By Susan Fields, CFRE

According to National Philanthropy Trust almost $19 billion in grants were made in 2017 to nonprofits both nationally and internationally through DAF’s. What began in the early 1990’s primarily as a product of community foundations seeking to service major donors has now become the domain of large financial corporations such as Schwab, Vanguard, Fidelity and large nonprofits such as the Salvation Army, Catholic Charities, National Christian Fund, and United Way Worldwide who have their own internal Charitable Gift Funds.

Ten FAQ’s Regarding Donor Advised Funds

1.   WHAT IS A DONOR ADVISED FUND?

A DAF is an investment account in which a donor places money with the primary purpose of contributing funds to a 501(c)(3) nonprofit charitable organization. The investment can be in the form of cash, stocks or other forms of assets such as real estate which can remain in the fund for an indefinite period or be immediately contributed to a qualified charity. The advantage to the donor is that he/she can receive a tax deduction in the year in which the investment is made regardless of whether the funds were passed on to a charity at that time. Of course, all funds contributed to a DAF are irrevocable.

2.   WHAT BENEFITS DO DAF’S PROVIDE TO THE DONOR?  

The major benefit to the donor is the ability to create a space in time between the investment of the funds and the time that the gift is made to the charity or charities. In essence, it is a quick and easy way to establish a charitable fund which can grow tax-free over time—meaning that more money can eventually go to the donor’s nonprofit/s of choice. Donors can also set up recurring gifts to charities within the fund. In some cases due to a huge unexpected influx of income a donor may deposit a large sum of money into the fund during one year with the result of funding philanthropic giving for many years to come.

3.  ARE THERE OTHER REASONS THAT DONORS CHOOSE DAF’S?

It’s uncomplicated! Let’s say a donor decides to give $5,000 a year to charity but hasn’t determined where to contribute the funds. The donor can deposit $15,000 and receive one tax receipt for that entire gift—which might be in a year when they need the deduction due to a financial bonanza--and can make grants to as many charities as he/she desires in the future. DAF’s avoid the necessity for paperwork and also allow the donor to remain anonymous if they wish. Many DAF Sponsors (Vanquard, Schwab, Fidelity, etc.) provide the service of researching potential grantees to make certain that they are reputable nonprofits.

4. CAN A DONOR’S FAMILY BECOME INVOLVED IN MANAGING A DAF?

Most definitely! The person setting up the DAF—can select family members to serve as “Successors” to carry on the tradition of giving. In fact, a DAF is similar to a family foundation without the cost and complexity of managing such an entity. It allows the donor with his/her family’s input and involvement to make financial decisions that could easily set in place long-term habits of giving that could be highly beneficial to many charities going forward. If ongoing contributions are made to a DAF it is highly possible that it could become like an endowment where the income from the investment would support various charities in perpetuity.

5.  HOW CAN FUNDRAISERS BENEFIT FROM DAFs?

If possible, fundraisers should learn which of their donors make gifts through DAF’s. This may be difficult when donors choose to remain anonymous. In most cases, checks from DAF Sponsors such as Fidelity or Vanguard include the name of the donor that made the grant. It is important that this be recorded in the nonprofit’s database so that DAF donors can be cultivated to make recurring and ever-increasing gifts. The nonprofit should also advertise on their website and in their publications suggesting that donors make contributions through DAF’s if they have them. Keep in mind that such donors might also be open to planned gifts made though this investment tool.

By president-Elect Steve Jacobson

As we head into the heart of the year-end giving season, it occurred to me how much pressure fundraisers are under to meet their goals.  After all, next year’s budgets often depend on successful year-end fundraising campaigns.   So, while we appreciate the stress, angst and anxiety that fundraisers have this time of year, we often tend to forget about the people in the back office that make it all happen.  The folks that we couldn’t do without.  I’m talking about those unsung heroes: the men and women in Advancement Services/Development Operations.

Did you ever stop to think about how many transactions your Advancement Services team processes each day during peak season?  And, as we know, it’s not just about the volume.  It’s about all the pieces that they have to get just right.  They are the ones to make sure that the gift is coded with the right fund designation, the proper appeal, and the correct campaign.  But that’s not all.  Is there an address change?  How about a matching gift?  Is there a soft credit to be applied?  They take care of it all!

And our Development Operations teams know all of the ins and outs of what’s allowed and what’s not.  Can I pay off my personal pledge with a check from my family foundation? No!  I volunteered 200 hours this year at your nonprofit; can I get a gift receipt for my time?  No!  But, of course, our Dev Ops teams are great at saying “no” with a smile and a gentle explanation (no matter what they’re really thinking!).

