According to the findings of Giving USA, 2018 was an uneven year for philanthropy, with some subsectors experiencing significant increases, while others saw significant decreases.

It was also a year that saw three unprecedented things: 1) a record year for giving at $427 billion, 2) for the first time since Giving USA began in 1954 individual giving was less than 70% of all giving, and 3) giving to Religion reached its lowest point in more than 40 years, falling to 29%.

Total giving increased in 2018 in current dollars, but just barely, at a rate of 0.7%. Adjusted for inflation giving actually decreased by 1.7%.

Five subsectors saw giving decline, while four saw increases. The biggest increase came in giving to International Affairs, while the largest decrease was in giving to Foundations.

As in previous years, giving by Individuals is the number one source of gifts at 69%, but declined by 1.1% from its 2017 level. Giving from Foundations, many of which are family foundations, increased 7.3%.

While Religion continues to be the number one recipient of gifts, giving to Religion continues to lose market share, reaching an all-time low of just 29% of the pie and actually decreased by more than 1.5% in current dollars. While the trend of a declining percentage of giving to Religion has been ongoing for years, the actual decline in current-dollar giving to Religion is a unique phenomenon; one that has never happened in a non-recession year.

Below, is a quick look at the numbers. We will share more in-depth information in our upcoming sector newsletters.
Sincerely,

David H. King
President & CEO

Quick Look At The Results

The Numbers for 2018 Charitable Giving by Source:

• Giving by individuals totaled an estimated $292.09 billion, decreasing 1.1% in 2018 in current dollars. The only source that decreased between 2017 and 2018.
• Giving by foundations increased 7.3% between 2017 and 2018, to an estimated $75.86 billion in 2018. Between 2016 and 2017 giving increased 12.0%. The cumulative change in current-dollar giving by foundations between 2016 and 2018 is 20.2%. This is the greatest percent increase of any source in this period.
• Giving by bequest remained virtually unchanged in current dollars between 2017 and 2018-to $39.71 billion. Adjusted for inflation, giving by bequest decreased 2.3% in 2018.
• Giving by corporations increased by an estimated 5.4% in current dollars from 2017 to 2018, totaling $20.05 billion. In current dollars, giving by corporations decreased by 2.0% between 2016 and 2017, and increased 5.4% between 2017 and 2018. The cumulative change in current-dollar giving by corporations between 2016 and 2018 is 3.4%.

The Numbers for 2018 Charitable Giving to Recipients

• Giving to religion decreased 1.5% in current dollars from 2017, totaling $124.52 billion in 2018. Adjusted for inflation, contributions to religion decreased 3.9% in 2018. Accounting for 29% of total giving, this is the first time that giving to religion has fallen below 30% of overall giving.
• Giving to education decreased 1.3% in current dollars from 2017-to $58.72 billion in 2018. Adjusted for inflation, contributions decreased 3.7% in 2018. In 2017, giving to this subsector reached the highest inflation-adjusted value recorded to date..
• Giving to human services decreased 0.3% from 2017, totaling $51.54 billion in 2018 in current dollars. Adjusted for inflation, contributions decreased 2.7% between 2017 and 2018. In 2017, donations to this subsector totaled the highest inflation-adjusted amount recorded to date.
• Giving to [grant-making] foundations decreased 6.9% in current dollars from 2017-to $50.29 billion in 2018. Adjusted for inflation, contributions to foundations decreased 9.1% in 2018.
• Giving to health organizations grew 0.1% from 2017, totaling $40.78 billion in 2018 in current dollars. Adjusted for inflation, contributions to health decreased 2.3% between 2017 and 2018.
• Giving to public-society benefit declined 3.7% in current dollars from 2017, for a total of $31.21 billion in 2018. The cumulative change in giving to public-society benefit between 2016 and 2018 is 2.1% in current dollars. Contributions to this subsector reached the highest inflation-adjusted value recorded to date in 2017.
• Giving to arts, culture, and humanities increased 0.3% from 2017, totaling $19.49 billion in 2018 in current dollars. Cumulatively, current-dollar giving to this subsector increased 13.8% between 2016 and 2018.
• Giving to international affairs increased 9.6% in current dollars from 2017-to $22.88 billion in 2018. The cumulative change in giving to this subsector between 2016 and 2018 is 5.2% in current dollars. Giving to the international affairs recorded the highest inflation-adjusted value in 2015, at $25.09 billion.
• Giving to environment and animal organizations increased 3.6% in current dollars from 2017, totaling $12.70 billion in 2018. Donations to the environment/animals reached the highest inflation-adjusted amount recorded to date in 2018.
• Unallocated giving represents 2% of total giving at $6.53 billion in current dollars in 2018.

