This month's blog comes from Elizabeth Roma. Not only is she the Assistant Director for Research with The Helen Brown Group LLC, but she is also our chapter's president beginning in 2018.
ICYMI: 2017 (Philanthropy) Year in Review
Looking at my calendar and counting the number of days left in 2017, I find myself wondering where the year went! Time has flown, but so MUCH has happened, that at the same time, some days feel like they’re a week long. (What’s that expression? “The days are long, but the years are short.”) As prospect researchers, it is part of our job to keep an eye on all that’s happening and think about its impact (both immediate and potential) on our organizations. Doing that while trying to crank out profiles, run reports, and identify new prospects (not to mention process gifts, write grant proposals, and all of the other things that you might be doing if you work in a small shop) can be challenging, to say the least. If you are like me, you probably have a folder full of bookmarked articles that you saved for later reading. I know that folder can be overwhelming sometimes, so I spent some time tackling mine and pulled out some of the top themes that I’ve been observing over the last year, along with some articles that I think are worth reading and contemplating. I hope that you will have some down time over the next few weeks to read some of them and that they will help inform your work in 2018!
Growth of new philanthropic vehicles and types of gifts
Foundations and cash gifts are still around, but donors are looking more and more to non-traditional philanthropic vehicles (like DAFs and LLCs) and forms of giving (like impact investment and donations of art—or bitcoin.)
More on this theme:
“When M&A money goes to charity: EscrowUp closes second transaction”
“More donors give bitcoin and assets other than cash to charity”
“SharesPost and Fidelity plan to make private shares a force for charity”
And anyone with even a passing interest in art will enjoy reading about two auctions in which significant works were (or will soon be) sold to benefit nonprofit organizations.
GDPR legislation and privacy
A new law, the general data protection regulation (GDPR), will take effect in the EU in May 2018, replacing the current Data Protection Act. This law is expected to have a major impact on nonprofits and fundraising in general, and prospect research more specifically. Our counterparts in the UK and the European Union have spent much of 2017 working to ensure that their organizations are compliant with the law, but lest you think that those of us in the US needn’t follow this too closely, you should know that the law applies to any organization that holds data about citizens of the UK or the EU. If any of your constituents live in the UK or the EU, this affects you.
Philanthropy steps up where government fails to meet needs…and also grapples with its role in (democratic—small d) politics
More and more, we are seeing organizations and institutions that have traditionally been funded largely or entirely by the government relying more heavily on private donations for funding. Although this has been the case for a while now in education and the arts, it is an issue that seemed to intensify in 2017 and to expand to other areas.
A few examples:
“Donors pledge nearly $200 million for family planning”
“Michael Bloomberg Offers $15 Million to Make Up for Washington’s Share of the Paris Accord Costs”
“Chan Zuckerberg Initiative Helps East Palo Alto with water shortage, affordable housing”
“Will private funding save public arts education?”
“Foundations commit $5M to ensure an equitable recovery in Puerto Rico”
At the same time, nonprofit organizations and individual philanthropists have begun to do some real soul-searching about what role the third sector should play in a healthy democracy. For thoughts on this, see:
“Is Big Philanthropy Compatible with Democracy?”
“How Trump Has Changed How We’re Giving to Charity” (This one, and the report it links to, has some great stats on giving—it’s worth a close look.)
“As Government Retrenches, Philanthropy Booms”
“Trump Era Requires Surge of Grant Making to Aid Democracy”
“House GOP’s Tax Plan Would Open Up Politics to Churches—And Charities”
Paradise Papers
In November the International Consortium of Investigative Journalists (ICIJ) reported on a months-long investigation of a trove of leaked documents centering around the Bermuda-based law firm Appleby. The documents reveal many details of the complex offshore holdings of many of the world’s high net worth individuals (HNWI), demonstrating that the practice of holding wealth offshore is more widespread than many have realized and that the amount of assets held outside the jurisdiction of many nations is enormous. There are many, many fascinating articles on the ICIJ website, so give yourself some time to wander down the rabbit hole.
If you prefer to listen rather than read, check out this podcast about the Paradise Papers investigation, and if you are interested in a deep dive into the world of wealth management, I highly recommend Brooke Harrington’s book “Capital Without Borders: Wealth Managers and the One Percent.”
Collaboration
In a world that seems so divided, one of the most encouraging trends I’ve observed this year has been seeing groups of donors and (smart, in my opinion) nonprofits working together to make big progress against big challenges.
More on this theme:
“Inside a Funder Collaborative Seeking Social Justice Through Pop Culture”
“Adding Pantries and Spice to New York’s Hungry Neighborhoods”
…and to energize you for the work that awaits in 2018, don’t miss this love letter to prospect research. We already know that the work we do is important, but it’s nice to have that knowledge confirmed by donors too!
I’d love to hear about what caught your attention this year. Please share some of your favorite articles too, and happy reading in 2018!
