Giving in St. Louis
2012 Report from the Gateway Center for Giving on the State of Giving in the Greater St. Louis Metropolitan Region
Giving in St. Louis
Foundations in St. Louis . . . . . . . 1 n
Types of Foundations
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Assets and Giving
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KEY FINDINGS n
I nsights on Foundation Giving Priorities
Corporate Giving . . . . . . . . . . . . . 6 Individual Giving . . . . . . . . . . . . . 8 n
The Power of Individual Giving
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Itemizing and Deductions
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D espite the recession, giving by businesses in the region remains robust. Before the economic downturn, the 2004 Private Dollars for Public Good report had indicated the strong role of St. Louis-area corporations in philanthropy. Today, many corporations with a local presence continue to give generously. Nearly $60 million was given by the 10 top corporate grantmakers with a base of operation or major market in St. Louis. And St. Louis-area organizations are often the beneficiaries: Half of these corporate funders directed more than 70% of their charitable dollars to nonprofit organizations in the region.
F actors That Influence or Affect Individual Giving E state and Bequest Giving C ommunity Foundations in the St. Louis Region
Other Giving Vehicles and Their Impact . . . . . . . . . . . . . . . . 12 Looking Ahead . . . . . . . . . . . . . . 14 About the Gateway Center for Giving . . . . . . . . . . . . . . . . . . . 15
A lthough financial investments suffered epic losses as a result of the 2008 recession, giving by foundations has increased by 9.6% in the four-year period ending in 2010. In the same period, there was a -10.5% change in local foundations’ assets.
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Methodology and Acknowledgments . . . . . . . . . . . 16 Source Notes . . . . . . . . . . . . . . . . 17
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H ouseholds have been hit hard by joblessness, foreclosures, and tough economic conditions. Giving by individuals continues to be strong, constituting the primary force behind charitable and philanthropic activity in the region. Although the total dollar amount across the state may have decreased, the average itemized charitable contribution per return has held steady at about $4,250. A fter a decline at the height of the recession, giving to the United Way of Greater St. Louis surpassed levels set in 2006 and 2007. The 2011 campaign totaled more than $70 million from generous donors across the region. Going forward in 2012 and beyond, the trend is for nonprofits and funders to focus more on community capacity through Performance Partnerships, Philanthropic Equity, and Creative Cross-sector Advocacy.
Giving in St. Louis
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Foundations in St. Louis According to the Foundation Center and the Council on Foundations, there are two broad categories of foundations: public and private. Public foundations include community foundations, women’s funds, and hospital/ health care conversion foundations. Technically, these foundations are actually taxexempt public charities that maintain a source of permanent funds to help improve the quality of life across a region or broad area of interest. Private foundations are based on endowments from an individual, a family, or a corporation. Since they are based on endowment income, private foundations do not engage in fundraising or seek public financial support.
TYPES OF FOUNDATIONS
Figure 1 | Grantmakers by Total Giving (in millions) and Type in the St. Louis Region $28
PRIVATE FOUNDATIONS FALL INTO THREE BASIC TYPES: n
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$5
I ndependent and Family Foundations receive endowments from individuals or families (and, in the case of family foundations, they continue to show measurable donor or donor-family involvement). C ompany-sponsored or Corporate Foundations receive funds from their parent companies, although they are legally separate entities. Corporate foundations may provide support to charitable organizations either in cash or via in-kind donations (computer equipment, for example). Companies also give through corporate contributions programs, but giving amounts in this report pertain only to giving through foundations. O perating Foundations run their own programs and services. Typically, they do not provide much grant support to outside organizations.
Source: The Foundation Center.
ARCHS provides so much more than actual grant dollars. Through technical assistance and professional development, ARCHS’ staff fosters both quality and innovation for child care programs. The children and parents served by Urban Sprouts Child Development Center greatly benefit from ARCHS’ expertise and commitment to building strong foundations and lifelong success.
Independent Foundations 9% 3 Foundations
Community Foundations 1.6% 44 Foundations
$86
Operating Foundations Corporate Foundations
28% 47 Foundations $190 61.5% 675 Foundations
Figures do not include corporate giving programs and public charities, as comprehensible information is not available.
The amount given by individuals is more than five times the total contributions of either foundations or corporations.
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Giving in St. Louis
Foundations in St. Louis (continued) ASSETS AND GIVING
Total assets of St. Louis area foundations fell 16.5% from 2007 to 2008. From 2008 to 2010, assets rebounded to $3.4 billion, or by about 5%.
