Employee Choice Plays an Increasingly Large Role in Workplace Giving and Corporate Social Responsibility Efforts, New Study Finds

Evolution of Workplace Giving Special Report

Special Report from Giving USA Foundation and Indiana University Lilly Family School of Philanthropy explores how workplace giving is changing

CHICAGO [November 5, 2018]—Changes to the workforce and new attitudes toward work are affecting workplace giving, and philanthropy is increasingly important to employees, employers, and nonprofits, according to a new report released today by Giving USA Foundation and the Indiana University Lilly Family School of Philanthropy at IUPUI.

The Giving USA Special Report on the Evolution of Workplace Giving  finds that employees increasingly want a choice in how their employer gives back, and for their employer to give to a charity of the employee’s choice. This is similar to trends among nonprofit donors overall, who want more information about their donation’s impact and more choice over how it is used. The landscape of workplace giving campaigns has radically expanded to include a wide range of activities, from skilled volunteer opportunities and matching gifts to more traditional federated campaigns such as United Way and the Combined Federal Campaign (CFC).

This special report is a publication of Giving USA Foundation, written and researched by the Indiana University Lilly Family School of Philanthropy, with support from Deloitte. Distilling academic research and information from a variety of sources, it provides insights that corporations, employees and nonprofits can implement to strengthen their corporate culture and their community. It presents key findings about corporate social responsibility (CSR) and summarizes previous research about who gives to workplace campaigns.

Among the findings:

  • Employee choice is key. Employees want to use their talents, skills and time on a cause that they find personally meaningful. Employees also respond well when employers match time, donations or other resources to causes that the employee has chosen.
  • Engaged employees are more generous in workplace giving campaigns. Employees who are involved with an employer’s CSR efforts (or otherwise feel loyalty to their employer) tend to give more to workplace giving campaigns. Therefore, it is important that companies educate their employees about opportunities to get involved and keep in touch with employees about the outcomes of ongoing CSR efforts.
  • Nonprofits should seek out longer-term volunteer opportunities with employee groups that fit with their needs, capacity and long-term goals. While volunteering is a common form of CSR, nonprofit organizations should be aware of potential costs, such as for developing new programs or hiring more staff to accommodate large volunteer groups. Nonprofits should not only seek strategic partnerships that benefit the nonprofit, but the corporate volunteer group as well for best results.

“This report underscores the importance of the partnership between nonprofits and corporations,” said Rick Dunham, chair of Giving USA Foundation. “These findings emphasize to companies, fundraising professionals and nonprofits that effective communication, through a wide range of platforms, empowers employees to become donors and advocates for their causes in and through their workplaces, which is not only advantageous for the nonprofit, but for the corporation as well.”

Another theme that emerges throughout the new report is the increased prevalence of technology in the workplace and in workplace giving. For example, employees have come to expect options for how they make their gifts (e.g., payroll deduction, online platforms, etc.). Indeed, the majority of workplace giving now takes place online. While this can be considered a positive development for giving, the proliferation of technology also presents the challenge of how to engage remote workers, who may not be physically present in an office environment, in the company’s CSR initiatives.

Workplace giving is a key aspect of corporations’ giving. Total giving by corporations, including workplace giving, reached the highest inflation-adjusted level ever in 2017 at an estimated $20.77 billion, an increase of 8.0 percent in current dollars (5.7 percent in inflation-adjusted dollars), according to Giving USA’s Annual Report on Philanthropy for that year.

To examine the current state of workplace giving, the report draws on three case studies that illustrate best practices for employee engagement and workplace giving campaigns in action. The first two case studies examine best practices for employers, while the third demonstrates how nonprofits can forge meaningful corporate partnerships and promote workplace giving campaigns.

“We know that workplace giving today reflects the changing nature of work, the role of technology, and the attitudes and aspirations employees bring to the workplace. As a consequence, workplace giving campaigns offer an exciting opportunity,” said Una Osili, Ph.D., associate dean for research and international programs at the Lilly Family School of Philanthropy. “This report makes it possible for stakeholders to apply what we already know and look to new areas of research, such as how employers can better engage diverse employees in workplace giving campaigns.”

The report highlights areas of opportunity for companies of all sizes, from finding nonprofit partners that are a good match for the skill set and size of a corporate volunteer group, to communicating effectively with employees about ongoing CSR efforts.

