students from underrepresented populations.

Pasic said there are foundations and other association initiatives to boost philanthropy, but saw that the school could have a unique role.

“It quickly became obvious that there was a need and a demand for research and the academic voice to play a role in complementing that effort. There is also the importance of understanding what’s going on more deeply,” said Pasic.

According to Ann Boyd-Stewart, the Lilly School’s assistant dean of development and alumni relations, the team has worked since 2015 to secure operating funds from businesses, leaders in the community and foundations.

After $250,000 was raised for operating expenses, some funds were used to sponsor a diversity summit in 2017. The goal was to listen and learn from scholars and practitioners on what role the Lilly Family School of Philanthropy could play in advancing diversity efforts throughout the philanthropic sector.

The Institute was officially launched last month. Una Osili was named the dean’s fellow and will conduct research studies on various aspects of diversity and philanthropy. The Mays family made it clear that this is an institute focused on historically underrepresented communities and individuals. It will attempt to glean information about donors from these areas – information that is already understood about traditional donors groups.

For Rose Mays, Bill’s widow, the research that the Institute will focus on is exciting because from her perspective as an academic, research findings cannot only shape practice, but have the potential to help those in the field see the power of giving in underrepresented communities. Not only can it help be more sensitive to those characteristics, but help guide practice as well.

“Much of our family’s giving has focused on advocacy, especially advocacy for marginalized groups. The institute’s focus on diversity, equity and inclusion in the philanthropic sector aligns with those values and allows students, faculty and the community to experience an array of insights and perspectives on these issues,” Mays said.

Mays recognizes the value of philanthropic service and with her family, has fostered many educational opportunities. As a retired professor and administrator at IU School of Nursing, she understands how things work in higher education and the value of an institute.

“The Mays Institute Speakers Series and Dr. Osili’s appointment will increase awareness and understanding of robust philanthropy that is an integral part of all diverse communities,” said Mays. “Not only is there value, but there is power. I have seen the Women’s Institute at the School of Philanthropy and how that really helped shine a spotlight on women’s giving.”

The Mays Family Institute joins the Lake Institute on Faith and Giving and Women’s Philanthropy Institute as a Lilly School of Philanthropy program. All three have office space and dedicated employees, and while the Mays Family Institute is the newest, it is expected to grow.

Based on external information gained at the 2017 summit, Pasic said that research is one area where the Lilly School can lead.

“We are a unique voice by the fact that that we don’t represent a particular constituency — we don’t represent foundations, we don’t represent the fundraising profession, we don’t represent the wealthy or the volunteering groups. We are truly independent, so we are a great place to convene and allow people of different perspectives to come and be heard,” said Pasic.

Included in this first-year effort is the Diversity Speakers’ Series that will bring nationally prominent speakers to Indianapolis to examine diversity in philanthropy and nonprofit organizations during the 2018-19 academic year. The events will be open to the public with the first taking place in October.

This academic year, according to Pasic, diversity and inclusion are the major themes with efforts underway to have faculty incorporate more systematically diversity and inclusion into their courses and the school’s curriculum.

“We have one course on race and justice in philanthropy but we also want to make it go across the whole curriculum more broadly. So it’s become one of our priorities to look at for this year and for the future of the school,” said Pasic. “The family’s interest was a wonderful coincidence.”

Boyd-Stewart said a social justice course is a good example. The school offered a graduate and undergraduate course that studied the topic, but faculty suggested there shouldn’t be just one course, but rather the topic should be infused across the curriculum.

“When teaching about writing an RFP, shouldn’t the type of community have an effect on what is written? What if it is responding to a Latino community? It’s made us really step back and think about how we become more welcoming, not just our school, but in our curriculum,” she said.

The initial operating funds have also been used to send students to different conferences, like the Association of Black Foundation Executives.

Moving forward, the focus is to grow the Council of Advisors, the institute’s governing body. Right now, according to Boyd-Stewart, there are nine members with Lacy Johnson chairing the council. The council’s focus is to raise operating support for lectures, student projects and training programs. They also have a five-year goal to create a $5 million endowment to provide funds for a strong support system, which includes hiring an executive director.

For Mays, becoming self-sustaining is important, but learning more about underrepresented populations is critical.

“My hope is that we’ll know more about their giving and be better positioned to meet their needs and hear what their concerns are in pursuing their philanthropic interests,” she said.

“We really want to engage the community, which is very diverse. It may be a challenge, but I think it’s a working challenge,” said Boyd-Stewart. “The conversations that I am having with people about the Mays Institute are very emotional. After all, the definition of philanthropy is love of mankind.”

