CCS Fundraising

Type: Article

When you hear the term “Donor-Advised Fund” what is the first word that comes to mind? For me, it’s opportunity.

A donor-advised fund (DAF) is a philanthropic giving vehicle established at a public charity. Donors can establish and fund a DAF account by making irrevocable, tax-deductible contributions to the charitable sponsor. Then, they can recommend grants from the DAF to other nonprofit organizations.[1]

Earlier this month, National Philanthropic Trust (NPT), the largest national, independent public charity that manages donor-advised funds, and one of the leading grantmaking institutions in the U.S., published its 2020 Donor-Advised Fund Report and the findings are making headlines.[2]

The Tremendous Historical Growth of DAFs

Based on an analysis of 2015 through 2019 fiscal year data from nearly 1,000 charities that are DAF sponsors—meaning they administer donor-advised funds—NPT reports historical growth in DAFs:

  • Grantmaking from DAFs to qualified charities totaled a record-breaking $27.37 billion in 2019, a whopping 93% increase since 2015, when grantmaking totaled $14.15 billion.
  • At the same time, contributions to DAFs also skyrocketed, totaling $38.81 billion in 2019 and representing an 80% increase since 2015 when contributions totaled $21.48 billion.
  • Charitable assets under management in DAFs totaled $141.95 billion in 2019. This represents a compound annual growth rate of approximately 10% since 2015—a reflection of an increasing number of DAFs, donor contributions, and market gains.
  • The number of individual DAF accounts jumped to 873,228, up from just 272,781 in 2015 and representing an astounding 220% increase.

DAFs and the Philanthropic Response to COVID-19

In addition to its annual Donor-Advised Fund Report, NPT also published a special Donor-Advised Fund COVID Grantmaking Survey.[3] The survey reflects self-reported data from DAF sponsors on the philanthropic response to COVID-19 as it emerged in the first half of 2020.

Amidst a global pandemic, a widespread reckoning with racial injustice, and a polarized political environment, grantmaking from DAFs to qualified charities rose nearly 30%, from $6.41 billion in the first six months of 2019 to $8.32 billion for the same period in 2020. The total number of DAF grants increased by 37%, from 945,044 grants in the first half of 2019 to 1,298,787 in the same period in 2020.

All eyes were on DAFs at the start of 2020 following the launch of #HalfMyDAF by philanthropists Jennifer and David Risher.[4] Through a matching challenge incentive, #HalfMyDAF seeks to raise awareness of DAFs and inspire DAF donors to give now. The movement leveraged $8.6 million in charitable grants from DAFs to nonprofit organizations in just five months, aided by $1.4 million in matching funds.

On February 1, 2021, #HalfMyDAF reignited the movement with an ambitious goal of leveraging $20 million in DAF grants to nonprofits this year, including $3.1 million in matching funds.

This creative fundraising strategy educated and inspired individuals to give through DAFs while empowering nonprofits with the knowledge and tools to encourage DAF donors to act now.

As we look to the future of philanthropy, we know one thing for sure: DAFs will be an integral part of the conversation. NPT’s findings and the #HalfMyDAF challenge reinforce the impact of DAFs and DAF donors on charitable organizations, especially in times of uncertainty.

How to Attract Gifts from DAFs at Your Organization

How can we apply these findings to position nonprofit leaders with the language and resources to leverage DAFs in support of their annual fundraising efforts?

Below are three recommendations to elevate philanthropy through DAFs. These recommendations are aimed at preparing fundraisers with the tools to maximize philanthropic revenue as we continue to navigate an evolving environment.

1. Make giving through DAFs a part of your donor dialogue.

The more we talk about DAFs, the more they will become a part of our fundraising lexicon, and the more that donors will make them a part of their giving toolkit. Take the time to educate donors on the role and benefits of a DAF. When meeting with a donor, don’t be afraid to spark the conversation: “Many of our supporters give through a DAF. Would you be open to learning how you can leverage a DAF to have a greater impact on our community?”

2. Make it easy to give to your organization through a DAF.

When a donor goes to your website, it should be clear that your organization welcomes giving through DAFs. Market DAFs on your website by including a link to “give from my DAF” or “click here” if visitors have a DAF and want to learn more about giving through this vehicle to your organization.

Additional ways to attract gifts from DAFs include direct mail appeals and employer matching gift programs. Let donors know that your organization is eligible for support from DAFs when communicating with donors— “send a check or recommend a grant from your DAF” or “double the impact of a DAF grant through your employer’s matching gift program” are ways to convey this important message.

