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Patrick Harker , President, University of Delaware

Patrick Harker , President, University of Delaware. Richelle Vible , Executive Director Catholic Charities of Delaware. Steven Rathgeb Smith, Waldemar A. Nielson, Chair in Philanthropy, Georgetown University.

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Patrick Harker , President, University of Delaware

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  1. Patrick Harker, President, University of Delaware

  2. RichelleVible, Executive Director Catholic Charities of Delaware

  3. Steven Rathgeb Smith, Waldemar A. Nielson, Chair in Philanthropy, Georgetown University

  4. Challenge and Opportunity for the Nonprofit Sector: Strategies for Sustainability, Engagement and Effectiveness Steven Rathgeb Smith Georgetown University University of Washington March 22, 2010

  5. Outline of Presentation • Key trends in the nonprofit sector in the US • Key Challenges Facing the Sector • Next steps for government, nonprofits, foundations, corporations and universities in supporting the vital service and representative role of nonprofits. • Concluding thoughts

  6. Growth in Nonprofit Organizations by Type, 1996 and 2008 Sources: IRS Business Master File 04/2009 (with modifications by the National Center for Charitable Statistics at the Urban Institute to exclude foreign and governmental organizations).

  7. Public Charities in the United States, 2009 Source: IRS Business Master File 04/2009 & The National Center for Charitable Statistics at the Urban Institute.

  8. Economic Importance of the Nonprofit Sector • Contributed $751 billion to GDP in 2006, or 5.2% of GDP • Paid $543.1 billion in wages and salaries in 2008, 9.4% of US Total • Employed an estimated 13.5 million people in 2008

  9. Dan Rich, Professor, Public Policy, University of Delaware

  10. Elizabeth Boris, Director, Center on Nonprofits & Philanthropy, Urban Institute, Washington, D.C

  11. Tim Delaney, President, National Council of Nonprofits

  12. Aaron Dorfman, Executive Director, National Committee for Responsive Philanthropy

  13. John H. Taylor Jr., Executive Director, Delaware Public Policy Institute

  14. John H. Taylor Jr., Executive Director, Delaware Public Policy Institute

  15. There du Pont, President, Longwood Foundation

  16. Jack Markell, Governor, State of Delaware

  17. Tony Allen, Trustee, Laffey-McHugh Foundation

  18. Pam Cornforth, Delaware Association of Nonprofit Agencies

  19. D E L A W A R E ’ S N O N P R O F I T SB Y T H E N U M B E R S* Nonprofits Registered with the IRS » 5,866 Active Nonprofits » 958 NEW CASTLE COUNTY » 678 KENT COUNTY » 111 SUSSEX COUNTY» 169 *As of 2007

  20. D E L A W A R E ’ S N O N P R O F I T SB Y T H E N U M B E R S Mission Focus • 22% Human Services • 15% Education • 13% Arts & Culture • 11% Health • 8% Public Support & Benefit • 5% Public Safety • 4% Environment & Animal Welfare • 4% Religion • 18% Other (includes youth sports associations, parent-teacher organizations, booster clubs and trusts)

  21. D E L A W A R E ’ S N O N P R O F I T SB Y T H E N U M B E R S* Annual Operating Budgets • of Delaware’s Nonprofits (80%) have annual operating budgets ofless than $1 million Assets More than half the $8.2 billion total nonprofit sector assets are held by a small number of larger institutions, such as hospitals, colleges and universities and trusts. *As of 2007

  22. D E L A W A R E ’ S N O N P R O F I T SB Y T H E N U M B E R S Delaware’s Nonprofit workforce – 43,365 – is significantly larger than many Delaware industries including: • the 2,143 workers in the utilities industry, • the 14,845 employed in wholesale trade, • the 27,256 employed in construction.

  23. D E L A W A R E ’ S N O N P R O F I T SB Y T H E N U M B E R S Delaware Nonprofits Mobilize Volunteers • 178,000 Delawareans a year volunteer • 23 million Hours of service are contributed annually by Delaware volunteers • $460 million Is the value of those volunteer hours to the community

  24. D E L A W A R E ’ S N O N P R O F I T SB Y T H E N U M B E R S Sources: Delaware Nonprofit Working Group and KBT & Associates; Corporation for National and Community Service – Volunteering in America; Urban Institute’s National Center for Charitable Statistics; Internal Revenue Service.

  25. D E L A W A R E ’ S N O N P R O F I T SB Y T H E N U M B E R S The Challenges Faced in Building a Membership- Based Nonprofit Association in a Small State…

  26. Mary Kress Littlepage, KBT & Associates, author of Philanthropy in the First State

  27. Philanthropy in the First State Delaware’s Nonprofits, Donors And Grantmaking Organizations

  28. Philanthropy, Donors & Nonprofits Grantmaking Foundations Nonprofit Organizations State & Local Governments Corporate Donors & Foundations Individual Donors

  29. 1,000 active nonprofits 70% in New Castle County Mostly small (median revenues < $250,000) Sources of Revenue Earned Income - 37% Contributions – 32% Government – 24%

  30. FINANCIAL HEALTH More than 1/3 of Delaware nonprofits are operating in the red. Nonprofits that fail to cover expenses are less likely to sustain operations over time.

  31. Private Funding Sources • Private Grantmaking Foundations • Community & ‘Public’ Foundations • Corporate Donors and Foundations • Individual Donors

  32. Private Foundations(assets greater than $1 million) 390 private foundations. Slightly more than half are located in Delaware for legal/financial reasons.

  33. Foundation support of Delaware nonprofits is limited.

  34. $43.5 million

  35. Community Foundations & ‘Public’ Foundations THE DELAWARE COMMUNITY FOUNDATION Wilmington $15 million in grants awarded. THE RODEL FOUNDATION OF DELAWARE Wilmington $4.7 million in program support. UNITED WAY Of DELAWARE Wilmington $20.9 million in funding awarded.

  36. Corporate Donors & Foundations • How Corporations Give • Direct gifts from operating budgets • In-kind gifts of goods and services • Sponsorship of special events • Gifts of organized volunteer labor • Grants awarded through corporate foundations

  37. Corporate Donors & Foundations • How Corporations Give • Direct gifts from operating budgets • In-kind gifts of goods and services • Sponsorship of special events • Gifts of organized volunteer labor • Grants awarded through corporate foundations

  38. Missing from that calculation…. JPMorgan Chase PNC Verizon Wilmington Savings Fund Society (WSFS) Wilmington Trust AstraZeneca Bank of America Barclays Delmarva Power DuPont ING and others…….

  39. Individual Donors Delaware donors as a whole are wealthier than their counterparts nationwide

  40. A larger percentage of Delawareans make charitable contributions than the national average. Participation rate: The percentage who report making charitable contributions

  41. Delaware donors’ charitable contributions are smaller than those made by their peers nationwide.

  42. Recommendations: • Build public understanding of the way nonprofits are funded. • Grow a strong donors forum to encourage funder knowledge-building and collaboration. • Broaden the universe of foundations providing significant support to Delaware-based nonprofits.

  43. Recommendations: • Increase the transparency of foundation giving. • Document the role of corporate giving. • Encourage more robust individual giving. • Build strong - realistic - partnerships with public-dollar funders.

  44. Deborah Auger, Associate Professor, UD School of Urban Affairs & Public Policy and Director of the “Forward Together” Project

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