As this year winds down and we give thanks to our donors, let’s also set aside some time to thank our Advancement Services/Development Operations folks who work so hard, who do so much and who make the rest of us look so good.  

To welcome in 2019, please join us for AFP-NYC’s Annual Meeting, being held on Friday, January 18, at 8am at Chelsea Piers.  Not only will you have an amazing breakfast provided by world renowned Abigail Kirsch, you’ll hear from leaders in philanthropy who will speak frankly about what the future might look like and its impact on our profession.  We will also have the distinct pleasure of honoring AFP-NYC past president, Mark Hefter, with the Chamberlain Award, in recognition of Mark’s longtime service to the chapter.  I look forward to seeing you there!

By Jill M. Scibilia, CFRE

I recently made a career move after fifteen years at the same organization.  I loved my job and the mission of the organization I served. I had a wonderful team, a strong partnership with the CEO, and the organization has an incredible board and deeply committed volunteers.

So this was not a decision I made lightly. During my discernment process, I sought the advice of some trusted development colleagues and friends.  You know who you are.  I am deeply grateful for the counsel and encouragement each one of you gave me.  Thank you.

Here are some of the pieces of wisdom you shared:

1. Own the fact that you don’t know what you don’t know. 
2. Select the job based on the leader, the mission and the culture of the organization.
3. Don’t say yes until you fall in love with the job and the mission you will be advancing.
4. Don’t be afraid to explore a different sector within philanthropy (for example if you are in youth development, consider higher education, healthcare or the environment). 
5. Make sure your values align with those of the leader of the organization.
6. Seek an opportunity that will take you outside of your comfort zone.
7. It’s time for you to do this and if you start to get cold feet, call me.
8. Own the fact that you don’t know what you don’t know.

One of the best reasons to be involved in AFP is that it helps us build a network of trusted colleagues. We listen to one another. We are honest with one another. We learn from one another. This means we are better able to serve our sector and our respective missions. Being in the right job at the right time makes a huge difference. As fundraisers, we know we are most effective if we are in love with the job and mission we seek to advance.

I accepted a position I felt called to pursue, and I am excited and energized by the opportunity.

Thank you for being a part of our AFP Community and for all you do to make the world a better place.  Wishing you a Happy and Healthy Holiday Season.

By Veronica Bainbridge, Chapter Board Member

I hope you had a happy Thanksgiving!  As fundraisers, we think a lot about giving thanks. AFP’s Donor Bill of Rights affirms the expectation of appropriate acknowledgement and recognition. It’s good manners to thank your supporters, and in some cases it’s a legal requirement (above a certain level).

But we all seek ways to ensure that donors truly feel thanked beyond the print or pixels of the basic acknowledgement. Philanthropy is a choice, and our donors don’t have to choose us.

I just read the new report by The Philanthropy Centre called Learning to Say Thank You, which concludes that an investment in building out acknowledgements can pay real dividends.I use the terms deliberately. Donations are investments, with a return expected in the form of mission accomplishment and social good. And it’s becoming increasingly important to share your impact – which is also their impact – with your donors in creative and compelling ways.

Our business calls for the development of authentic relationships supporting a financial goal. The better the relationship, the more accurately you can project future revenue.

Here are some thoughts on ways to thank donors in order to enhance their experience, build your relationships with them, and thus help sustain the vital work of your organization.

• Credit them. You may already publish a list on your website or in your annual report, but your executive director or Board leadership can also thank donors in a speech at your next event. Print and e-newsletters should always state that donations make your work possible. When it comes to major gift prospects (whatever that means to you), perhaps you can turn a particular project element like a catalogue or research publication into an opportunity to inspire and recognize an increased contribution. Bonus – when you publicly credit donors, it helps convey the message that your cause relies on philanthropic investment.
• Value them. Make it clear to your donors that you don’t just think of them as sources of money. “Saw this and thought of you” strikes a great note if you know a donor well enough to send something (even just a link to a news story) related to their personal interests. If they are attending an event or program, can you greet them personally or ensure that they get special treatment when they show up? Or perhaps a subset of donors gets a note of thanks from your staff or beneficiaries. It doesn't have to be something costly to pull off, but those unexpected moments of appreciation can truly resonate.
• Delight them. It might not be why they signed on, but if you can make your donors’ experience exciting or enjoyable, it adds real value to the relationship. It’s also fun to create memorable experiences for others – whether it’s an introduction to an artist or insight from an expert, access to somewhere special or private, a call from a Board member, or just a great party which makes them feel proud to be on your team.
• Enlighten them. Particularly if your work involves advocacy, you will be thinking about turning donors into ambassadors. I always find it rewarding to learn and share the details of exactly how the work solves a problem or serves a need, and also how decisions are made within the organization. This ensures you’ll be in close communication with program staff – which gives you a chance to build your culture of philanthropy – and means you'll be well-informed in conversations about major gifts. 
• Empower them. While you will always need to ensure the integrity of your organization’s vision and protect the expertise of the program staff, is there a way that you can include donors in decision-making that relates to the mission and core activities? A group of educated major supporters might vote on where their contributions are directed, or a survey might make your community feel involved.