3. Show the impact that DAF grants will have today.

Share examples of how DAF grants have enabled your organization to have a greater impact on the communities you serve. Create a sense of urgency by emphasizing how grants made today have equipped your organization with the tools, talent, and technology to achieve your mission while navigating an uncertain environment. Use personal stories of DAF donors to educate and inspire a new cadre of individuals to leverage DAFs as part of their philanthropic toolkit.

As DAFs become more popular, and technology makes giving to and from DAFs more accessible, we can expect to see grantmaking from DAFs to charitable organizations continue to grow at a steady rate. The future is #DAF—let’s get ready.

References:

[1] National Philanthropic Trust, What Is A Donor-Advised Fund?

[2] National Philanthropic Trust, The 2020 DAF Report, February 2021.

[3] National Philanthropic Trust, Donor-Advised Fund COVID Grantmaking Survey, February 2021.

[4] #HalfMyDAF Website.

The global coronavirus pandemic has brought unprecedented challenges and change to the philanthropic sector. Overnight, nonprofit leaders had to pivot from visionary plans for their futures to a laser-like focus on daily operations, responding to the health crisis and re-calibrating their fundraising activity to navigate a rapidly evolving environment.

The latest research conducted by CCS suggests that the pandemic’s negative impact on fundraising has reduced over time. Since our earliest survey in May 2020, the proportion of respondents reporting either a modest or significant decline in fundraising in response to the pandemic decreased. At the same time, the proportion of respondents reporting an increase in fundraising rose.

What changed? CCS’s research suggests that nonprofit leaders embraced new fundraising tactics, leaning into technology and developing innovative pathways to fundraise. These tactics include virtual events and online briefings with stakeholders. Many charities converted pre-existing events into a new virtual format, while others created entirely new online events that illustrated how their mission met this unique moment. Furthermore, many nonprofit leaders have embraced virtual gift requests as a part of their fundraising toolkit. Fifty-six percent of survey respondents conducted a request via phone, video, or both methods during the pandemic as of January 2021.

Now, amid so much uncertainty about the future of philanthropy, how can nonprofit leaders set themselves and their teams up for fundraising success throughout 2021?

The good news is that we are now in a more comfortable place where we can take what we’ve learned in 2020 and apply these lessons to the future. This will allow leaders to be more strategic, more innovative, and more deliberate in how they develop and implement fundraising plans in this evolving landscape.

Below are five recommendations to elevate your organisation’s fundraising strategy in 2021. These recommendations will prepare leaders with the knowledge and tools to maximise their philanthropic revenue as we continue to navigate a dynamic environment.

1. Plan for the unplanned

As we have learned, the future is uncertain and organisations that are nimble and innovative in the face of adversity can meet the moment with strength and success. To that end, stay well-prepared with scenario planning and revenue forecasting. Prepared organisations will have steadier balance sheets in the face of unexpected events, so develop a short-term action plan and identify diversified funding streams that include both outright and planned gifts.

2. Re-envision event opportunities for a virtual setting

As we have seen, nonprofit leaders are reimagining donor engagement opportunities for a virtual platform. For the foreseeable future, these virtual engagement methods will be fundamental to fundraising activity and revenue generation. As comfort levels around virtual events continue to increase, leverage the special opportunities afforded by the virtual format to build momentum and scale your impact. Don’t be afraid to be creative and bold!

3. Embrace evolving donor communication and lead with empathy

Consistent and transparent donor communication has always been valuable. Today more than ever, it is important to show empathy, concern, and gratitude for your stakeholders. Additionally, donors may be more available to meet virtually, so embrace the new “face-to-face” donor meeting and gift request conversation.

4. Prioritise Diversity, Equity, and Inclusion (DEI)

DEI is a vital lens through which to evaluate the stories you tell about your nonprofit and the communities you serve. It is also important to consider DEI relative to your internal practices and operational activity. Bringing diverse perspectives and talent to the table leads to more creativity and innovative ideas. Beyond helping to advance social change, this will translate to better performance and higher fundraising results.

5. Stay true to your goals while maintaining a flexible approach

At the end of the day, focus on your mission and why it’s relevant. Regardless of the communication method you use, reaffirm your purpose and the impact that philanthropic investments will have on the community you serve. Foundational fundraising principles still apply, and continued flexibility and adaptation may be needed.

As we continue to reimagine the philanthropic landscape, let’s focus on what we know, embrace opportunities for the future, and take action where we can to have the greatest social impact.

Since the COVID-19 pandemic began nearly a year ago, one of the central questions in the minds of nonprofit leaders and fundraisers has continually been can we raise money effectively in a virtual world?

The latest results from CCS’s Philanthropic Climate Survey—which encompass responses from more than 1,000 individuals representing nonprofits across sectors—help show that as we begin 2021, the answer is still yes.