Mar 05

Make your move

By Fundraising, Sponsor Insight

By Pamela Clark, director of student services and admissions, Indiana University Lilly Family School of Philanthropy at IUPUI

Maybe it’s a faint but persistent thought that you’re ready for a new challenge. Maybe it’s the not-so-faint feeling that you want to give more of yourself to help others make meaningful change in their lives, or maybe it’s the conviction that you want to help the nonprofit where you already work have greater impact.

Julia Kathary, executive director of Coburn Place, and Kathi Badertscher, director of master’s degree programs and lecturer in philanthropic studies at the Indiana University Lilly Family School of Philanthropy at IUPUI, recognize firsthand those symptoms of the desire to change or advance your career path.

Since she was a child, Kathary has been helping people. “I really enjoyed giving back and making the community better.” She worked in an Evansville domestic violence and sexual assault shelter for nearly a decade. When she moved to Indianapolis in 2004, she faced a crossroads: Should she continue working in nonprofits?

“I decided to stay in the sector,” she says. “I had noticed, though, what difficult work it is to make a nonprofit sustainable over time.”

While working in a domestic violence shelter in Indianapolis, Kathary learned about the executive option in the master’s degree program at the Lilly Family School of Philanthropy, which allowed her to work fulltime while attending online and in-person classes part-time.

“It just clicked in my soul; I knew that’s what I wanted to do,” she says. “I wanted to have that skillset and that education on how to build sustainability.”

Toward the end of the program, Kathary started her own consulting business, working on capacity building and a range of issues, from deepening the impact of an organization’s mission, to addressing organizational sustainability, to program effectiveness and strategic planning. When the executive director position at Coburn Place came open, it was the merging of her passion, experience and education, and she was prepared to step confidently into leadership.

Kathary was a seasoned nonprofit professional before assuming the top role at Coburn Place.  Badertscher, on the other hand, while philanthropically involved throughout her life, worked as a broker in corporate insurance for 26 years before making the leap into full-time philanthropy as her profession. “It was really good for a long time; I traveled, met people, and learned a lot,” she says.

About 12 years ago, Badertscher began re-thinking what she wanted to do. After serving on several nonprofit boards, volunteering in the community, and reaching a turning point in her insurance career, she realized it was time for a change. She found the Center on Philanthropy (now the Lilly Family School of Philanthropy) in a Google search and thought, “I can take a few classes and become a better board member, a more intentional donor, and overall be more systematic in how I approach volunteering and giving,” she says.

Those few classes rolled into a dual master’s degree and then a doctoral degree. Six months after she finished her Ph.D., the school had an opening for a director of master’s programs, and Badertscher was the perfect fit. She loves her new career, and encourages anyone who is thinking of a career change to follow through with it.

Think you’re ready to embark on a philanthropy career of your own? Here are some thoughts to consider:

  • Wondering if the philanthropic sector or a specific cause or issue area is right for you? Badertscher recommends activating your network from all parts of your life who are engaged with nonprofits. Ask about their experiences and conduct some informational interviews. She notes that you are “interviewing for a new field” as much as you are looking for a job.
  • “Do direct service and learn how the sector impacts the community,” Kathary says. Gain practical experience in philanthropy, whether through volunteering, interning or serving on an advisory or governing board.
  • Make a small donation to a nonprofit you may be interested in working with and see how they respond, Badertscher suggests. The thank-you and follow-up communication tell you a lot about the organization and its culture.
  • “Selling a product for a company is different than selling a mission,” Kathary says. “You’re developing a mission that matters and has impact, telling the story of that mission, and getting people to engage with their time, talent, and treasure.
  • “There are opportunities in the sector to utilize many different skill sets and turn them into something within civil society that gives back,” she adds. “So bring that skill set and then get innovative with it. The value of what you can do in the nonprofit sector is just as important to our economy” as what you may be doing in business or government.
  • Assess what knowledge you will need to acquire and explore educational, professional development and peer-learning groups.

