DONORS & DAFs

FPLG COVID-19 RESPONSE

DONORS & DAFs 

[UPDATE: November 16, 2020]

Donors have continued to step up in a big way. Donor-advised funds, too, have responded with increased grants.

But many organizations needed additional significant help from the government which has been stalled in Washington, D.C. Private philanthropy, however generous, cannot make up the difference.

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[UPDATE: May 26, 2020]

The worst fears of the nonprofit sector – that donor support would evaporate because of the widespread financial disruption in society – have not happened. Donors have stepped up in a big way. Donor-advised funds, too, have responded with increased grants.

But there are worrisome statistics about overall contributions. And – of course – for many organizations, including those that rely on ticket sales, the lost revenue has been crippling. They will have a more difficult time during the COVID-19 crisis.

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[April 3, 2020]

The coronavirus outbreak is different than past emergencies or disasters precisely because it’s affecting everyone around the world at about the same time.

This is a period of confusion and disruption; many organizations may wonder if this is an appropriate time to connect with donors. But experts, including those who have conducted fundraising campaigns in difficult circumstances, say that it’s critical to communicate with supporters right now.

There is also a consensus that the time is right for donor-advised funds to play an important part in the support and recovery of the nonprofit sector. DAFs control an enormous amount of wealth that can, and should, be distributed as soon as possible.

Contact FPLG (619) 780.3839

Charitable giving rebounded in the second quarter of 2020, boosting total giving in the first six months of the year by nearly 7.5 percent on a year-over-year basis, a report from the Fundraising Effectiveness Project finds.

— Lori H. Overmyer (10/8/20)

…[I]s it realistic to expect a healthy stream of charitable contributions in the midst of the worst economic situation since the Great Depression?…. Absolutely — if you approach the right people. Because even as unemployment soars, as tens of thousands of businesses close, and as default and eviction rates rise, a small but significant portion of the population is doing just fine, thank you.

— Alan M. Cantor, 9/17/20)

Keep your donors informed of how the organization is pivoting. [They] expect healthy organizations to alter course – while staying on mission – when outside influences demand change.

— J. Erik Rogers (6/17/20)

The coronavirus outbreak has shut down entire school districts and turned bustling commercial corridors into ghost towns, but there’s one sector of society that’s busier than ever: philanthropy.

The charitable acts have come in all shapes and sizes. Small checks to food pantries, foundations issuing emergency grants to desperate nonprofits and, most conspicuously, billionaires doling out big-dollar gifts with all the attendant publicity.

— Laurence Darmiento, LA Times (4/20/20)

The coronavirus pandemic has touched off an explosion of grant making from donor-advised funds, according to a spot check of the big national donor-advised fund-sponsors and community foundations of all sizes.

— Michael Theis, The Chronicle of Philanthropy (4/7/20)

REFERENCES & RESOURCES

GO TO – FUNDRAISING EVENTS

Remote-Work Costs: Must Nonprofit Reimburse?

[June 5, 2020] Among the many adjustments that employers - including nonprofits - have had to make during the COVID-19 pandemic is the abrupt switch to remote work for some or all of their employees. That includes making sure that everyone in the workforce has needed hardware, software, and internet and phone connectivity.  California is among the jurisdictions that initiated early and mandatory stay-at-home orders for a large portion of the population and economy. There [...]

Filing Deadlines Extended for Nonprofit Organizations

[April 24, 2020] By the third week of March 2020, governments at all levels had begun to respond to the many questions and issues raised by the COVID-19 emergency, including - most notably - the curtailment or suspension of operations and activities by individuals and entities on account of new stay-at-home orders  and recommendations.  The necessary federal emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Act was made in mid-March. The [...]

UPDATE: The CARES Act and Nonprofits

[March 27, 2020] The third prong of the Congressional response to the COVID-19 pandemic - the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (S. 747) - is now before the House of Representatives, having passed the Senate on Wednesday. The House is expected to approve it today with overwhelming support; voting is expected to begin shortly.  It could be signed at the White House and in effect before the end of this weekend. [...]

Some Good News: Funders are Stepping Up

Ten days ago, we posted Funders Must Step Up - Right Now! (March 16, 2020).   That same morning, influential blogger Vu Le had posted Funders, this is the rainy day you have been saving up for. Mr. Le has long been a vocal critic of many foundations’ viewing the five percent payout figure in the tax code as a ceiling instead of what it is: a floor.  During that week, as most of us were [...]

Nonprofit Board Meetings in an Emergency

The devastating pandemic has brought sudden and profound challenges for all of us.  In What Nonprofit Board Members Should Be Doing Right Now to Address the COVID-19 Situation, (March 16, 2020), the experts from BoardSource write:  “As the world responds to the threats of COVID-19, many nonprofits and their boards are wrestling with difficult questions and decisions.”  A rewrite of that sentence may be in order; every nonprofit and its board is flying blind in [...]

The Charitable Sector: COVID-19 Relief and Economic Stimulus Package

America's charities request $60 billion infusion of support to help the most vulnerable March 18, 2020 The COVID-19 (Coronavirus) pandemic facing the country is having a profound impact on the economy and has greatly expanded the need for charitable organizations to provide additional services in an unprecedented manner. At the same time, the economic downturn will undoubtedly result in a contraction in contributions and other sources of revenue which are the lifeblood of many charitable [...]

Coronavirus and Nonprofits: Challenges & Resources

What a difference a week makes. Last week, the news media focused on the minutiae of the primary-election horse race. This week, Americans have been forced to confront the coronavirus (COVID-19) pandemic. For the nonprofit sector, the emergency becomes a double-barreled crisis: we are both victims and saviors. This is not an unfamiliar conundrum; there are frequent natural disasters that devastate one area or another. This nation’s charitable organizations - and, in particular, the social [...]

Funders Must Step Up – Right Now!

“Funders,” writes nonprofit blogger Vu Le, “this is the rainy day you have been saving up for.”  Recently, we wrote about Mr. Le’s earlier plea for America’s foundations to step up their payouts beyond the “five percent rule” in the federal tax code. In an article last summer, he characterized it as a moral imperative: The ethical argument for foundations to increase their annual payout rate beyond 5% (August 4, 2019). This morning, it’s a [...]

Small Business Association Disaster Loan Guidance and Resources

The U.S. Small Business Administration (SBA) has an existing program, the Economic Injury Disaster Loan program, that extends disaster relief loans to small businesses, including nonprofits, to help alleviate economic injury caused by disasters.  On Thursday, March 12, 2020, the SBA announced that the program will be available to claims arising from COVID-19.  The SBA will work with state officials to offer loans of up to $2 million.  “These loans may be used to pay [...]

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