Foundations provide important philanthropic support to a region, mainly through structured giving. The St. Louis region has an estimated 769 foundations, including private, public, and corporate entities.1 Giving in St. Louis provides information about additional grant-making charities and corporate giving programs as well. A primary concern of this report is how philanthropic and charitable giving “weathered the storm” of the 2008 economic recession. In general, this report shows that most forms of giving have either Figure 2 | St. Louis Foundations’ Assets and Giving stabilized or started a modest increase. $3,828 Total assets of St. Louis area foundations $3,529 $3,376 $3,301 $3,191 fell 16.5% from 2007 to 2008, decreasing from about $3.8 to $3.2 billion.2 From 2008 to 2010, assets rebounded to $3.4 billion, or by about 5%. Giving by $456 $460 $309 $270 $282 St. Louis foundations followed a statewide Missouri trend, increasing in 2008 and 2006 2007 2008 2009 2010 2009 and decreasing slightly in 2010. Assets (in billions) Giving (in millions) St. Louis foundations continue to Source: The Foundation Center. rebuild their assets yet have managed to steadily increase giving annually to more than $300 million in 2010. As with total foundation assets, average assets per foundation have rebounded and are approaching pre-2008 levels. In 2010, St. Louis metropolitan area foundations were closer to 2007 in average assets with $4.63 million, or 99% of the average in 2007.3
Table 1 | St. Louis Foundations’ Assets and Giving, 2007–2010 Foundations
Total Assets
Change in Assets 2007–2010
Total Giving
2007
816
$3.8 billion
$282 million
2010
769
$3.4 billion
$309 million
-10.5%
Change in Giving 2007-2010 +9.6%
Source: The Foundation Center.
Figure 3 | Average Assets of St. Louis
Foundations (in millions)
$5,000 $4,750 $4,500 $4,250 $4,000 $3,750 $3,500
increase in giving by St. Louis foundations, 2007–2010
Figure 4 | A verage Grants per St. Louis
Foundation (in thousands)
$600 $500 $400 $300 $200 2007 2008 2009 2010
Source: The Foundation Center.
9.6
%
$100
2007 2008 2009 2010
Source: The Foundation Center.
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Foundations in St. Louis (continued) Table 2 | Assets and Giving, 2010 Foundation Total
Missouri Foundation for Health
The James S. McDonnell Foundation
464,440,606
Greater Saint Louis Community Foundation
170,208,904
The Crawford Taylor Foundation
148,877,676
L-A-D Foundation, Inc.
122,588,382
The Danforth Foundation*
120,333,845
Alvin Goldfarb Foundation
116,018,698
Enterprise Holdings Foundation
108,662,616
Lutheran Foundation of St. Louis**
91,114,561
Anheuser-Busch Foundation
80,577,009
Foundation Total
The Danforth Foundation*
Missouri Foundation for Health
38,097,798
Greater Saint Louis Community Foundation
27,013,704
The James S. McDonnell Foundation
25,881,175
Emerson Charitable Trust
19,888,815
Monsanto Fund
17,125,091
Anheuser-Busch Foundation
13,055,710
The Crawford Taylor Foundation
10,116,650
Enterprise Holdings Foundation
9,503,731
The JSM Charitable Trust
8,211,948
*The Danforth Foundation’s high level of giving in 2010 was related to planned divestiture. Figure from Form 990 for fiscal year ending May 31, 2010. **Retrieved April 13, 2012, from the Lutheran Foundation of St. Louis website.
A student attaches launch wires to her rocket under the watchful eye of Dan Rodden, science teacher at Berkeley Middle School. The launch was the culmination of a Challenger Learning Center Rocket Club program supported by the Express Scripts Foundation, a strong supporter of science, technology, engineering and mathematics (STEM education.
By GivingBy Giving
By Assets
$1,221,322,818
$39,574,528
Source: The Foundation Center and 2010 Form 990s.
United Way of Greater St. Louis employees support the community by volunteering as a group throughout the year. Recently, 25 United Way employees sorted food and sundries at United Way partner agency St. Louis Area Foodbank.
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Giving in St. Louis
Foundations in St. Louis (continued) INSIGHTS ON FOUNDATION GIVING PRIORITIES
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Data have shown that individuals living in the Midwest are most strongly motivated to give in support of “making the community better.”4 Giving priorities of Midwest-based foundations not only mirror the giving preferences of Midwestern individuals but also offer a glimpse into St. Louis metropolitan area and statewide giving in two key areas. Human services include focus areas such as youth development, safety and crime issues, employment services, and nutrition-based initiatives. Education comprises increase in giving to all ages and types of learning institutions and services receiving grants, including education between 2005 and 2010 elementary, vocational, and technical schools as well as adult and continuing education programs. Education was one of only two areas, The Saigh Foundation | When Fred Saigh planned the foundation, he said however, that saw dollar value increases he had made his money in St. Louis. So all grants would be for youth in the in grants from before the 2008 recession, metropolitan area. Our foundation had received requests for large amounts, as indicated by a sample of Midwestwhich we spread over three to five years. With the economy changing, we based foundations. Giving to Education added one year to the total distribution so the payments are now extended increased by almost 5% between 2005 over four to six years. and 2010, while foundation giving to Arts & Culture increased by more than JoAnn Hejna Executive Director, The Saigh Foundation 3%. All other priority areas either remained constant or declined. A strong majority of local grantmakers reported Education as one of their top three funding interests. Health interests ranked highly as well, with almost half the grantmakers reporting either mental or physical health as a funding priority.
Figure 5 | Midwest-based Foundation Giving Priorities Percent of Grants Granted 0
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10
15
20
25
30
Human Services Education Arts & Culture Public Affairs & Social Health Environment & Animals Religion International Affairs* Science & Technology Social Sciences Percent of Grants Granted 0
5
10
15
20
25
30
*Includes Development, Peace and Human Rights Source: The Foundation Center.