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Whatever it takes.

Sweet Briar College, a women’s liberal arts college founded in 1901, was at risk of losing its legacy in the spring of 2015 when the college president and board suddenly announced they would be closing the college due to fiscal trouble.

A group of loyal alumnae stepped up and, with the help of the experts at Alexander Haas, began to do the impossible – Saving Sweet Briar. Hear in their own words, key alumnae and David King, President and CEO of Alexander Haas, recount the dramatic turn of events as the firm did “whatever it takes” to make the Saving Sweet Briar campaign a huge success.

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Michael R. Bloomberg’s gift will enable the University to significantly increase the number of qualified low- and middle-income students who can attend. In his own words, the goal is to “eliminate money problems from the admissions equation for qualified students.” The university will replace loans with scholarships for students, starting in the spring of 2019. The university will also use the money to diversify its undergraduate enrollment, making one in five students eligible for Pell Grants up from the current one in 15 students. That’s a good thing.

Critics contend he could have made a bigger difference by giving to programs with a broader reach. He already has done that with his American Talent Initiative (ATI). Through ATI, Bloomberg Philanthropies brought college presidents and higher education thought leaders together to address challenges facing high-achieving, lower-income students. ATI is a collaboration between the Aspen Institute’s College Excellence Program, Ithaka S+R, and a growing number of colleges and universities “dedicated to substantially expanding opportunity and access for low- and moderate-income students.” ATI members all graduate at least 70 percent of their students within six years. That’s also a good thing.

In addition, Bloomberg Philanthropies supports the CollegePoint initiative, “which provides virtual, high quality college and financial aid advising to thousands of high-achieving, low- and moderate-income students across the United States.” That’s yet another good thing.

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However, there is something magical about Pensacola, particularly the University of West Florida’s 50^th Anniversary Capital Campaign.

Launched in 2011, the campaign set a stretch goal of $42 million for the quiet phase. Fast-forward to November 2016, the University announced $48 million raised to date and a new goal of $50 million at its 50^th Anniversary Gala. The gala also served as the campaign’s public launch and featured a special performance led by Grammy Award-winning composer Eric Whitacre and the University of West Florida Singers accompanied by a virtual choir of alumni from across the country. One of the enchanting highlights of the evening was the announcement of Emeriti President Judy Bense’s pledge of $1 million to the campaign.

Notable Gifts To The Uwf Campaign Include:

• Harold E. “Hal” Marcus’ gift of $5 million to the College of Science and Engineering. The College is named the Hal Marcus College of Science and Engineering.
• Usha and Mahadeb Kundu’s gift of more than $5 million to the College of Health. The College is named the Usha Kundu MD College of Health.
• Quint and Rishy Studer’s two $1 million gifts to fund the Pensacola Pledge Scholars Program and the UWF Center for Entrepreneurship.
• The Bear Family Foundation’s gift of $1 million to support the UWF Department of Engineering and supply chain logistics program.
• Professor Bob Kimball’s $1 million gift to create the Bill and Ellie Kimball Memorial Undergraduate Scholarship Award in memory of his parents. Dr. Kimball is a UWF professor of marketing and economics.
• Pen Air Federal Credit Union’s commitment of $1 million to name the Pen Air Field as the home of UWF football in Pensacola.
• A legacy gift of more than $770,000 from the estate of John Thayer and Joan Ames Burr to support UWF football, high impact and undergraduate research initiatives in the College of Science and Engineering.
• Gulf Power Company’s $605,000 gift to support Voices of Pensacola, a multicultural center telling the rich history of cultural diversity in Pensacola.

The campaign stands at more than $56 million, already ahead of its $50 million goal by 12% and has spawned more than financial resources for UWF.

Two Vice Presidents for University Advancement Drs. Kyle Marrero and Brendan Kelly have gone on to lead other universities. Dr. Marrero serves as President of the University of West Georgia, and in February, Dr. Kelly became the Chancellor of University of South Carolina Upstate. To learn more see http://uwf.edu.