Click here to download the full report.

CCS undertook the first installment of our Philanthropic Climate Survey series in spring 2020 to assess the immediate impact of the COVID-19 crisis on nonprofit fundraising. Since then, subsequent installments have broadened beyond analyzing the effects of the pandemic to address the larger picture of nonprofit fundraising today.

Our new fourth-edition results provide a snapshot of the strategies many nonprofits have embraced to fundraise in 2020 and early 2021. The survey data also provide a window into how nonprofits are planning for the future of their fundraising programs, including looking ahead to a post-pandemic world. The newly released survey report covers topics including the utilization and success of online fundraising events, changes to cases for support, trends in remote work for fundraising staff, and more.

Success in Virtual Major Gift Solicitations

One particularly reassuring finding from our survey is that virtual major gift solicitations were mostly reported as successful.

As of January 2021, 56% of our survey participants reported holding a virtual major gift solicitation during the pandemic via phone, video conference, or both methods (up from 43% in our September 2020 survey). Of those respondents whose organizations had conducted a virtual major gift solicitation, 72% reported that their virtual requests were either as successful or more successful than their typical results from in-person solicitations.

Improving Fundraising Results

This news of successful virtual solicitations aligns with our survey’s broader findings on improving fundraising outcomes over the course of 2020.

In line with trends observed in previous Philanthropic Climate Survey editions, our fourth-edition results suggested that in aggregate, the COVID-19 pandemic had less of a negative effect on fundraising by the end of 2020 than at the beginning of the pandemic.


As of January 2021, 39% of respondents reported that their organization’s fundraising increased in calendar year 2020 due to the COVID-19 pandemic. This proportion grew more than 2.7 times from our May 2020 survey results, in which only 14% of respondents reported an increase in 2020 to date. Similarly, the proportion of respondents reporting decreases in fundraising due to COVID-19 went down from a height of 63% in May to a low of 44% in January.

More Reasons for Optimism

Other encouraging findings from our latest survey results include:

  • Respondents reported a variety of positive changes at their organization in response to society’s renewed focus on racial equity and social justice. Just over half of respondents indicated that their organization took steps to make its workplace more diverse, equitable, and/or inclusive. Other respondents reported changes such as examining their board and volunteer management practices, modifying their case for support, and revisiting their donor pipeline strategies.
  • Most of our participants indicated that their organization would maintain or even increase their fundraising staff sizes in 2021. More than one in four respondents reported that their organization intended to add fundraising staff in 2021. The majority (59%) said that they expected their numbers to stay the same. Few respondents (5%) reported intentions to reduce their fundraising staff numbers this year.
  • Respondents seemed largely confident in their ability to move forward with major capital and comprehensive campaigns. A combined 55% of participants said they were launching, restarting, or continuing a campaign. Another 17% reported that a campaign was under consideration in 2021.

To see more results from our Philanthropic Climate Survey series, download our fourth-edition report today. If you have any questions about the report or CCS Fundraising, please contact us at marketing@ccsfundraising.com.

To access our full suite of perspectives, publications, and reports, visit our insights page. To learn more about how CCS Fundraising partners with nonprofits for transformational change, click here.

On Ash Wednesday, Catholics worldwide will embark on a 40-day Lenten journey. This period of prayer, reflection, and fasting is also considered a time of almsgiving – a moment to reflect on one’s blessings and share one’s gifts and talents with the broader community.

Many parishes across the country have served as a lifeline to their local communities by spiritually nurturing parishioners and offering care and support services to those most in need. As the faithful answer God’s call to service and prepare for the mysteries of Holy Week, parishes will need to calibrate this year’s approach to fundraising to meet ongoing budgetary needs and thoughtfully prepare for the coming of Easter. This four-week plan will serve to help drive parish revenue, strengthen digital communities, and streamline your Holy Week communications strategy.

Week 1 – Evaluation Period

As many parishes navigate technological novelties with limited resources, it is essential to evaluate your modes of communication and develop a viable timeline in advance of Easter. Consider asking yourself the below questions to determine how you will disseminate information in the weeks ahead.

Parish Checklist:

  • Does our parish offer electronic giving?
  • What e-giving provider are we using?
  • Is our electronic giving link clearly visible on our parish website?
  • Does our parish livestream Mass?
  • Is our parish active on social media? Which platforms are we using?
  • Am I or is someone at my parish able to assist with social media posts?
  • Can e-blasts and/or automated calls be administered weekly informing parishioners of relevant Lenten updates?
  • Is our parish actively gathering contact information for outreach? Are we engaging with ministries to create a more robust email list?
  • Do we have the capacity to send emails regularly?
  • Does our parish’s Easter mailing feature our electronic giving information? Can we include a QR code in the letter?

