Charitable Giving Archives 2006-2009

Charitable Giving Archives

May 29,2009….A Charity Making a Difference: Concern Worldwide
Millionaire Corner is exposed to many charitable organizations which strive to improve the world in various ways. One such charity is Concern Worldwide which deals with the kind of grinding poverty that most Americans can’t imagine, and they have been doing so since 1968.
At the core of the organization is the belief that the suffering of people who live in extreme poverty can be reduced, and eventually eliminated. They are currently working in 28 countries and have reached 9 million people in the last year. Tom Moran, chairman of Concern Worldwide says “The organization is the embodiment of the, ‘Give a man a fish he eats for a day, teach a man to fish, he eats for a lifetime’ proverb.”
Moran goes on to explain that Concern Worldwide’s programs focus on emergency response, health, nutrition, HIV & AIDS, education, microfinance, skills training and income-generating initiatives; not just solving the problem at hand, but finding a solution, within the community, that will be the solution forever, and possibly inform the next solution needed.
With the knowledge that up to 70% of those living in absolute poverty are female, empowering women is a key priority within their livelihoods programs. Improving women’s healthcare and education is a cornerstone in many of the programs that Concern Worldwide implements. Concern is helping mothers worldwide with it’s Child Survival Program (CSP) that is saving countless mothers’ and children’s lives in Africa, Asia and the Caribbean at a cost of just $5 per family per year. Per Concern’s website, “at the heart of CSP lies a radical departure from the traditional model of delivering health care to women and children in the poorest countries.”
Breaking the traditional model of the patient coming to hospital, CSP brings basic health care to the household level, saving mothers’ time and dramatically increasing the numbers of children treated for basic illnesses, thereby saving lives. Concern Worldwide has been uniquely effective in its 41 years in existence at changing the lives of millions of people in the world’s poorest countries, bringing hope to the hopeless, and trying to literally and figuratively teach a man to fish.

The primary concerns for the organization are:
• Education
• Emergency Response
• Health (nutrition, maternal & child health, water & sanitation)
• HIV&AIDS
• Livelihoods (including skills training, microfinance, income generation programs, and food security initiatives)

March 13,2009….Economic Crisis Affects Charities and Philanthropic Giving
As signs continue to indicate that the crisis in the nation's financial markets will last for at least 22 months, stock-market volatility and the credit crunch are hitting foundations and charities in myriad ways. Initially, the market's plunge primarily affected investment returns at the nation's biggest nonprofit endowments. Now the troubled economy is stymieing fund raising, hurting nonprofit groups that need to pay back loans for construction costs, and in some cases, imperiling organizations' ability to pay their employees.
As foundations, corporations, and wealthy individuals are trimming their giving budgets, the money woes are creating a dire environment for small charities.
For example, the World Cares Center, in New York, a group that trains volunteers for disaster response and has in the past received substantial support from Wall Street investors, had its annual fund-raising dinner in November to bring in half the $125,000 it did last year. Many executives at nonprofits are taking pay cuts to help their organizations.
Despite the problems, some charity experts argue that a reduction in the number of nonprofit groups could be beneficial, while others emphasize that even during down times, Americans continue to give. Research shoes that on average giving declines only 1% in recession years.
Aside from fund-raising concerns, the seize-up in the nation's credit markets is having other effects on nonprofit organizations. At major foundations, investment losses are sapping endowments. Some funds say they will be cutting their giving as a result, although other grant makers pledge to maintain or increase their giving to help struggling charities weather the crisis. Foundations are often prodded to do more during times of crisis — when the needs of charities and impoverished families are greater — even though their own endowments are also suffering.
The difficult markets have led investment committees on some charity and foundation boards to hold special meetings to evaluate the holdings in their endowments. Most endowments have reported losses for their 2008 fiscal years — and for some, a single-digit loss will be viewed as a relative success. Many hedge funds are having disappointing years as well, and some investors are withdrawing money from the funds, while at the same time the credit crunch is forcing hedge funds to reduce their leverage (the borrowed money that many hedge funds use to try to improve returns). Investment opportunities aside, the downturn in the stock market appears to be having a chilling effect on giving by individual donors.
Considering the 30% loss most wealthy households experienced, it is not hard to believe that their charitable giving would be down since the crisis. Most of America is tightening their belts, and charities will have to find creative ways to ride out the crisis.