Ready to advance? Consider these opportunities:

  • If you’re trying to advance within a nonprofit, it’s likely that you may be managing people in your next position, Badertscher says. “Look for ways to help other people grow” in their own roles and share your expertise, demonstrating your leadership qualities.
  • The nonprofit environment is highly collaborative. Identify and volunteer to work on projects in which you can collaborate successfully with others across your organization.
  • Many nonprofits don’t have time or capacity to revisit their policies on a regular basis. “Rules, systems and processes exist for a reason and have value, but it’s also good to question whether they are out of date or need to change,” Badertscher says. Raising questions and proposing appropriate solutions can show that you understand the bigger picture and have ideas that can help the organization move forward.
  • Evaluate the information and skills you will need at the next level and determine how you will develop the competencies you don’t yet have. Do you need different — or more — formal education? Can you learn what you need to know through professional development, training or workshops? Is there a professional certification that would strengthen both your knowledge and your credentials?
  • Consider membership in a professional organization or peer-learning group that can help you hone your abilities and bring new ideas to your organization.

Whether you want to embark on a brand new career in philanthropy or want to help yourself and your current organization advance, Badertscher advises, “Life is short, and if you have a chance and the desire to change something in your life, do it and you won’t regret it.” 

Pamela Clark is director of student services and admissions at the Indiana University Lilly Family School of Philanthropy at IUPUI. Clark, in the role since 2013, has worked at IUPUI for 19 years in various roles. While working at University College she developed the first online learning communities designed for freshmen students and specifically for adult learners. She enjoys working with students and supporting them in achieving their academic goals.

Mar 05

Are millennials rewriting philanthropy or is the general public?

By Feature, Fundraising

By Lynn Sygiel, editor, Charitable Advisors

It’s now a ubiquitous headline: Millennials are the largest generation. In 2016, they surpassed boomers at 79.8 million.  By 2020, those born from roughly 1980 to 2000 are projected to make up half of the workforce.

For better or worse, millennials may be the most labeled, the most stereotyped generation ever. Millennials, however, are growing up, making waves, and making traditional institutions take notice.

According to the Washington, D.C.-based Case Foundation, the millennial generation is a “tech savvy, entrepreneurial, educated and independent-minded cohort that is driven to ‘do good.’  They are actively reshaping advocacy, engagement, service and philanthropy on a scale that has never before been experienced. As a result, traditional models of engagement, movement building and measurement are evolving to keep pace with their new ideals.”

Derrick Feldmann, the founder and president of the Indianapolis- and Florida-based research firm Achieve, has seen the movement up close. He has led The Millennial Impact Project for 10 years funded by the Case Foundation. The youngest members of the generation are now 18.

“It’s easy to say, ‘Let’s get millennials involved because they’re going to solve it for us.’ At the end of the day, we have to move the general population from interest to deeper action,” said Feldmann, who is a 2001 graduate of the Lilly Family School on Philanthropy. “So that’s where I think we’ve got this challenge is whether this is a generational thing versus we’re in a new stage of how individuals get involved in social issues in our organizations.”

“Our future as a fundraising field is an organization’s ability to look at any individual who has any asset and say, ‘If you want to address this issue, we can do that with you, no matter what you have.’ So that’s the shift. And millennials are driving that shift, but it’s a shift that has started years before that. Millennials by sheer size and force are starting to implement it and make it happen.”

One arena where this plays out is the work environment. Millennials search for companies that are socially responsible and oftentimes check the company’s volunteer policy before applying for a job, according to Chris Herndon, United Way of Central Indiana’s chief marketing and engagement officer.

Part of United Way’s strategy was to find a way to help employers create an environment that offers community engagement, and at the same time introduce the age group to community issues. So three years ago, it started LINC — Lead.Impact.Network.Change — a membership group for young professionals ages 22 to 30. A fall event, called Plant it Forward, had members come together at Flanner Farms and build garden boxes for an urban garden.

LINC is designed to introduce its members to worthy causes and issues that United Way tackles, like poverty, mental health, financial sustainability, homelessness and childhood literacy.

“We hope that this exposes people to community challenges, helps them better understand how United Way is fighting some of these challenges, gives them an opportunity to see how they can connect through us to help address some of these issues. What LINC allows the participants is the try-before-you-buy approach,” said Herndon. “They want to volunteer or experience something first before they give, before they commit financial resources.”

Indianapolis was one of the first to implement this United Way national strategy, now with similar groups in at least 20 other major markets. With much of United Way’s fundraising done in tandem with corporations, the agency is the conduit for that engagement, and at the same time creating a consistent experience across markets.

“If you’re a company that employs in Indianapolis, and Atlanta and Houston, you want to be able to offer something that’s consistent across your company’s footprint,” said Herndon, who is himself a GenXer.

While Feldmann sees merit in courting millennials, he cautions nonprofits not to stray too far from their past initiatives. He urges all organizations to look at their entire supporter base over the past 10 years.

