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Fundraising Update

A weekly rundown of the latest fundraising news, ideas, and trends gathered by our fundraising editor Rasheeda Childress and other Chronicle contributors. You’ll also find insights from your fundraising peers. Delivered every Wednesday.

March 10, 2021
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From: Nicole Wallace

Subject: How to Attract Diverse Donors

Welcome to Fundraising Update. This week, we take a look at how nonprofits that have relied mostly on white donors can start to build ties with people from different racial and ethnic backgrounds. Plus, we look at grant making from donor-advised funds managed by community foundations, which jumped significantly in 2020.

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Welcome to Fundraising Update. This week, we take a look at how nonprofits that have relied mostly on white donors can start to build ties with people from different racial and ethnic backgrounds. Plus, we look at grant making from donor-advised funds managed by community foundations, which jumped significantly in 2020.

I’m Nicole Wallace, features editor at the Chronicle of Philanthropy, filling in for Eden Stiffman, who is hard at work on an upcoming cover story. If you have ideas, comments, or questions about this newsletter, please write me at nicole.wallace@philanthropy.com.

Thanks to sponsor DonorPerfect for supporting Fundraising Update.

Inclusive Fundraising

The United States is becoming more diverse all the time. The U.S. Census Bureau forecasts that in 25 years, whites will no longer make up the majority of the country. Already, roughly 14 percent of U.S. millionaires are Black, Latino, Asian American, or other minority groups.

Fundraisers know that they need to reach donors from a variety of racial and ethnic backgrounds and that that will require change — but they’re not always sure where to start. That’s why my colleague Lisa Schohl spoke with fundraisers, donors, and other experts who shared insights and guidance on how to build ties with supporters of diverse backgrounds and win their support.

Over and over again, Lisa heard that organizations need to start internally by making sure their boards and leadership are diverse and inclusive before they seek donors from different backgrounds. Nonprofits need to put people from different racial and ethnic backgrounds in power, listen to their ideas, and be willing to change how they do things, says Armando Castellano, a trustee for the Castellano Family Foundation, which supports Hispanic causes in Silicon Valley, and founder of Quinteto Latino, a nonprofit that promotes Latino classical music.

Consider recruiting employees or trustees from minority groups in “clusters” rather than one at a time, says Misa Lobato, director of prospect management and analytics at the Rhode Island School of Design. This can help prevent tokenism and create a supportive network for these individuals.

It’s also important for fundraisers and other leaders in the organization to check their assumptions and to learn as much as they can about the groups of people they want to recruit as supporters.

For example, people often think Hispanics don’t give, says Ana Gloria Rivas-Vázquez, director of the Hispanic Development Unit at Catholic Relief Services. “Hispanics do give and quite generously,” she says. “But not always in ways that fit neatly within U.S. models of philanthropy.”

Informal giving is common among Hispanics, she says, such as sending money to family members in Latin America and helping friends and family here at home with child care. Rivas-Vázquez recommends that fundraisers acknowledge that this giving occurs and avoid making assumptions about people’s giving capacity based solely on income.

It’s important to gather demographic data on your donors. Without these insights, you can’t assess how supporters of different races and ethnicities are interacting with your nonprofit, Lobato says, such as whether they are responding to your fundraising appeals or requests for visits.

It’s best to let people tell you how they want to be identified, she says, rather than making assumptions based on names, photos, or associations. Use a donor or alumni survey to collect this information or include questions about identities in your event registration forms, invitations, or direct-mail response devices. Make sure to explain why you’re seeking this information and how you plan to use it.

As you make connections with donors from different backgrounds, you’ll need to adapt your outreach approaches to their culture and values. For example, relationships are typically very important to Hispanics, Rivas-Vázquez says, so plan on having longer and more frequent visits with big donors from this population than you would with donors of other backgrounds.

Raj and Anna Asava, Texas philanthropists from India who work to encourage giving by other Indian Americans.
North Texas Food Bank

To attract Indian American donors, take a multigenerational approach because multiple family members often weigh in on decisions about giving, says Raj Asava, a Texas philanthropist from India who, along with his wife, Anna, works to encourage giving by other Indian Americans. “Try to figure out ways to engage their children, their spouses, the senior citizens, and you will immediately get them connected to the cause,” he says.

Seeking diverse donors requires a long-term commitment. Consider hiring an outside expert to help you approach it in a careful and authentic way, says Chantal Bonitto, a veteran fundraiser who started an inclusive philanthropy program at Planned Parenthood Federation of America. “There are many times that organizations focus on this work, fail fast, and drop it,” she says. “This is a long game, not a short game. And if anyone wants to do this as a short game, just don’t do it.”

