Transformational Philanthropy: Entrepreneurs and Nonprofits

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Transformational Philanthropy: Entrepreneurs and Nonprofits
Autism One Conference 2009 Lisa M. Dietlin Friday, May 22, 2009
History of Philanthropy
• Philanthropy exists in all cultures • US is the most formalized • Americans are the most generous individuals in the world • More and more nonprofit organizations are being created • Most nonprofit organizations focus on corporations and foundations
Overview of Philanthropic World
• More and more nonprofit organizations are being created • Competitions for resources is intense • Most nonprofit organizations focus on corporations and foundations
2007 charitable giving Total = $306.39 billion
Corporations $15.69 5% Foundations $38.52 13% Bequests $23.15 8%
Individuals $229.03 74%
Types of recipients of contributions, 2007 Total = $306.39 billion
Gifts to grantmaking foundations Deductions carried over and other unallocated giving $23.73 $27.73 Environment/ Animals Religion $102.32
8% 9% 2%
$6.96 International Affairs $13.22
4% 14%
Education $43.32
Arts, Culture and Humanities $13.67
7% 10%
Human Services $29.64
Health $23.15
Public society benefit $22.65
Philanthropy v. Charity
• Philanthropy more long term and sustainable • Charity usually involves an immediate need
Factors Affecting Philanthropy
• Entrepreneurs are problem solvers • Facts and Figures Needed – What is the project? – Who will be affected (in other words, who will it help)? – How long will it take to implement? – How much will it cost to achieve the results you are seeking? – When will results be achieved? – How long before the project is funded/issue is resolved/problem is solved? – When will it (i.e., the program, project, etc.) be sustainable?
• • • • • • Intuition Will Joy Compassion Strength Courage, adventure, risk…..and a pioneering spirit
Expectations and Return on Investment
• They will expect a return on their investment that will benefit the nonprofit organization • When working with entrepreneurs, nonprofit organizations should position charitable monetary requests as an investment toward solving a societal ill, one that will reap a large return on investment to the nonprofit and its mission. Entrepreneurs love to try new things, therefore pitching them a new project, idea or program will excite them more often.
Common Misconceptions and Frustrations
• What happens when you get involved; why doesn’t it go as you think it will? • If you support a nonprofit organization, all your friends and colleagues will, too! • Long Decision Making Time is the Norm for Nonprofit Organizations • Why does everything take so long? • Why don’t nonprofit organizations operate like businesses? • Why aren’t nonprofit organizations quick to respond to market conditions? Why don’t they seize the opportunities?
Final Thoughts
• Charity by Celebrities and Athletes • Private and Community Foundations
Lisa M. Dietlin President/CEO Lisa M. Dietlin and Associates, Inc. PO Box 7029 Chicago, IL 60680-7029 773-772-4465