More than 75% of local foundations reported education as one of their top three funding interests. Health interests ranked highly as well.
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Foundations in St. Louis (continued) In addition to its many generous local funders, the St. Louis region is the recipient of many millions of dollars in support from foundations elsewhere around the country.
Table 3 | Large Out-of-area Grantmakers in St. Louis Metro Area, 2010 Foundation Foundation State Type Grants Bill & Melinda Gates Foundation Horncrest Foundation, Inc. The Susan Thompson Buffett Foundation The Wachovia Wells Fargo Foundation, Inc. Macy’s Foundation The Mabel Dorn Reeder Foundation The J. E. and L. E. Mabee Foundation, Inc. Oberkotter Foundation The Andrew W. Mellon Foundation The Bank of America Charitable Foundation, Inc. Doris Duke Charitable Foundation W. K. Kellogg Foundation The Kresge Foundation U.S. Bancorp Foundation, Inc. Thrivent Financial for Lutherans Foundation The PNC Foundation Amgen Foundation, Inc. The Skip Viragh Foundation, Inc. The David and Lucile Packard Foundation IBM International Foundation
WA NY NE NC OH GA OK PA NY NC NY MI MI MN WI PA CA NV CA NY
Independent Independent Independent Corporate Corporate Independent Independent Independent Independent Corporate Independent Independent Independent Corporate Corporate Corporate Corporate Independent Independent Corporate
$8,377,350 $5,293,275 $4,951,968 $3,023,000 $2,444,750 $2,295,000 $2,085,000 $1,974,415 $1,522,800 $1,395,000 $1,372,000 $1,299,916 $1,175,000 $1,155,529 $1,125,000 $1,007,000 $1,000,000 $1,000,000 $ 875,000 $ 771,866
Many large national foundations gave more than $1 million to the St. Louis region.
Source: The Foundation Center.
Left: Angel Baked Cookies won $42,500 in the 2011 YouthBridge Social Enterprise & Innovation Competition. Angel Baked Cookies empowers youth in North St. Louis by providing employment, training, and character development through production of all-natural cookies. Right: JoAnn Hejna and Mary Kemp of The Saigh Foundation visit preschoolers at a St. Louis public school.
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Giving in St. Louis
Corporate Giving The St. Louis area has a long history serving as headquarters to many industry-leading companies. Although fewer Fortune 500 companies call St. Louis home than was the case 10 or 20 years ago, their corporate foundations remain firmly committed to supporting philanthropic endeavors in the region.
Table 4 | Most Generous St. Louis Corporate Foundations, 2010 Foundation Total Giving Monsanto Fund Anheuser-Busch Foundation Enterprise Holdings Foundation Edward D. Jones & Co. Foundation Ameren Charitable Trust Apex Oil Co. Charitable Foundation Centene Charitable Foundation Brown Shoe Co. Charitable Trust Interco Charitable Trust Express Scripts Foundation
Percent of Giving to Region*
$17,251,091 13,055,710 9,503,731 5,081,858 3,421,300 2,603,100 2,370,774 1,387,226 1,376,226 1,312,459
1.1% 53.0% N/A 31.0% 72.0% 24.0% 76.0% 72.0% 93.0% 70.0%
* Estimates based on Form 990-PF, Part XV, Line 3: Grants and Contributions Paid During the Year or Approved for Future Payment. Includes only charity payees with stated or obvious base in St. Louis region.
Corporate grantmakers in St. Louis report similar grantmaking priorities to corporate grantmakers nationwide. The Giving in Numbers: 2011 Edition from the Committee Encouraging Corporate Philanthropy (CECP) revealed the following:
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Health and social services, education, and community and economic development were the top giving priorities.
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Companies give direct cash, foundation cash, and noncash contributions, such as product donations, pro bono service, use of a company’s facility or space, or other in-kind contributions.
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Of companies surveyed nationwide, 89% had a formal employee-volunteer program.6
In addition, Giving in Numbers reported ways in which corporate giving nationwide has changed since the onset of the economic downturn. While some companies have been able to increase their pre-crisis giving levels, others are still rebuilding. Other findings included strategic targeting of one or two societal issues as opposed to broad funding of multiple program areas; prioritization of basic needs, particularly in the health and education sectors; and increased responses to disaster relief. Surveys conducted locally by the Gateway Center for Giving also focused on changes in cash giving and in-kind giving over the course of the 2007–2011 negative economic period as well as the expectations for cash and in-kind giving in 2012. Grantmakers noted mixed changes in giving patterns during this time, with some reporting increases, some decreases, and others remaining flat.
