Jilian Mincer highlights the trend of givers transferring their private foundations to donor-advised funds in a recent Wall Street Journal article.

In the article, Mincer highlights the fact that moving one’s foundation assets into a fund causes substantial tax savings (meaning more to give), cost benefits, additional privacy, and higher levels of flexibility. Donors can be more focused on where and how they give charitably, rather than spending time on administrative duties.

Ms. Mincer also highlights the potential drawbacks why some might not like the idea of abandoning the private foundation model – primarily lack of independence and total control. She cites, for example, the legal requirement that all grants from funds be directly made to charitably exempt organizations, as opposed to individuals and groups that aren’t officially recognized as such by the IRS. This is an accurate point. At Servant, however, we’ve partnered with benevolence ministries such as Helping Hands Ministries to channel tax-deductible gifts to qualified individuals. We’ve also seen that givers prefer the freedom from the administrative details of the private foundation. In the example cited in the article, a donor that had typically spent several weeks each year on foundation maintenance was able to reduce that by 75%. And all of that time can be focused on the actual giving of grants.

You can read the entire article here.

Shelley Banjo at the Wall Street Journal wrote Sunday that though giving has been down significantly in 2009, givers have four strategies that the WSJ has found to be effective:

1. Donating portions of required IRA distributions (for donors age 70 1/2 and older)
2. Giving Stocks and Bonds
3. Dip into a Donor-Advised Fund
4. Make charitable loans

You can read the entire article here.

At its most basic, generosity is the overflow of a heart filled with God’s spirit. But how do we tell the difference between generosity and the other fruits of the Spirit? As Jesus pointed out in the parable of the widow’s mite, it’s not a matter of quantity, but of the state of the giver’s heart. Generosity is joyful giving, but that doesn’t mean it comes easily or without pain.

Maybe generosity is not a point on the map, where we’ll arrive one day after much straining. Instead, maybe generosity is more like a journey, marked by ever increasing giving of our money, our time, our talents, ourselves. Generosity is what happens when we let go of our idols and take hold of the life God intends for us.

Aimee Minnich

We are pleased to announce a new feature for fundholders to receive electronic notifications when new contributions are posted. Instead of receiving hardcopy receipts, donors who have an active email address on file with us will be sent an alert when contribution receipts are available online. An email will be sent as soon as the contribution has been posted to the fund, giving our donors faster access to their documents. This new service will take effect November 11. If you would prefer to continue to receive your contribution receipts through US Mail, please contact Jonathan at jharrison@servantchristian.com.

This change will not affect givers who already receive their statements in the US Mail, and friends or supporters who give to another’s fund will continue to receive paper receipts.

Upgrades such as these help the foundation wisely allocate limited resources. In 2008 alone, 4,060 receipts were mailed (approximately 78 per week). These upgrades also allow donors faster access to their documents in a securer format.

What would it look like if we chose to unleash our faith?

Join us for the 2009 Passion Awards, one of the largest Christian ministry awards celebrations in the country!

Monday, November 9, 2009
6:00 p.m. to 9:00 p.m.
Pre-event and Registration begins at 5:30 p.m.
Overland Park Convention Center
6000 College Boulevard
Overland Park, Kansas

Early Bird Special
Register by October 15th for $650/table of 10 or $65/individual.
$750/table of 10 or $75/individual after October 15th.

A article posted in the latest Chronicle of Philanthropy identifies Servant’s national affiliate, The National Christian Foundation out of Atlanta, GA, as the fourth largest provider of donor-advised funds (DAFs) in the nation. Each of the three programs larger than NCF are commercial funds associated with national investment firms.

The article highlights the fact that most DAF programs have been significantly impacted by the economic downturn, similarly to other charitable investments and endowments. Though NCF’s assets were down from previous years, a primary reason for this is the greater amount of grants going to ministries in greater need than most years. Many generous Christians have responded to the urgencies of the day by increasing their giving.

At Servant, we’ve seen giving increase YTD over 2008 by 17%. We’re excited to facilitate all giving, and have worked with givers to find creative ways to give a greater amount in 2009, even if extra cash isn’t available.

As I’ve thought more about how non-profits (and businesses in general) think of facebook, it’s struck me how many believe it’s the silver bullet that will bring in massive donation amounts or revolutionize their firm’s marketing. This just isn’t going to work. Success stories definitely flame the fire – where an agency is able to raise thousands of dollars through a tight campaign – but this is uncommon and usually has other factors. These factors should be studied and emulated. However, most people on facebook are primarily there for personal use, and this should affect how non profits use it.

