JUNE 1995
VOLUME 2, ISSUE 10 / $5.00
PhilaatbroDvJoumal
North Carolinians say they won’t offset cuts
A statewide poll finds that North
Carolinians are not willing to increase
their charitable giving to make up for
government cuts in social services.
By Todd Cohen
» f onprofit leaders have good reason to
/\ / worry about the impact of government
/ V cuts in spending for social services, a
statewide poll has found.
Nearly three of every five North Carolinians
don’t feel obligated to increase their donations
to charity to make up for cuts in federal spend
ing for social services, according to a telephone
poll conducted in April by FGI Inc., a Chapel
Hill marketing and research firm.
“If your philanthropic efforts are focused on
what would broadly be defined as social ser
vices - the underserved, welfare, the homeless.
Smart Start - then you’re in trouble,” says Jim
Protzman, chief executive officer of FGI.
The poll was commissioned by The News
Observer in Raleigh, and included questions on
charity that were asked on behalf of the
Philanthropy Journal.
FGI interviewed 608 North Carolina adults
between April 20 and 23. 'The poll has a margin
mm
PUBLIC OPINION
of error of 4 percent.
The poll comes at a time when new
Republican majorities in Congress, the state
legislature and local government bodies are
planning to reduce spending on social services.
As a result, nonprofits have been wrestling
with how to offset the anticipated loss of pubUc
doOars, and how to continue to provide services
in the face of rising social needs.
The poll also comes in the wake of a nation
al Gallup Poll last fall that found giving and vol
untarism in the U.S. had declined over the past
two years. And, a recent Carolina Poll found
that nearly four of every 10 people interviewed
did not feel confident that their charitable dol
lars were being put to the use for which they
were intended.
The FGI poll found that nearly three of
every five people interviewed said they expect
to give the same amount of money to charity
this year as they did last year. Only one in four
people said they plan to give more, and fewer
than one in-10 said they would give less.
While one in three of those surveyed said
Look for POLL, page 25
Nonprofits
seek control
over turf
Competition and collaboration are
two of the most popular “buzz”
words in the nonprofit arena.
But what do they really mean to
organizations struggling to ful
fill their missions and survive in
an increasingly competitive
fundraising climate?
By Philanthropy Journal Staff
6 0 to any nonprofit gathering
in the state these days and
you’re bound to hear one of
two words: “turf” or “collaboration.”
With government funding cuts on
the one hand, and a proliferation of
charities on the other, nonprofit
leaders are more and more con
cerned with avoiding overlap and
finding ways to work together.
But what’s behind the rhetoric
about competition? Where are turf
battles being fought? And where are
collaborations forming and working?
The Philanthropy Journal
talked to nonprofit leaders through
out the state to try and put a human
face on the buzz words, “turf”and
“collaboration.”
The Journal found a growing
number of foundations funding col
laborative projects, and a growing
number of nonprofits combining ser
vices and staff.
The Journal also found
instances of breakdowns in commu
nication, and perceived boundaries
separating nonprofits.
Not surprisin^y, turf is a difficult
issue for people to discuss publicly,
given the atmosphere of discretion
that pervades the nonprofit sector.
But some did go on the record to dis
cuss difficulties in areas such as
fundraising and overlapping ser-
Look for NONPROFITS, page 21
A living legacy
George Esser, first director of the North Carolina Fund, is the second recipient of the North Carolina
Philanthropy Award. His pioneering work in the 1960s helped shape the state's anti-poverty movement.
Photo by Jim Bounds
George Esser honored for fluting poverty
By Barbara Solow
Chapel Hill
George Esser is a veteran of a
war that seemingly has no end: the
war on poverty.
As director of the North Carolina
Fund - an experimental community
development program of the 1960s -
he was a leader in efforts to create
educational and job opportunities for
the state’s poor and minority resi
dents.
The twin issues of poverty and
race are once again in the public
spotUght, with debates about funding
for welfare and social services raging
PROFILE
in Raleigh and Washington.
But the tenor of that debate has
changed, Esser says. Whereas in the
1960s, the focus was on the response
of government, the focus today is on
the behavior of the disadvanta^.
The North Carolina Fund - which
was supported by national and state
foundation grants - proved that
opportunities can be created without
creating dependence on government,
says Esser, 73.
But he worries that its lessons
are being overlooked by present-day
political leaders.
“One of the weaknesses of onr
system of government is that there is
a lot of money spent on demonstra
tion projects, but the government
takes such Uttle heed of what can be
learned from them.”
The true legacy of the North
Carolina Fund can be seen in the
many organizations it spawned, from
the North Carolina Low Income
Housing Development Corp. to the
Manpower Development Corp., now
known as MDC, Inc.
It is this living legacy that is cited
Look for ESSER, page 23
Workplace
campaigns
heat up
The United Way has long been
the leader of workplace charity
campaigns. But a new crop of
“alternative” nonprofit federa
tions is now demanding a piece
of the workplace pie.
By Susan Gray
AND Barbara Solow
In the past five years, a new
group of fundraisers has made major
inroads into workplace charity cam
paigns.
In North Carolina, groups such as
the Environmental Federation, of
North Carolina and the Arts &
Science Council of Charlotte/
Mecklenburg County rank among the
top “alternative” workplace
fundraisers in the U.S.
TTieir presence is significant. For
decades, the United Way has been
the most common manager of annnal
or semi-annual workplace charity
campaigns, collecting payroll deduc
tions and distributing the money to
member nonprofits - most of which
have health or human service mis
sions.
The growth of alternatives to the
United Way parallels a growing
desire among donors for greater
choice and control over charitable
contributions.
TTie United Way is responding to
donor choice as well by allowing
more options in its campaigns.
TTie stakes are high for all groups
raising money in the workplace. In
1994, more than $3 billion was
donated to charities throu^ payroll
deductions, according to an estimate
by the National Committee for
Responsive Philanthropy (NCRP), a
Look for ACCESS, page 17
INSID
Connections 3
Grants and Gifts 19
In June 18
Job Opportunities 24
Opinion 10
People 19
Professional Services...20
Long-term strategies
Many North Carolina non
profits say they lack the
staffing or time to devote to
creating endowment funds.
In response, community
foundations are offering
services and advice to non
profits whose funds they
manage.
• Page 4
Giving legacy
On the death of
Greensboro philanthropist
Joseph M. Bryan, the
Joseph M. Bryan
Foundation of Greater
Greensboro is expected to
receive assets in the range
of $50 million from the late
philanthropist's estate.
• Page 6
A brighter future
Three nonprofits, all
inspired by religious con
victions, offer support and
encouragement to chil
dren at a Raleigh public
housing complex.
• Page 8
Building a network
Hoping to strengthen com
munication and networking
opportunities, a group of
top nonprofit leaders and
government officials in
Charlotte have formed a
leadership club aimed at
finding common ground.
• Page 12
Small-town strength
In High Point, a cooperative
spirit and solid community
support help strengthen
nonprofits and the commu
nity's philanthropic sector.
• Page 14