Finally, the report confirms that workplace giving and CSR efforts are on track to keep growing in the future. Increasingly, CSR is a factor that prospective employees, consumers and even investors consider before becoming involved with a company. Given this increased focus on CSR, workplace giving campaigns have the potential to be powerful tools to engage employees and allow companies to work in tandem with nonprofit organizations toward social good, the report finds.

Expert Panelists to Discuss Special Report during Free Live Webcast on November 7

On Wednesday, November 7 at 12pm ET, join Giving USA Foundation and The Giving Institute to explore the research and trends highlighted in Giving USA’s Special Report, “The Evolution of Workplace Giving.” Panelists are:

  • Una Osili, Associate Dean for Research and International Programs, Indiana University Lilly Family School of Philanthropy
  • Laura Coy, Director of Philanthropy Strategy at William Blair
  • Katie O’Brien-Jensen, Sr. Leader of Community Affairs at ITW

This event is moderated by Rick Dunham, CEO of Dunham+Company and Chair, Giving USA Foundation.

Register for this free event here.

Read the Full Report

The Giving USA Special Report on the Evolution of Workplace Giving is now available at www.GivingUSA.org as a digital download ($24.95) or 50-page paperback book ($29.95).

About The Giving USA Foundation

Advancing the research, education and public understanding of philanthropy is the mission of Giving USA Foundation, founded in 1985 by The Giving Institute. Headquartered in Chicago, the Foundation publishes data and trends about charitable giving through its seminal publication, Giving USA, and quarterly reports on topics related to philanthropy. Published since 1956, Giving USA is the longest running, most comprehensive report on philanthropy in America. Giving USA 2018: The Annual Report on Philanthropy for the Year 2017 is available now at www.GivingUSA.org. Giving USA 2019: The Annual Report on Philanthropy for the Year 2018 will be available on June 18, 2019.

About the Indiana University Lilly Family School of Philanthropy

The Lilly Family School of Philanthropy at IUPUI is dedicated to improving philanthropy to improve the world by training and empowering students and professionals to be innovators and leaders who create positive and lasting change. The school offers a comprehensive approach to philanthropy through its academic, research and international programs and through The Fund Raising School, the Lake Institute on Faith & Giving, the Mays Family Institute on Diverse Philanthropy and the Women’s Philanthropy Institute. Follow us on Twitter @IUPhilanthropy and “Like” us on Facebook.

 

Contact:
FOR the FOUNDATION:
Casey Blickenstaff, 312-558-1770, ext. 153
cblickenstaff@pcipr.com.

 FOR the SCHOOL:
Adriene Davis Kalugyer, 317-278-8972
adrldavi@iupui.edu


JUST RELEASED: Special Report, The Data on Donor-Advised Funds: New Insights You Need to Know

GUSA Special Report on Donor-Advised FundsWhere do donor-advised fund grants go?

Education and religion attract the most dollars, Special Report on Donor-Advised Funds from Giving USA Foundation™ and Indiana University Lilly Family School of Philanthropy finds

CHICAGO—Donor-advised funds are frequently identified as one of the fastest-growing vehicles for charitable giving, but the question of where those donor-advised fund grant dollars go has remained largely unanswered until now. A new report is the first to uncover these answers. Among other findings, it identifies education, religion and public-society benefit organizations as the types of nonprofits that attracted the most donor-advised fund grant dollars, based on a sample of donor-advised fund sponsoring organizations from 2012 to 2015.

The Giving USA Special Report, The Data on Donor-Advised Funds: New Insights You Need to Know, released on February 28, 2018, was researched and written by the Indiana University Lilly Family School of Philanthropy at IUPUI with support from Giving USA Foundation™ and the Fidelity Charitable Trustees’ Initiative. The Fidelity Charitable Trustees’ Initiative is a grantmaking program overseen by the trustees of Fidelity Charitable with a focus on increasing knowledge, information and resources that donors and nonprofits need to achieve their intended impact.

The report presents new and important information about grants from donor-advised funds that financial advisors, nonprofit professionals including fundraisers, and philanthropists can learn from and apply.

