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Inside this Issue

Nonprofit Hospitals Strive to Keep Giving Levels Steady During the Recession:
Charitable Pledges Down and the Expense of Raising Donations on the Rise

Kathy Renzetti, Association for Healthcare Philanthropy, (703) 538-3143, (571) 216-0146 cell, or  

<<Doctors, Hospital Employees Take Up Some Slack by Donating More Money>>
With charitable pledges—especially in the Western United States—declining due to the deepening recession, fundraisers were forced to spend significantly more money in fiscal year 2009 than in past years to secure gifts and grants for nonprofit hospitals and health care systems in the United States and Canada, according to benchmarking data released today by the Association for Healthcare Philanthropy (AHP).
“The recession’s impact and duration were felt more strongly in the U.S. than in Canada, where health care philanthropy tended to advance slightly or at least hold its own despite lower levels of government support,” said William C. McGinly, Ph.D., president and chief executive officer of AHP. “U.S. nonprofit hospitals, however, often struggled just to keep giving levels steady, and some saw declines.”
McGinly added, “The constant message that shines through the data is that organizations that best survived last year’s worsening economy were those who persevered by keeping sufficient staff and resources to maintain well-rounded philanthropic opportunities and programs.”
AHP gathered detailed data from 66 institutions across the U.S. and Canada, including community hospitals, academic/teaching, tertiary and specialty hospitals, and health care systems. On average, the recession hurt charitable giving to health care institutions most severely in the Western region of the U.S. Sample wide, median Return on Investment (ROI)—a measure of fundraising effectiveness—fell 23 percent in 2009 from $4.63 to $3.57. For cash donations alone, median ROI fell 17 percent to $3.26.

On the brighter side last year, physicians and other hospital employees of the organizations reporting data in this study donated more money and did so more frequently. Gift amounts from physicians and physician groups averaged $5,000, up $3,000 from 2008, illustrating great strides in foundations’ efforts toward building the internal culture of philanthropy.

To learn more about the benchmarking study please contact AHP at 703.538.3143.

Kohl's Cares®--Salient Lessons from the Mount Ellis Academy Fundraising Win!
Traci Lemon, writer, eDollar

Congratulations, once again, to Mount Ellis Academy (MEA) for their hard and smart work invested in the Kohl's Cares for Kids® Campaign, earning them one half million dollars for their boarding academy's antiquated and endangered sewage system!

Accounting for every detail, every act of benevolence on the part of students, staff, alumni, friends, and even strangers to support MEA by voting would be impossible, so we're providing some salient points about their campaign to show just some of what it takes to wage and win a successful fundraising campaign.

The short version of what happened: Kohl’s Cares®, LLC, a subsidiary of Kohl’s Department Stores, announced a summer Kohl’s Cares for Kids® Campaign, offering $500,000 to the top 20 schools who secured the highest number of votes from their constituent fans in an eight-week timeframe. Rules were posted online, which included a requirement for participating schools to submit a proposal for how they would spend the $500,000. Then they followed the guidelines to ensure honest and fair participation.
  • CLICK HERE to Download the Shortened Version of Events
  • CLICK HERE to Download the Detailed Version of Events (An Incredible Read)

The Best Career in Philanthropy--Fundraiser!
Traci Lemon, writer, eDollar

<<For the past two years, U.S. News and World Report gave an “A” to fundraisers as a top career choice in its “Best Careers” features.>>

Fundraising made the top grade as a best career in 2008 and 2009 after a search through hundreds of jobs “with the best outlook in this recessionary economy (and beyond), the highest rates of job satisfaction, the least difficult training necessary, the most prestige [based on a survey of college-educated adults], and the highest pay,” according to the authors, U.S. News and World Report staff.

