MANAGING CHANGE: Setting the Course to Weather

Uncertainties & Achieve Results

PHILANTHROPIC

LANDSCAPE 2018

The Rome Group

STRONGER NONPROFITS.

STRONGER COMMUNITIES.

What we do

Fund development

Organizational planning

Operational performance

Our team is ready to help.

Today’s Agenda

• National & Local Philanthropic Trends

• Keynote Address

Jonathan Star, Scenario Insights

• Dialogue at Tables

• Panel Discussion & Audience Q&A

Tweet us at:

@theromegroup#LandscapeSTL18

Slides available at

www.theromegroup.com

MANAGING CHANGE: Setting the Course to Weather Uncertainties & Achieve Results

Giving USA 2018 Report

Source: Giving USA: The Annual Report on Philanthropy for the Year 2017 Chicago: Giving USA Foundation

Total Charitable Giving

$410.02 billion

Up 5.2% vs.2016 (3% adjusted for inflation)4 years of giving increases at the national level

BUT… fewer American households are giving.

Giving USA 2018 Report

Source: Giving USA: The Annual Report on Philanthropy for the Year 2017. Chicago: Giving USA Foundation™

Corporate$20.77B

Foundations$66.90B

Individuals$286.65B

Bequests$35.70B

8%

6%

5%

2%

70%

16%

9%5%

Source: Giving USA (2017), Giving USA Foundation™.

Giving USA 2018 Report

Sub Sector% share of total

% change from ‘16

Religion 31% +3%Education 14% +6%

Human Services 12% +5%

Health 9% +7%

Public Society Benefit 7% +8%

International Affairs 6% -4%

Arts, Culture & Humanities 5% +9%

Environmental and Animal 3% +7%

Looking Ahead

Tax changes

1Q giving down

Stock market gains

Local Philanthropy

Nonprofits who reached their fundraising goal

61%

Nonprofits who saw an increase in 2017 giving vs. 2016

67%

Funders who increased their giving in 2017

47%

Funders who increased the number of organizations they funded

29%

Local PhilanthropyPercent of nonprofits who realized increases, by source

Individual Gifts

FoundationGiving

CorporateGiving

Government Grants

62%43%

30%

26%

Local Philanthropy

58% expect to raise more in 2018

• 12% expect a decrease in giving

Renewed focus on marketing, messaging, & outreach to bring people to your mission

Strategy EffectivenessMost effective strategies

Grant writing 31%

Major Gifts 26%

Special Events 23%

Direct Mail 7%

Online/Social Media 5%

Small Group Gatherings 2%

I don’t want to change you…

I just want you to be different.

Nearly 8 in 10 of you have experienced a major transition in the last 3 years.

Recent Changewithin the last 3 years

Saw significant change in funding 40%

Experience senior leadership changes 38%

Adopted new technologies 38%

Made program additions/deletions 33%

Tackled a new strategic plan/priorities 26%

Felt outside influences affect programs 22%

Navigated new funder requirements 19%

Had board transitions 17%

Ready for the Change to Come

This is you!

Have a strategic plan 85%

Staff understand vision 81%

Leaders feel confident 80%

Leaders seek staff input 80%

Clear communication 72%

Can handle change 64%

Scenario Insights

Jonathan Star

Using Scenarios to Prepare for and Deliver Change

Jonathan Star, Scenario Insight

July 26 2018

20

Effective Change Management Requires Thinking About the Future

21

To put it another way…

What we think change looks like What it really looks like

What will happen?

What should happen?

What might happen?

Three Important Questions

What are Scenarios?

24

“Scenarios are stories about the ways that the world might turn out tomorrow…

…that can help us recognize and adapt to changing aspects of our current environment”

Peter Schwartz

Ostrich

Lame Duck

Icarus

Flight of the Flamingos

The Future(s) of South Africa

25

US National Park Service

Building a competency in planning for climate change

Assateague Island National Seashore

“Drowning Island”

“Parched Ponies”

“ASIS Sand Bar”

“The Fragmented Society”

“Glass Half Empty”

“Big Brother”

“Wall of White”

“Who’s the Master of Our Destiny?”

The Future(s) of Milk – creating more innovation in the face of a declining market

“World at Your Doorstep”

“Unleash the Beast”

“Virtual Reality”

“Eat Your Spinach”

“Breaking Downthe Berlin Wall”

A basic scenario creation process

1. What to study?

Who to involve? How

to engage?

2. What forces will

shape the future?

3. How best to combine

forces to create a

scenario framework?

5. What should we

track to assess our

progress, and the

future?

ESTABLISH

DISCOVER

COMBINE

PREPARE

MONITOR

4. What should we do if

faced with each scenario?

Good Practices in Scenario Planning

Take the long view Consider multiple perspectivesThink beyond your industry

How Can This Help Change Management?

Scenarios help anticipate surprises and rehearse responses

Scenarios help you see the bigger picture of change

Scenarios help describe futures that you share with others

Questions for Discussion

What is a piece of conventional wisdom held by your field / organization that you think is worth challenging, because it's a 'dangerous assumption' to hold for the next 5 years?

What makes change difficult in and around your field / organization? What are the bright spots that provide evidence that effective change is possible?

Meet Our Panel

Elizabeth MannenMannen Financial Group of Wells Fargo AdvisorsManaging Director, InvestmentsAccredited Asset Management Specialist

Barry RosenbergProfessor of Practice Brown School Washington University

Felicia ShawExecutive Director Regional Arts Commission

MANAGING CHANGE: Setting the Course to Weather

Uncertainties & Achieve Results

PHILANTHROPIC

LANDSCAPE 2018