Where $400 Billion goes

Where $400 Billion goes

In the most recent Giving USA report, charitable giving to foundations saw the largest growth in among all types of recipient organizations, increasing 15.5 percent.  While the increase in absolute dollar amounts is substantial, more impressive is the relative giving among organizations like religious organizations, international aid organizations, health organizations, human service organizations AND foundations.

To what can one attribute the uptick at foundations?  Yes, there were some large gifts from tech entrepreneurs, but what made their decision to give to intermediaries the right one?  Donations to foundations are ultimately on their way to all the other organizational categories...donors are simply putting off the final decisions on where the money goes.

While national-level pundits are not saying much about this yet it is likely that the complexity of the issues we face, the inability or unwillingness of small nonprofits to rapidly scale up, and the increasing awareness that multiple small organizations addressing the same issue are better than attempts by one massive organization, have all contributed to this trend.  Foundations serve as connectors, conveners, and puzzle-solvers...at least that is the aim of The GoodCoin Foundation.

Giving it all away, now.

Giving it all away, now.

Chuck Feeney, the Irish billionaire who gave it all away has a simple message (as reported by Conor O'Clery in The Irish Times):  

Foundations usually dole out 5 per cent annually to maintain perpetuity. Chuck wanted to do big things, especially with bricks and mortar.

“If I have $10 in my pocket and I do something with it today, it’s already producing 10 dollars’ worth of good,” he explained to me one day in his New York office, wearing a cardigan with a hole in the sleeve. “Giving 5 per cent doesn’t do so much good.”

We say that the inverted Foundation business model of NOT building a huge endowment but rather pushing as much money out as operational costs will allow is better.  Lacking billions of dollars to start with we decided to ask for some help from people like you.

We are happy to report that the first $2.5 million has come in and is on it way out.  Thank you to the thousands of people who have made this possible with their micro-bursts of generosity.

Reimagine Charitable Giving

Reimagine Charitable Giving

Millions of people engage with their banking and financial institutions over the internet.  What if within that trusted environment giving to charities was just as trustworthy and easy?  

The 72 million cardholders serviced through the 4,600 banking partners of FIS are about to find out.

The GoodCoin Foundation's President George Stevens announced today that a new partnership with FIS will create greater awareness of GoodCoins and the power of repeated gifts, deeper engagement of local banks with their local charities, more opportunities for matching gifts from banks to the causes their customers really care about, and ultimately more funding for the nonprofit sector. 

Bob Legters, Chief Product Officer of the FIS Payments Division, summed it up succinctly as: “A digital giving strategy that positions the bank at the center of this virtuous relationship is key for all parties...That means more money going towards good causes....[it] also means consumers don’t have to search for the websites of their preferred charities, and payments to multiple causes can be made from their familiar banking site or smartphone with just one click.

Here is how it works.

 

 

Hurricane Relief

President and CEO George Stevens announced today an anonymous corporate donor contributed $460,000 to the GoodCoin Foundation of which $61,000 was immediately distributed to Hurricane Harvey relief efforts in Texas.  The remainder will be distributed in the next few weeks to over 100 small-scale local nonprofit organizations in parts of Texas, Florida, and Georgia affected by hurricanes Harvey and Irma.  In a series of Facebook posts Stevens explained that in times of widespread disaster-related disruptions smaller nonprofit organizations suffer disproportionately as donors shift their giving toward larger disaster relief organizations. Thus a hurricane hits smaller charities twice; once literally when the storm arrives, damaging infrastructure and shutting down services, and then again, figuratively when their recovery efforts are hampered by reduced contribution revenues.

This donation and the charity recipients are consistent with the GoodCoin Foundation Board's interest in encouraging the next generation of philanthropists by linking purchases to a customer's sense of purpose.  The nonprofit organizations receiving GoodCoin Foundation grants are selected based on the suggestions of the anonymous corporate donor's customers, employees, and guests in 45 of their retail outlets in the affected areas.

Hyper-local giving is hyper-attractive and hyper-meaningful.

GoodCoin Foundation President and CEO George Stevens confirmed today that engagement rates for giving promotions via GoodCoins exceed by a factor of 10 the typical response rates for paper coupons. Redemption rates of GoodCoins in Western Australia averaged 25% compared to typical coupon redemption rates of less than 3%, confirming reports compiled by Access. In Ireland, UK rates were twice as high.  "What really pushes engagement is allowing the user to select their own cause to support." Stevens said.  As evidence, he pointed to the "long-tail" of charitable giving in GoodCoin campaigns where many charities receive only one or two donations.  "Behind each of those single gifts is one very satisfied person," Stevens said, "Those one-off gifts come from people who know the businesses giving GoodCoins really listened to them...because the company did."  Perhaps more surprising was that the charities receiving the greatest number of gifts were not the usual well-funded and well-marketed organizations.  Rather, they were local, often quirky charities that had a distinctive appeal (a blood delivery service that uses volunteer motorcyclists for midnight runs, a service that walks the dogs of the elderly, etc.).

The GoodCoin Foundation Gives

George Stevens, President and CEO of The GoodCoin Foundation announced today that the Foundation is launching a new campaign in Western Australia involving 100 charities funded by Community Pod an innovative Australian coffee purveyor.  Linking the sales of coffee to the charitable interests of customers is a central piece of Community Pod's business model.

Up to 14% of every coffee pod and bag of beans sold will be automatically redirected to a charity or not-for-profit of the buyer’s choosing. This equates to 10 cents from every pod or $3 from each bag of beans. Considering Australians drink 3 million pod capsules each day, and the global pod market is estimated to be worth in excess of $10 billion a year, this is a great opportunity to increase the pool of funds available to Australian causes.

Community Pod is fortunate to have one of Australia’s most trusted philanthropists, Dr. Ros Worthington, as a team member. A tireless campaigner for charitable missions, she has been awarded the Order of Australia medal, among other accolades. She has created ‘Ros’ Hub’, her selection of deserving, in-need or little-known charities and NFPs that coffee buyers may also choose from.