2017 Giving Trends
While we wait to see what impact tax reform could have on charitable giving in 2018, we’re getting an inside look at how 2017 fared in charitable giving.
Blackbaud, a software and services provider for nonprofits that processes most of the online donations made in the U.S., has released the Charitable Giving Report. The analysis shows overall charitable giving (to more than 8,453 organizations) increased by 4.1 percent last year to $29.7 billion, marking the sixth consecutive year of increases in giving.
2017 giving by the numbers:
While overall giving increased by 4.1 percent, online giving increased 12.1 percent (for 5,709 nonprofit organizations), which resulted in more than $3.1 billion in online gifts
Total fundraising from online giving topped 7.6 percent, a new record
21 percent of online giving was made via a mobile device
Small nonprofits saw 10.7 percent growth in online giving (those with annual total fundraising less than $1 million)
Medium sized nonprofits saw 14.9 percent growth in online giving (those with annual total fundraising of $1 million to $10 million)
Large nonprofits saw 11 percent growth in online giving (those with annual fundraising more than $10 million)
Of the 10 categories highlighted in the report, international affairs saw the largest growth in overall giving in 2017, with a 19.2 percent increase
Faith-based nonprofits, healthcare and medical research all saw increases in overall giving ranging from 4.6 to 4.9 percent
Both arts and culture and K-12 education saw small declines in overall giving
Average online donation was $132 in 2017
The report states, “A convergence of economic, political, technological, and philanthropic trends helped boost giving in 2017. The 4.1 percent increase in giving during 2017 was a substantial jump compared to relatively flat growth in 2016.”
Blackbaud reports that the final three months of 2017 saw 5.1 percent increase in giving, noting that this end of the year giving growth could be linked to the tax reform, as people wanted to lock in giving incentives that won’t be available to them this year.
As CMF has reported, the tax reform package doubled the standard deduction, which now limits the number of people who can itemize. This decreases the number of tax filers who can claim a charitable contribution by 95 percent. There is research that indicates tax incentives affect first time donations and the amount of the donations.
As a result, the Joint Committee on Taxation has estimated the charitable sector could see a loss of up to $19.8 billion in charitable giving annually.
“We may not have answers on that question until next year, when full 2018 numbers come in, or even beyond,” Chuck Longfield, Blackbaud’s senior advisor said. “For now, organizations are encouraged to remain conservative in their projections, with the understanding that increased donations in 2017 may have been a response to changing times, not growth that can be sustainably built upon.”
Check out the Charitable Giving Report.
MI’s Efforts to Secure an Accurate Census Count in 2020
Michigan’s Nonprofit Complete Count Committee wrapped up its first meeting as efforts are underway to engage nonprofits in ensuring an equitable and accurate count in Census 2020.
As CMF has reported, Michigan stands to lose $1,800 in federal funding per year for every person who isn’t counted, funding that supports critical services in our state. As MNA shared at the meeting, “without the government funding, communities would turn to philanthropy and nonprofits to fill the void.”
The Nonprofit Complete Count Committee is part of the Michigan Nonprofit Association’s (MNA) Michigan Nonprofits Count Campaign. The campaign is a statewide effort working with nonprofits to support on-the-ground outreach efforts within historically hard-to-count populations to ensure a complete count in Census 2020. The campaign is supported with startup funding from the W.K. Kellogg Foundation. CMF is partnering with MNA to assure philanthropy’s engagement and support for the work.
The Nonprofit Complete Count Committee is comprised of grass top organizations serving hard-to-count communities. CMF staff member Debbie McKeon serves on the committee.
The campaign shares that there are significant challenges in securing an accurate and equitable census count in 2020, which include:
Access to reliable internet and cybersecurity issues: As hard-to-count populations may not have access to high-speed reliable internet this can pose an issue for an accurate count as the Census Bureau is planning to collect the majority of census information online. Also, with breaches and cybersecurity fears, people may be hesitant to share their information with the government online.
Inadequate funding for Census 2020: The Census Bureau is facing budget constraints, which will affect how they collect census information, including scaling back door-to-door outreach and decreasing the number of regional and local census offices by 50 percent.
A lack of trust from the public in our government: The campaign shares that data from the Pew Research Center shows that only 20 percent of Americans feel they can trust our government. This can make it difficult to get people to engage and provide information to the government.
Reduced dress rehearsals: This is the first census that will include an internet first model and households will receive a letter with instructions on how to complete the form online. There were three planned “dress rehearsals” for the census to help inform and prepare for an accurate count but two of those were cancelled due to underfunding on the federal level. Now there will be only one rehearsal in Rhode Island.
