The President’s Corner

Recently, there has been much research conducted and published on the salaries of fundraising professionals.  Locally, the Oklahoma Center for Nonprofits and United Way of Central Oklahoma released its findings from the 2007 Oklahoma Nonprofit Compensation Survey.  Conducted by Quorum Compensation Group, Inc. and with 170 Oklahoma nonprofits participating, the survey revealed that executive directors/presidents of Oklahoma nonprofits have a salary range from $12,000 to $275,000 while development directors salaries range from $14,767 to $88,067. 

According to the latest AFP Compensation and Benefits Study, the average salary for a charitable fundraisers in the United States increased to $71,305 in 2006 — a six percent increase from previous year.  Location and type of organization play an important part in determining salary.  Within the six regions of the United States, average salaries for all respondents ranged from $64,252 in the South Central area to $73,731 in the Northeast region.  Fundraisers working for consulting agencies enjoyed the highest average salary of $103,128, followed by those individuals employed by scientific or research organizations ($84,986) and educational institutions ($72,351).

Certification Points to Better Salary:  The possession of a certification credential correlated positively with salary.  Fundraisers in the U.S. possessing the Certified Fund Raising Executive (CFRE) credential earned, on average, $20,000 more than respondents with no certification.  Those individuals possessing the Advanced Certified Fund Raising Executive (ACFRE) credential earned $41,000 more in the U.S.  As expected, there were also positive correlations between average compensation and the size of an organization’s staff, its budget and amount of funds raised, as well as years of professional experience.

Gender Gap:  A significant gap continues to exist between the salaries of male and female fundraisers.  Male fundraisers in the United States reported an average salary of $85,848 in 2006, while women earned $66,626 on average.  With the exception of 2005 when the salary gap diminished slightly, women fundraisers have made approximately $20,000 less than their male counterparts since the survey was first conducted seven years ago. 

Job Hunting: Asked whether they looked for a job with another employer in the last 12 months, 38 percent of respondents said yes.  Top reasons for seeking another job included to earn a higher salary, frustration with the work environment, to engage in more interesting or challenging work, opportunities for career advancement elsewhere, unrealistic work expectations and lack of recognition for one’s work.

You can read the compensation article in its entirety on the AFP International website at:  http://www.afpnet.org/ka/ka-3.cfm?folder_id=2326&content_item_id=24055.  To order a copy of the Oklahoma survey, visit www.oklahomacenterfornonprofits.org/extras/salarysurveyorderform.pdf.

If you are interested in learning more, many researchers utilize Guidstar.org to search an organization’s 990 to find out executive compensation.  It can be a valuable tool!

I look forward to seeing you at the June 6^th luncheon.  Please remember to RSVP to afpoklahoma@gmail.com.

Brenda

Foundation Planning Grants: Organizational Planning and Preparation for Capital Projects – June Luncheon

Date:   June 6, 2007

Time:   11:45 a.m. (reservations required)

Place:  Sportsman’s Country Club

            4001 NW 39^th

            Oklahoma City

Does your organization need its own space, or more space to conduct its programs, but daunted by the idea of raising the funds?  The June AFP luncheon will help your organization plan and prepare for capital projects.  Molly Turner Robinson and Courtney Latta, senior program officers for the Donald W. Reynolds Foundation, will focus on the Reynolds Foundation's expectations for assessing community need, long-range organizational planning, financial and fundraising planning, and discussion of the Foundation's nine recommended steps for securing and working with professional consultants and architects.

After a brief, conversational presentation, Molly and Courtney will be happy to answer general questions about the Reynolds Foundation, their experiences and their application process.  In addition, they will be happy to speak with anyone regarding questions specific to an organization or project.

Molly joined the Donald W. Reynolds Foundation in 2002 and currently is responsible for the Capital Grants Program and the Women’s Shelter Initiative.  She also is responsible for the Foundation’s higher education projects and Capital Grantee Enhancement Initiative.  Prior to joining the Reynolds Foundation, Molly was with California’s Christensen Fund and Charles and Helen Schwab Family Foundation.  In addition, Molly has nonprofit fundraising experience that includes managing giving programs, coordinating annual and capital campaigns, directing membership drives and planning special events.  Molly received a bachelor’s degree in Public Relations from San Jose State University.

Courtney joined the Donald W. Reynolds Foundation in 1998 and currently is responsible for the Children’s Discovery Initiative, as well as various special projects and ongoing planning and capital grants.  With a background in campaign fundraising, Courtney has worked for universities in Arkansas and Oklahoma and consulted with mid-sized nonprofits.  Courtney has degrees from the University of Tulsa and the University of Arkansas at Fayetteville.

Because space is limited, early registration is advised!  Please email your RSVP to afpoklahoma@gmail.com. 