“Despite the growth in donor-advised funds in recent years, there has been little quantitative research on where the dollars go. The findings of this report can help demystify this important vehicle for charitable giving, including offering a clear comparison between how donor-advised funds’ granting patterns compare with the distribution of all types of charitable giving in Giving USA,” said Aggie Sweeney, CFRE, Chair of Giving USA Foundation.

“This report offers insight into the granting patterns of donor-advised funds,” said Amir Pasic, Ph.D., the Eugene R. Tempel Dean of the school. “At a time when there are more questions than ever about how the growth of donor-advised funds is changing the field of philanthropy, this new, quantitative research offers some much-needed perspective.”

The report is based on original research by the Lilly Family School of Philanthropy. The school analyzed granting data from a small number of organizations that represented roughly half of all granting dollars from donor-advised funds between 2012 and 2015. The school used IRS Schedule I data and also collected direct granting data from donor-advised fund sponsoring organizations for the sample. Subsector categories were assigned to the organizations that received grants using National Taxonomy of Exempt Entities (NTEE) codes, the same process used to identify contributions to subsectors in Giving USA: The Annual Report on Philanthropy.

Compared to the distribution of total U.S. giving as identified by Giving USA, grants from donor-advised funds give a greater share of their giving to education and less to religion.

Giving to education comprised 28 percent of giving from donor-advised funds from 2012 to 2015. For the same time period, giving to education in Giving USA comprised only 15 percent of total giving.

In contrast, grants to the religion subsector represented 14 percent of giving from the donor-advised fund sample, while giving to the religion subsector represented 32 percent of total giving in Giving USA.

The distribution patterns by donor-advised funds track more closely with the trends of high-net-worth donors, who tend to give a larger share of their giving to education than to religion, a trend that was echoed in the study.

“The data clearly identify education and religion organizations as the types of nonprofits that are most likely to attract grant dollars from donor-advised funds,” said Una Osili, Ph.D., associate dean for research and international programs at the Lilly Family School of Philanthropy. “We need more data to discover how those trends may unfold over a longer period of time, especially as donors and nonprofits continue to learn about and explore the possibilities of donor-advised funds.”

The study found that granting patterns from donor-advised funds are relatively stable, with each different type of nonprofit receiving a similar percentage of total donor-advised fund giving from year to year.

The report also features new aggregate estimates for donor-advised fund assets, number of donor-advised fund accounts in the U.S., and total dollars contributed to donor-advised funds, finding strong growth in every category between 2008 and 2014. Other sections of the report include a focus on the history of donor-advised funds, costs and benefits, and the future of donor-advised funds in light of recent changes to tax policy.

“In addition to the unique research findings, this report offers important history and context to help stakeholders better understand the landscape of donor-advised funds,” said Keith Curtis, Immediate Past Chair of Giving USA Foundation and president of The Curtis Group, a fundraising consultancy. “This report will help readers develop their organizations’ strategy for how they can work most effectively with donor-advised funds.”

Granting patterns from donor-advised funds are often difficult to track, in part because there is no single source of data that can be used to identify them. Although IRS Form 990 Schedule I requires organizations that house donor-advised funds to record granting data, the grants from donor-advised funds are not separated from other grants the organization makes, so studies must work with individual donor-advised fund sponsors to get accurate data that tracks the grants solely from donor-advised funds. In addition, there are other issues associated with Schedule I data, including that the forms may not be available in machine-readable format, meaning someone would have to enter granting data by hand.

Expert Panelists to Discuss Special Report during Live Webcast on March 1

The Giving Institute and Giving USA Foundation hosted a live webcast on Thursday, March 1, from 1:00-2:30 p.m. Central, where expert panelists discussed the new Giving USA Special Report The Data on Donor-Advised Funds: New Insights You Need to Know. During the free webcast, attendees asked their most pressing questions about donor-advised funds and how to incorporate this giving vehicle into their fundraising plans. View the free recording here.