February 13, 2009….American Heart Association Salons
A More Personal Approach to Philanthropy and Fund Raising
Typically, fund raising efforts by not-for-profit groups, such as the American Heart Association, are often focused on encouraging large masses of people to contribute relatively small amounts through campaigns such as Heart Walks and workplace giving.
The Midwest Affiliate of the American Heart Association recently shared with The Millionaire Corner, a more personal approach to fundraising: salons held in peoples’ homes.
Paul Millman, vice-president of Leadership Gifts for the American Heart Association explained, “An AHA salon is essentially an evening of education and information sharing. It’s not a fund raiser. We don’t invite people to come and then twist their arms, and say “You’ve got to give. Someone hosts a salon in their home. It’s a small and intimate party. Typically, there will be supper or hors d'oeuvres and beverages served. An expert speaker gives about a twenty minute presentation about current heart research, and then we have a survivor talk about their own personal experience.”
Millman, who is responsible for individual major gifts, continued, “After the salon, I’ll follow up and ask for feedback and advice. What did you think? What did you learn? And if there is somebody who is clearly touched by it and wants to get involved, I look for ways to bring them into the organization. People who are motivated to get involved, can volunteer to host a salon. But if they come and just have a nice time…that’s fine too.”
The combination of scientific edification, along with a survivor relating their often heart-wrenching experiences dealing with a heart condition, such as a congenital heart defect, strikes a chord with most attendees. Survivors have included: a young women talking about being born with a severe congenital heart defect, and thriving despite having almost no chance for survival, to a woman relating the confusion and helplessness she felt when her child was diagnosed with Kawasaki disease.
Legacy of Life Endowment: Funding Research into Congenital Heart
The salon program tries to focus on potential contributors, who have the means to donate ten thousand dollars or more, and highlights specific research programs and cause initiatives of the American Heart Association at each gathering. At the salon we attended, the Legacy of Life Endowment was spotlighted. This is a fund started about four years ago, to support research in the area of congenital heart defects.
With 1% of all live births in the U.S. affected by some form of heart defect, and 40,000 babies born each year born with one or more heart problems, congenital heart defects are America’s No. 1 cause of birth defects. Almost all of us know someone, often in our own families, who has been affected. While much has been spent to help babies with heart defects live beyond infancy and into adulthood, the cause of congenital heart defects is still unknown.
The American Heart Association’s intention is to raise one million dollars in the Legacy of Life endowment, as a starting point. This will provide an ongoing source of funding revenue for congenital heart defect research. So far, they’ve raised $450,000, mostly though small individual donations. They are hoping that the recent shift in focus to individual and targeted major gifts, as well as salon parties will be a successful strategy. Donations to the Legacy of Life Endowment will be invested in perpetuity, the earnings from which will continue to support Research into CHD.
Joseph Goldzweig with Mended Hearts, a not-for-profit partnered with the American Heart Association, noted, “One-hundred percent of every dollar contributed to this particular endowment will be contributed to congenital heart defect research. No money will be taken out for overhead or expenses of any kind.” Because the American Heart Association is such a large organization, they have made the commitment to cover all administrative expenses for the endowment.
They do note a contribution limitation, in that the Legacy of Life campaign specifically serves the Midwest affiliate of the American Heart Association (the largest regional affiliate), and it funds research in the Midwest, although anyone is welcome to contribute to the endowment.
How can you contribute if you live outside the central states? Since research is being conducted nationally, if someone in California wants to make a gift in support of congenital heart defect research, it could go to the Midwest’s Legacy of Life Endowment, or fund CHD research in other communities. In recent years, the American Heart Association has funded 157 research studies in congenital heart defects, which was five times the total number of awards made by the second leading private funding agency.