A popular profession, fundraising seems to contain one caveat, according to U.S. News and World Report as quoted in Advancing Philanthropy, July-August 2009: “Whether it’s for a political party or the Little League, many people like the idea of being a fundraiser, except for one thing: 'I could never ask for money.' The fact is, only a small percentage of a development (fundraising) professional’s time is spent on 'the ask.' ...  In fact, the [ask] is often easy if you’ve built a relationship with the donor and made the donor’s involvement in the organization pleasant. Most of a development professional’s time is spent recruiting, training, and motivating volunteers; developing a database of donors; conducting research on wealthy prospects to maximize the size of their donations; friend-raising; writing grant proposals; overseeing email and phone campaigns; and/or running fundraising events, like a splashy gala. The best development professionals naturally inspire trust. ...

“Another good job in the nonprofit sector is that of prospect researcher. ‘One of nonprofits’ hidden heroes is the prospect researcher. They mainly use computers to identify target donors—for example, wealthy people who have donated to similar causes,’ the [U.S. News] article continued.  ‘A prospect researcher will also dig up more detailed information about a potential major donor to help the solicitor maximize the donation: for example, the prospect’s hobbies, pet peeves, past donations, and emotional hot buttons. If you’d like to direct your detective and information-junkie proclivities to nonprofit ends, prospect research might be on target for you.’”

For 2010, a different set of criteria was used to determine the “Best Careers,” and fundraiser didn’t make the grade. This year’s list was based on the U.S. Labor Department's brand-new job growth projections for 2008 to 2018, in occupations that will add jobs at an above-average rate over the next decade or so and those that provide an above-average median income.

Grant Opportunities for Board Training Through DEG
Kristin Priest, CFRE, associate director, PSI,

<<Are you considering or would you like to plan for board training in 2011? Is the lack of funding preventing you from scheduling it?>>

Here are two examples of how the Design for Effective Governance gave a helpful boost to Union College (Nebraska) and Memorial Hospital/Foundation (Kentucky).

“As a result of this program and the board retreat it funded, our board revised its annual giving goal from $100,000 to $350,000—a goal not just met but surpassed. In addition, the board increased the number of donors visited to 240. Board members credit much of the success to the board training, which included role-playing, understanding the role the volunteer plays, goal-setting, and how to make the ask.

“Thank you, PSI. Not only did Union College benefit from the dynamic retreat, there is now a momentum for a Trustee Manual, something which has been needed for a long time. The retreat served as an opportunity to change what the board saw as its role at Union College. Following the retreat, the board sees its role as one of visioning and strategic planning, fundraising, and board development versus short-term and reactive.”
~LuAnn Davis, vice president for advancement, Union College
“This past summer, our hospital CEO Dennis Meyers organized a retreat which included the hospital’s governing and foundation boards. We saw this as a great opportunity to advance the work already underway to strengthen the foundation board. In looking for a potential speaker/facilitator for the group, AHS colleague Mack Rucker and our foundation director Eric Lunde pointed toward PSI. Dr. Wagner informed us that we might be eligible to receive grant funds to underwrite the fees for our speaker. In rather short order, we were online applying for and were informed that we had received funding.

Registration Opens for PSI's 13th Conference on Philanthropy and Leadership Symposium
Kristin Priest, CFRE, associate director, PSI,

<<Do you have funds left in your 2010 budget?  Early bird rates are available now through February 1 for the 2011 conference.>>

Plans are already underway for the 13th Conference on Philanthropy and Leadership Symposium to be held in Indianapolis, Indiana, June 22–24, 2011. The planning committee, under the leadership of committee chair Jackie Phillips, has begun finalizing speakers, bringing back a few favorites and introducing other new, emerging thought leaders for the very first time. In addition to the much requested sessions on capital campaigns, major gifts, annual fund, and leadership issues, new tracks featuring just completed research and emerging trends will be introduced, as well as sessions on successfully utilizing social media and the Internet, and many others.

In recognition of the current economy and in an effort to make the PSI conference accessible to as many people as possible, PSI has elected to not increase the 2011 registration fee, holding at the 2008 rate of $595. Registration fees cover full conference registration, opening reception, one awards banquet ticket, refreshment breaks, and all printed materials.