About Giving USA Foundation

Advancing the research, education and public understanding of philanthropy is the mission of Giving USA Foundation, founded in 1985 by The Giving Institute. Headquartered in Chicago, the Foundation publishes data and trends about charitable giving through its seminal publication, Giving USA, and quarterly reports on topics related to philanthropy. Published since 1956, Giving USA is the longest running, most comprehensive report on philanthropy in America. Giving USA 2017: The Annual Report on Philanthropy for the Year 2016 is available now at www.GivingUSA.org. Giving USA 2018: The Annual Report on Philanthropy for the Year 2017 will be available on June 12, 2018. Read more about Giving USA Foundation’s history, as well as the history of Giving USA and philanthropy in the U.S. in the Giving USA 2015 Spotlight: Celebrating Service to Philanthropy (available as a free download on www.GivingUSA.org).

About the Indiana University Lilly Family School of Philanthropy

The Lilly Family School of Philanthropy at IUPUI is dedicated to improving philanthropy to improve the world by training and empowering students and professionals to be innovators and leaders who create positive and lasting change. The school offers a comprehensive approach to philanthropy through its academic, research and international programs and through The Fund Raising School, the Lake Institute on Faith & Giving and the Women’s Philanthropy Institute. Follow us on Twitter @IUPhilanthropy and “Like” us on Facebook.

The Giving USA Special Report on The Data on Donor-Advised Funds: New Insights You Need to Know is available for $24.95 in digital PDF format or as a paperback book (with digital download) for $29.95.


Giving USA Special Report on Giving to Religion

Giving USA Special Report on Giving to ReliigionReligiously affiliated people more likely to donate, whether to place of worship or other charitable organizations, new report finds.

Special Report on Giving to Religion from Giving USA Foundation™ and the Lilly Family School of Philanthropy explores religious giving in an era of declining affiliation and attendance.

At a time when affiliation with a religion and attendance at religious services are both decreasing in the United States, a new report sheds light on how those trends are affecting charitable giving to religious congregations and to other types of charitable institutions.

The Giving USA Special Report on Giving to Religion released on October 24, 2017, was researched and written by the Lake Institute on Faith & Giving at the Indiana University Lilly Family School of Philanthropy with support from the Giving USA Foundation™.

The report is based on newly released data from the Lilly Family School of Philanthropy’s Philanthropy Panel Study (PPS), which tracks more than 9,000 individuals’ and families’ giving and dynamic factors that influence those practices (e.g., employment, health and marital status) throughout their lives. PPS is the leading and most accurate resource for measuring U.S. household giving.

“By combining the PPS’s extensive, reliable data and the expertise of our research team, the report gives us the ability to discover how patterns of giving to religion are evolving over time, and how faith and religion influence donors’ giving to non-religious causes as well,” said David King, Ph.D., the Karen Lake Buttrey Director of Lake Institute on Faith & Giving at the school. “This report also raises the importance of the need for research in new areas such as how congregations teach, manage, and create a culture around charitable giving in an era of declining religious affiliation.”

A household’s affiliation with a faith tradition and its frequency of attendance at religious services play important roles in their charitable giving to religious institutions and other types of charitable organizations. The report presents a number of findings about the current state of religious giving, addresses the unique challenges of measuring giving to religious congregations, summarizes previous research and provides conclusions about the state of the field.

Among the report’s findings:

  • People who are religiously affiliated are more likely to make a charitable donation of any kind, whether to a religious congregation or to another type of charitable organization. Sixty-two percent of religious households give to charity of any kind, compared with 46 percent of households with no religious affiliation.
  • Although the percentage of people who give to religious congregations is declining, those who give to religion are giving at steady rates. Contrary to popular belief, younger generations do give to religion, and those who give are doing so at a similar rate as earlier generations did at the same point in their lives.
  • Frequent attendance at religious services is linked to both the likelihood of giving to religion and to making larger gifts to religion. People who attend religious services on a monthly basis are 11 times more likely to give to religious congregations, and they give an average of $1,737 more to religion per year than people who attend less than once a month.
  • Donors to religious causes between the ages of 40 and 64 give the largest amounts, giving an average of $2,505 per year. Donors to religious causes who are younger than 40 years old give an average $1,892 and donors who are 65 or older give an average of $2,338.
  • Giving to religion increases as donors’ income increases, but donations decrease as a share of donors’ overall income. Households with an annual income greater than $100,000 give an average of $1,600 more to religion per year than households with an income of less than $50,000.
  • Religiously affiliated households give as much or more to other types of charities as non-religiously affiliated households do.