To help drive parish revenue, make sure electronic giving links are prominent on your parish website. Can you find your e-giving link in 10 seconds or less? For parishioners that continue to use envelopes, provide clear mail and drop off instructions on your parish website that align with your current safety protocols.

Week 2 – Develop Your Case

The recent pandemic has presented many unforeseen costs for parishes as they continue to invest in technology to remain connected, pay the salaries of devoted personnel, and prioritize the sanitization of church property. Consider developing a case for support to clearly articulate your parish’s financial needs during Lent and beyond.

  • Reflect on your parish’s COVID-19 response efforts.
  • Highlight the support services you offered and those you continue to provide to your local community.
  • Describe some of the unforeseen costs this past year.
  • Include important facts and figures to reinforce the need for financial support. Consider listing the required monthly expenses to maintain the parish and actual offertory figures. Remember, many parishioners are unaware of the associated costs to maintain their spiritual home. Use this time to educate and inform them. This call to action will certainly garner one-time gifts, but can also incite sustained financial support.
  • Please remember to thank lay leaders, parish staff, and parishioners in your communication channels for their unwavering support and leadership.

Week 3 – Share Your Message

Now that you have ensured your giving link is clearly displayed on your website and that your needs have been vetted and thoughtfully outlined, begin articulating your needs to the parish community through all relevant communication streams.

  • Reinforce principles of stewardship by posting Lenten reflections on social media.
  • Share your Holy Week Mass schedule through email blasts, social media handles, automated calls, and bulletin inserts.
  • Remember the Rule of Seven, a marketing principle that purports people need to hear a message seven times before acting. Always include your electronic giving information in written and digital communication to encourage participation.
  • Encourage parishioners to invite friends and family to ‘like’ or join your parish’s Facebook, Instagram, or Twitter page as you begin to share relevant updates and information.

Make giving easy for parishioners! Tips to consider:

  • Written communication: Make sure all mailed or printed communication includes a QR code that links directly to your electronic giving platform or parish website.
  • Livestream: For parishes with livestream capabilities, make sure your e-giving link is clearly displayed in the message portion of your post. Consider including a quick note in each livestream and/or social media post.
  • Verbalize your offertory request during the livestream of Mass! After the Gospel and Prayers of the Faithful, invite parishioners and viewers to participate in the offertory collection or make their Easter gift by using your parish’s secure electronic giving link.
  • If using Facebook to stream Mass, consider identifying an administrator or lay leader that can act as a ‘digital usher’. By logging in on your parish Facebook account, the user can post comments to remind viewers to participate virtually in the offertory process.

Week 4 – Reiterate Message

Offertory support is critical to funding vitally important parish programs, the upkeep of facilities, costs associated with new technology, and other ongoing expenses. Remember to reinforce this call to action during Holy Week leading up to Easter Sunday. By implementing these best practices, you can achieve your fundraising goals and enrich your Easter celebration!

The COVID-19 pandemic has brought unprecedented challenges and change to the philanthropic sector. Overnight, nonprofit leaders had to pivot from visionary plans for their futures to a laser-like focus on daily operations, responding to the pandemic and recalibrating their fundraising activity to navigate a rapidly evolving environment.

It’s been nearly a year since the start of the pandemic, and the nonprofit landscape looks remarkably different than it did at the start of 2020. Many organizations have made it through “crisis management mode,” adapted to the current moment, and now can embrace new opportunities for the future.

But the question remains: amid so much uncertainty about the future of philanthropy, how can nonprofit leaders set themselves and their teams up for fundraising success in 2021?

How has COVID-19 transformed the philanthropic landscape?

CCS Fundraising, a leading strategic consulting firm that partners with nonprofits to strengthen and support their fundraising programs, launched a three-part Philanthropic Climate Survey to assess how the COVID-19 pandemic affected nonprofit fundraising. The latest Fundraising Impact of COVID-19 research report presents September 2020 data from nearly 1,400 respondents representing nonprofits of all sectors and includes a comparative analysis of responses received in the May 2020 and June 2020 editions.

CCS survey results suggest that the pandemic’s negative impact on fundraising has reduced over time. Since the first report in May 2020, the proportion of respondents reporting either a modest or significant decline in fundraising in response to the pandemic decreased by 10 percentage points from 63% in May to 53% in September. At the same time, the proportion of respondents reporting an increase in fundraising rose by 14 percentage points, from 14% in May to 28% in September.

What changed between May and September? CCS’s research suggests that nonprofit leaders embraced new fundraising tactics, leaning into technology and developing innovative pathways to fundraise.