In 2010, 81% of companies nationwide reported having a corporate foundation.5
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Corporate Giving (continued) In terms of cash-giving projections for 2012, a significant percentage of survey respondents expect to increase their cash giving—which may augur a more positive outlook among St. Louis-area grantmakers in terms of the economic picture. As for in-kind giving expectations, most grantmakers who give in kind expect their giving to remain flat. The emphasis on strategic giving and needs prioritization in Giving in Numbers is echoed similarly by themes that emerged in the Gateway Center for Giving’s recent Member Engagement Surveys.7 In 2010, a key theme in addition to the state of the economy was the need to focus grantmaking so that giving programs are less broad-based. When asked to consider opportunities and challenges over the The PNC Financial Services Group | PNC has an aggressive employee next two to three years, grantmakers volunteer policy that permits 40 hours a year of paid time off for employee cited improved strategic planning and volunteerism associated with our signature philanthropic effort, PNC Grow community engagement to encourage Up Great. PNC encourages employee participation at all levels of our employee volunteerism. Local survey organization and across all of our business lines. This is further supported results echoed these themes and added through our Grants for Great Hours Program, where individual employees the need for collaboration among or teams of employees can earn grants for nonprofit organizations ranging funders on massive community projects. from $1,000 to $3,000 for accumulated volunteer hours at area early childhood Collaborative philanthropy emerged education centers. Debbie Marshall most recently in communitywide responses Vice President, Director of Client and Community Relations to natural disasters. In the St. Louis Office of the Regional President, The PNC Financial Services Group, Inc. region, many local grantmakers turned their attention in April 2011 to relief efforts in tornado-ravaged Bridgeton, Missouri—and, a month later, in Joplin, Missouri. The Bridgeton tornado resulted in a 21-mile path of destruction across the St. Louis region and prompted a number of area companies and foundations to make generous funds available to the American Red Cross and the United Way of Greater St. Louis. The devastating property destruction, injuries, and loss of lives experienced in Joplin also resulted in an outpouring of emergency grants and in-kind contributions from a large number of local and national grantmakers. United Way of Greater St. Louis Service Day organized about 100 volunteers who delivered food boxes to residents in parts of Moline Acres and Bellefontaine who had been most affected by the April 2011 tornado. Some residents were without power for several days or were just coming back to their houses. In total, 495 boxes of food were distributed in three hours.
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Giving in St. Louis
Individual Giving THE POWER OF INDIVIDUAL GIVING
Giving by individuals constitutes the majority of charitable contributions in the U.S. Individuals gave almost three-fourths, or 73%, of the $291 billion in total 2010 charitable contributions.8 The amount given by individuals is more than five times the total contributions of either foundations or corporations. Individual giving is still recovering from the 2008 recession. Although individual giving increased between 2009 and 2010 by 2.7% across the nation, it does not offset the 3.6% drop in giving between 2008 and 2009. Individual tax returns filed in Missouri from 2005 to 2009 show a drop of 10% after 2007 in both the value and the number of itemized charitable contributions. The average contribution, however, remained virtually unchanged: around $4,000 from 2005 to 2009. These observations suggest that those who gave prior to the recession continued to give at the same levels after the downturn.
Figure 6 | Itemized Charitable Contributions in Missouri Fall after 2007 (in millions) $3,100 $3,000 $2,900 $2,800 $2,700 $2,600 $2,500
10
%
decrease in itemized charitable contributions (about $300 million) after 2007
2005 2006 2007 2008 2009
Source: IRS.
ITEMIZING AND DEDUCTIONS
The ability to deduct specific items from taxable income is considered an important factor in individual and household giving. The largest types of deductions are mortgage interest, state and local taxes, and charitable contributions. Many in the St. Louis region, however, do not earn enough income to itemize such deductions. The Tax Policy Center estimates that only about 30% of 2010 taxpayers itemized, with the remaining 70% taking the standard deduction. If individuals earn enough to itemize, their after-tax income increases and charitable giving tends to increase as well: A 1% increase in the rate of households that itemize may raise giving by $13 on average, based on one study of IRS data.9
Individuals who itemize tend to increase their charitable giving.
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Individual Giving (continued) Giving is personal—and here are a few of the factors in people’s lives that shape their inclinations to give.
In 2010, 32.1% of residents over 16 volunteered in the St. Louis region—a much higher percentage than the national volunteer rate of 26.3%.10
AGE – An individual’s stage of life is a significant factor in his or her giving. Research has shown that members of the baby boomer generation—those born between 1946 and 1964—are generally less inclined to give than other age cohorts. Although baby boomers possess perhaps greater wealth than any other previous generation, states with a higher percentage of baby boomers tend on average to have lower rates of giving. According to the 2010 Census, the St. Louis metropolitan area (Missouri only) is very close (20%) to the U.S. average (19%) in the percentage of the population falling into the baby boomer category.