Lastly, don’t forget to join AFP in 2019 for professional advancement events which will provide even more ideas for stewardship. Thank you again for all your hard work!

By Susan Fields, CFRE

Almost everyone who has worked in a business setting will agree that organizational culture is enormously difficult to change. Because culture is a complex mixture of deeply-embedded beliefs, attitudes, and behaviors, it often contains elements which are both subtle and illusive. So when we speak of creating more diverse and inclusive practices in staffing our organizations, it is important that nonprofit leaders understand the nuances and steps in implementing change.  

If your nonprofit is seeking to recruit and retain a more diverse professional staff, it might be worthwhile to consider the following ideas, concepts, and strategies:

1.  There is a distinct difference between diversity and inclusion in a work environment. While the former refers to the wide range of human differences your workplace brings to the table, the latter is the practice of welcoming and valuing these various perspectives and abilities in a way that encourages equal participation. If certain groups feel they are regularly excluded from contributing their experience and abilities, it is likely that they will seek employment where there is greater opportunity for professional growth and advancement. 

2.  Diversity comes in many forms. When we use the term diversity, we often think of racial and ethnic differences, however, there are many combinations of characteristics that make all people unique. In fact, even a seemingly homogenous work environment contains a wide variety of other differences including: gender, sex, education, intellect, religion, sexual orientation, physical appearance, disabilities, personality styles, and unique skills and talents.

3.  Determine your goals. Is your nonprofit seeking to become more diverse or does it need to become more inclusive of the diversity that already exists within its workforce? Once you have decided which category your organization falls into, it will be necessary to garner the support of your board, current staff members, and other individuals who play key roles in your organization. This will require providing solid data regarding the benefits of “stepping up” your nonprofit’s efforts to become more diverse and/or inclusive. 

4.  Make a commitment to change.  At this stage the board will probably decide to appoint a special committee to spearhead the project which might require the assistance of a consultant to examine the current organizational culture and feasibility for change. Whether your workplace has a “family style” manner of operation or is a corporatized environment will determine how long the process will take as well as the obstacles that might stand in the way. 

5.  Create a plan. Instead of attempting to overhaul the entire culture of your organization, begin with measurable changes related to empowerment for all employees. Examples might include reorganization of office space, encouraging team projects, broadening participation in meetings, increasing access to information, simplifying the decision-making process, and opening opportunities for all employees to move to higher levels of responsibility. 

6.  Expect and embrace resistance. People do not like or appreciate change, especially when it requires that they share power and privileges. Ironically the harder organizational leaders “resist the resistance”, the more difficult moving forward will become. Conversely it is more likely that staff members will embrace the evolution of their workplace once their concerns have been addressed. Incorporating change gradually is also key in gaining staff support and allowing for alterations as the process moves forward.

By Craig Shelley, CFRE, Chapter Treasurer & Managing Director, Orr Group

As we gather with friends and loved ones during this Holiday Season, in between eating too much and bickering with family, I know each of us will stop to give thanks for the very many things we have to be grateful in our lives.  As you do so, please stop and reflect on just how fortunate we each are to be able to devote our professional lives to causes that matter.  As fundraisers we get to help activate the good intentions of those with resources on behalf of those without.  On top of being a great deal of fun we’re fortunate we get to make a difference.

I’m thankful I get to do this work and even more thankful I get to do it with so many fantastic people.  Happy Holidays.

If you have ideas or suggestions for our AFP chapter please always feel free to contact me directly at cshelley@orrgroup.com.  If you’re interested in my thoughts on fundraising and news in the sector, sprinkled with the occasional picture of my kids, please follow me on Twitter @craigshelley.

Thank you for everything you do.