The biggest change we’ve experienced during the pandemic has centered on virtual methods of donor engagement. These include virtual galas or events and virtual briefings to groups of stakeholders. Employing multi-channel engagement strategies allows nonprofits to scale their programming and reach a broader audience. When surveyed in June, 31% of respondents indicated their organization held an online fundraising event. That figure jumped to 44% by September. Many organizations converted pre-existing events into a new virtual format, while others created entirely new virtual events that illustrated how their mission met this unique moment.

Furthermore, many nonprofit leaders have embraced virtual major gift solicitations as a part of their fundraising toolkit. Forty-three percent of survey respondents conducted a major gift solicitation via phone, video, or both methods during the pandemic as of September.

As the COVID-19 pandemic endures, CCS will continue to track changes in the philanthropic landscape. We are currently collecting data for our fourth Philanthropic Climate Survey iteration and look forward to sharing our new findings in February 2021.

How can we apply our experiences and lessons learned during the pandemic to position nonprofit leaders for a successful 2021?

The good news is that we are now in a more comfortable place where we can take what we’ve learned in 2020 and apply these lessons to the future. This will allow leaders to be more strategic, more innovative, and more deliberate in how they develop and implement fundraising plans in this new and evolving landscape.

Below are five recommendations for nonprofit leaders to elevate philanthropy, whether they represent small grassroots organizations or large institutions. These recommendations will prepare leaders with the knowledge and tools to maximize their philanthropic revenue as we continue to navigate a dynamic environment.

1. Plan for the unplanned: evaluate resources, best practices, and long-term operational strategies

As we have learned, the future is uncertain and organizations that are nimble and innovative in the face of adversity can meet the moment with strength and success. To that end, stay well-prepared with scenario planning and revenue forecasting. Prepared organizations will have steadier balance sheets in the face of unexpected events, so develop a short-term action plan and identify diversified funding streams that include both outright and planned gifts.

2. Re-envision event opportunities for a virtual setting

As we have seen, nonprofit leaders are reimagining donor engagement opportunities for a virtual platform. For the foreseeable future, these virtual engagement methods will be fundamental to fundraising activity and revenue generation. As comfort levels around virtual events continue to increase, leverage the special opportunities afforded by the virtual format to build momentum and scale your impact. Don’t be afraid to be creative and bold!

3. Embrace evolving donor communication that leads with empathy

Consistent and transparent donor communication has always been valuable. Today more than ever, it is important to show empathy, concern, and gratitude for your stakeholders. Additionally, donors may be more available to meet virtually, so embrace the new “face-to-face” donor meeting and gift request conversation.

4. Prioritize Diversity, Equity, and Inclusion (DEI) across your development practices

DEI is a vital lens through which to evaluate the stories you tell about your nonprofit and the communities you serve. It is also important to consider DEI relative to your internal practices and operational activity. Bringing diverse perspectives and talent to the table leads to more creativity and innovative ideas. Beyond helping to advance social change, this will translate to better performance and higher fundraising results.

5. Stay true to your goals while maintaining a flexible approach to fundraising strategy

At the end of the day, focus on your mission and why it’s relevant. Regardless of the communication method you use, reaffirm your purpose and the impact that philanthropic investments will have on the community you serve. Foundational fundraising principles still apply, and continued flexibility and adaptation may be needed.

As we continue to reimagine the philanthropic landscape, let’s focus on what we know, embrace opportunities for the future, and take action where we can to have the greatest social impact.

On Monday, December 21, Congress approved a $900 billion coronavirus relief bill. If signed into law, many of the bill’s provisions would directly benefit nonprofits and fundraisers, helping to soften the blow of the continued impact of the COVID-19 pandemic. Read on for a summary of the key opportunities for the nonprofit sector.

Extended Tax Incentives for Charitable Giving

This bill allows individual and corporate donors to take advantage of expanded tax deductions in 2021. These incentives were previously only implemented for tax year 2020 through the March 2020 CARES Act. Importantly, both large and small individual donors gain extra incentives to give to charity through these measures.

  • For individuals who do not itemize: in 2021 as in 2020, individuals who do not itemize their taxes can still deduct up to $300 in charitable gifts as a single person and up to $600 in charitable gifts as a couple. Prior to the CARES Act, those who used the standard deduction could not deduct any charitable giving. For context, in tax year 2018 almost 90% of taxpayers claimed the standard deduction while about 10% itemized their deductions, down from around 30% itemizing in recent years.
  • For individuals who do itemize: the limit on charitable deductions for individuals who itemize will remain at 100% of their adjusted gross income in 2021, instead of the typical 60%.
  • For corporations: the cap on charitable deductions for corporations will stay at 25% of taxable income in 2021, instead of the typical 10%. Additionally, food donations can be deducted to a ceiling of 25% of taxable income instead of the typical 15%.

