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The Blood Bank of Delmarva’s third bloodmobile — a roving donation center — was made possible by Delaware’s first social impact bond.
The concept, also called Pay for Success, was introduced to the U.S. in 2012 and legalized in Delaware last August. These arrangements involve at least three entities: a service provider (typically a nonprofit), an investor (individuals, companies or nonprofits) and a guarantor (typically a government).
The idea is that an investor commits a certain amount of funding, which is then guaranteed by the government in exchange for meeting a social need. To create accountability and incentivize better results, compensation is tethered to set performance measures agreed upon for each bond.
“We want to show the state how it works,” said Stuart Comstock-Gay, CEO of the Delaware Community Foundation, who began working on the $450,000 bloodmobile project in the fall of 2017. “It’s a unique way to remove risk.”
The Nonprofit Finance Fund in May analyzed America’s first 25 Pay for Success projects and found return on investments as high as 22%. The return for Delaware’s first social impact bond is listed at “5% maximum.”
Delaware’s new law aims to “incentivize private funding of economic development and social impact initiatives,” the state said. “Under terms of the contracts, the state would protect taxpayer dollars by reimbursing private funding only if the initiatives reach stated goals, and achieve progress.”
Click here to read full article from Delaware Business Times.
Delaware nonprofits are focusing on ways to innovate through diversity and innovation, even as they struggle to maintain funding for key programs and create new ones.
The Delaware nonprofit sector employs 45,307 people and generates $2.9 billion in wages, generating $5.4 billion in spending, says Sheila Bravo, president of the Delaware Alliance for Nonprofit Advancement (DANA), citing data from the 2017 Bureau of Labor Statistics and other federal sites.
Bravo says she believes nonprofits need to adapt if they’re going to remain relevant and deliver their services efficiently, thanks to a changing community landscape and the continuing impact of the loss of statewide funding in 2017. A DANA survey found that nonprofits lost an estimated $25 million between state grants, contracts and grant-in-aid.
“We’re seeing a greater reliance on private and corporate donations, since anecdotally we believe the number of donors has dropped,” Bravo said. “The demand for services is not declining but some people still haven’t figured out how to increase their funding streams.”
“We’re seeing long-tenured executives announce their retirement,” she added. “Agencies working with vulnerable populations are dealing with regulatory changes and differences in the way the game is played. And our senior population in Delaware is growing, but the funding is not keeping pace.”
More than 200 people gathered for the 2019 IMPACT Delaware annual conference on May 2 and heard from Facebook’s Amira Bliss, who co-authored a study on nonprofit innovation for the Rockefeller Foundation. That study found that diverse teams composed of people with wide-ranging perspectives and skills are critical for innovation.
“Diversity actually introduces conflict,” James Collins, secretary of the Delaware Department of Technology, told the crowd. “It’s only when we work through the conflict in an inclusive way that we get to enjoy the values that diversity delivers.”
Share Delaware has published a survey that shows the diversity of the Delaware nonprofit sector using data from the IRS master file of registered 501(c)3 organizations in 2016. Although more than 6,900 nonprofits are registered in Delaware, Share Delaware, a collaborative enterprise of DANA and Philanthropy Delaware, found 876 that provide direct services in Delaware and have filed a 990 or 990EZ tax form in the past three years. Of the 876, 621 were in New Castle County, with the remaining 255 split fairly evenly between Kent and Sussex counties.
The Franklin Institute has received a $6 million gift from the Hamilton Family Charitable Trust for an ambitious transformation of the iconic train exhibit, home of the historic Baldwin 60000 Locomotive. The gift will enable the expansion and re-imagination of the Train Factory exhibit into a two-story gallery of technological advancement, the first in a series of bold initiatives to lead the Institute into its third century. The contribution is the largest gift in the Hamilton Family Charitable Trust’s history to date, and marks a significant milestone in the Institute’s long history of generosity and support from four generations of the Hamilton family, beginning with the 1933 donation from Samuel M. Vauclain of the Baldwin 60000 Locomotive—now a Philadelphia landmark.
Click here to read full press release from the Franklin Institute.
