The Chronicle of Philanthropy unveils its new, exclusive ranking. Plus, the data behind the ranking, what’s going on with donor-advised funds, and more.
How have charities fared since the Great Recession? As part of our ranking of America’s Favorite Charities, we looked at giving to some of the country’s largest nonprofits in the past decade. The trends we identified are discussed here, but below are snapshot looks at individual organizations. Note: We calculated the 10-year change in giving based on averages of three years of charitable-support totals — 2005-7 and 2015-17 — with each year’s figures adjusted for inflation.
Alzheimer’s Association (No. 69; giving is up 36 percent since 2007)
Officials say the organization is benefiting from rising awareness about its cause. “It’s the disease that people in this country are most worried about,” says Donna McCullough, chief development officer. “People are saying, ‘We’ve got to do something.’ "
The organization’s Walk to End Alzheimer’s is one of the few flourishing charity walkathons. The number of participants climbed from 186,000 in 2007 to 520,000 in 2017. Revenue from the events grew 129 percent, to $89 million.
American Jewish Joint Distribution Committee (No. 74; -7 percent)
David Schizer, who started as CEO last year, spent nearly 100 nights on the road in 2017. A chief objective: tell donors about how the organization was going to focus its work on the greatest need where it was best positioned to help.
“Many people who know JDC have a vaguely positive sense of our mission but don’t necessarily know a lot about us,” he says. “The first and most important thing in raising money is to make sure that people have a really clear understanding of our strategy and goals.”
Contributions grew 5 percent in 2017, thanks in part to digital campaigns and Schizer’s barnstorming.
Doctors Without Borders (No. 49; +126 percent)
The organization’s growth in giving over the decade stemmed in large part from two disasters — the 2010 Haiti earthquake and the 2014 Ebola crisis — that brought it attention and donors, according to Thomas Kurmann, director of development. In 2007, the group had 536,000 active supporters; 10 years later it had 733,000.
Kurmann says the organization’s giving pyramid works as it should as these new donors come in at the bottom. “They grow, they give more, they upgrade.”
Habitat for Humanity International (No. 26; +34 percent)
Habitat recently moved to strengthen its already powerful brand and focus its 1,300 affiliates on the message that the organization offers a hand up, not a handout, says Colleen Ridenhour, senior vice president for resource development.
While small donations from direct marketing are still its “bread and butter,” Ridenhour says, Habitat is trying to diversify with new programs that attract corporate and foundation support. One such effort aims to create home-financing options for low-income families.
“People are used to seeing us build homes — bricks and sticks in their back yards,” Ridenhour says. “Different donors are seeing us differently now.”
Make-a-Wish Foundation (No. 80; +55 percent)
About half of the charity’s support comes from corporate partners, including Disney, Macy’s, Subaru, and GameStop. Individual donations account for another 42 percent.
When David Williams started as chief executive in 2005, the organization had one vice president for fundraising, an individual focused on direct mail. “The enterprise was very special-events focused,” Williams says. “Special events are still important to us, but it’s a much more balanced portfolio.”
Today, the organization has three vice presidents focused on fundraising of various kinds. Also, “major gifts is something we’ve put a lot of time and focus into,” says Williams, who stepped down in October. “Back [in 2005], you could count the number of major-gifts officers on one hand. Now, it’s a priority.” The organization essentially tripled its staff, Williams says, and also has made grants to its chapters to help them hire or train major-gifts fundraisers.
Rotary Foundation of Rotary International (No. 65; +93 percent since 2007)
The more than 100-year-old charity has benefited from close ties with the Gates Foundation, with which Rotary and other partners have virtually wiped out polio worldwide. Each year since 2007, Gates has offered Rotary a two-to-one matching grant to spur giving for the polio fight. Gates’s match now results in $100 million annually.
Rotary has built on that Gates money with increased investment in planned giving to make the most of its older U.S. donor base, says John Hewko, the Rotary Foundation’s general secretary. It’s also invested heavily in digital fundraising and other technology; Rotary Direct, a recurring-giving platform, has doubled its number of donors in three years, says Eric Schmelling, chief philanthropy officer.
United Way Worldwide (No. 1; -28 percent)
CEO Brian Gallagher predicts changes at the organization will soon help reverse the trend of declining giving to the nonprofit. Its various affinity groups — for women, African-Americans, and young people, for instance — are growing rapidly, along with gifts to campaigns run by local United Ways for education, health, and other causes. With Salesforce.com and the encouragement of company founder Marc Benioff, the charity giant recently developed a digital open-source platform through which donors can research and connect with nonprofits — what Gallagher calls a virtual community chest he expects will rejuvenate workplace giving. United Way courtship of the wealthy has netted five donors contributing $10 million or more in the past five years. Gifts of $100,000 or more were up 9 percent in 2017.
University of Texas at Austin (No. 62; +48 percent)
When data showed the University of Texas system was investing less in fundraising than other major public universities, it earmarked new money for its 14 institutions. The lion’s share is going to its flagship in the state capital, where the advancement office will grow from 336 to 443 employees. Ninety of the new hires will be frontline fundraisers.
Last year, UT Austin received 68 gifts and pledges of $1 million or more. Donors are making fewer gifts out of Longhorn loyalty and increasingly want to know the impact their money will have. “We have benefited from the evolution of donors to think more and more about the return on their investment,” says Scott Rabenold, UT Austin’s vice president for university development.
Correction: A previous version of this article incorrectly said that the Rotary Foundation of Rotary International is 113 years old. It is 101 years old. It also said that the American Jewish Joint Distribution Committee ranked 73 instead of 74.