“We know that there are approaches to take with millennials that will work, but the first thing is you cannot go off segmenting unless you understand and have the foundational element figured out first,” he said.

“If anybody raises his or her hand no matter what age, and says, ‘I kind of care about the issue to work on,’ then you can take and move them along a journey of engagement. Get people active in many different ways beyond giving,” he said.

He cites Keep Indianapolis Beautiful and Relay for Life as nonprofits that have sound supporter models by engaging all age groups. These nonprofits help individuals see others who believe in the mission just like them. Relay for Life for the American Cancer Society’s collegiate level and lower has allowed individuals to create their own narratives, rather than define everything.

“Look at it and say, ‘I have to create an opportunity for anybody whether you’re 18 or 80 to care about this issue.’” Feldmann said.  “So I think our job should be, “How do we create campaigns — giving or not — that allow everybody to express their interest, their desire to help others, but yet all participate in the same action as well.”

“Once we get past the interest stage, there are approaches that make us get involved more. If you’re a women’s empowerment organization we need to make a message that works across all that focuses on a belief statement like, ‘This is the year to make girls impossible to ignore. Are you in?’

“Does it mean it’s a millennial message? They created a message based on the belief statement that anybody can get attached to it. So that’s where I think we’ve got this challenge between is this a generational thing versus we’re in a new stage of how individuals get involved in social issues in our organizations.”

And that strategy fits in with the largest cultural change in philanthropy – addressing issues together – according to Feldman.

Helping supporters understand an issue is key. Building Tomorrow, a locally founded nonprofit that builds schools in Uganda, helps its constituency understand its educational issues. On the organization’s website is a tool that helps a person calculate the difference in cost between his or her education versus a student in Uganda.

“If you’re invested in helping constituents understand the issue, to get them active on other things, and then have those opportunities to act, you’re in a pretty good boat. That’s the approach that organizations need to look at,” said Feldmann.

Today with technology, involvement in social-good initiatives is easier because it helps remove barriers. Added to that is that millennials were born with these platforms, so it’s a natural progression, and they should be leading the charge.

“Even though the same premise of doing good is present in all generations, it is that you have the tools and the resources to act upon the impulse and the idea and the notion in this minute that you want to do good.  Are millennials rewriting philanthropy? I would say technology has allowed the general public to rewrite philanthropy.”

Technology, especially social media, can help take charitable giving to higher levels.

“If I wanted to ask a friend for money, I used to have to go walk over, share the envelope and say, ‘I’m riding in a bike-a-thon. Would you sponsor me?’” Feldmann said.

“Now, the greatest thing today is that we have a technology that allows me to do that. The same premise is still there. So the way that we interact with technology has really advanced the philanthropic opportunities we have.”

Liberty in North Korea, a nonprofit that resettles refugees, is one nonprofit that uses technology to connect its mission to millennials. With chapters at universities, it has one of the largest millennial bases in the country. It takes $6,000 to resettle one refugee, and this fall’s online campaign raised $580,000 from 3,800 millennials.

“They are always focused on elevating the individual in all of the narratives. The individual changemaker,” Feldmann said.

United Way’s Herndon knows that crowdfunding is a tool to use when there is an incredible need and sense of urgency, and not for ongoing needs. However, while there hasn’t been a disaster in the area in a while, Herndon said they have a draft plan and the tools in place together if needed. His agency is part of a group of about 30 United Ways nationally that have co-invested in digital strategies over the past two years.

In addition, United Way is working on a cloud-based program in partnership with SalesForce.org in San Francisco that will roll out this summer with some of its corporate partners. Basically an online philanthropy platform, it will allow individuals to manage all of their giving, volunteering and community interests. There will also be rich cause-related content.

But what’s not going to change, according to Feldmann, is sitting down with an individual and saying, “I’ve got an opportunity for you.

“That is never going to change. The person might have gotten to the table via technology, but I still have to use the practices I learned at the Fund Raising school to help you understand it and move forward.”

Feb 06

Why major philanthropists are giving more money to just one cause

By Feature, Fundraising

By William Foster and Alison Powell for Harvard Business Review

In his recent Harvard Law Review opus, President Barack Obama highlighted the yawning opportunity for leaders on both sides of the political aisle to repair the criminal justice system, in part by changing sentencing laws and ending the “school-to-prison pipeline.”

Despite the economic and social benefits, there are fears that reform will not be a priority for the new administration or congressional leaders. Fortunately, private funders are ramping up their efforts to help tackle not only criminal justice reform but also several other social and environmental challenges facing the U.S., including conservation, immigration, and education reform.