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The other day, I received a holiday email from my alma mater which promoted me to put “make year-end gift to Sewanee” on my to-do list.  Being in the fundraising field and working with higher education institutions on a daily basis, it also got me thinking about my relationship with Sewanee as a donor and ways in which it has evolved over the years.  As a result of my musings, I put together a list of some thoughts on how to acquire – and retain – young alumni donors:

1. Plant the “giving seed” early – At last year’s commencement speech at a large state university, I was struck by the closing statement, made by the Vice Chancellor.  He encouraged the newly graduated students to take what they have learned during their time at the University, go out into the world and make a difference, and also to give back to their alma mater.   He then told them to reach under their chairs, under which were mail-in giving forms, complete with stamped envelopes.  Although I personally was not ready to give straight out of college until my mounting student loans were paid down, it certainly was one way to make the point.
2. Reach out often, but not too often – Make enough contacts so that your alumni feel connected, but do not reach out so often that you become an annoyance.
3. Reach them through multiple channels  – Reach out not just through direct mail or phone calls, but also through email and social media (Facebook, Twitter and Instagram are all quick – and free – ways to stay in touch).
4. Ask for their stories/feedback  – Perhaps consider including a “Young Alumni Spotlight” section on your webpage.  Consider asking for feedback as to how attending your school had an impact on their lives, how they apply what they learned, etc.
5. Engage them to help current students –  Sewanee does a good job of this.  Multiple upperclassmen have reached out to me over the years, asking for career advice or internship opportunities, and it is always nice to chat with them about their plans, but it also allows me to catch up on what is happening on campus and feel connected to the University.

As this year comes to a close, perhaps now might be a good time for you to reach out to your donors and send one last little touch their way.  You may find that your organization ends up on their year-end giving “to do” list as well!

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Over a year after the alumnae of Sweet Briar College stymied a plan to close their institution, the College’s resilience is manifest with positive results: Sweet Briar has exceeded its fundraising goals for the 2016 fiscal year, raised $10.25 million in 10 months, balanced the budget without touching its endowment, and recruited five times more students.

These results are remarkable, especially, as written in my earlier blog, “Imagining the Future of Liberal Arts Colleges,” during a turbulent time when small liberal arts colleges, e.g., Burlington, Dowling, and St. Catherine Colleges, have faced closures and Moody’s Investors Service report forecasts that closure rates of small colleges and universities will triple and that mergers will double by 2017.

After providing Fundraising Counsel and Campaign Management to Saving Sweet Briar that raised $28.5 million in 110 days and delivered $12 million by September 2, 2015, Alexander Haas is honored to have provided Alumnae Relations and Development Counsel to Sweet Briar College throughout this past year and to have witnessed its resilience.

What vital lessons may other liberal arts colleges learn from the Sweet Briar saga?

In a recent Washington Post article, President Phillip C. Stone discusses three:

• Spend well below budgetary means, not just within means: President Stone exhorts that “it was not enough to spend within their means; rather, it was necessary to spend well below them.”  He cites temporarily freezing salaries, cutting retirement contributions, and finding operational efficiencies in the areas of food service and vehicle maintenance as examples of such measures.

• Play to your strengths: In the case of Sweet Briar, President Stone identifies Sweet Briar’s status as one of only two women’s colleges with an accredited engineering-degree program, along with its strong math and science departments that qualify it to be part of the national conversation of increasing the number of women and minorities in STEM, and its 3,250-acre campus on a former plantation that serves as an inspiring laboratory and classroom, as among its strengths. Recently, Sweet Briar announced that it will be augmenting its well-known ABET-accredited engineering degree program by launching a new computer science major beginning in fall 2017, pending approval by the Southern Association of Colleges and Schools Commission on Colleges.

• Keep alumnae close and treasure them in ways that go beyond college magazine headlines: President Stone credits the hard work of the Sweet Briar alumnae who kept the College open by pledging $28.5 million in 100 days, delivering $12 million by September 2, 2015, and raising $10.25 million this year as examples of how a close alumnae network was critical to saving this liberal arts college.

These lessons exemplify how harnessing hallmarks of a liberal arts education such as thinking imaginatively, analytically, creatively, and collaboratively can help liberal arts colleges to adapt to extraordinary circumstances, to flourish, and to continue contributing to the social good of producing alumni that make a positive impact on their institutions and the world beyond.

After all, as Tom Clynes sets forth in his article, “Where Nobel Winners Get Their Start,” recent research demonstrates that alumni from small, elite institutions have the best chance of winning a Nobel Prize.  We thus have a categorical imperative to preserve liberal arts institutions for the greater good of our society and not merely to close the doors of these institutions without first attempting to apply these lessons, among others, learned from Sweet Briar.

Although President Stone concedes that Sweet Briar “has not reached full strength” yet, these measures certainly are lessons that liberal arts colleges may heed as they balance preserving their liberal arts missions and proving the value of a liberal arts degree by adapting to market conditions.

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Two stewardship incidents stick vividly in my mind even though they were 25 and 35 years ago. Both times I was mad as hell.