Foundation Source, the nation’s largest provider of comprehensive support services for private foundations, today released its 2019 Annual Report on Private Foundations, a study of how 987 of the firm’s clients with assets of less than $50 million fared in 2018 vs. 2017. The report found that in 2018, despite declines to their asset balances, these foundations gave nearly as much as they did in 2017, collectively awarding almost $300 million in grants. Contributions from donors to their foundations were robust as well.
Click here to read full press release from Foundation Source.
The full report can be downloaded here.
While the field of philanthropy has been devoting more and more energy toward work in diversity, equity and inclusion (DEI), there has been less focus on ways philanthropy consultants can and do support grantmakers in their advancement of DEI.
The National Network of Consultants to Grantmakers (NNCG) has been working diligently to fill in this gap with the creation of The Diversity, Equity and Inclusion Toolkit for Consultants to Grantmakers. The DEI toolkit was designed to help philanthropy consultants guide organizations toward a greater awareness of DEI issues.
Click here for DEI toolkit.
Their goals are ambitious: Help Sussex Countians develop as children, graduate on time and find a good job, all while avoiding long-term physical and mental disorders like addiction, diabetes and obesity.
If that sentence seemed overstuffed, then so does the mission of the Sussex County Health Coalition. Formed about 15 years ago to reduce child obesity, the coalition’s mandate has ballooned.
Compounding their challenge is a budget of only about $250,000 a year, funded mainly by state agencies and private charities. That’s a little more than $1 per Sussex County resident per year. Going it alone, in other words, is just not an option.
Executive Director Peggy Geisler says their role is to build what they call capacity and infrastructure to help other groups be efficient and effective.
The Benjamin Potter Charity Trust, a fund administered by the CenDel and Delaware Community Foundations, was named a 2019 Shining Light Award Winner by the Delaware Breast Cancer Coalition.
During the past several years, the DBCC has received tens of thousands of dollars in funding from the Potter Trust. The CenDel and Delaware Community Foundations were honored by the DBCC at an event June 6 in Wilmington.
The DBCC has used the funding from the Potter Trust to provide emergency funding and support to Delawareans undergoing treatment for breast cancer, helping them pay for housing, utilities, child care, transportation and medical expenses.
The Potter Trust, established by Colonel Benjamin Potter in 1843, has helped the economically underprivileged in Kent County for 175 years. A committee reviews applications and awards grants annually.
The CenDel Foundation, in partnership with the Delaware Community Foundation, is committed to helping people transform the community through charitable giving. Since 2008, the foundation has distributed more than $2.5 million in grants and funding to various organizations in central Delaware, improving the lives of those living in Kent County. For more, call 724-7538 or visit cendelfoundation.org.
Click here to read full article from Smyrna-Clayton Sun-Times.
After the recent Notre Dame tragedy, when its famed spire collapsed to ash, philanthropists around the world quickly pledged almost a billion dollars to help rebuild and restore the historic structure. While many cheered these donations, some responded to these voluntarily given gifts with criticisms of charitable giving itself.
Opponents of charitable tax incentives wrongly argue that such giving is an exercise in power by the wealthy that starves the state of tax dollars and that the government should dispense among projects and causes it deems worthy.
But should the government alone decide which charities should be supported? The federal government already funds programs that large numbers of taxpayers believe to be wasteful. Above all, the reasons and motivations behind why people choose to give are as varied as the vast number of causes out there.
Click here to read full article from Forbes Nonprofit Council.
The Shubert Foundation has awarded a record total of $32 million to 556 not-for-profit performing arts organizations across the United States. This marks the 37th consecutive year that the Foundation has increased its giving.
"This year we are delighted to be offering support to 556 performing arts organizations all around the country," stated Shubert Foundation President, Michael I. Sovern. " Our longstanding practice of providing help in the form of general operating support remains unchanged. We are convinced that talented artists and administrators are best able to decide how to use the funds we grant."
Click here to see full list of grant recipients.
Click here to read full press release from the Shubert Foundation.
The 2017 federal tax overhaul could cut the number of households donating to charity by 2.6 million per year and reduce charitable giving by up to $19.1 billion per year through 2025, according to a new report.
The study was commissioned by Independent Sector, a group that advocates on behalf of nonprofits, and was conducted by the Lilly Family School of Philanthropy, at Indiana University.
Click here for the full report
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