A Good Year for Charitable Giving

More than two-thirds of nonprofit organizations in the St. Louis area raised more money in 2014 than they did in 2013, mirroring a national trend that saw donors give a total of $358.8 billion to charity, the largest amount ever. Locally, three-fourths of organizations surveyed say they also expect to do as well or better in 2015.
In a further sign of optimism, nonprofits said their focus now is meeting their future fundraising goals. During the recent recession, nonprofits were primarily concerned with how they would meet a growing demand for their services with limited staff and resources.

The results are part of an annual survey of area nonprofits, conducted by The Rome Group, a local consulting firm. A total of 221 nonprofits of all sizes completed the survey. The results of the survey were presented to an audience of more than 400 nonprofit and philanthropic leaders at The Rome Group’s annual Philanthropic Landscape event on July 16 at Washington University’s Edison Theater.
“It is clear that the charitable sector has made good strides from where we were in 2008 and 2009,” said Amy Rome, principal and founder of The Rome Group. “More than half of the organizations we surveyed now report having at least six months of operating reserves on hand. That is up from only 35 percent in 2010. So organizations are becoming more financially stable.”

Nonprofits reported they are spending more time on grant seeking, major gift solicitation and special events to raise funds. Direct mail, long a staple of nonprofits’ solicitation mix, is still employed by 80 percent of organizations, yet only 10 percent say it is their most effective strategy. Two-thirds of organizations are also using online appeals, but less than two percent report that this strategy has yet to have a significant impact on their fundraising totals.
Focusing on Equality and Inclusion
Michael Brown’s death and the ensuing unrest showed the need for the community to address the issue of inequality. Believing that nonprofits can help lead change in our community, The Rome Group survey also asked nonprofits about their focus on increasing equity and inclusion in their work and in their organizations.

• 70 percent of respondents said they understand and communicate that reducing racial inequities is mission-critical.
• 65 percent have incorporated strategies that consider inclusion and equity.
• 65 percent collect and analyze data by race or ethnicity for programs and operations.
• 41 percent offer training on cultural competency to increase their staff and/or board’s ability to work with diverse groups.

“The survey demonstrates that nonprofits are focusing on these issues,” said Rome. “Promoting greater equity and inclusion, whether it is in the programs they provide, the population they serve, the staff they hire or the leadership they recruit is important for their missions. The nonprofit sector can and should be a leader in driving this greater awareness of an issue that impacts all of us.”
The results of The Rome Group’s surveys can be viewed at www.theromegroup.com.

About The Rome Group
The Rome Group is the St. Louis area’s leading consulting firm serving the nonprofit sector. It specializes in helping nonprofit organizations build capacity by planning for the future, focusing their development and fundraising efforts, and identifying opportunities for leadership, growth and success.