A Second Round of PPP Loans

This bill allocates an additional $284 billion for forgivable Paycheck Protection Program (PPP) loans. There are some key differences between “second draw” loans from this new funding and the first round of PPP loans enacted by the CARES Act in March, including:

  • Lower eligibility limit for organization size. Businesses and nonprofits with up to 300 employees are eligible for second loans, as opposed to the 500-employee cap in the spring.
  • Additional eligibility criteria. To qualify, organizations must show that they had a drop in revenue of at least 25% between same quarters in 2020 and 2019.
  • New eligibility for certain nonprofits. Qualified 501(c)(6) organizations are now eligible for PPP loans.
  • Lower cap for loan size. The maximum loan size for this round is $2 million per organization, compared to $10 million this spring.
  • Expanded list of forgivable loan expenses. Organizations may now use loans to cover certain worker protection expenditures such as personal protective equipment and facilities modifications.
  • Revised forgiveness application process for some recipients. For smaller loans up to $150,000, the forgiveness application process will be simplified.

Other Measures of Special Interest to Nonprofits

  • $20 billion has been allotted for Economic Injury Disaster Loan (EIDL) grants.
  • $15 billion has been set aside for live venues, independent movie theaters, and cultural institutions that intend to reopen and can show that their revenue has declined by at least 25% compared to 2019. These benefits are capped at $10 million per organization.
  • A reimbursement provision for nonprofits that self-fund unemployment benefits is extended until March 14, 2021.
  • The Employee Retention Tax Credit (ERTC) is extended through July 1, 2021 and includes new provisions to expand eligibility and improve coordination with the PPP loan program.
  • Refundable payroll tax credits for paid sick and family leave established in the Families First Coronavirus Response Act are extended through March 31, 2021.
  • The tax credit for paid family and medical leave enacted through the 2017 tax law is extended through 2025.
  • The deadline for states to spend Coronavirus Relief Fund (CRF) monies has been extended through December 31, 2021.
  • Individuals whom nonprofits serve may be directly helped by the bill’s other aid provisions including $600-per-person stimulus checks, an additional $300 per week in unemployment benefits, an extended moratorium on evictions, $25 billion in renter’s assistance, and $13 billion added to the Supplemental Nutrition Assistance Program (SNAP).

Sources

We are grateful to the following sources for reporting the legislative provisions summarized in this article. Check out these links for further details on the stimulus act:

This piece has been prepared for informational purposes only and is not to be construed as tax advice. Individuals should consult their accountant or tax advisor with regard to such matters.

Click here to read this article as a PDF.  For more nonprofit resources, visit ccsfundraising.com/insights.

The end of a calendar year provides a natural juncture for reflection and planning. After such a tumultuous year as 2020, it’s more important than ever for development professionals and nonprofit leaders to take stock of all that we’ve been through as we plan for 2021 and beyond.

As 2020 draws to a close, check out some of CCS’s top resources from this unprecedented year.

1) Forward-Looking Philanthropy Webinar

CCS Webinar Replay - Forward-Looking Philanthropy: Lessons Learned from a Tumultuous Year

Tune in to this recorded session to take a deeper look at how nonprofits can use lessons from 2020 when setting 2021 strategies into motion.

Click here to view the webinar recording and download a key takeaways summary.

2) Philanthropic Climate Survey: Fundraising Impact of COVID-19

This spring, CCS launched a three-part Philanthropic Climate Survey series to assess how the COVID-19 pandemic has affected nonprofit fundraising. Our latest Fundraising Impact of COVID-19 report presents September 2020 data from nearly 1,400 respondents representing nonprofits of all sectors.

Click here to read a summary of our latest survey results and click here to download the full report.

3) Snapshot of Today’s Philanthropic Landscape

CCS Philanthropic Landscape cover and page preview, providing an overview of philanthropic giving in the United States

If we want to understand where philanthropy is going, it helps to understand where philanthropy has been. In contrast to our Fundraising Impact of COVID-19 report, CCS’s annual Philanthropic Landscape covers longer-term trends in philanthropy. The report aggregates industry research that can help inform your decision-making and set a baseline by which to measure the effects and scale of future changes in philanthropy.

Click here to download the Philanthropic Landscape report.

4) Blog Highlights

Preview of CCS Fundraising blog: Your Fundraising Forecast Cheat Sheet for 2021

As you develop and refine your 2021 fundraising plans, check out some of CCS’s guidance on revenue forecasting, repositioning your funding focus, and prioritizing prospective donors.

Throughout this extraordinary year of challenges, CCS has been proud to support the nonprofit community in its efforts to persevere. We thank you for all that you do.