FACTORS THAT INFLUENCE OR AFFECT INDIVIDUAL GIVING
RELIGION – The link between religion and giving is well-established: Religious organizations consistently receive the largest share (about 35%) of all charitable contributions. Studies have shown, however, that levels of giving vary by religious affiliation—that is, people of faith do not give uniformly at the same rate. For example, although the number of Catholics may be greater in the St. Louis region, Protestants tend to give at a higher rate per person than Catholics. VOLUNTEERING – In 2010, volunteers nationwide contributed 15 billion hours, with the value of those hours the equivalent of $284 billion at average wages.11 Volunteers who give their time to an organization are more likely to Express Scripts | Express Scripts believes that we can increase the impacts invest financially in it. A recent study of our grants and sponsorships in the community through volunteerism. We found that for every 1% increase in actively work with grantees to assess the needs of the organization and match the rate of volunteering in a state, there employees with volunteer opportunities, both on an individual and a team level. was an increase of $4 in the average Our employees are enthusiastic about engaging in the community and are proud amount of household giving. Although to support the company and the Foundation’s giving with volunteerism. changes in population make it difficult Sue Schlichter Executive Director, Express Scripts Foundation to estimate the potential impact on donations, the strength of the volunteer According to base in the region is a key factor affecting individual giving. Citi Community Volunteering by individuals also aligns with corporate initiatives centered on Development, employee engagement. Across the United States, efforts to attract and retain valued Citi employees in employees have prompted many companies to provide innovative work-related St. Louis in 2011 volunteer opportunities. logged 47,550 In some cases, employee volunteerism programs correspond directly to corporate volunteer hours, giving priorities. Many local and national companies connect their giving to the active valued at more involvement of their employees with specific nonprofit organizations.
than $1 million.
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Giving in St. Louis
Individual Giving (continued) ESTATE AND BEQUEST GIVING
Even without the estate tax, wealthy individuals can (and do) still choose to direct contributions from their estate to charitable organizations.
While charitable bequests represent a substantial amount of individual giving that takes place after one’s death, they factor as a relatively small part of the total giving picture. In 2010, charitable bequests totaled only about 8% of all contributions.12 In 2001, the estate tax exemption was $675,000. The exemption steadily increased through the 2000s and then was repealed for 2010. The effects on estate giving are yet to be determined. Yet some of the country’s wealthiest citizens, including Bill Gates and Warren Buffett, have made public their support for the estate tax. In addition, they have pledged to give “the majority of their wealth to philanthropy” through the campaign known as The Giving Pledge. Although precise figures are not readily available, major trends in bequest giving can be shown by examining data from federal estate tax returns. At the national level, “about 19.4% of all tax decedents who died in 2007 left bequests to qualifying charitable organizations.”12 Larger estates tended to bequeath a larger proportional share than smaller estates. In Missouri (as in the U.S., generally), the number of estates subject to tax declined between 2001 and 2007—from 2,179 for 2001 decedents to only 637 for 2007 decedents.13 The increasing exemption reduced the number of estates with this tax obligation.
71
%
decline of estates subject to tax between 2001 and 2007
Top: The St. Louis Community Credit Union Foundation offers the Janice Mosby scholarship to nontraditional adult students ages 23 and older. Mosby served on the St. Louis Community Credit Union Board of Directors for 40 years and was a founding member of the Foundation. To date, five $2,500 scholarships have been awarded. Below: Once a year, PNC closes its branches so employees can volunteer at early childhood education centers. During this PNC Grow Up Great Day of Caring, more than 160 PNC employees beautified the grounds surrounding Grace Hill Water Tower Hub Head Start, where 120 children attend.
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Individual Giving (continued) Community foundations, which fall under the category of public foundations, work to better the lives of those around them, in areas large and small. Individuals, families, businesses, and organizations join together to create permanent charitable funds to help their region. The oldest community foundation in the bistate area is the Greater St. Louis Community Foundation. Since 1915, it has helped coordinate the efforts of charitable organizations and guided St. Louisans on both sides of the Mississippi to become donors who can make a difference. Donor-advised funds (DAFs) are charitable giving accounts administered by a sponsoring organization, which can be a community foundation. Donors contribute tax-deductible assets to charitable giving accounts and advise the sponsoring charity on how best to use the assets. DAFs are experiencing significant growth nationwide. Estimated 2010 charitable contributions in the United States totaled $291 billion, of which donor-advised fund accounts received $7.7 billion—an increase of 25.5% compared with what DAF accounts received in 2009.14 Meanwhile, grantmaking from DAF accounts totaled more than $6.1 billion in 2010.
Table 5 | Community Foundations, 2010, Ranked by Assets
1
3
2 4
Foundation Est. Year 1 Greater Saint Louis Community Foundation 1915 2 YouthBridge Community Foundation* 1877 3 Highland Area Community Foundation, Inc. 1995 4 Greater Edwardsville Area Community Foundation 1997
Location
Total Assets
Total Giving
Saint Louis, MO
170,208,904
27,013,704
Saint Louis, MO
20,369,417
349,055
Highland, IL
1,787,965
114,722
Edwardsville, IL
1,776,421
549,907
*YouthBridge (founded in 1877 as the General Protestant Children’s Home) is in the process of forming as a community foundation. Source: The Foundation Center and 2010 Form 990s.
Through ARCHS, Stray Dog Theatre has been able to expand and grow from one afterschool program to four. ARCHS’ strong financial and evaluation expertise helps Stray Dog do what it does best—support children and their families.
COMMUNITY FOUNDATIONS IN THE ST. LOUIS REGION
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Other Giving Vehicles and Their Impact Giving in St. Louis extends to federated giving and the workplace:
More than $70 million was raised by the United Way of Greater St. Louis in the 2011 campaign.