A More Personally Involved Philanthropy

Some philanthropists enjoy a more personal touch, or want to see how their contribution is being used. Millman stated, “If someone wants to support a specific fund, such as the Legacy of Life endowment, we can put them in contact with one of the funded researchers. They can interact directly with the researcher: have dinner with them, and get a private tour of their research lab, look through microscopes, and experience that research…so they can actually see what is going on.”
Those interested in possibly hosting a salon or contributing to the various congenital heart defect endowments of the American Heart Association, should contact Paul.Millman@heart.org, and the Midwest Affiliate at 312-476-6634, at 208 S. LaSalle St. Suite 900.

January 23, 2007…Golden Age of Philanthropy
The Foundation Center, stating that the United States is experiencing a new “golden age of philanthropy,” reported an increase of 11.7% in giving by the nation’s 71,000 foundations, to $40.7 billion in 2006.
Key Facts:
• Independent and family foundations account for nine out of ten foundations, with these foundations outpacing corporate foundation increases 10.3% v. 6%.
• Community foundations showed the fastest growth at 13.2%
• Nearly 60% of foundations expect that their giving will increase in 2007.

"The foundation community is both larger and more diverse than was true in the past,” said Sarah Englehart, president of the Foundation Center. “Neither stock market performance, a single wealthy donor, nor one type of foundation alone drive current trends.”

December 20, 2006….Charitable Giving Starts Close to Home
The holiday season means many things to many people: family, friends, parties, gifts, and charity. Everywhere you go you can see the Salvation Army volunteers and their bells fill the air with a sound that is unique to this time of year.
Charity is important to the affluent and they given generously to charitable causes of all kinds. Spectrem research has found that a majority of the charitable dollars the affluent give end up close to home, in local organizations, as opposed to regional, national, or international.
Of the dollars donated, a vast majority went to help fund local organizations, often hospitals, community arts foundations, social services, and churches. National organizations were second in frequency with regional and international causes rounding out the breakdown of charitable donations.

January 31, 2008….Religious, Education and Social Services top Charitable Giving
Spectrem’s Perspective Lifestyles of the Rich, shows that the affluent already know the benefits of giving close to home.
Thirty percent of affluent charitable dollars go to religious organizations or churches, which are conventional ways to strengthen communities from within, while 17% of charitable dollars go to social service organizations or education. A New Model for Giving Rises Online Recently, not-for-profit charities are more fully using the internet as a means to more efficiently connect philanthropists with philanthropic causes, and even more specifically—directly with recipients. A method called person-to-person microfinance has emerged.Kiva.org is a not-for-profit organization, receiving much media attention, that has used the internet to change the face of charitable giving. Making neighbors out of strangers, Kiva allows ordinary people to connect with and loan money to small businesses in developing countries from Asia, to Africa and the Americas. Lenders "sponsor a business", and personally help the world's working poor make strides towards economic independence. Loans are repaid, and funds can be withdrawn or re-loaned to another small business, using Kiva’s website.A simple idea, but one that has a very personal appeal, Kiva showcases business owners and entrepreneurs in economically depressed regions all over the globe. Kiva helps finance their businesses through micro-loans, of as little as $25, which are very small amounts of money traditionally given to those who would not be “bankable” at a financial institutions. Kiva’s loan repayment rate hovers around 100%.
The idea behind Kiva and organizations like them, is beguiling because it allows individuals to use the internet to easily affect the lives of individuals in a very real and tangible way. Giving money to a large charity, like the Red Cross or United Way, is important as those organizations and others like them do important and vital work. But what Kiva does can feel more personal, and it is a flavor of charity and personal giving that is catching on.

August 22,2007….Shaking the Tree
Shaking the Tree Foundation is a not-for-profit organization with a unique theatre-based workshop approach to wealth education, backed by philanthropic values. As the shear number of wealthy continues its exponential global rise, so does the relatively new business of wealth education.
This is an industry in which financial institutions are particularly interested, because of their vested interest in keeping the assets of the affluent at their firms. Much of this (often free and fun) education is focused on helping the children of affluent clients to become responsible stewards of inherited wealth. To institutions, “responsible stewardship” means assets that grow and stay put, rather than get squandered on partying in Paris with a ne’er-do-well entourage, or on bad investments.