“One of the more important findings of the study is the fact that younger generations do give to religion, and do so at a rate that is similar to earlier generations,” said Rick Dunham, a Board member of Giving USA Foundation, and President and CEO of Dunham and Company, a fundraising company specializing in faith-based nonprofits. “It is reasonable to expect that as younger generations mature, they will be similarly engaged in charitable giving as older generations are.”

Religious congregations receive the largest share of American charitable giving. They received 32 percent of all charitable donations in 2016, according to the most recent estimates from Giving USA 2017. Giving to religion totaled $122.94 billion—more than double the $59.77 billion given to education, the next largest subsector.

The steady rate of giving among donors to religious congregations, and other findings in the report, indicate that these institutions are effectively engaging their congregations. These interactions at the congregational level are crucial and need to be better understood through additional research.

Giving to religious congregations is often challenging to calculate, in part because there is no single source of data where scholars can gain information about the subsector overall. Because faith-based institutions are not required to file IRS Forms 990, studies must rely instead on data compiled by denominational associations, a process that can miss independent congregations and congregations of different faith backgrounds. Giving USA: The Annual Report on Philanthropy is the only yearly report that estimates giving to religion on a national scale across faith traditions. The Special Report on Giving to Religion offers a snapshot of the characteristics and practices of individuals and households who give to religion.

Giving USA has long provided the most rigorous estimations for giving to religion, and this new report using PPS data gives us a more in-depth portrait of individual giving behaviors, deepening our understanding of this vital area of the philanthropic sector,” said Una Osili, Ph.D., associate dean for research and international programs at the Indiana University Lilly Family School of Philanthropy.

NOVEMBER 8 GURIN FORUM, “IMPACT OF RELIGION ON PHILANTHROPY”

Moderated by Stacy Palmer, Editor of The Chronicle of Philanthropy, expert panelists will discuss the findings from the Giving USA Special Report on Giving to Religion during the Giving USA Foundation and Giving Institute November 8 Gurin Forum, “The Impact of Religion on Philanthropy.” Panelists include Wendy C. Abrams, Chair, National Women’s Philanthropy Board of the Jewish Federations of North America; Dan Conway, Senior Vice President of Collegium Holdings, Inc.; Rick Dunham, CEO of Dunham+Company
Una Osili, Professor of Economics and Associate Dean for Research and International Programs, Indiana University, Lilly Family School of Philanthropy; and Kashif Shaikh, Co-Founder and Executive Director of the Pillars Fund. Broadcast live from Chicago from 11:00am-12:30pm CDT, the live webcast is free for all to attend. Learn more and register for this complimentary webcast here.

NOTE TO EDITORS

For the purposes of this report, giving to religion follows the same definition used in the Giving USA annual report, which includes giving to congregations, religious media, mission organizations, and denominational bodies. (This definition is based on the National Taxonomy of Exempt Entities (NTEE) system.) It does not include donations inspired by religious belief, nor does it count donations to faith-based human services organizations, health care institutions, or private educational institutions.

About Giving USA Foundation

Advancing the research, education and public understanding of philanthropy is the mission of Giving USA Foundation, founded in 1985 by The Giving Institute. Headquartered in Chicago, the Foundation publishes data and trends about charitable giving through its seminal publication, Giving USA, and quarterly reports on topics related to philanthropy. Published since 1956, Giving USA is the longest running, most comprehensive report on philanthropy in America. Giving USA 2017: The Annual Report on Philanthropy for the Year 2016 is available now at www.GivingUSA.org. Read more about Giving USA Foundation’s history, as well as the history of Giving USA and philanthropy in the U.S. in the Giving USA 2015 Spotlight: Celebrating Service to Philanthropy (available as a free download on www.GivingUSA.org).

About the Indiana University Lilly Family School of Philanthropy

The Lilly Family School of Philanthropy at IUPUI is dedicated to improving philanthropy to improve the world by training and empowering students and professionals to be innovators and leaders who create positive and lasting change. The school offers a comprehensive approach to philanthropy through its academic, research and international programs and through The Fund Raising School, the Lake Institute on Faith & Giving and the Women’s Philanthropy Institute. Follow us on Twitter @IUPhilanthropy and “Like” us on Facebook.

The Giving USA Special Report on Giving to Religion is available for $24.95 in digital PDF format or as a paperback book (with digital download) for $29.95.