Foundations and wealthy individuals are making big philanthropic bets on driving social change solutions at scale. Our research on social change philanthropic investments of $25 million and up found that in 2015 there were 58 such bets; 17 years ago there were just 19. In partnering with many donors and nonprofit leaders over the years, we understand their rationale: It takes a bold commitment to confront some of the world’s most intractable social problems. And while big bets, small bets rarely do.

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Jan 23

Foellinger Invited-Initiative: partnering with nonprofits

By Feature, Fundraising

By Lynn Sygiel, editor, Charitable Advisors

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As foundations have tailored their giving, honed their criteria and determined focus areas, oftentimes their former giving habits are what the general public is not aware.

This is a first of a series of features on Indiana-based foundations and changes in their nonprofit giving.

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Cheryl Taylor knows the effects of thoughtful, reflective grant giving. Since 2001, she’s been president of the Fort Wayne-based Foellinger Foundation, whose mission since its founding in 1958 has been to strengthen organizations in Allen County that serve children and families, particularly those with the “greatest economic need and the least opportunity.”

But, in 2007, the foundation wondered if it could do more than simply write checks to deserving organizations. What if it got really involved and partnered with these organizations to help them succeed?

The Foellinger board decided it was “interested in funding the most adaptive organizations, most effective organizations, the ones that focus on good governance, the ones that focus on good management, the ones that focus on results.”

Thus was born the Foellinger Invited-Initiative, which the foundation believes is creating and nurturing these high-achieving organizations.

“That’s what we think is our niche and where we believe we are meeting donor intent,” said Taylor.

Under the plan, Foellinger takes the lead and invites area nonprofits to learn about its initiative. Extending an invitation doesn’t necessarily mean a nonprofit will be approved for funding, but if it is, a grant portfolio includes multiyear operating dollars, a capacity-building grant and limited capital improvement grants, initially capped at $50,000.

The capacity-building component requires each nonprofit to take a hard look in the mirror. Board members and executive leaders have to complete a detailed self-assessment to identify governing procedures, leadership roles, financial strategies and core missions so that the capacity money can be used most efficiently.

The Foellinger Foundation board approved the 2007 plan, but after the foundation staff spent nearly a year mired in crafting the details, the recession hit. With a dip in revenues experienced by most foundations, Taylor candidly asked her board if it still wanted to move forward.

“And in what was less than a 10-minute conversation, the summary was, ‘If this was the right thing for us to do in July of 2007 when our portfolio was high, it is still the right thing for us to do in November of 2008. It’s either the right thing for us to do or it’s not.’ I was very proud of them at that moment,” said Taylor.

To date the foundation has invested nearly $28.8 million in 23 nonprofits, with no end in sight. With a small foundation staff, and other grant-making responsibilities, not all nonprofits were invited in the initial year.

In the first years, a nonprofit’s size wasn’t a consideration, but Taylor said they learned that it takes a certain number of staff members to complete all that is required by Foellinger. There are mandatory quarterly learning circle sessions, an involved board assessment to determine what to tackle to strengthen an organization and thoughtful reports reflecting on what’s been accomplished using the foundation’s dollars. And there are lots of ongoing conversations.

Taylor and her staff also believed it was important to require Foellinger Foundation board members to annually make two site visits. Typically, Taylor and no more than three foundation board members meet with grantees and the grantees’ board members. Foellinger has a simple, but direct charge to its board: Get to know what the nonprofits have done to strengthen their organizations.

For each site visit, the board is paired differently. “I want different combinations of them because they ask different questions, focus on different things and they hear one another differently,” said Taylor.

“These conversations have been just amazing. I think they give the organization a very transparent insight into the Foellinger Foundation and attaches faces to our board, and in turn the foundation board puts faces to the organization. That’s a culture change,” she said.

The visiting board members must present a report to the rest of the foundation board at quarterly meetings. One of the goals is to help the foundation’s board better understand that the work to strengthen a nonprofit is not the same from organization to organization. Some work on succession plans, others craft strategic plans and still others scrutinize their revenue and how they raise funds, but all have the goal to make their organizations better.

“We are hoping that these organizations achieve financial sustainability and mission impact. That’s what we’re after for now. We’ve provided them all kinds of other assistance through this initiative that isn’t in those grants in order to help them do that,” said Taylor.