Shaking the Tree Foundation is a not-for-profit organization with a unique theatre-based workshop approach to wealth education, backed by philanthropic values.

Launched in 2000, Shaking the Tree has evolved into an organization focused on educating the high net worth community, “using storytelling to positively transform the individual's relationship to wealth, family and society.”
With a creative team that has worked together since 1997, Shaking the Tree has used professionally produced plays as a centerpiece of workshops to help affluent families and their advisors clarify their relationships with wealth, and with each other.
President and co-founder, Maryann Fernandez explains, “Storytelling can be a potent and engaging way to promote discussions about issues of wealth: from talking about family dynamics to how to make an impact on the world with your money.” She adds, “Our plays, which we call ‘living case studies,’ are a great way to get family members to talk about challenging issues, but with a degree of detachment. The play is a representation of their family on stage, but it isn’t about them. It’s a common case for everyone in the audience to respond to, enabling people to be objective observers of themselves as the play and discussion unfold.”
Needless to say, financial advisors to the wealthy also find these living case studies valuable, because they allow insights into areas of family dynamics and unspoken expectations that clients may not otherwise be comfortable talking with their advisors and consultants about.
Typical clients include private banks, financial industry associations, financial institutions, and affluent private families, who hire Shaking the Tree to run theatre-based workshops at their family meetings. Sometimes these workshops are mixed, combining wealthy families as well as their professional financial advisors.
Financial institutions have also used the theatre workshops as part of sales training for advisors, “as a way to illustrate softer issues, which clients may not bring up, without potentially risking actual client relationships,” Fernandez clarifies.

You might wonder what qualifies Shaking the Tree to offer education to the high net worth community. Fernandez elaborates, “We’re a part of the community. Our creative team has consulted with affluent families for decades. Our Managing Artistic Director, David Kersnar, is a founding member of the acclaimed Lookingglass Theatre Company in Chicago. He makes sure that the theatrical portion of what we do is on target.”
Asked what differentiates their workshops from typically shallow skits you might see at a conference, Maryann stated, “What we do are not skits. They are true professional theatrical productions, to the extent that we cast them like mainstage productions. We hold casting calls, as if the play were to go on Broadway. We find the right actors for the parts. It’s very important that the audience believes that these individuals are who they say they are, because after the theatrical piece, the audience gets to question the actors, who stay in character.”
Elaborating on how Shaking the Tree handles the emotional struggles and conflicting expectations that often arise with family dynamics, Fernandez stated, “We like to portray a dynamic of Right vs. Right in our stories, because there aren’t good guys and bad guys, often just people who have different motivations and perspectives, trying to do the best they can in challenging situations. This brings what we do to a different level. It also deepens the level of conversation people are willing to have after the play.”

“All the people in the audience are typically playing many roles. They are CEOs; they are executives in family offices and foundations. They are mothers, fathers, daughters and sons. When they see the play performed live in front of them, they recognize the roles they play in real life. And that’s really moving for them on a deep level.”

Pausing thoughtfully, Maryann Fernandez adds, “Wealthy families are longing for a deeper discussion, beyond someone speaking at a podium. They want something interactive and dynamic that will move them on a deeper level. They want to have discussions that are meaningful.”
2007 finds Shaking the Tree expanding their theatre workshop into new territory: a DVD-based workshop, around a play called, The Big Payday, which deals with the tricky issue of how much money to leave one’s children.

Fernandez explains that their DVD-based workshop (paired with live facilitation by experts in the field of wealth education) enables Shaking the Tree to put forward a much more portable version of their workshop.
Personally rewarding philanthropy
An expanding and evolving focus for Shaking theTree Foundation is philanthropy—specifically donor education and promotion of creative philanthropy within the high net worth community.