By Gary Laermer, AFP-NYC President

The Changing Role of Major Gift Officers 

After nearly 40 years of working for great nonprofit organizations, I’ve come to realize the most challenging title to live up to is Major Gift Officer (MGO). According to Glassdoor.com, the average salary for open MGO positions in the New York area is $87,324—and there were over 300 openings! With all of these available jobs and completive average salary, I wondered why everyone I spoke with has said it’s the hardest position to fill.  There seems to be a challenge filling the positions and once filled, the turnover rates are very high.  Have we been creating jobs and titles that are difficult to recruit and setting up expectations that are impossible to achieve?  How can an MGO find a path to greater success and longer tenure?

A few of my observations include most importantly, have a mentor, or better yet, have several mentors.  If you’re an MGO or aspire to be one, surround yourself with great mentors who can help you successfully perform the job.  MGOs need to manage up, with staff leaders who may have overreaching expectations, laterally with their peers, and their own team. It’s a skill that mentors, like those you’ll meet at AFP events, can help you with.  Second, don’t stop learning from others. Connect with other MGOs, learn about their successes and failures, share yours, and ask for feedback.  AFP Professional Advancement events are the perfect place to meet your next mentor. 

Lastly, don’t get confused by the title. While MGOs may feel their sole role is closing and counting gifts, the job is so much more. Closing the gift might be the easiest part of the job.  Everything leading up to and following a gift is the hard part.  Before a gift is closed and in between gifts, you’re more of a “chief connecting officer.” You connect a potential contributor with the mission of your organization. You must represent the mission in such a way that the donor comes to deeply value the change or impact you’re promising.  Personalizing the experience for each donor is the hard part. Mastering the skill of personalizing your work with each donor is the key to success. That’s why staying connected with your peers is so vital, because many of the skills needed to be a successful MGO are learned through actual experience and shared stories. So, stay connected and don’t miss an opportunity to seek out feedback and support when the job seems particularly challenging.

By Steve Jacobson

AFP-NYC Treasurer

It’s been two weeks since I attended the AFP Leadership Academy in Toronto and I’m still thinking about it.  I was joined there by fellow NYC chapter board members Veronica Bainbridge, Kerry Watterson and Sunil Oommen.  The four of us were proud to represent our chapter among the approximately 350 participants in this sold-out conference. 

So, why am I still thinking about the Leadership Academy? Well, I could say that the quintessential Canadian dish of poutine that I ate was incredibly memorable.  Or, I could say that the people of Toronto were so nice.  Both true.  But the real reason the Academy is till etched in my brain is that I was able to talk with so many other chapter leaders who understand the challenges we face and brainstorm with one another on ways to address those issues.

One of the themes of the Academy was Inclusion, Diversity, Equity and Access (IDEA) and how we, as chapter leaders, can better recognize, understand and correct the biases that exist in our world. Tujuanna Williams, the former Chief Diversity and Inclusion Officer at Fannie Mae and who now heads up her own firm, engaged us in an enlightening and riveting session on the many forms that social injustice takes – and how we can overcome our “programmed” preconceptions to make IDEA a reality. As many of you know, our chapter is committed to IDEA and we are making huge strides in this area.

In addition to the more formal educational sessions, there was time set aside for leaders from like-size chapters to meet amongst themselves and discuss common topics and issues.  It was great to catch up with some of our friends from the DC and New Jersey chapters and get to meet others from San Francisco, Los Angeles, Seattle, Chicago, Dallas, Toronto and Houston.  Despite the geographic distance separating us, there was a lot of common ground.  Websites, databases, membership, professional advancement, National Philanthropy Day… We touched ‘em all – and we learned a lot.

Speaking of learning, don’t forget our next professional advancement session, Pulling Back the Curtain on Donor-Advised Funds, being held at Scandinavia House on Thursday, November 8^th at 8am.  Bring a guest for only $50!  And, please make sure that you mark your calendar for the NYC Fall Happy Hour on Wednesday, November 14^th at Circa Brewing Company.  Come network with colleagues over some really great food and drink.  I hope to see you there!

NEW YORK, New York – JCA (Jacobson Consulting Applications), an independent consulting firm dedicated to the technology and information management needs of nonprofits, celebrates its 30th year in business this month. Incorporated in 1988 by CEO Steve Jacobson, the company has grown from a staff of one in 1988 to a staff of 50 in 2018 and is considered one of the world’s foremost boutique consulting companies in nonprofit information management.