The first involved a large program endowment and an aggressive Dean. We had a very good investment year and wound up in the top 10 in the NACUBO (National Association of College and University Business Officers) Endowment Survey. We were slightly ahead of Harvard and made sure the campus knew that.

The Dean, who was smart enough to know better, wanted us to double the endowment spending rate as a result so that he could fund a visionary expansion of the program.  When we refused, explaining that we had a commitment to preserving the spending power of the endowment and that there would be down years, he went ballistic. With a straight face he had a faculty meeting and accused the President and me of spending the investment windfall on a program in another college. Suffice it to say that we had a heated one-on-one discussion that ended his tirade, but it took several meetings with faculty to repair the damage.

The second involved a Director of Admissions and a large scholarship endowment that had come to us through a bequest. The Director of Admissions had some bold enrollment growth goals and wanted to raid the corpus of the endowment to award more scholarships.  ‘She (the donor) is dead and will never know,’ was the rationale he told the scholarship committee. I couldn’t believe my ears when I heard this afterwards from our staffer on the committee. Again, I had a serious discussion with my admissions colleague about how that was not the way we treated donors.

These bad memories were prompted by this month’s CASE Currents’ article on endowments under attack by politicians and a piece Bruce DeBoskey wrote arguing for rethinking the Donor Bill of Rights in light of advances in technology among other things.

A sidebar to the Currents’ article provided advice to deal with a situation where a faculty member was chafing under some endowment restrictions and planned to wait until after the donor died to spend the income on other priorities. While I applaud the advice to deal with the situation with the donor now, I would also suggest some counsel for the faculty member about not bending the rules.

The Donor Bill of Rights was developed by the American Association of Fund-Raising Counsel (AAFRC), Association for Healthcare Philanthropy (AHP), Council for Advancement and Support of Education (CASE), and the Association of Fundraising Professionals (AFP), and adopted in November 1993.

I think its principles are still sound today, but DeBoskey’s argument for his 10 ‘strategic partnership principles’ is well worth considering.

As a footnote, I had heartburn when I read a quote from Dr. Anita Levy, an AAUP (American Association of University Professors) official, commenting on how Western Carolina had negotiated a gift agreement with the Koch Foundation to allay faculty concerns about academic freedom. Ideally, Dr. Levy says:  “We would not have universities taking money from the Koch brothers’ foundation at all.” Until now I was not aware that the AAUP had appointed itself as the gift police to determine which donors should be permitted to give to American colleges and universities.  It’s one thing to take a stance against gifts that might impinge on academic freedom.  It’s another to advocate refusing all gifts from a donor regardless of the circumstances.

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This summer, Rachel Platten’s “Fight Song” became the anthem of so many women across the country. The song empowers women to stand up and fight whatever is going on in their lives and to be strong.

This summer, I had the honor to fight for something – Sweet Briar College. Before the announcement of the school closing I had never even heard of the school; however, I remember where I was standing on March 4, 2015 when I heard that the President was closing the institution. The next day that stands out in my mind is April 28, 2015; the day I was put on the project for Saving Sweet Briar Inc. A few weeks went by, and I went from knowing nothing about the College to being the resource for questions from alumnae. People would ask me what year I graduated and all I could say was, “My boss’s wife was the class of 1992.”

It wasn’t until someone decided that we should do a mailing to 5,000 alumnae that I really understood the sisterhood and sense of community between the Sweet Briar women. We asked a few volunteers in the Atlanta area to come in the office to help us stuff, seal, and stamp envelopes. Eight women showed up ready and willing to help – some came for the full day and some only for an hour or so during their lunch break. The women immediately started telling stories from their college days, and we played a recording of what was to be the “last” commencement address that Teresa Tomlinson gave just a few days before. Throughout the day there were moments of laughter and joy and also feelings of anger and disbelief. I could feel the passion that the women had for their school; that was the moment I understood what they were fighting for.

What do I believe led to the fundraising success of Saving Sweet Briar Inc.? The volunteers for Saving Sweet Briar. Every single volunteer was resilient, determined, and very passionate, which was the winning combination. Each person devoted time, talent, and treasure in the hopes of saving the institution they loved, Sweet Briar College.

• Time: Countless hours of phone calls, emailing, stuffing envelopes, and reaching out to fellow classmates and complete strangers to ask for significant gifts. These women (and a few good men) devoted seven months to eat, sleep and breathe Saving Sweet Briar.
• Talent: Personal artwork and handcrafted jewelry were auctioned off or sold online and the proceeds given to Saving Sweet Briar. Someone designed and maintained the Saving Sweet Briar website. People ranging in age from 6 to 70 stuffed and mailed over 10,000 letters. A cadre of Sweet Briar alumnae who are professional development officers deployed their skills to solicit hundreds of major gifts. Every single person gave the skills they had to support the college.
• Treasure: Each person made a commitment they were proud to stand behind before going out to ask others join them in making a sacrificial gift. To generate additional gifts, women hosted parties and donated percentages from their business sales.