The group is hosting a conference called Philanthropy: Finding Your Path this coming June 14-17, 2007, outside New York City, at the Tarrytown House Estate, with featured speakers including best-selling author and leader in mind, body and healing, Deepak Chopra, MD; global activist, fundraiser and author of The Soul of Money, Lynne Twist; and founder of the Barefoot College in India, Bunker Roy. The conference will also feature three live theatrical productions and sessions such as: Helping Individuals/Families to Achieve Their Philanthropic Mission; Family Foundations—Should the founder’s dream reach the third generation?; and Exploration of Personal Values, Mission and Dreams.
The event is primarily for individuals and families of significant assets, with attendees also including executives from family foundations, family office executives, and social entrepreneurs. It is a private, invitation-only gathering and space is limited.

Maryann Fernandez expounds, “We really believe we need to have a variety of people at the table in order to discuss how we can address critical problems in our global communities. It’s going to take more than traditional philanthropists, but will include people involved in social investment, and those creatively using a variety of resources (not just money), such as their skills, influence and time.”

Stephen McCarthy, executive board member of Shaking the Tree, brings a unique perspective to the group. A Senior Vice President of KCG Capital Advisors, Stephen offers insight into two camps: Wealthy families and the financial advisors who serve them. McCarthy sees social entrepreneurship as “A mix of business and philanthropy, where the principles of business are applied in the social realm.”

He elaborates, “The intersection of business and philanthropy has become more real. Bill Gates is an example. A more engaged philanthropy has taken hold. This combined with ‘the wealth effect’ has led to a huge leap in the number of new foundations and not-for-profits created over the past ten years.”

Fernandez adds, “Social entrepreneurs are individuals who seek creative ways to solve social issues on a systemic level.”

Asked why there appears to be a shift in America towards the wealthy being more personally involved with philanthropy, rather then just contributing dollars, Fernandez offered her insight, “More recently, certainly Post 9/11, people have been thinking more about who we are as Americans, and how we are viewed beyond our own borders. People want to contribute in ways that live on beyond themselves. They also want to feel the passion in participation—which means they want to be engaged in a meaningful, adventurous and fun experience for themselves and their family. They are becoming aware of more opportunities to use their vast resources in order to make a difference, and want to meet other people who are passionate and having fun making social contributions.”

Asked how Shaking the Tree contributes, Maryann explained, “We help them connect much better with who they are and what they stand for, and expose them to different philanthropic options through our events. We help them think beyond money—to inform and influence others; to make a statement with their corporations or to use their celebrity to draw attention to good works and opportunities around the world.”

A model of corporate awareness she praises is Sterling Stamos, a private equity firm, managing $3 billion in assets, whose general partners contribute 10% of profits to charity. “They commit their dollars, resources and time, and help people think outside the box.” Shaking the Tree’s conference this coming June is co-chaired by Christopher Stamos, President of Sterling Stamos Corporate Philanthropy as well as Sterling Stamos Global Institute.

“This is the time to stop talking about philanthropy as an obligation, but as an amazing opportunity and the best adventure that you can go on.” Fernandez, enthuses, “That’s the only way that philanthropy is sustainable, if it fulfills you and if it gives you happiness.”

September 20, 2007….Gender, Investible Assets and the importance of charitable giving
Spectrem survey data suggests that gender-based attitudinal differences toward the importance of charitable giving within the Ultra High Net Worth investor population vary as a function of level of investable assets.
While females (68%) are more likely than males (52%) to agree that making charitable contributions is important, among those with fewer than $5,000,000 in investable assets, a significant gender-based finding fails to materialize. However, within those having investable assets of $5MM or more, females are dramatically more likely than males to hold this attitudes.

August 22, 2007…Level of Charitable Giving Declines
The nation’s 13.1 million affluent households donated an average of 6% of their gross income to charitable causes in 2004, down two percentage points from the level of recent years.
While those households gave away a smaller percentage of their income, they said they contributed as much as they could to charitable causes last year.
Affluent households donated an average of $7,748 to charities in 2004. The most generous givers tended to be single ($10,165), 66 or older ($9,073) and male ($8,758). The least charitable were 18- to 45-year-olds ($5,793) and females ($6,881).
Those households that made charitable donations in the past three years were most likely to support religious organizations (67%), followed by social service organizations (58%) and educational institutions (52%).
Religious organizations were not only the most popular cause but also the biggest recipient of donations. Those organizations received 44% of all charitable contributions, far outdistancing social service organizations (20%) and educational institutions (13%).
September 21, 2007….Desire to be Involved in Important Charities
Spectrem Group research* has shown that four in ten UHNW investors want to be personally involved with the most important charities that they donate to.
This desire varied as both a function of net worth and age. Indeed, with each successively larger level of household net worth, there was a corresponding increase in the proportion agreeing that this was important to them. While slightly more than one-third of those with a net worth between five and ten million agreed with this, more than one-half of those with a net worth of $25MM or more agreed that this attitude described them. UHNW investors age 65 and older were the least likely to agree with this statement, while those under the age of 45 were the most likely.