To access our full suite of perspectives, publications, and reports, visit our insights page. To learn more about CCS Fundraising’s suite of services, click here.

CCS has been inspired by how our nonprofit partners across all sectors have responded rapidly, and successfully, to the challenges of 2020. With the holiday season in full swing and the eight nights of Hanukkah approaching, CCS compiled eight lessons from Jewish clients across the country who have navigated fundraising during the COVID-19 pandemic in noteworthy ways.

One: Embrace virtual engagement.

The COVID-19 pandemic provided an opportunity for synagogues to reach a much larger and more diverse audience this High Holy Day season, with congregants tuning in from college dorms, nursing homes, and living rooms across the country. Several synagogue clients reported an exceedingly positive response to online services, resulting in an increase in member engagement and a surge in annual giving in the fall. A synagogue in New York City is already working on a hybrid model to have both in-person and virtual events in 2021 to reach all members of their congregation.

Two: Send materials in advance.

One Jewish day school has had notable success mailing gift proposals ahead of virtual solicitation meetings, most recently sending a seven-figure proposal to a prospective lead donor one week ahead of time. This enables the meeting to be more conversational in nature, focusing on the donor’s own thoughts and reactions rather than spending a significant portion of the meeting walking through the document itself. In turn, the school has shortened the window between soliciting and closing major gifts, allowing leadership to refocus their efforts on cultivating new donors.

Three: Take advantage of flexible scheduling.

Working from home has enabled organizations to get in front of constituents and donors more frequently by scheduling shorter, regular touchpoints. A Jewish social services organization has scheduled quick ongoing meetings for their campaign committee to convene. They have reported a significant uptick in meeting attendance now that the evening meetings are held entirely online.  

Four: Create intimate in-person and virtual events.

A synagogue in Boston hosted intimate cultivation events, with an option for donors to join virtually or in-person. To ensure physical distance protocol, in-person attendance was limited to the first twelve RSVPs. With some donors reporting “Zoom fatigue,” the in-person option offered a refreshing and meaningful experience for those looking to reconnect with their synagogue community. If you decide to pursue an in-person event, be sure to follow the recommended safety measures for guests and staff.

Five: Make your case for support come alive.

A Jewish museum in California worked with their architect to create a “virtual flyover” and walkthrough of their capital renovation. Donors engaged with the digital creation from home to see the project as if they were walking through the building.

Six: Adapt – do not cancel—your plans.

Instead of canceling their campaign feasibility study due to the pandemic, a synagogue in Los Angeles refocused their efforts on individuals who could make both short-term gifts toward COVID-19 support and long-term campaign investments. Interview strategy became more conversational and open-ended to include ample time for dialogue and questions. The synagogue was able to highlight the steps they had taken to adapt to the pandemic and receive support from community members.

Seven: Craft tailored, innovative solicitation strategies.

During challenging times, we are seeing donors focus their giving on causes that matter most to them. A synagogue in Boston built a creative major gift proposal, outlining the opportunity to fund synergies between a donor family’s synagogue and a local Jewish day school. This enabled a new partnership model for the synagogue and school moving forward and allowed the donor family to support two causes at once.

Eight: Focus on professional development.

The need for strong fundraising leadership continues to be increasingly critical to an organization’s success. A Jewish foundation undergoing a major restructuring of its development program expanded an annual team gathering into a multi-day conference, made possible by the virtual setting. The foundation was able to bring in external speakers that laid the groundwork for the more rigorous, strategic, data-driven approach to fundraising that the foundation was looking to implement, while providing valuable outside expertise and perspectives to their eager team.

Much as, in the Hanukkah story, the oil that was meant for one night lasted for eight, our hope is that lessons learned during this current challenging moment will resonate far into your organization’s bright future.

This month we spoke with Ronan Walsh, Head of School at Sutton Park School. Located in Dublin, Ireland, Sutton Park is an independent co-educational multi-denominational day school. They began a capital campaign shortly before the onset of COVID-19. Read on to learn about the School’s experience in successfully navigating this challenging time.

Q:  Sutton Park School has progressed with a capital campaign despite the challenges of this year. Why was this decision taken?

A:  The pandemic came five months after we had commenced our initiative. During that short period however we had made great progress. This was a major contributing factor to us staying the course with our fundraising plan. That fast start had also given us a solid foundation which in turn provided us with breathing space at the beginning of the pandemic to gauge the reaction of our parent body.

Within two weeks of the School closing we converted four more gifts from meetings we had pre-lockdown. Coupled with that support, we were receiving very positive feedback overall on the School’s handling of the crisis –our online teaching; availability and accessibility of teachers; and message of solidarity.