Lisa’s story has lots of good advice. Check it out to learn more.

Hear From You

What is your organization doing to make its fundraising more inclusive? What advice would you offer fellow fundraisers? Drop me a line. I’d love to hear what you’re doing.

Need to Know

41%

— Increase in grant making from donor-advised funds managed by community foundations from 2019 to 2020

In all, those donor-advised funds distributed more than $6.7 billion to nonprofits in 2020, up from the more than the $4.7 billion they gave out in 2019. That’s according to a new survey from the Community Foundation Public Awareness Initiative, which my colleague Michael Theis reported on.

Donor-advised-fund holders at these community foundations contributed $7.7 billion to their funds in 2020, says Peter Panepento, spokesman for the Community Foundation Public Awareness Initiative. In 2019, according to the report, grants from donor-advised funds at these community foundations totaled $6.2 billion.

Plus:

  • A year into the pandemic, nonprofit workers are struggling. In this month’s cover story, my colleague Jim Rendon reports on what leaders and foundations are doing to help employees cope. For months, Greta Faworski, chief fundraiser at Kalamazoo Loaves and Fishes, did development work at night after long days unloading deliveries and packing groceries for people in need. She says small things her employer did — like Friday afternoons off a few times a month and lunch fixings in the break room — made a big difference for staff morale. “It’s a comfort thing,” she says. “They know that someone cares.”

Full-Court Press

The Indiana Fever stand before the game against the New York Liberty on September 10, 2020 at Feld Entertainment Center in Palmetto, Florida.
Ned Dishman, NBAE, Getty Images

Players on the Indiana Fever WNBA team are learning how to play a new position: advocate. That’s thanks to the new Athlete to Advocate program at the Indiana University Lilly Family School of Philanthropy, designed to train professional athletes in how to choose a cause they care about and inspire people to support it, reports Emily Haynes. The first of five three-hour classes began last month, with seven Indiana Fever players in attendance.

The program, which is taught by faculty and staff from the Mays Family Institute on Diverse Philanthropy and other departments within the Lilly Family School, is a crash course in savvy philanthropy and advocacy.

There’s a long history of athletes using their fame to advance social good, but this is an especially important time, says Una Osili, director of the Lilly Family School. Social media enables athletes to reach more people at a time when the nation is focused on health disparities and racial injustice.

“Many of them are involved in philanthropy; they have foundations,” she says. “But they’re also realizing that they have a voice and that there are a lot of people that they can influence and impact and they can move the needle on issues that matter to them.”

Tips & Tools

  • How to Diversify Your Nonprofit’s Board: Advice to help you recruit trustees with varied backgrounds and experiences to ensure an inclusive approach to governance.
  • Covid-19 Has Reshaped Big Gift Fundraising: Let’s Hope It Lasts: A year into the Covid shakeup, one fundraiser takes stock of how her profession has changed for the better.
  • Why You Need a Long-Term Fundraising Plan: 7 Compelling Reasons: While fundraising plans are always a good idea, they can be especially helpful during challenging times like these as nonprofits grapple with Covid-19 and the recession set in motion by the pandemic.

What We’re Reading

  • The Federal Trade Commission and 38 states’ attorneys general have shut down a charity scam they say bilked victims out of $110 million. Associated Community Services in Michigan contacted 67 million people with 1.3 billion calls, most of which were illegal robocalls. The organization pretended to raise money for charities helping firefighters, veterans, and children, but at most, about 1 percent of donations went to those causes. In a settlement with the six defendants, each was ordered to pay $110,063,843. In addition, some were required to pay five- and six-figure sums and the proceeds from the sale of a boat and a vacation house. (WILX)
  • The family of Patricia and Arthur Modell want their names removed from the Lyric performing arts center in Baltimore — and are withholding the final $300,000 payment on a $3.5 million gift. The dispute stems from a dispute over whether that gift was meant to name the building forever or for a decade. The late couple’s daughter-in-law called negotiations to extend naming rights “unbelievably torturous,” and the leader of the arts group says removing the name would be “a huge expense” at a time when it’s struggling financially because of the pandemic. (Baltimore Sun)
Fundraising from IndividualsFundraising Leadership
Nicole Wallace
Nicole Wallace is features editor of the Chronicle of Philanthropy. Follow her on Twitter @NicoleCOP.
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