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Top 10 Funding Trends
 
The Richard Male & Associates’ team constantly keeps track of funding trends. It’s important to stay on top of the trends rather than having to react to them after they’ve passed you by.

Funding trends don’t make their way to us through osmosis. We read newspaper business sections, business publications, and foundation-related publications as a way to keep up to date on all that’s happening in the funding world. Here are some of the publications (and their websites) that we frequently read:

  • GuidestarGuidestar offers a free monthly e-newsletter that highlights funding trends. The website provides its readers with non-profit IRS forms like the 990.
  • The Foundation CenterThe Foundation Center is the national trade association for foundations across the country. Check out the affinity groups at their website.
  • Philanthropy News Network – Subscribe to the Philanthropy News Network e- newsletter. It has loads of great information on the funding community.
  • The Chronicle of PhilanthropyThe Chronicle of Philanthropy is THE national non-profit trade publication.
  • Non-profit Times – If you work for a non- profit, you can access the Non-profit Times online for free. We especially like their capacity building articles.
  • Rich Tips Archive – Check out the Rich Tips archives for information on current funding trends.

Here are the trends we've been studying recently. They represent potential opportunities for you to raise new dollars.

  1. Corporate philanthropic giving is flat. But don’t totally negate corporations! The trend with corporations has been in developing strategic marketing partnerships rather than asking for philanthropic donations. Click here for more on how to approach corporate marketing departments.
  2. Giving by individuals will increase moderately in proportion to the economy and perceived optimism of the donors. This will vary depending upon the economy in your part of the country. In Colorado, unemployment is low but housing foreclosures are at a record high and many aspects of the economy are soft.
  3. Philanthropic trusts managed primarily by banks and financial institutions are growing moderately. If your bank has a trust department, see if your banker will introduce you to the director of that department.
  4. Large gifts by stock transfer will continue to grow. Most major gift donors give assets rather than checks. When a donor transfers stock directly to your non-profit, they are able to by- pass capital gains taxes. So, go to the stock brokerage firm in your community and set up a stock account, then get the word out to your donors (via your direct mail letters, newsletter, website) that you accept stock transfers.
  5. The country is aging and the transfer of wealth will be significant during the next decade. If you have a stable annual campaign and at least three months worth of reserve money then consider setting up a planned giving/endowment/wills & bequest program to harness this lucrative segment of the population.
  6. Donor advised funds at community foundations are growing at a rapid rate. These funds are the fastest growing area of philanthropy today. You should meet with your community foundation leaders to see if they have a donor advised fund that can support your organization.
  7. Foundation giving increased 28 percent from 1986 to 2000 but decreased between 2001 and 2003. It is expected to increase about 5 percent during the next three years. Some foundations have increased their assets as high as 15-20 percent over the past year. Foundations continue to be a significant funding stream for programs, projects, and capital campaigns.
  8. Corporations will continue to give out more product donations each year. The tax laws have changed and many corporations are giving product donations rather than cash. This is especially true for pharmaceutical, computer, and recreational companies.
  9. Government dollars will be growing as we get closer to the 2008 elections. Review the Catalogue of Federal Domestic Assistance for the latest RFPs to see if you qualify.
  10. Faith-based and religious giving will increase slightly, but the real growth area in churches/synagogues is with the individual members of the congregations. Get to know these church-goers and ask them for support.