JCA creates value for its clients by providing services that help nonprofits create and foster relationships with their constituents. Since its incorporation, JCA has worked with more than 1,600 nonprofits on a variety of consulting projects, ranging from business process improvement and CRM implementations to advanced analytics and dashboards. The company works across all nonprofit verticals, including healthcare, higher education, membership, and arts and culture. JCA’s history also includes notable partnerships with large CRM companies in the nonprofit space such as Tessitura, Blackbaud, thankQ USA, Gateway, accesso, and Community Brands.

In addition to its vast consulting capabilities, JCA also has a robust product development arm. Products that the company develops generally pull data from CRM for enhanced business intelligence. JCA products include JCA AnswersTM, the Revenue Management ApplicationTM and the Segmentation EngineTM (both co-developed with UK-based partner Baker Richards), T-StatsTM, Tessitura DashboardsTM, and the Arts Engines Platform (currently in development). In partnership with Artifax UK, JCA is also the North American Distributor of ArtifaxEvent, a leading event management software primarily used by cultural nonprofits.

In 2014, JCA acquired The Pricing Institute, and rebranded the company “JCA Arts Marketing”. As a wholly owned subsidiary of JCA, JCA Arts Marketing adds to JCA’s offerings for organizations in the arts and culture space with its top-notch data analysis and strategy services to increase revenue, boost attendance, and grow patron value for its clients. JCA Arts Marketing has worked with over 100 of North America’s top cultural institutions.

The company’s first client when it launched in 1988 was NYU Medical Center (now NYU Langone Health), which included the NYU School of Medicine. Since then, JCA’s client roster has expanded to include such organizations as the American Museum of Natural History, the Metropolitan Museum of Art, Art Institute of Chicago, Brown University, University of Arizona, Vassar College, Carnegie Hall, Segerstrom Center for the Arts, Lyric Opera of Chicago, March of Dimes, Children’s National Health, and Texas Children’s Hospital.

The staff at JCA is proud to celebrate this landmark anniversary. Says CEO Steve Jacobson “The past 30 years have been an amazing ride, only made possible by our talented team and our nonprofit clients’ desire to maximize their potential.” --more--

About JCA: JCA (Jacobson Consulting Applications) is the first and largest independent consulting firm dedicated to addressing the technology and information management needs of nonprofits. Over the past three decades, the firm has helped more than 1,600 nonprofits in North America and around the world leverage their CRM technology, processes, and data. JCA’s team includes consultants, engineers, and data analysts who understand nonprofit operations. Its strategic consulting includes development of organizational metrics, process redesign, data cleanup, and project management. Its technical services span a variety of projects including data conversions, integrations, and business intelligence development.

JCA Arts Marketing, a fully owned subsidiary of JCA since 2014, provides strategic marketing consulting services to hundreds of cultural institutions across multiple genres. It helps clients increase revenue, boost attendance, and grow patron value through data-driven insights.

Website: www.jcainc.com

Blog: www.jcainc.com/blog

By Jill Scibilia

How is your fall so far?  If you are like me, it started with the post Labor Day rush and has not let up. I don’t expect the pace will let up until January—maybe. 

I don’t know about you, but I find the fall season leading into the holidays and year-end to be particularly exciting as a fundraiser. Nearly one-third of all giving happens in December with an estimated 12% happening the last few days of the year. Most year-end “asking” is done in November and December. It is also an important time of year for stewardship and to express gratitude to all of our donors—regardless of their preferred timing for making a gift. 

Here are a few suggestions as you head into year-end:

• Lead with Gratitude – Set aside time to express gratitude to your donors, to the members of your team and all who help you do your work all year-long.  Technology can help you do this to a wide group quite easily. I also suggest you take the time to do meetings, phone calls, and personal notes to a targeted group.  You know who should be on this list. I have always found this to be time well spent.
• Don’t miss National Philanthropy Day, a special day set aside to express gratitude by recognizing the great contributions of philanthropy—and those people active in the philanthropic community—to the enrichment of our world. National Philanthropy Day is on Monday, November 19th. 
• Remember to check out our professional advancement events and webinars where you can learn and exchange best practices. Here are our next two sessions:
  • November 8^th: Pulling Back the Curtain on Donor-Advised Funds
  • December 5^th: Webinar: Building Strong Development Teams

Visit our events calendar to register and learn more.  

Finally, I want to express gratitude to you for the work you do for our sector. Your voice and engagement in our fundraising community matters. Thank you for all you do to make the world a better place.