The Giving State is the first ever statewide data-driven report published on philanthropy and the social sector. Utah is poised to lead the nation in giving, not only in volume but in excellence as well. This report is a tool to help us reflect, foster ongoing dialogue, and spark ideas of tangible steps we can take toward excellence.
Now is the time to harness Utah’s innovative spirit to ensure a thriving future for our communities. After all, if we use our best thinking to address the issues we care about most, we’ll ensure our investments of time and money are successful in achieving our greatest hopes for the world.
Overview
Research Goals
- Provide a greater understanding of the number, size, motivations, and focus of funders and nonprofits in the state;
- Articulate priorities of funders’ and nonprofit leaders’ priorities—identifying where they are and are not aligned; and
- Propose ways funders and nonprofit leaders can work more effectively and efficiently to achieve these priorities.
Research Methodology
We conducted in-depth interviews with 49 nonprofit leaders, individual philanthropists, private and community foundation leaders, and corporate social responsibility officers throughout the state to understand their priorities, activities, and perspectives.
We fielded three studies to understand attitudes and practices around philanthropy in Utah:
- 89 nonprofit executive directors, and staff members responded to a nonprofit survey
- 76 family foundation officers, corporate giving officers, and individual philanthropists responded to a funder survey
- 600 members of the general public participated in a panel study
We analyzed available data on all registered nonprofits in the state to understand their focus, geographic distribution, and size. We limited our data analysis to 501(c)3 nonprofit organizations (identified with a ‘subsection code 3’ by the IRS) with annual revenue of at least $25,000, with the exception of Intermountain Healthcare, and Western Governors University. Both of these 501(c)(3) organizations are significant outliers in terms of budget and scope; we excluded them to gain as accurate and representative a picture of Utah’s nonprofit sector as possible. In terms of funders, we looked at foundation, corporate, and key individual donors to 501(c)(3) organizations.
The Giving Mindset
As a sector, we want to make a difference, to do good. However, we currently define success by our activities—what we donate, how we serve, and the ways in which we provide. As a result, the majority of funders and nonprofits use thinking or behavior that undermines their ability to be high-performing, results-oriented givers and service providers. We have an enormous opportunity to shift our mindset to define success in terms of impact, or the change we can effect in our communities.
A Fragmented Landscape
Utah’s social sector is fragmented, driven by a pervasive do-it-yourself (DIY) approach and a dearth of information about what others are doing. The dynamic manifests in the rate of growth in number of nonprofit organizations in the state, and in how nonprofits and funders alike typically operate in an isolated, siloed fashion. While innovation and individual efforts are valuable in achieving impact, our go-it-alone, DIY mentality is not conducive to maximizing the impact we can have.
Approaches to Funding
At a high level, we see a mismatch between projected nonprofit budget needs and funder budget availability over the next three years, and questions around availability of federal funding further fuel uncertainty for nonprofits as they look ahead. In addition, among many funders there is a heavy and unhealthy emphasis on restricted giving, which limits nonprofits’ ability to invest in their organizations to deliver results. Finally, there is a strong tradition of relationship-driven decision-making amongst funders. We have an opportunity to rethink the funding paradigm in ways that will provide stability in coming years.
Effective Communication
Nonprofits are not shy, nor should they be, about clamoring for what they need, which typically involves more resources to pursue their mission. However, funders repeatedly report that they struggle to understand the basics of who the nonprofit serves, how the money or other resources will create an impact, and why a proposed approach is an appropriate solution to a community challenge. At the same time, nonprofit leaders note how difficult it often is to understand a funder’s priorities and how to effectively engage with the funder.
Understanding the Evidence
Measurement that aids in understanding progress toward outcomes is a stated priority for nonprofits and funders. However, there is a gap between stated priorities and actual practice, representing a valuable opportunity for funders and the organizations they support to more effectively track and use data. Barriers to effective use of data include limited staff time and expertise, inadequate tools, and lack of support from leadership.
Nailing the Fundamentals
As in the private and public sectors, capable leadership and management, effective use of data, standard operating procedures and specialized skills and experience are essential for success in the social sector. In Utah, as elsewhere, money and time devoted to implementing systems, gathering data, building capacity, or hiring expertise is too often frowned upon. With nonprofits often operating on a shoestring budget and a heavy reliance on passionate but inexperienced volunteers, investments in fundamental capabilities and systems are typically not priorities. We have an opportunity to solidify the foundation of Utah’s social sector to enable us to achieve the results we collectively seek.
Insights and Opportunities: Can we do better?
The Giving State research team has highlighted six key areas of insight and opportunities in the report as an invitation to nonprofits and funders across the state to move together towards leading the nation in cutting-edge excellence.
How many more children could be ready for Kindergarten, or youth ready at graduation for college and career?
How could we more effectively address the homelessness crisis?
How much more cultured or healthy or safe or educated could Utah’s communities be?
What if nonprofits and funders better understood what each other needs and developed win-win solutions together?
In short, what is the true potential for Utah’s ‘elevated life’?
The Giving Mindset
As a sector, we want to make a difference, to do good. However, we currently define success by our activities—what we donate, how we serve, and the ways in which we provide. As a result, the majority of funders and nonprofits use thinking or behavior that undermines their ability to be high-performing, results-oriented givers and service providers. We have an enormous opportunity to shift our mindset to define success in terms of impact, or the change we can effect in our communities.
“Too often we are content with an effort that is ultimately a failure, but because of a warm and fuzzy anecdote or one success story we think it is effective.”
– Mayor Ben McAdams, Salt Lake County
Opportunity
Don’t assume that doing good inevitably makes things better. Instead, focus on and invest in the people you are serving and the outcomes, or results, you want to see. Only declare success when you see those outcomes. Embrace the reality that in the social sector, excellence is self-imposed.
OUR INSIGHTS
MANAGEMENT CONSULTING
Cicero Group is a premier management consulting firm focused on implementing data-driven strategies for a broad mix of private, public, and social sector organizations across the globe. We work with top management to assess needs and provide data-driven decision support to capture and build value in a variety of industries and across a full range of organization structures.
We bring deep functional expertise in advanced research and analytics, strategy, operational excellence and trajectory transformation to identify and capture value for our clients. These are the pillars of Cicero Group’s overarching purpose: Help clients create and continuously deliver extraordinary results.
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