In addition to the conference, two pre-conference workshops are offered June 21 for an additional fee:
  • The Newcomers’ Workshop will again be presented by senior professionals Dr. Karen Johnson, CFRE, president of the Rocky Mountain Adventist Healthcare Foundation and LuAnn Davis, CFRE, vice president for advancement at Union College. Any attendee with less than three years’ experience in fundraising is strongly encouraged to attend this highly rated workshop. Individuals attending this all-day workshop will leave with a clear understanding of basic fundraising terminology, the components of a complete development program, and an extensive reference book. The workshop is available for an additional $105.
  • PSI is also offering The Fund Raising School’s “Online Fundraising and Social Media” course. This one-day course will address the question of how to use e-mail, online tools, and social networking sites effectively as part of your friend-raising and fundraising strategy. The course will review the array of tools available for connecting with your donors online.  It will take a look at what each tool will and will not do and will give practical advice for creating a solid e-strategy to build relationships and donations for your organization. PSI is underwriting this course to discount its course fee to $250 (about half the course fee charged by The Fund Raising School). Early registration is encouraged as space is limited to the first 40 attendees.

The conference will be held at the yet-to-be-completed JW Marriott in Indianapolis. This 34-story hotel will be the largest JW Marriott in the country and the tallest hotel in Indianapolis. The hotel is ideally situated downtown, within walking distance of 250 restaurants (several on-site), dozens of museums and points of interest, connected by the Marriott Sky Bridge to the Circle Center Mall. All PSI conference attendees will receive the special room rate of $129 per night. Hotel registration is open to reserve your room.

Check the PSI Web site often for the latest on conference speakers, events, and registration information. To let us know what you’d like to see at future PSI conferences or to learn how you can become involved, contact Kristin Priest at


NAD President's Colloquium Focuses on Adventist Giving Trends and Fundraising Strategies
Dr. Lilya Wagner, CFRE, director, PSI,

The 2010 North American Division (NAD) President’s Colloquium, held at the close of the NAD Year-end Meeting November 8–9, focused on the giving patterns and trends in the Adventist Church and correlating fundraising strategies to meet future challenges. The Colloquium theme, The Future Isn’t What It Used to Be: The Church and Funding—Illusion or Reality? was the topic of several sessions to address how changing attitudes and therefore practices affect not just our churches and members but other Adventist organizations. Major questions addressed were, “What is the sustainable future of Adventist organizations? Is sustainability attainable or an illusion under current circumstances and practices?”

The Colloquium, which was attended by approximately 75 Adventist NAD leaders, opened with a panel that considered the topic of Giving—Today’s Scene and Tomorrow’s Expectation: Realities of Generosity in the Church and Its Organizations. Dr. Hal Thomsen, former board chair of PSI, served as moderator. Members of the panel represented various Adventist membership segments:

     Robert Wallace, president and CEO of BITHgroup Technologies, Inc.
     Pastor Gerald Mobley of the High Point Church in the Carolina Conference
     Sandra Loughlin, University of Maryland doctoral candidate, representing youth in the Church
     Pastor Franklin David of the Southern Asian Church in the Potomac Conference
     Pastor Carmelo Mercado, general vice president of the Lake Union Conference
     Elaine Hagele, vice president for finance of the Mid-America Union Conference
     Mike Cauley, president of the Florida Conference

Under the direction of Dr. Thomsen, the panel addressed issues such as Adventist attitudes toward offerings versus philanthropic giving, changing perspectives of obligation versus voluntary giving, and patterns of giving that are affecting Church organizations and especially local churches.

A Fond Farewell

PSI thanks Dr. Hal Thomsen for his extraordinary service as PSI's direct report and board chair. We are grateful for his guidance, his insights, his wisdom, and his continuing friendship. We wish him well in his new responsibilities at Adventist Risk Management.

From Our Members

<<Los Angeles Foundation Leader Will Chair Association for Healthcare Philanthropy>>
Kathy Renzetti, CAE, vice president, Association for Healthcare Philanthropy,

Mary Anne Chern, FAHP, ACFRE, president of White Memorial Medical Center Charitable Foundation in Los Angeles, will serve as chair of the board of directors of the Association for Healthcare Philanthropy (AHP) for 2010–2011. AHP represents directors of philanthropic programs for not-for-profit hospitals, clinics, health care systems and related facilities throughout North America (

“As nonprofit hospitals and health care systems face an uncertain economy and the challenges of health care reform, Mary Anne Chern’s leadership, knowledge, and experience will be welcomed and valued assets for our profession,” said William C. McGinly, Ph.D., president and chief executive officer of AHP.

