Many community foundations and donor-advised funds tout their “flexibility” as a big draw for donors. But for the Greater Kansas City Community Foundation, being accommodating is paying off especially well.
Unlike many of its counterparts, the Greater Kansas City Foundation and its national subsidiary, Greater Horizons, have no minimum required donation for setting up a fund, contributing money to a fund, or making a grant to another charity. The community foundation also allows donors to use their own financial advisers to manage their assets.
This flexibility played a large part in the organization’s 32 percent growth in the 2018 fiscal year, says Brenda Chumley, senior vice president for foundation relations and operations.
The Kansas City, Mo.-based community foundation ranks No. 59 on our list of the charities that raise the most in cash support. It is the only community foundation on our list.
“We want donors to experience the joy of giving through their fund so that they can just have fun giving away their money,” Chumley says.
The foundation is seeing an uptick in gifts of complex assets, like closely held business interests — investments in companies controlled by a small group of shareholders — and real estate. For example, a couple recently gave the foundation their second home in California. The foundation sold it and put the proceeds into their DAF.
‘Bunching’ Contributions
Approximately 60 percent of the foundation’s contributions come from current donors and 40 percent from new supporters. That trend is pretty steady from year to year, and Chumley expects to see a similar breakdown in 2019.
About 85 percent of all new funds are created by donors who are referred to the community foundation by their financial advisers, she says. Staff work hard to stay close to local wealth advisers and accountants by attending meetings of their professional associations and by hosting educational events where both donors and advisers can learn about the mechanics of giving through their fund and the areas where philanthropic support is needed most. Staff regularly hold one-on-one meetings with donors and their advisers to discuss giving options.
The 2017 changes in federal tax policy have already led to shifts in donor behavior. Chumley says the community foundation has seen an increase in donors “bunching” contributions into their funds. “If they normally contributed $5,000 or $10,000 a year, they’re maybe bunching three or four years together so that they can exceed the standard deduction,” she says. It’s possible that may lead some donors to hold off from making additional contributions for the next couple years, but giving remains strong for now. “We’re just going to have to wait and see,” she says. The majority of gifts tend to arrive in the last two months of the year.
While the bulk of contributions come from individuals, the community foundation has been putting more effort into building relationships with companies in the region. “We know that there’s a big opportunity with companies who are trying to attract and retain talent with employee giving programs,” Chumley says.
The foundation uses custom software that makes it easy for employers to manage matching gifts for employees or matching dollars for volunteer time. They now manage corporate philanthropy for roughly 160 companies. “We’re seeing a lot of growth and interest in this area,” Chumley says.
A Close Watch on the Market
The community foundation raised $284 million in stock gifts in 2018. Even so, Chumley says, she thinks there would have been even more gifts of stock if it weren’t for the market’s sharp downward turn last December. She’s not necessarily worried about a possible economic downturn resulting in donors holding back, she says. “When the recession hit in 2008, our contributions in and our grants out the door were actually some of the highest that they’ve been,” she says.
Still, like many fundraisers, Chumley says she and her staff will keep a close watch on the markets as 2019 comes to a close.
Eden Stiffman reports on nonprofit trends and fundraising for the Chronicle. She recently interviewed MIT’s Epstein Whistle blower about her own lack of fundraising ethics training, and other topics. She also writes a popular weekly fundraising newsletter. Email Eden or follow her on Twitter.