September 21, 2007…Adjusting Level of Charitable Giving Based on Personal Financial Situation
Spectrem Group research* has shown that more than one-fourth of Ultra-High Net Worth investors strongly agree that they adjust their level of charitable giving based on their current financial situations.
The proportion feeling this way varies as a function of net worth level. Those with a net worth under $25 seem to be more affected by their financial situation. Fewer than one in five of those with a net worth of $25MM or more felt that this attitude described them, compared to one-fourth of those with a net worth of $5-$10MM and three in ten of those with a net worth of $10MM to $25MM.

September 21, 2007….Obligation to Share Wealth as a Reason for Charitable Giving
Spectrem Group research* has shown that more than one-third of Ultra-High Net Worth investors feel obligated to share a portion of their wealth through charitable giving.
This obligation is felt most strongly among those households with a net worth of $25 MM or more. Nearly one-half of this group strongly agreed that they felt obligated to share their wealth in this way compared to one-third of those with a household net worth of $5-$10 MM.

September 21, 2007….Patterns of Charitable Giving
Patterns of charitable giving are very different in the United States since the occurrence of tragedies such as 9/11 and Hurricane Katrina.
Charitable giving for the three years preceding 9/11 placed a lot of emphasis on giving to educational institutions. Since then, a substantial proportion of these charitable dollars have been re-allocated to religious, social service, and disaster relief * funds. Undoubtedly, much of this re-allocation is directly associated with or influenced by 9/11, the Thailand tsunami of 2004, and most recently Hurricane Katrina.

September 21,2007….Importance of the ease of Charitable Giving
Spectrem Group research* has shown that it is important to a large segment of wealthy people that charitable giving is an easy and relatively straightforward process.
Overall, slightly more than one-fourth of UHNW investors feel that this is important. This desire is strongest for those age 55 and older for whom this is important for one-third of those age 55-64 and over one-fourth of those 65 and older.

August 23, 2007…Donors do not consider tax benefits
Affluent individuals typically follow their hearts when making decisions about charitable giving.
In fact, the affluent are far more concerned about helping others than they are about the potential tax benefits of their gifts.
For these individuals, charitable giving is very personal. The wealthy favor causes that have special meaning to them but are beginning to show interest in organizations whose missions and operations they understand.
Affluent individuals tend to believe they don’t need any assistance with their charitable giving, but some would welcome professional help in this area. Only 58% of affluent individuals understand the tax benefits of cash-based charitable contributions. Even fewer individuals (36%) recognize the benefits of in-kind charitable contributions.

August 20, 2007….Charity and Reilgion: Giving time and money
A recent Spectrem Perspective UHNW Financial Decision Differences among Religious Segments uncovered some trends in charitable giving in terms of religious segments.
While most affluent households (56%), regardless of religious affiliation, give 1%-5% of their gross income to charitable causes, Protestant investors are most generous with their time, donating an average of 141 hours a year to charity. That said, one in four of all affluent investors donate 51-250 hours per year and one in six donate over 250 hours yearly.

August 29,2007….Groups that rate charities
American Institute of Philanthropy publishes a “top-rated” link to many charities that have supplied documentation that at least 75% of their donations are used for charitable endeavors.

Charity Guide rates charities in terms of how many dollars it costs to raise $100. That is, what percentage of each dollar that makes it way to charity.

Charity Navigator rates 3,000 charities on a number of factors.

Give.org includes input from the Better Business Bureau Alliance.