There are no luncheons scheduled in July, October and December.  Please mark these dates for the remaining 2007 luncheons on your calendars:

August 1

September 5

November 7

National Philanthropy Day – 100 Years of Giving!

 

Mark your calendars for National Philanthropy Day (NPD) on October 19, 2007 to be held at the Skirvin Hotel.  Co-chaired by Johnna R. Walker and Damon King, the annual event will feature exciting educational sessions by outstanding speakers while celebrating 100 years of philanthropy in Oklahoma.

Johnna and Damon welcome and appreciate volunteers for all NPD committees because you make the event a success!  Participating with a committee – from marketing to sponsorships to exhibitors – provides you with an excellent opportunity to get involved with the AFP Oklahoma Chapter and network with your peers.

The next NPD planning session will be held on June 21 at 1 p.m. at the American Red Cross in Oklahoma City.  For more information, contact Johnna at johnna.walker@chickasaw.net or Damon at dking@regionalfoodbank.org.

You will be receiving information regarding the Awards Nominations as well as Scholarship Applications.  Information as it becomes available will always be on the website at http://www.afpoklahoma.org/2007NPD.asp.

EVERY MEMBER CAMPAIGN

The Every Member Campaign (EMC) is AFP’s annual campaign. All local AFP Chapters participate on behalf of AFP’s Foundation for Philanthropy. Contributions fund AFP strategic initiatives that advance philanthropy through ethical and effective fundraising. We do this to achieve our mission to enhance philanthropy and volunteerism through programs of education, research and service that benefit those who lead, serve and support nonprofit institutions. 

Our chapter goal for 2007 is $1,600.  We are 30% to that goal.  Please visit our EMC webpage at http://www.afpoklahoma.org/EveryMemberCampaign.asp.

Thank you to those that have donated:

Complimentary Session from Benevon – Finding the perfect donors who love your mission and stay with you for life

Stop suffering on the annual fundraising treadmill.  Learn a tested and proven system to rapidly identify and cultivate the perfect major donors who love your mission—donors who will give for operations, capital, and endowment.  Learn how other organizations have grown their major gifts programs year after year.  Engage your board without requiring that they ask for money.  This session is designed for board members, executive directors, CEOs and fund development professionals. 

By the end of this session, you will have learned:  

·         A proven system for generating a steady stream of mission-focused major donors

·         A method for converting existing donors into major donors

·         To engage your board in the fundraising process without requiring that they ask for money

 

Presenters: Lynda Bowman and Sarah McCrum

Date:  June 12, 2007, 3:30 to 5:00 p.m.

Location: Junior Achievement of Greater Oklahoma City

(2100 NE 52^nd Street, Oklahoma City, OK 73111)

Cost: No fee to attend

 

Register soon; space is limited.  You must register if you plan to attend so we can notify you if there are any changes to the session (date, time, location).

To register:    Go to Benevon Introductory Session Registration and fill out the registration form.

Questions:      Contact Ashley Petty at 206-709-9400 ext. 131 or ashley.petty@benevon.com

If you are unable to attend this session, please visit our Introductory Sessions Web page at benevon.com/introductions/default for information about conference call opportunities and other live in-person sessions in your area.

View our free online video, “Seventeen Minutes to Sustainable Funding,” at http://sforce.benevon.com/free_online_video.html.

Fundraising and Philanthropy: Yesterday, Today, and Tomorrow
By Susan Raymond and Josh Moore

From the Islamic pillar of Zakat, to Jewish tzedakah, to Christian tithing, modern philanthropy is rooted in religion and human history, in our innate desire for good and for meaning.  Though little has changed over the centuries in our desire for benevolence, the methods and mechanisms by which we give, especially in recent times, are in constant transformation.  More and more, philanthropy is adapting to our modern era, and with it, modern practice, law, and scrutiny.  In the same way, the philanthropy of tomorrow must adapt to a changing world, to advances in technology, finance, and politics.  As the act of charity evolves into the business of charity, the ability for us to truly change the world requires innovation, creativity, and the capacity to adapt to what's coming next.  Although our current climate has seen tremendous growth in giving, competition for, and restrictions on, these resources have altered the ways in which we raise funds.  As such, the successful future of philanthropy will require its leaders to adopt and create new approaches to fundraising and finance.

Philanthropy over the Last 30 Years
Over the last thirty years, the United States has seen a virtual explosion in the amount of philanthropy provided by its citizens and corporations.  Adjusted for inflation, total philanthropic giving has grown from $91 billion in 1965, to a staggering $260 billion in 2005, a sum greater than the entire gross domestic product of Israel, New Zealand and Jordan combined.  This growth, however, has been matched by an equally staggering growth in the nonprofit sector itself. Between 1982 and 2005, the total number of tax-exempt institutions in the United States increased by 40%, from 1.2 to 1.7 million.  For 501(c)(3) organizations, the growth rate was even greater, increasing their numbers 130% in the same time period, from 320,000 to roughly 900,000.