In the 2020 campaign several goals and strategies seek to address barriers reaching hard-to-count populations which include:
To assure it is engaging with the trusted nonprofits in communities, MNA is partnering with local/regional organizations that will serve as hubs to develop plans for their communities and provide mini grants to grassroots nonprofits for fieldwork
Creating and implementing communications strategy and collateral materials, in multiple languages, to raise awareness about the importance of a complete count and how to participate
Sharing resources and conduct trainings that will increase the capacity of nonprofits to engage in support of Census 2020
Partnering with universities and government to collect and analyze data that can be shared with communities to help their outreach with hard-to-count populations
Working with the state to advocate for investments in planning and outreach for the census in addition to federal funding, appropriate leadership, data security and questionnaire content
Coordinating with government-related census activities to leverage resources and coordinate efforts
“The training and materials provided through this campaign will promote action on the census and will also equip nonprofits with the skills necessary to pursue future advocacy efforts of importance to those they serve and their communities,” the campaign strategy states.
Following their inaugural meeting, the committee will continue to meet between now and the summer of 2020, providing guidance on the design and implementation of the campaign and educating their own networks to take actions in their local communities.
CMF is part of the United Philanthropy Forum’s Census 2020 Project, through a grant from the Joyce Foundation, the project is aimed to educate philanthropy about the census, increase funding support for the census and mobilize funders to advocate for policy improvements for the census.
Connect with the Michigan Nonprofits Count Campaign.
Partnerships to Build MI Talent Pipeline
Our state unveiled a major new initiative to invest, develop and attract talent for Michigan. Governor Rick Snyder and state leaders shared the Marshall Plan for Talent last week, which is a partnership between educators, employers and stakeholders to build Michigan’s talent pipeline.
The state shared highlights of the plan which include:
Providing grants to schools:
The state will provide World Class Curricula grants to schools that collaborate with businesses to create and develop classes and programs that don’t exist or fill gaps in existing classes.
Schools that partner with employers who provide match funds and technical expertise, can receive professional equipment grants.
University Partnerships: The state will work with our universities to provide evaluation of the programs and develop curricula.
Michigan Future Talent Council: This group will be comprised of employers, policymakers and educators who will meet to determine skills and credentials that are in demand, and assess the skills students need.
Career Navigators: The state will provide resources to schools to hire career navigators who can support school counselors to help students find career-based learning opportunities.
Talent for Tomorrow: The creation of a program that provides scholarships and stipends toward the completion of certifications in high-demand fields for low-income individuals. Stipends could help cover barriers such as transportation or child care.
The governor has been focusing on investing in talent in Michigan to ensure we have a robust workforce in the future. As the state shares, “Michigan will have more than 811,000 career openings to fill through 2024 in fields that are facing talent shortages, with an average salary of over $60,000 per year.”
Current and future shortages are in several critical areas such as: information technology and computer science, health care, manufacturing and other professional trades and business careers.
Last week’s announcement follows another major talent and skill building initiative the Michigan Department of Education (MDE) shared earlier this month, the formation of MiSTEM regions around the state.
There are 16 new regions included in the MiSTEM Network, each will receive a portion of the $1.3 million in total state funding, to develop strategic plans to create a STEM culture, support STEM educators, integrate businesses and education into the network, and ensure high-quality learning opportunities for student.
The 16 regions cover every county in Michigan, you can view the regions here.
“This is another important step in bringing education and business together to develop world-class talent throughout Michigan,” Brian Whiston, state superintendent, MDE said. “This is included in goal one to help Michigan become a Top 10 education state in 10 years and vital to our state’s further success.”
The statewide network was created as a result of the governor’s MiSTEM Advisory Council’s recommendations.
Innovative partnerships are expected to take the stage at the governor’s Talent and Education Summit, which begins on March 12 in Novi, as the summit focuses on how employers and educators can collaborate to build a strong pipeline of talented students for our changing workforce.
Learn more about the Marshall Plan for Talent.
Check out the MiSTEM Network.
Join the Center for Michigan and Bridge Magazine for their upcoming Solutions Summits to discuss several key topics, including the future of Michigan’s education system.
Save the date to join the Office of Foundation Liaison (OFL) for another career and technical education (CTE) site visit on April 13 in Alpena, more details coming soon.
Jandernoas give $4.3 million to support educational partnership with University of Michigan
Content excerpted from U of M press release. Read the full release here.
Mike and Sue Jandernoa of the Jandernoa Foundation, recently gave $4.3 million to improve the mathematics proficiency of Michigan school children through a partnership with the University of Michigan.
About $3 million of their gift will be used to expand a TeachingWorks partnership in Grand Rapids focused on preparing and coaching teachers, particularly in mathematics education.
The goal is to better prepare Michigan teachers and enhance students' mathematical capabilities, ultimately improving the number and quality of jobs.
"Just at the time when the current workforce needs better math skills, our high school graduates have significantly less math understanding and proficiency,” Mike Jandernoa said. “We must help these students in math now, so they can have successful jobs in the future.”
TeachingWorks is a national organization, focused on advancing equity and social justice and based at the U-M School of Education, dedicated to raising the quality of entry-level teaching and the learning of students in beginning teachers' classrooms.
The Jandernoas’ support will also establish a need-based scholarship at the Stephen M. Ross School of Business and expand fellowships at the Gerald R. Ford School of Public Policy.