Frank Zirille, the executive director of Wellspring, has headed the nonprofit since 2005. The invitation to join the initiative was first extended in 2011, and the social services agency secured a three-year grant the next year. In 2014, Wellspring was reassessed and received another four-year grant, which provides about 25 percent of its general operating until 2018.

Zirille said that the relationship with Foellinger has stoked the organization’s fire to be better. Through this work, he now has an active, informed board that is overall more confident to tackle challenges. And there is a practical application, too. After one of Foellinger’s education sessions, Zirille and his board understood the need to restrict some dollars that could be used to respond to an emergency, and set aside $30,000 for it.

At another learning circle, the group discussed the importance of understanding an organization’s culture. For Wellspring, it led to a document outlining an official “cultural creed.” Zirille, who is retiring in June, said part of the thinking was to prevent future staff or boards from taking the organization in a different direction. They have incorporated it into staff evaluations.

Both Zirille and Andrea Kendall, board chair of Martin Luther King Montessori School, cited Foellinger’s high standards and reporting expectations. Both said in return, they are met with a high level of support.

“It really has involved all of us more deeply and intimately in a dialogue that’s driving us all in the same direction in a way that really wasn’t there before. It’s really forcing us to do the work that sometimes is easily put to the wayside. Along the way there are all these resources and constant check-ins. The consistency of support, and the consistency of accountability to Foellinger has really driven our organization toward success,” said Kendall.

Kendall says the initiative has had a wider effect in the community. Foellinger has brought in high-quality national leaders, giving the sector fresh perspectives.

“It’s created a greater sense of legitimacy for the work that we do as nonprofits and provided us the opportunity to really be more creative, to be more reflective and to create better outputs within our community. That’s definitely something that has changed in our organization and other nonprofits in the area,” said Kendall.

In 2012, Karin Tice, president of Formative Evaluation Research Associates (FERA) based in Ann Arbor, Mich., completed a preliminary evaluation of the Foellinger Invited-Initiative. During her 25 years in the field, Tice has conducted many evaluations, but several things surprised her.

“I think one of the things was the extent of the shift in relationships between funder and grantee. It had been a pretty typical funder relationship: ‘Submit your proposal, then you get your grant, then you start the report, questions, etc.’

“People now feel like it’s a partnership with the Foellinger Foundation and part of the value is that as a true partner, the foundation asked strategic questions. Organizations are able to go back to them and say, ‘We’re really not sure what we’re doing.’ You don’t say that to just any funder,” said Tice.

What also surprised Tice was the level of organizational sharing. Nonprofits have shared succession planning tools, templates for finances and metric tools. The effect has been greater than just for the grantee.

Zirille suggests that the Invited-Initiative organizations need to take responsibility and share these ideas and materials with the broader nonprofit community.

“I think that’s not necessarily Foellinger’s responsibility. The agencies themselves need to figure out ways that we might pass on in a more formal way the things we’re learning and the things we have access to,” he said.

As part a second evaluation, Foellinger funded Tice’s organization to produce a case study for each organization. These were shared with the individual nonprofits and the Foellinger board. Nonprofits can share them more broadly.

“There are really exciting stories. They’re trying new things,” Tice said.

Many of these nonprofits have also changed the way they select board members and acclimate them to the organization. They are looking for more adaptive thinkers and have developed board orientations.

“Part of the value of what has happened is people are asking different questions. And we’re never going to have all the answers, but to ask the questions is so important,” said Tice.

Jan 22

An overview of the Foellinger Foundation

By Feature, Fundraising

Organization: Private charitable foundation created in 1958.

Assets: Estimated $185.1 million market value (as of 8/31/2016 fiscal year-   end).

Annual grants: Approximately $8 million grant payments (fiscal year 2016).

Source of funds:

  • Lifetime gifts from the late Helene R. Foellinger (1910-1987), owner and publisher of The News-Sentinel in Fort Wayne.
  • Proceeds from the estates of Esther and Helene Foellinger.
  • Contributions from the News Publishing Company until The News-Sentinel            was sold in 1980.

Grant focus: The Foellinger Foundation provides grants and technical assistance to strengthen organizations that serve Allen County children and their families, particularly those children and families with the greatest economic need and the least opportunity.

The foundation primarily is interested in:

  • Early childhood development: Young children in Allen County will have  high-quality early childhood education experiences.
  • Youth development: Youth in Allen County will have high-quality opportunities to develop healthy social, academic and emotional attributes.
  • Family development: Families in Allen County will have high-quality   opportunities that foster healthy intra-family relationships.
Jan 09

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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Jan 09

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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