The purpose of our fundraising was also pivotal to our decision to proceed. In building a multi-purpose hall, we will ensure there is greater space for extra-curricular activities, improved facilities for sports and a more functional venue that can cater for students’ needs. Now more than ever, we require an enhanced learning, social and teaching environment.

Q:  Sutton Park School has had success in securing several major gifts recently. What are the opportunities and challenges presented by an online gift request process?

A:  Virtual meetings are very different, especially as I feel my strengths are face to face, but you must adapt and be flexible. Not every meeting will run smoothly. In one case, the parents were in two separate locations –one driving from work, the other at home. Having a Zoom call however facilitated an opportunity with two busy people. There are obviously some things that you can’t help, especially Wi-Fi or an issue with a laptop (audio, video etc.) but it’s important to remain calm.

On a practical level, I can have notes in front of me which may not give a refined look in person! I always try and keep the structure to the meeting, and for some reason I can do this easier online. I call it a train stop structure; it helps the flow of the gift request.

Q:  As a head of School, you have many other priorities. Why do you invest time and energy into fundraising –particularly in this unique moment?

A:  If you want a strong academic institution, you make time. When we set out on this fundraising initiative, we were not just looking at the immediate capital campaign. We want to establish a culture of philanthropy in the School. To ensure we are offering students and families excellent teaching which is supported by first-rate facilities, we must fundraise.

I have been at Sutton Park for over 20 years, initially teaching. The School is a major part of my life. My wife teaches here, my children are current pupils and I have forged strong relationships with the staff and parents over that time. Along with the Board of Management and Governors, we are committed to its development. Fundraising enables that progress and quality.

During these testing times of COVID, I have learned more about the students, staff and parents. They have all dug deep and responded positively to the call to action of solidarity. I have received messages of encouragement and endorsement –it shows a sense of community and a belief that we are all in this together.

Ronan also joined CCS for an in-depth conversation via webinar on his experience with adapting strategies throughout COVID-19, the importance of communications, and practical insight on virtual gift requests. You can view “Effective Strategies to Fundraise with Confidence in 2021” on demand here.

Culture: It’s complicated.

“Culture” is ubiquitous, although that does not mean it is easy to define. Instead, “culture” presents a challenge when we try to change it without buy-in from essential stakeholders. Understanding that every organisation has a particular culture, whether or not stakeholders acknowledge it, is crucial in formulating a fundraising strategy. Before building or changing a “culture of philanthropy,” it may be helpful to refer to a few underlying assumptions about culture:

  • All organisations have it
  • It is a powerful source of communication inside and outside of the organisation
  • It can be detrimental if not aligned with the well-being of the institution
  • It can – and should – be measured.
Cultural Moves Management

Most of your organisation’s supporters are considered cultural “adopters” and tend to be the largest sub-group of supporters. They are passionate, reliable, and motivated by external and internal factors. A smaller group of your supporters are cultural “leaders,” who serve as visionaries and should be enlisted as cultural ambassadors. To continue their work in advocating the culture, cultural leaders in the organisation should receive ongoing stewardship for their support. Adopters, alternatively, can be transitioned into cultural leaders through ongoing investment and incentives.

Detractors of your organisation’s culture are most often “fence-sitters” – they tend to be passive, undecided, and sceptical. Fence-sitters are waiting to see what’s going to happen, so you want to avoid rewarding this behaviour. Instead, show them the benefits of joining and adopting the culture.

A smaller group are “naysayers,” who are oppositional, misinformed, or combative. Because they may have legitimate complaints, naysayers should have an opportunity to share grievances. Sometimes naysayers can even become cultural proponents, but other times, leaders may confront staunch opposition to change. In this instance, they should redirect the naysayers’ energy and avoid letting them set the agenda.

Regardless of where your stakeholders fall in cultural moves management, it’s critical to give them each the time and support needed to legitimise their experience and foster a sense of buy-in for your organisation’s success.

Key Takeaways

The objective of cultural moves management is to encourage detractors to become supporters. Key lessons from CCS’s practical experience of cultural moves management include:

  • Philanthropy must be rooted in the organisational culture to resonate with donors.
  • Leadership sets the foundation for positive overall and philanthropic culture.
  • Values must be communicated, early and often, to all stakeholders.
  • Measuring desired outcomes, like participation or elevated giving, will strengthen perceptions of culture.

So, how strong is your culture?

One simple test is to ask your essential stakeholders what your mission statement is. If they cannot recall, then it might be time to revisit how your organisation communicates its strategic vision. When your stakeholders can recite your mission without hesitation, that is good indication that your organisation is well on its way towards developing a culture of philanthropy.