United Way of Greater St. Louis – Perhaps related to the economic downturn, annual fundraising campaigns for the United Way of Greater St. Louis saw a slight decrease of about 2% from 2007 to 2009. Successful campaigns helped the United Way of Greater St. Louis rebound quickly from 2009 to 2011, however, as its fundraising The United Way | The United Way works to enhance the quality of the rose 6% to more than $70 million. By more than 170 agencies we partner with and the services they provide to 2011, both fundraising and grantmaking better help people in need. The St. Louis region is phenomenally generous in for the organization had surpassed supporting the United Way, as demonstrated in the fact that our local fund 2008 levels. drive is the fifth largest in the nation. Gary Dollar The United Way of Greater St. Louis President and CEO, United Way of Greater St. Louis is unique among large United Way affiliates across the U.S. Unlike most of the others, our region’s United Way continues to focus on supporting its more than 170 member agencies and helping those nonprofits maintain and improve their performance. In doing so, the United Way of Greater St. Louis has remained one of the most successful: It is the fifth-largest United Way in the country despite St. Louis being the 18th-largest U.S. metropolitan area.
Figure 7 | United Way of Greater St. Louis (in millions) $75 $70 $65 $60 $55 $50
2006 2007 2008 2009 2010 2011 Annual Fundraising Campaign Giving to Community
Source: United Way of Greater St. Louis.
Gary Dollar, president and CEO of United Way of Greater St. Louis, reads The Cat in the Hat by Dr. Seuss to children at Cole Elementary School, in partnership with Go! St. Louis’ Read, Right and Run Marathon.
Giving in St. Louis
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billion dollars given to the region by the Combined Federal Campaign since 1961
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Other Giving Vehicles and Their Impact (continued) Combined Federal Campaign – The St. Louis region employs an estimated 37,000 federal, military, and postal employees. The annual Gateway Combined Federal Campaign (CFC) raises workplace dollars from those employees across Eastern Missouri and Southern Illinois. Through its 2011 campaign, the CFC raised $3.04 million—close to, but slightly below, the total $3.2 million it raised at the onset of the 2008 recession. According to the Gateway CFC, more than $7 billion has been given to charities in the region since the CFC’s inception in 1961. Jewish Federation of St. Louis – The mission of the Jewish Federation of St. Louis is to mobilize the human and financial resources of the Jewish community to preserve and enhance Jewish life in St. Louis, Israel, and elsewhere around the world. The Federation raises money through its annual campaign and distributes a large portion of those dollars in the community. In 2010, the Federation distributed $5.3 million to St. Louis-area nonprofit organizations, with 51.4% going to social services. The Federation also manages 97 Donor Advised Philanthropic Funds, which made nearly $1.2 million in grants, locally and nationally. The Federation was not immune to the effects of the recession; 2011–2012 allocations fell by approximately 3%.
5.3
million dollars distributed by the Jewish Federation to St. Louis area nonprofit organizations in 2010
Arts and Education Council – As part of an ambitious plan launched in 2007 to increase fundraising, the Arts and Education Council of Greater St. Louis has steadily strengthened its donor base. Workplace giving for the arts provides more than onethird of the Council’s annual funding. In 2007, workplace giving amounted to an estimated $727,000 and increased to $867,000 by 2009. Lingering effects of the economic recession, however, may have contributed in 2010 to a decline in giving to $845,000. Catholic Charities Foundation – Catholic Charities Archdiocese of Saint Louis is one of the largest private providers of social services in the State of Missouri. Organized as a federation, Catholic Charities comprises eight agencies offering more than 100 programs to assist, on average, more than 150,000 impoverished people annually. The foundation raised $538,749 in its 2010 campaign.
Left: A sixth grader at Bermuda Elementary School creates and tests the strength of an electromagnet using copper wire, an iron nail and paper clips during Watts Up With Electricity, a STEM program presented by The Magic House. Students learned the fundamentals of electricity by building flashlights, constructing electromagnets, and testing conductors and insulators, thanks to a grant from the Express Scripts Foundation. Right: Missouri Foundation for Health has supported many programs that target communities with high rates of childhood asthma. This Family Night activity was held at St. Louis Children’s Hospital to instruct children and their families on proper ways to use inhalers and other asthma-related equipment.
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Looking Ahead What is it about humankind that makes us want to tell the future? From soothsayers in literature to the Magic 8 ball I had as a child, we seem unable to satisfy our curiosity. And in this economy, perhaps more than ever, there is good reason behind this longing for future telling. Most of my childhood questions posed to the Magic 8 ball were not global but rather more local: Would I pass geometry? Shake the ball and wait for an answer to float to the top: “It is decidedly so.” But since 2008, members of the nonprofit community—service providers and funders alike—have been desperate for answers, looking for anything that “is decidedly so.” Will we have the funds to get our work done? Shake, shake, shake. Will the market see gains this quarter, will federal and state dollars be sustained, and will we be able to expand our programs? Shake. With these sector-shifting questions, it seemed time to update our groundbreaking 2004 study Private Dollars for Public Good. It is always a little dangerous to peer into the crystal ball of philanthropy. In trying to anticipate the future of philanthropy, the Magic 8 ball is likely to read “concentrate and ask again.” Like all sectors, we would be remiss if we did not try to anticipate and, at times, encourage new ways of thinking and acting in order to meet the great and growing needs of our community. In addition to the data provided in this report, a few additional themes emerged:
Nonprofits and foundations must be proactive in approaching change rather than reactive.