Philanthropy May be Imperative for the Future of Aging Services

A Giving USA report looks at the importance of philanthropy in the aging services sector

Aging Services Special Report Giving USABy 2060, it is estimated that the population of Americans over 65 will climb to 98.2 million – double the estimated population in 2015, according to the U.S. Census Bureau. But a report from Giving USA Foundation questions how aging services organizations (ASO’s) will be able to fiscally bear that growth. A Giving USA Special Report, Giving and the Golden Years: The Role of Private Giving in Aging Services Organizations, available in print or digital download, provides a first-of-its-kind benchmark of the national aging services landscape. This includes information on state-by-state coverage and how these critical organizations are supported financially. The Giving USA Foundation hopes the report will allow organizations focused on serving aging populations to look at their current financial support and long-term trends to make decisions on how to ensure future financial stability.

Aging services organizations — nonprofits dedicated to serving aging populations — range from food programs and housing to adult day care, in-home services and nursing facilities. The report found that only six percent of nonprofit organizations in the country that file tax returns with the IRS are focused on providing services to aging populations. That is especially surprising, given 24.5 percent of American households are headed by someone 65 or older.

“This is a surprisingly small number of organizations meant to serve a large and still growing population of Americans,” said Aggie Sweeney, CFRE, Giving USA Foundation Board Chair. “We’re hoping the findings of this report will motivate the public to add aging services organizations to their annual giving portfolios.”

Insights on ASO Revenue

Within this small aging services sector, the report revealed ASO’s vary widely on revenue size. Over half of all aging service organizations operate with an annual revenue at or under $500,000. The exception is nursing facilities and home health services, of which nearly 30 percent operate with annual revenue of $10 million or more. These differences in business models and mission also create two extremes in their reliance on charitable giving:

  • Organizations like food programs receive more than 82 percent of revenue through grants and contributions, including in-kind food donations.
  • Nursing facilities and home health services receive less than five percent of total revenue through grants and contributions.

“Both of these models present risks to the organization by relying heavily on a single type of income,” said Nathan Dietz, report co-author and Senior Research Associate with the Urban Institute’s Center on Nonprofits and Philanthropy. “Developing diversified sources of revenue is one way to invest in the future.”

The report showed that many ASO’s have great opportunity to utilize charitable giving as a way to grow or diversify revenue. The report cautions, however, that investing in philanthropy takes time.

“Fundraising is not a simple or short-term solution,” said Laura MacDonald, CFRE, report co-author and Giving USA Foundation board member. “Long-term investments must be made by an organization’s leadership, management and the community at large. With patience and diligence, a sound fundraising program should eventually return $3 to $5 for every $1 invested.”

Alarmingly, the report also found that only 10 percent of ASO’s have an endowment fund of any kind. These funds are an investment commonly used by nonprofits, such as universities and hospitals, to ensure funding for future programs, operations, and services. They are most often established by generous donors who recognize the imperative to sustain the nonprofit organization’s essential mission.

Coverage State-By-State

The report revealed a clear disparity in ASO coverage when looking state-by-state. States commonly thought of as “retirement states” like Florida, Arizona, Texas and the Carolinas scored in the bottom 25 percent in the number of ASO’s per 1,000 residents 65 and older. By contrast, Minnesota, Nebraska and the Dakotas scored in the top 25 percent.

Philanthropy in Older Generations

Another irony that was brought to light in the report is the prevalence of philanthropy in older generations. Americans born before 1964 make up the most generous generation in the country, accounting for nearly 70 percent of all charitable giving in the U.S. It’s likely that this generation will be the biggest philanthropic supporter of aging services they may come to rely on.
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The Giving USA Special Report, Giving and the Golden Years: The Role of Private Giving in Aging Services Organizations, can be purchased as a paperback book for just $29.95 or as a downloadable PDF for just $24.95 at www.GivingUSA.org.

About Giving USA Foundation
Advancing the research, education, and public understanding of philanthropy is the mission of the Giving USA Foundation, founded in 1985 by The Giving Institute. Headquartered in Chicago, the Foundation publishes data and trends about charitable giving through its seminal publication, Giving USA: The Annual Report on Philanthropy, and quarterly special reports on topics related to the field of philanthropy.