By Andy Carroll, Exponent Philanthropy

I regularly explore trends influencing philanthropy by spotlighting articles, reports, and essays in the media. I cast a wide net, venturing beyond philanthropy and traditional topics to consider a variety of ideas, innovations, debates, and critiques. Read previous posts in the series   

Philanthropy Leaders Air Concerns, Bright Spots at National Conversations

At a series of brainstorming sessions convened by Independent Sector President Diana Aviv to explore how nonprofits and foundations should adjust to upheavals in their working environment, leaders expressed how difficult collaboration is, writes Suzanne Perry in The Chronicle of Philanthropy, and that “the whole structure for financing nonprofits is ‘broken.’ ‘Money is driving goals,’ with organizations changing their activities to meet demands for certain outcomes from their donors.”

Participants also named several innovative efforts that are moving the needle. “Minneapolis participants praised the Northside Achievement Zone, an effort by more than 30 nonprofits and schools to fight poverty and improve academic performance in a north Minneapolis neighborhood; successful campaigns to legalize gay marriage and defeat a proposed constitutional amendment requiring voter IDs, which ‘required nonprofits to come together across boundaries’; and the Blue Line Coalition, which unites more than 15 groups working to ensure that a light-rail extension benefits low-income communities.”

Redesigning Work to Harness Human Potential

Barry Schwartz, a professor of psychology at Swarthmore College, examines widespread worker disengagement. “(Gallup’s) survey last year found that almost 90 percent of workers were either ‘not engaged’ with or ‘actively disengaged’ from their jobs.” Research consistently reveals that people yearn to derive more satisfaction, meaning, and engagement with their work. Employers have the means to harness people’s desire to participate meaningfully, Schwartz says. Nurturing engagement not only increases job satisfaction, but improves performance, customer service, and an organization’s profit and longevity. “How can we do this? By giving employees more of a say in how they do their jobs. By making sure we offer them opportunities to learn and grow. And by encouraging them to suggest improvements to the work process and listening to what they say.”

A Rise in Giving Obscures Ongoing Hardship in America

John E. Kobara, an executive with the California Community Foundation, examines the hidden story underneath the 5.4 percent “surge” in charitable giving in 2014. He paints a sobering portrait:

• A large portion of the increase in giving in the United States came from just a few gifts by ultra-wealthy donors.
• Wealthy donors favor large nonprofits such as universities and hospitals; many smaller nonprofits, including those that serve low-income people, are not seeing a rise in donations.
• These smaller nonprofits are seeing higher demand for their services among low-income citizens, and finding it difficult or impossible to meet these needs.

Kobara points out that “Ninety percent of nonprofits do not have a major gifts officer or even a major gifts strategy, much less a mega gifts officer. Almost three-quarters of nonprofits in the United States have budgets under $1 million.”

A lot of giving potential in America is untapped, he asserts. Individual giving has been stuck at about 2 percent of GDP for decades, and people from lower economic strata routinely give a higher percentage of income than their higher-income counterparts. (According to Keith Curtis, chairman of the Giving USA Foundation, about half of individual giving comes from 4 percent of the population.)

Kobara calls on funders to recognize that the recession hasn’t ended for millions of Americans. “We can’t sit back and wait for a true surge. We must start our own campaign to educate and inspire the philanthropic community and non-givers about the unmet needs and the remarkable organizations that will never have mega gift officers.”

A Minnesota Funder Works to Build Diversity in Foundation Leadership

The leadership of the country’s philanthropic and nonprofit organizations continues to lag behind vast demographic changes. “According to the Annie E. Casey Foundation, at least 60 percent of nonprofits serve people of color, who comprise more than a third of U.S. population. However, only about 8 percent of nonprofit leaders are members of racial minorities.” The Women’s Foundation of Minnesota has committed itself to addressing the gap. “Long before racial disparities in philanthropy became a hot topic, the Women’s Foundation of Minnesota launched a fellowship and internship for women of color that has been a model for other Minnesota foundations. Since 2002, the initiative has forged career pathways for nearly 35 young women who otherwise may not have set foot in the door of a major foundation.”

Donor-Advised Funds Democratize Thoughtful Giving 

Simplicity and flexibility account for the popularity of donor-advised funds, according to Joanne Florino of the Philanthropy Roundtable. “Donor-advised funds now make it easy for families to transmit values and teach younger members how to engage in creative giving. Today over one thousand organizations offer donor-advised funds in the U.S., housing over $50 billion in charitable assets…in 2013 they funneled nearly $10 billion to charities.” Donor-advised funds offer middle-class givers an economical way to do strategic giving. A huge variety of host organizations offer funds, from community foundations to commercial firms like Fidelity and Vanguard to hosts with different political or issue focuses.

“Donor-advised funds also enable birds of a philanthropic feather to flock together. In 1976, Drummond Pike started the Tides Foundation after he recognized the potential of donor-advised funds to help liberal philanthropists join together in collaborative giving for policy change. Today hundreds of Americans support progressive causes through Tides; the foundation distributed over $94 million in 2013.”

Seismic Changes Ahead for Charities as Americans Age

Nicole Wallace of The Chronicle of Philanthropy explores the impact of America’s aging population on the services nonprofits provide (subscription). “The number of older Americans is growing fast—10,000 baby boomers turn 65 every day. But it’s the generations behind them that will add to the pileup, as health advances help everyone live longer. By 2030, at least one in five Americans will be over 65.” Wallace says that all nonprofits will “feel the reverberations.” “Arts groups, for example, are already scrambling to attract young people to shore up aging audiences.” And groups that serve older adults seeking treatment for alcohol and drug addiction will see a surge in demand.

Increasing diversity in America is raising unique issues as the population becomes grayer. “People of color make up 21 percent of Americans age 65 and older but more than 50 percent of children 5 years old and younger … many in the nonprofit world are calling for programs that bring older adults and children together.”

Senior Program Director Andy Carroll writes resources, designs workshops, and facilitates seminars for funders. Andy also dedicates a significant portion of his time to managing our Leadership Initiative that defines, validates, nurtures, and celebrates the many ways philanthropists lead. Andy has 25 years of experience in nonprofit organizations, and he enjoys talking with funders about their questions, interests, passions, and plans for making a difference. Follow Andy on Twitter @andycarrollexpo.