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Federal and state dollars are declining.
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Communities have to work together differently.
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New ways of learning and leading will be required.
In general, these trends call for a reset of how grantmaking and service delivery are approached, relying both on capacity building and on the importance of cross-sector approaches. In order to respond to these changes, nonprofits and funders will need to ask themselves if they have the grit to embark on conversations that can lead them in new directions. Nonprofits alone cannot move the needle on social problems. Today’s solutions must also include individuals and systems that foster more permanent and sustainable change. The current term for these cross-sector partnerships, as coined by the Stanford Social Innovation Review, is “Collective Impact.” The focus over the past few years has been organizational capacity. Going forward, there will also be talk of community capacity. Having a few strong agencies and funders in a community will not be enough to effect real and permanent change. All agencies and funders must work collaboratively to reach across legislative boundaries, economic development concerns, educational systems, and societal norms. Many communities have already taken action to create collective impact opportunities that can help offset financial losses brought about by federal and state budget cuts. Here are a few: Performance Partnerships allow states and localities to pilot better ways of using federal resources by giving them additional flexibility in using discretionary funds across multiple federal programs in exchange for greater accountability for results. Two pilot areas in which flexibility may be particularly needed and appropriate are (1) improving outcomes for disconnected youth; and (2) revitalizing distressed neighborhoods.
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Philanthropic Equity, a creative model for helping successful nonprofits raise money, mimics the institution-building function of for-profit equity. Often this is accomplished through Social Impact Bonds (SIBs), an innovative new financial instrument offering a different way to fund and ultimately scale evidence-based programs that improve social outcomes and save public dollars. SIBs are intended to complement government funding, using private capital to invest in prevention and early intervention programs that eventually reduce the need for expensive, crisis-driven services.
Funders should explore ways to build strong organizations and networks through capacityand communitybuilding, in addition to supporting programs.
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Looking Ahead (continued)
Creative Cross-sector Advocacy helps nonprofits influence policy changes. Corporate funders are being asked to leverage their resources to ensure that important social programs remain intact. Many corporations already have a presence in legislative hallways, and nonprofits are working with them to help corporate dollars go even farther by addressing the systems that contribute to our biggest social problems.
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With small financial gains achieved in private foundation portfolios, and corporations moving to cause-related marketing, in-kind products and leadership, and giving tied to their corporate social responsibility—while government dollars remain stagnant or are being cut—nonprofits and funders must be proactive rather than reactive. Leadership, both nationally and here in the Greater St. Louis Metropolitan Region, will be about leveraging relationships, relying more heavily on technology and new media for reaching diverse and geographically dispersed stakeholders, and focusing on highly adaptive leadership. Specifically, funders should explore ways to build strong organizations and networks through capacity- and community-building in addition to supporting programs. Nonprofits should think about connecting to intermediary organizations to support their work around collective advocacy and communitywide change. Even if the Magic 8 ball reads “reply hazy, try again,” it is incumbent upon local nonprofit and philanthropic leaders to think generatively, act differently, and talk openly about the opportunities facing our region over the next few years if we want to achieve our missions and make the region a better place.
Mary McMurtrey, President Gateway Center for Giving
About the Gateway Center for Giving Founded in 1970 as the Metropolitan Association for Philanthropy (MAP), the Gateway Center for Giving (the Center) is an association of grantmakers serving the St. Louis region. Our members include corporations, donor-advised funds, foundations, trusts, and professional advisors actively involved in philanthropy. The Gateway Center for Giving is the St. Louis region’s leading resource for helping foundations and corporations become more strategic with their philanthropy to create a strong community. The Center embraces three ideals: collaboration, inclusiveness, and effectiveness. These ideals are translated into action by helping donors connect, learn, and act to have greater impact on the issues they care about and the nonprofits they fund. Gateway Center for Giving celebrating its 2011 Annual Meeting at The Magic House.
