Top Trends in Revenue Model and Funds Development

May 13, 2021

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Mary Beth Collins, Tony Shields,

Don Gray, Michael Maguire, Steve Goldberg, Calli Hughes

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Note BACKGROUND Materials here: go.wisc.edu/tsctlb

Tony Shields

Wisconsin Philanthropy Network

Mary Beth Collins

UW-Madison Center for Community and Nonprofit Studies

Welcome!

Origins of this Talk! + Goals for Today + What’s Next

• Fundraising and Development Conference -- 25 year tradition

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• Continuing Need for active professionals and aspiring newcomers for ongoing learning and networking

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• New wave of trends to consider in big-picture strategies and day-to-day tactics
• This matters for effectiveness!
• And participating in the change -- building buy-in for improvements etc. “Making the case” for how giving should be!

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• Key perspectives from:
• National and Global commentary
• Funders - Wisconsin and beyond
• Practitioners and Front-line organizations
• Audience/participants

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• Today, we aim to cover some of this ground -- to get you thinking big-picture -- and provide you more resources. Then, hopefully, opportunities to apply to your work. At the end, we’ll revisit this.

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• This team aims to establish new opportunities of a similar nature for the future!

Philanthropic Activity, Fundraising, and Method Changes

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Moving with the Times, Tech, and the Generations --

FRAMING

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Philanthropic, Fundraising, and Method Changes Moving with the times, tech, and the generations

Technology + Expansion of Those Who Participate?

but still highly imbalance in terms of who has philanthropic power

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New Generation -- shifts and trends ----->

Themes and Interest Areas?

But Also -- Tactics:

Donor Advised Funds, Philanthropic Founders,

Givers’ Roles, Planned Giving?

ALL being looked at differently? TBD.

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COVID Themes

-- “Distanced and Virtual” Activity, Giving, Interest Groups

-- BIG Emergency Action

-- Combo with Public Funds -- the role of Philanthropy

-- Note that COVID was not the first moment in recent years when these themes arose -- consider: natural disaster/climate change, border emergency, activism from 2016 to present, etc.

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Growing (if overdue) Awareness of and Reckoning with Root Causes, Racism, Colonialism, other “isms”, and power imbalances? “Charitable” notions fading.

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Takeaways & Key Concepts -- these concepts connect across our full presentation!

Generational Shifts

Generational Shifts

Commentary on Boomer → Next Gen

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Different Issues, Themes and Approaches?

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New Ideas and Changes

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Family Foundations

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Corporate Giving Changes -- engagement, issues, who leads giving?

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The “Great Wealth Transfer”: between now 2030, an estimated $15.4 trillion of assets will have been passed down the generations by the world’s richest people.

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New Gen more interested in direct engagement and social justice/root causes?

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NYT article “The Rich Kids Who Want to Tear Down Capitalism”

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Takeaways & Key Concepts

Examples and Details

Making Philanthropy More

Diverse and Equitable

Making Philanthropy More Diverse and Equitable

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• Moving from inaction to action
• Recognizing historic oppression and exclusion in the sector -- explicit and internal?
• Greater Desire for Convening
• Grantmakers have a desire for more tools
• Shared Language
• Understanding where individuals and organizations are on their equity journey
• Board and Staff Representation

• National Models: Liberatory Consciousness

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• McKenzie Scott giving -- focused on organizations with BIPOC leaders

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• Decolonizing Wealth and other notions of redistribution -- mixed reviews

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• New Resources for “Attracting Diverse Donors”

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Takeaways & Key Concepts

Examples

Trust-Based Philanthropy

Trust-Based Philanthropy

1. Give Multi-Year Unrestricted Funding
2. Do your homework
3. Simplify and Streamline Paperwork
4. Be Transparent and Responsive
5. Solicit and Act on Feedback
6. Offer Support Beyond Money

thewhitmaninstitute.org

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Local Example: CUNA Mutual Foundation

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Takeaways & Key Concepts

Examples

Giving Processes

Giving Processes

Reducing burdens on applicants, thinking about metrics differently

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Recognizing disadvantage to grassroots organizations in past practices (“professionalization” era)

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Greater sense of urgency -- increase in giving, lifting of restrictions

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Increased concern with community engagement and representation, as well as root causes

. . . who is closest to the problem?

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Local Example: American Family Dreams Foundation updated its giving processes

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Global Example: Ford Foundation

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Takeaways & Key Concepts

Examples

The Role of Reserve and Unrestricted Funds

The Role of Reserve and Unrestricted Funds

• COVID highlighted that nonprofits are “one fundraiser away” from insolvency.

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• Front-lines organizations have for years discussed the way that dominance of project-based funding creates challenges -- however, this was often turned back on orgs to find unrestricted funds.

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• Good risk-taking and responsiveness require cushion

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• Door may be opening to unrestricted funding and open conversations across funders and fundees about reserves

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• New narrative possibilities around organizational stability?

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Before “Operating /Administrative Funds” come off the dirty word list. . . .

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Studies show there is still hesitancy to support this kind of giving.

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Still questions of “unrestricted” versus “administrative”/

overhead

Important and Promising Concepts

But. . . .

Diversified Revenue Models and Social Enterprise

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Funds Development Mix

Diversified Revenue Models and Social Enterprise

Funds Development Mix

Demonstrating Sustainability and Reducing Restrictions

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Diversified Revenue Sources

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Business and Social Enterprises -- “business model canvas”

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Social Entrepreneurship

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Liberation from Funders / possible addressing economic development + multi-purpose activities

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• Wisconsin Impact Investing Collaborative (wi3c.org)
• Walnut Way
• Array of Food Production Mission-Based Enterprises (article forthcoming on entity choice)

Takeaways & Key Concepts

Examples

Rural Philanthropy

Rural Philanthropy

Convening and conversations with statewide philanthropy are underway.

• While early in our conversations emerging issues include:
• Equity
• Health Access
• Access to Broadband

Alliant Energy Foundation

Health Related Funders

Otto Bremer Trust

United Way of Wisconsin

Takeaways & Key Concepts

Examples

Lessons Learned from COVID-19

at Large

Lessons Learned from COVID at Large

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• Lack of Social Safety Net became apparent -- philanthropy and the third/independent sector = the first responder, ear to the ground, and “when all else fails” source of support. What are the appropriate roles of the public and nonprofit sectors?

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• Our interdependence became apparent!-- example of homeless policy in LA -- if some members of our community are at risk, we are all at risk (but this was not so obvious to all before)

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• Inequities were glaring

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• Philanthropy nimbly and massively responded to the challenges of COVID.

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• Response funds were developed. And new giving and expenditure philosophies gained traction (Ford Foundation, and Donor Advised Funds shifts, for example)

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• Communication between grantmakers and grantees were enhanced.

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• Trust-Based Practices emerged and became more embraced. Operational, Unrestricted, and Reserve Funds were also viewed differently.

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• Burning Questions: Pivot to the future vs. going back to pre-COVID practices?

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Takeaways & Key Concepts

Participant Questions and Comments

Please feel free to place your questions in “Chat”:

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What questions do you have? For presenters or other participants.

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Other comments?

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Chat Challenge: What from this presentation can you relate this to your daily work?

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Suggestions/hopes for the future?

Stay in Touch!

Center for Community and Nonprofit Studies:

Facebook: @CommNS

Twitter: @UWtheCommNS

Website: commnsknowledge.wisc.edu

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Wisconsin Philanthropy Network:

Facebook: @WisconsinPhilanthropyNetwork

Twitter: @WI_Philanthropy

Website: wiphilanthropy.org

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And, don’t forget about the background materials here: go.wisc.edu/tsctlb