White Memorial Medical Center, a part of Adventist Health, is a 353-bed not-for-profit, teaching hospital serving communities in and near downtown Los Angeles. For the past 13 years, Ms. Chern has been president of the medical center’s charitable foundation, whose $31 million capital campaign achieved national recognition. A frequent speaker on charitable giving and author of a book and numerous articles on fundraising, she won AHP’s prestigious Professional Paper Competition in 2008.
Ms. Chern has been a member of the Association for Healthcare Philanthropy for more than 25 years and holds certifications as a Fellow of AHP (FAHP) and as an Advanced Certified Fundraising Executive (ACFRE) of the Association of Fundraising Professionals. She served on the AHP board of directors as chair-elect during the past year and also held office as vice chair for membership and communications, as Pacific regional director and as chair of the association’s certification board.

Ms. Chern also has been on the boards of Certified Fund Raising Executives (CFRE) International and the Milton Murray Foundation for Philanthropy. She is a recipient of the Philanthropic Service for Institutions' Trailblazer in Adventist Philanthropy Award and was recognized with the Los Angeles AFP Award for Excellence in Fundraising and Professional Fund Raiser of the Year.

The Association for Healthcare Philanthropy, established in 1967, is a not-for-profit organization whose more than 4,700 members direct philanthropic programs in 2,000 of North America’s nonprofit health care providers.
Hospitals, health care systems and related facilities for which AHP members raise charitable funds provide essential, comprehensive medical services to their communities, as well as wellness programs, mobile health vans, mammography screenings, hearing and eye exams, and other community-based health care services. AHP members include fundraising professionals, development staff, public relations professionals, trustees, marketing specialists, administrators, and executives interested in health care fundraising. To learn more, visit
PSI wishes you the very best in your new additional role, Mary Anne!

<<Southwestern receives $200,000 grant>>
Glen Robinson, writer, The Southwesterner magazine

Southwestern Adventist University has been awarded a $200,000 grant to be used to create an Entrepreneurship and Small Business Resource Center. The University received official notice of the award on October 1 from the United States Small Business Administration, the organization making the grant.

Congressman Chet Edwards (D-Tex) was instrumental in working with Southwestern to obtain the grant in conjunction with the 2010 Congressional Earmark Program. According to Gary Temple, vice president for university advancement, the University has completed the two lengthy stages of obtaining the grant: first, in being included in the earmark program; and second, in actually applying for the grant. Funds from the grant are part of a five-year program.

“This is a great example of government doing something that will make a big difference in higher education,” says Temple. “The Center will be instrumental in joining higher education and small business in Johnson County.”

The Entrepreneur and Small Business Resource Center has three objectives: (1) to enhance library research materials to support courses for small businesses; (2) to refurbish existing space to accommodate the new Center; (3) to strengthen the University’s academic and outreach programs that support local small businesses.

The Center will be located in Pechero Hall on the University campus. It will include multiple databases, including ABI Inform, Factiva, Financial Datastream, Foundation Directory, Hoover’s Online, IMF Statistics. In addition, it will include an interactive white board and computers for instruction, as well as videoconferencing capabilities for public performance and group work with remote partners. Additional printed material will be available for small businesses through the Chan Shun Centennial Library at the University.

“I’m excited to see how this Center will reach out to the community,” says Temple. “I hope that Johnson County will continue to see the University as a resource in business.”

The Center is anticipated to be ready for use by early March, 2011.

<< A New CFRE Joins the Ranks >>

PSI has received the list of philanthropy professionals that have taken and passed the Certified Fund Raising Executive exam in the last quarter. Congratulations to Rebecca Becker, donor relations manager at Florida Hospital Foundation, for achieving her CFRE status. When staff from a PSI member organization takes the CFRE exam, PSI will reimburse half of the exam fee paid by the individual.