I am honored to have been a part of the project and fight alongside the fearless women of Saving Sweet Briar Inc. For the volunteers it was a summer of fighting, but for me it was a summer of learning.

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In light of Moody’s Investors Service’s ominous forecast that closure rates of small colleges and universities will triple and that mergers will double by 2017, many are questioning the future of small, liberal arts institutions.

A recent article by Kellie Woodhouse in Inside Higher Ed identifies the main struggle for many small colleges (i.e., private colleges with operating revenue below $100 million and public colleges below $200 million) as declining enrollment.

Since small colleges often are tuition dependent, they face financial challenges when enrollment declines or remains flat, which, in turn, adversely impacts colleges’ ability to invest in academic programs, student life and facilities, thus making it difficult to meet the demands of prospective students.  As a result, an increasing number of students are enrolling in larger colleges.

Small colleges need to think creatively about how to adhere to liberal arts values while meeting the ever-changing demands of prospective students so that they do not face a dire fate as predicted by Moody’s report and as endured by Sweet Briar College.

Richard Ekman, president of the Council of Independent Colleges, describes Moody’s predictions as “grossly overstated” because ultimately “these small, private institutions have this unbelievable ability to be imaginative” and “their ability to be proactive is much better than [that of] larger, more cumbersome institutions.”

This ability to be imaginative is the very quality exemplified by the alumnae of Sweet Briar College who rallied to form an organization, Saving Sweet Briar, Inc.,  that raised more than $13 million in cash in just over 120 days after the former President and Board decided to shut Sweet Briar College’s doors.

Alexander Haas enjoyed the distinct privilege of providing fundraising counsel and campaign management to Saving Sweet Briar.  Now, new leadership is distinguishing Sweet Briar College in imaginative ways, e.g., such as offering Explore Engineering events for high school students.

Sweet Briar will need to continue to distinguish itself in imaginative ways as other small colleges have accomplished in order to flourish for years to come.

For example, Mary Baldwin College, a small women’s school in Virginia, has focused on developing nontraditional programs and specific areas of study, leading to strong enrollment.  Mary Baldwin joined with Augusta Health Hospital to open a health sciences school and a new undergraduate nursing program.  Developing such clear niches that help attract students generates revenue growth according to Moody’s report.

I have full confidence that Sweet Briar College and other small, liberal arts institutions will thrive for years to come if their leaders “think, create, calculate, communicate, collaborate and solve hard problems,” among other hallmarks of a liberal arts education.

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Well done, the work of college and university governing boards is hard work. And today that work is more frequently done under public scrutiny based on such things as federal scorecards, financial aid stress tests, bond ratings, state mandates for improved graduation rates, and, sadly, leaders behaving badly. Not surprisingly, then, there have been numerous calls for strengthening the role of governing boards.

Boards are made up of people, so bolstering these Boards starts with getting the right people on the bus. Whether private or public, institutions are increasingly looking to philanthropy as a strategic ingredient for maintaining or restoring their financial health. Thus, Board leadership in giving is one important component in considering who should get a bus ticket.  But, it ought to be the last, not the first, criterion.

In August the Association of Governing Boards of Universities and Colleges issued a statement on the fiduciary duties of governing board members. It emphasized the duties of loyalty, care, and obedience all in support of the institution’s mission.

Among the gauges frequently used for what Board members should bring to the bus to fulfill these duties are the three T’s – Time, Talent, and Treasure — and the three W’s – Work, Wisdom, and Wealth. To elaborate:

• Whether it’s Time or Work, and it really is both, a Board member must be committed to doing the basics of Board work. That involves preparing for meetings by reviewing all materials in advance, showing up at meetings, and participating in them. If there are issues that the Board member does not understand then that will require additional time and effort to get up to speed in advance.
• Whether it’s Talent or Wisdom, a Board member should be willing to supply and apply skills the Board needs.
• Whether it’s Treasure or Wealth, a Board member should provide a leadership example by supporting the institution’s development program with a gift and by identifying and engaging prospective donors. Sometimes this is invoked by the three G’s – Give, Get, or Get Off. That’s a mantra I abhor because I don’t believe getting can be done without giving first.

The missing letter here is ‘P’ for Passion. When added to the criteria cited above it will take Boards to new heights of effective leadership.

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