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| Giving in St. Louis
Methodology and Acknowledgments Many of the statistical data used to prepare Giving in St. Louis came from the Gateway Center for Giving and from the Foundation Center.* Other data sources include the United Way of Greater St. Louis, various foundations’ websites, and the IRS Tax Statistics portal. Data on St. Louis area grantmakers’ giving for 2011 are based on a survey of St. Louis area-grantmaking institutions conducted by the Gateway Center for Giving between February and April 2012. The Gateway Center for Giving received survey responses from 25 St. Louis area-foundations, charities, and corporate giving programs that represent an informal cross-section of St. Louis grantmaking entities. Gathering metropolitan-level data about charitable giving by individuals and foundations is difficult, as most data are reported at the state or national level. As a result, many of the findings reported here are based on national or state averages as well as empirical studies, often from prior years. In this report, we present the most recent data available, typically through 2010. The data we do have, though, allows us to draw important and reliable conclusions about the effects of the 2008 recession. When applicable, we note these references in tables, figures, and the Source Notes on page 17. Such tables and figures as Grantmaking by Total Giving on page 1 were compiled with data from the Foundation Center. To provide the most accurate representations and comparisons possible, the rankings were cross-checked with various Form 990s filed by the foundations included in the lists. Giving in St. Louis was developed by the St. Louis-based Gateway Center for Giving, whose president, Mary McMurtrey, and program and information manager, Lindsey Linzer, provided the concept and overall project leadership. Gateway Center for Giving also thanks members of its Board of Directors for their dedication to the promotion of philanthropy in the St. Louis region. Established in 1956, the Foundation Center is the leading source of information about philanthropy worldwide. This report owes much of its substance to data that originated with the Foundation Center. The data contained in Giving in St. Louis acquired context and meaning through the leadership of Nancy Kinney, Ph.D., Political Science & Public Policy Administration, Nonprofit Management & Leadership Program (NPML) at the University of Missouri– St. Louis. Working with Dr. Kinney, Todd Combs, graduate research assistant in political science at the University of Missouri–St. Louis, conducted the data analysis and developed the data presentation. Other students associated with NPML also assisted in data gathering. On the production front, Ed Mehler of Falk Harrison designed the layout and graphics, while Renée Hirshfield of RPH Communications, LLC, provided writing and related editorial support.
*All Foundation Center data in this report are presented in accordance with its copyright notice: Copyright © 1995–2012, The Foundation Center. All rights reserved. Permission to use, copy, and/or distribute this document in whole or in part for internal, noncommercial purposes without fee is hereby granted provided that this notice and appropriate credit to the Foundation Center is included in all copies. All references to data contained in this document must also credit the Foundation Center. No other reproduction, republishing, or dissemination in any manner or form is permitted without prior written consent from the Foundation Center. Requests for written consent should be submitted to the Foundation Center’s Research Department.
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Source Notes The Foundation Center. (2012). Aggregate financial information for foundations in the St Louis, MO, metropolitan area, circa 2010. Retrieved July 2, 2012, from the Foundation Center website: http:// www.foundationcenter.org/findfunders/statistics.
1
The Foundation Center. (2007–2008). Aggregate financial information for foundations in the St Louis, MO, metropolitan area, circa 2007; Aggregate financial information for foundations in the St Louis, MO, metropolitan area, circa 2008. Retrieved January 27, 2012, from the Foundation Center website: http://foundationcenter.org/findfunders/statistics/pdf/01_found_fin_data/2007/msa/stlmsa07.pdf; http://foundationcenter.org/findfunders/statistics/pdf/01_found_fin_data/2008/msa/stlmsa08.pdf.
2
Same as above.
3
The Center on Philanthropy at Indiana University. (2009). Understanding donors’ motivations for giving. Available at http://www.philanthropy.iupui.edu/research/docs/2009CCS_FinalReport.pdf.
4
Committee Encouraging Corporate Philanthropy (CECP). (2011). Profile of corporate giving in 2010. Giving in Numbers: 2011 Edition. Available at http://www.corporatephilanthropy.org/ download/pdfs/giving_in_numbers/GivinginNumbers2011.pdf.
5
Same as above.
6
Gateway Center for Giving. (2010). Gateway Center for Giving 2010 engagement survey results.
7
Giving USA Foundation. (2011). Giving USA 2011: The annual report on philanthropy for the year 2010.
8
Gittell, R., & Tebaldi, E. (2006). Charitable giving: Factors influencing giving in the U.S. states. Nonprofit and Voluntary Sector Quarterly, 35, 721–736.
9
Volunteering in America. (2008–2010). Volunteering in St. Louis, MO. Available at http://www. volunteeringinamerica.gov/MO/St.-Louis.
10
Roeger, Katie L.; Blackwood, Amy; & Pettijohn, Sarah L. (2011). The nonprofit sector in brief: Public charities, giving, and volunteering, 2011. The National Center for Charitable Statistics at the Urban Institute. Available at http://www.urban.org/url.cfm?ID=412434.
11
12
Giving USA Foundation. (2011).
13
Internal Revenue Service (IRS), Statistics of Income (SOI) Division. (October 2007).
14
National Philanthropic Trust (NPT). 2011 Donor-advised fund report. (2011).
Photos back cover: Left: Missouri Foundation for Health supported the “Become an Ex” campaign, a nationwide effort of the National Alliance for Tobacco Cessation to help people quit smoking. In addition to using television and radio commercials, billboards, and social media, the project provided a traveling coffee van that operated in metropolitan areas, including this one in St. Louis. The van offered free coffee, along with helpful tips to help break the habit of “coffee and a smoke.”
Center: United Way of Greater St. Louis offers Dolly Parton’s Imagination Library initiative within areas of the community to ensure children are ready for school by the age of six through quality early-learning programs.
Right: Express Scripts employees, as part of a United Way GenNext service project, spruced up the gardens and landscaping at University City Children’s Center. Employees organize monthly GenNext service projects at United Way member agencies in St. Louis.
1141 S. 7th Street, St. Louis, MO 63104 O: 314.621.6220 F: 314.621.6224 www.centerforgiving.org
Funding for this report was made possible through the generous support of Emerson and Wells Fargo Advisors.