I was speaking with a business consultant friend today who told me how he explains fb for his clients (who are not usually fb’s regular users): Facebook should be used in the same way that you build rapport if you were sitting in a client’s office. You ask about the kids framed on the desk, chat about the game coming up this weekend. These things make you seem human and personable. Since fb is inherently your audience’s personal space, you should use it to show that you too have a personality beyond work and your cause. If you don’t want any friends, then just post informational articles and promotional blurbs. Most people will breeze right past them. Instead, blend in pictures of your office having fun accomplish your mission. Be honest about how you feel about your day.

By showing your network of friends your personal side, you’ll still be keeping your mission in front of them but they’ll be paying attention.

We’ve been having a discussion in the office about whether or not SCCF needs a presence on Facebook. The concesus: yes, but how? I believe having an ineffectual or inactive social media presence may be more detrimental than not having one at all. As an active Facebook user, I’ve had good and bad experiences with nonprofits and social media.

With that in mind, I’m reading Beth’s Blog: How Nonprofits Can Use Social Media and gaining a few insights. They have quite a few examples, although the layout not the best. Still wrestling with how to apply it to our foundation – if you have a nonprofit, how are you using Facebook? If your a user, how would you like your nonprofits to connect with you?

One of the recent trends in giving is the rise of “Giving Circles” —individuals who come together to pool their assets to make a difference with their giving.

Setting up a Giving Circle is easy, and you may be surprised how meaningful it is to give among friends. Here are six basic steps to help you get started:

Step 1 – Set Goals and Structure
Identify a group of your peers, colleagues, or family members who may share a common interest and invite them to get together. Your first meetings will focus on setting up the Circle’s structure such as giving guidelines, meeting schedule, and deciding a name.

It is up to your group to determine the contribution amount that each member should make. There are circles that require $500, $5,000, or more in annual commitments. It is important for the group to have complete consensus on the final amount.

Step 2 – Establish Your Mission

Your group needs to decide which charities you would like to focus on. You may also wish to simply designate a general category, such as evangelism, inner city, youth, or poor and needy.

Step 3 – Open a Giving Fund
Your group can open a Fund at SCCF by making a suggested tax-deductable contribution of $2,500 or more.

Step 4 – Create Work Groups
Once your focus is established, having members volunteer for particular tasks will build personal commitment in your Circle. For example, one work group could organize meetings and Circle events, another could manage the Fund online (recommend grants, review Fund balances, etc.), while another might research new giving opportunities.

Step 5 – Develop Partnerships

Determine how you want to be involved with the organizations that you fund. Will you also volunteer for
an organization that you have funded? Web development, program planning, and mentoring are some examples of ways your members might get involved.

Step 6 – Evaluate Your Impact
Take time to examine your short-term and long-term goals on a regular basis. This will help develop a sense of satisfaction and show how your contributions are making a difference.

Candid feedback from the organizations you have funded and partnered with will always be an important ingredient of this process.
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Original article by Pam Pugh, Copyright © 2008, The National Christian Foundation

Community foundations increased their giving in 2008, bucking the belt tightening that swept nearly all quarters of the philanthropic world, according to a new report by the Foundation Center.

More than 700 community foundations gave $4.6-billion last year, a 2.7 percent increase when adjusted for inflation. The increase outpaced the rate of growth reported by independent and corporate foundations and, for the first time on record, community foundations gave more money than corporate grant makers, the report said.

But with the country mired in the worst economic crisis since the 1930s, community foundations probably will not be able to maintain their level of generosity this year, according to the study. Nearly three-quarters of foundations surveyed said they anticipated giving less in 2009.

Still, community foundations are better positioned than some grant makers. A flurry of new donors and bequests, as well as strong increases in their asset values, have buoyed community foundations in recent years, according to the report.

What’s more, the sour economy may cause some philanthropists to scrap plans to set up separate, endowed institutions, which are expensive to operate, and instead create donor-advised funds with community foundations, the report said.

10% of Foundation Grants

The grant-making clout of community foundations exceeds their number, the study found. Community foundations accounted for 1 percent of the total number of grant makers in 2007, according to the report, but their giving made up 10 percent of all foundation grant dollars.

Like other types of foundations, they were more likely to support groups that help children and poor people than charities working in other fields.

Community foundations were more inclined, meanwhile, to provide general support than were other types of grant makers, the report said.

From The Chronicle of Philanthropy.  By Caroline Preston.  A free copy of the report can be downloaded from the Foundation Center’s Web site