Research conducted by the Association of Fund Raising Professionals (AFP) revealed some very good news about income for those who already hold the CFRE baseline credential. CFREs, it seems, are among the best-paid professionals in the fundraising field with a considerably higher mean salary than non-CFREs. CFREs in the United States earn 36% more than non-CFREs. In Canada, the differential is even wider. Canadian CFREs earn 42% more than their non-credentialed colleagues.

For more information on personal reimbursement of exam fees CLICK HERE to contact Chris Bearce or call (301) 680-6133.

To learn more about certification
CLICK HERE to visit the CFRE International Web site.

<< North Carolina Conference Training>>

A group of lay members as well as some of the church leadership met for two days at Nosoca Pines in South Carolina to learn about fundraising for their causes, which included ACS activities. The group of approximately forty individuals, mostly interested and involved church members, learned about the fundamentals of fundraising and, in particular, focused on proposal writing. This visionary and active group is planning to meet in another year to discuss what each has accomplished and to receive more advanced training.

Interested in fundraising training delivered locally for your conference? CLICK HERE to email Lilya Wagner, director, PSI.

<< New additions to PSI Web Site>>

We are excited about the two new sections added to our Web site. One is for fundraisers in Canada and another is in the Spanish language. On the site for our Canadian colleagues we will list resources, research information on giving, conferences, and other items as they come to our attention; and we also invite you to send us items that will be of value to fundraisers in Canada. Spanish-speaking fundraisers will find news, research information, and downloadable documents helpful in their fundraising efforts. You will find both sections under the Resources tab on our Web site. 

CLICK HERE to Visit PSI's Web Site

Read Any Good Books Lately?

Socialnomics:  How Social Media Transforms the Way We Live and Do Business
by Erik Qualman

Publisher: John Wiley & Sons, Inc.

Social media platforms such as Facebook, YouTube, and Twitter are fundamentally changing the way businesses and consumers communicate, interact, and conduct business with each other, connecting hundreds of millions of people to one another instantly. This is a massive socio-economic shift. Welcome to the world of Socialnomics—where consumers and the societies they create online have a profound influence on our economy and the businesses that operate within it. Online word of mouth and the powerful influence of peer groups have already made many traditional marketing strategies obsolete. Today’s best businesses and marketers are learning to profitably navigate this new landscape. Brands can now be strengthened or destroyed by the use of social media. Advertising is less effective at influencing consumers than are the opinions of their peers, making direct-to-consumer marketing messages less valuable each day. But savvy companies are using online networking sites as massive focus groups and as an efficient means of communication with consumers. If social media isn’t a part of your business strategy, you’ve already fallen behind the curve—and your competition. Erik Qualman offers a fascinating look at the impact of social media on business to reveal what the future holds and how businesses can best take advantage of it. He explores how social media is changing the way businesses produce, market, and sell products; how it eliminates inefficient marketing tactics and middlemen; and how businesses are connecting directly with their customers through popular social media platforms. Socialnomics is an essential resource for anyone who wants to understand the implications of social media, and how to tap its power to increase sales, cut marketing costs, and communicate directly with consumers.
Book description from John Wiley & Sons, Inc.

This book is available for check-out through PSI's Library. CLICK HERE to contact Maria in our Resource Center. Also, it is available for purchase from

More Training Opportunities

Check out these lists of available courses and remember that PSI has a scholarship program to help our members continue their professional development—even if your organization has cut your training budget.

<<What's New in 2011 at The Fund Raising School?>>
<<The Foundation Center has published its Grantseeker Training calendar>>

<<Hispanic Training Initiatives Offered by PSI>>

Several groups of Hispanic pastors and some lay persons have recently received training in Spanish from PSI on fundraising fundamentals as well as special topics, particularly those of interest to the Hispanic communities and churches. PSI is particularly pleased to extend its services to a wide variety of specialized groups, and would be pleased to hear from other conferences that may be interested. PSI is capable of providing customized training, in addition to conventional delivery of fundraising best practices. Please contact and she will direct you to the appropriate person with whom you can share your ideas and requests. We look forward to hearing from you!

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