GIVING:

With charitable funding dwindling, philanthropic groups begin strategizing

Nevadans cut back on individual charitable giving to the tune of hundreds of millions of dollars during the recession — and local charities may soon endure more pain due to pending funding reductions from major sources.

To prepare, philanthropic organizations in Las Vegas have taken a first step toward getting more out of the dollars that will still be coming in.

Last week, a Las Vegas philanthropy consulting company, Moonridge Group, staged a community forum focusing on what it called “investing in the future” and strategic giving. A lead organizer said the event, with 175 donors and other attendees signing up to attend, appeared to be the first major gathering on strategic philanthropy locally in more than a decade.

Julie Murray, founder of the Moonridge Group, said a coordinated effort was needed because some big local foundations are expected to hand out fewer and smaller grants in the next few years.

"I have been worried because so many of the exciting things in the Las Vegas Valley have been made possible by philanthropy," said Murray, who previously worked with the Three Square food bank.

Murray said that despite the expected decline in giving from certain foundations, she has a "renewed feeling of optimism."

She said her sentiment relates partly to a new group of up-and-coming philanthropists and entrepreneurs in the Las Vegas area who:

• Have embraced the importance of charitable giving.

• Understand the need to give strategically. That means giving based on data and analysis, and it can mean partnering by businesses hoping to drive community improvements with their investments.

• Are participating in public-private partnerships for the betterment of the community.

Morris said several foundations are planning to sunset or likely give less locally in the next few years, including the Donald W. Reynolds Foundation, the Lied Foundation and the Lincy Foundation, which last year gave its $200 million in assets to UCLA.

The development will likely result in fewer dollars to go around for local charities — meaning everyone in the philanthropy community needs to think about giving in a smart, strategic and sometimes collaborative fashion, Murray said.

Attendees received pep talks and tips on giving during last week’s forum, held at two adjacent sites in downtown Las Vegas largely associated with charitable grants and their work for the community: the Cleveland Clinic Lou Ruvo Center for Brain Health and the Smith Center for the Performing Arts.

IRS statistics confirm the grim reality that charities face as Nevada families — many facing layoffs and foreclosures — reduced their contributions to nonprofit groups.

According to the IRS, Nevadans who reported contributions on individual income tax returns gave $1.75 billion in the boom year of 2005, or an average of $1,521 per person.

By 2009 — the last year for which statistics are available — giving by Nevadans had tumbled more than $600 million to $1.135 billion. The average contribution in 2009 was $912 per person, down 40 percent from 2005.

Giving by corporations — which includes volunteerism and in-kind services — and foundations aren’t included in the individual tax return data.

But the Giving USA Foundation and its research partner, the Center on Philanthropy at Indiana University, reported giving of all types declined 13 percent nationwide from 2007 to 2009, to $280.3 billion.

The Nevada Cancer Institute, a key local recipient of donations, saw its finances deteriorate during the recession and ended up in bankruptcy.

Before selling its key assets through the bankruptcy process to the UC San Diego Health System, the nonprofit NCI reported it had received about $2.9 million in donations, grants and investment income in 2010.

That was down from $4.8 million in 2009 and $20 million in 2008.

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