But why has the sector seen such a rapid growth in both the giving and receiving of charitable dollars?  It may seem that Americans have become increasingly more generous throughout the years; that they are now more prone to generosity than 30 years ago. Although there is some debate as to the degree to which Americans actually are generous, the answer to whether there has been an increase in overall generosity is clearly No.  In comparing philanthropic giving and economic data from as far back as 1963, we can determine that total philanthropic giving has held constant at roughly 2% of total Gross Domestic Product.  At times reaching as low as 1.7% or as high as 2.1%, it is clear that Americans are no more willing to give in 2007 than they were in 1963.  This is not a criticism.  As a percentage of income, American giving far surpasses that of any other nation.  Yet the power of the total resource flow is deeply tied to the power of economic growth. 

The World of Today
The world of philanthropy today is much different from that of the last three decades.  Although there is tremendous wealth, there is an equally tremendous competition for resources.  Gone are the days of multi-year grants that extend over five to ten years.  In their place come single year grants, often burdened with a myriad of restrictions, evaluation requirements, and reporting deadlines.  There is less and less renewal or non-project operation support, and more and more emphasis on pilot projects with emphasis on replicability and scalability.

This new stage of philanthropy is not, as the dollar figures may suggest, a feeding frenzy for nonprofit organizations. The landscape of today requires attentiveness to evaluation and sustainability, and a deep understanding of the space in which one's own institution resides.  Anyone embarking on (or in the process of) growing an organization must understand the structure of the revenue available to it.  It is simply not the case that every organization, big or small, has equal access to the $260 billion in annual philanthropic giving in the US.  For example, philanthropy to the religious sector accounted for the largest pool of giving in 2005, at $93 billion, while international affairs represented the smallest at only $6 billion.  Yet, within the subsectors, a deeper understanding of the structure and source of revenue is paramount.  For example, although $22 billion was given to health in 2005, when looking at sources of revenue, health organizations received only 5% of this money from philanthropic contributions, with nearly 90% coming from earned income.  Contrast this to organizations in the environmental subsector, who received $8.86 billion in 2005; 50% of their budgets came from philanthropic contributions. 

Still, even within these subsectors there is great disparity.  Put simply, the big are getting bigger and the small are not.  Sector wide, organizations with annual revenue of $10 million or more, only 7% of all organizations, control 80% of total annual revenue.  By contrast, organizations with an annual budget of less than $1 million, representing 68% of the total number of organizations, control only 5% of revenue.  Furthermore, not only do large nonprofits control the vast majority of funds, but also the majority of funders, with 65% of all philanthropic contributions going to organizations with budgets of more than $10 million.

The World of Tomorrow
As a result of the changing philanthropic landscape, the nonprofit leaders of today must adapt to the world of tomorrow. Though we will surely see continued growth in wealth, if trends continue, we will also see large organizations controlling these funds. With this increased concentration of funds come heightened donor sophistication and expectations, public scrutiny, and the need for financial innovation, not just for the prosperous few, but for everyone in the sector.

In many ways, the philanthropic world of tomorrow is already upon us. An independent review by onPhilanthropy of the New York Times, Wall Street Journal, and Washington Post found that between 2000 and 2005, there was a total of more than 16,000 articles on the nonprofit and/or philanthropic sectors.  Contrasting this to the mere 832 articles between 1970 and 1975, it is clear that the era of scrutiny is upon us. Further, a Gallop Poll found that the number of people who had "no" confidence in nonprofits increased from 8% in 2001 to 17% in 2003, while the number who had "a great deal" of confidence dropped from 25% to 18% during the same period.

The world of tomorrow will not only be one of increased public and political pressure for nonprofit accountability, but it will also see increasing reliance upon financial sustainability and impact measurement.  Donors will move away from making "gifts," to creating philanthropic contracts in which the donor expectations are legally binding, often held in perpetuity by their recipient. 

As the desire for human good becomes increasingly sophisticated, we will see innovation in the mechanisms by which we address human struggle around the globe.  We will see more organizations like the International Finance Facility for Immunization Company, a nonprofit organization that has harnessed the potential of the bond market to raise an anticipated $4 billion for vaccines.  This is $4 billion in bond market power, not $4 billion in charity.  The development of commercial weather insurance to protect against the risk of famine, "social finance" to pool invested assets for nonprofit lending, microfinance to create pooled resources in poverty neighborhoods: all use commercial finance tools to fund social needs.  As social innovations spread and evolve, nonprofits will have no choice but to become more diverse and sophisticated about their revenue strategies.  Failure to innovate and adapt will mean failure to thrive.

From onPhilanthropy, May 9, 2007

 

 

e-mail: afpoklahoma@gmail.com

web: www.afpoklahoma.org

PO Box 217

Oklahoma City, OK 73101

 

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