In today’s @AvalonFYI dispatch, look for industry news, new studies on the state of philanthropy, the secret of impactful innovation, and how to lead with purpose.
Dear friends,
After several business trips, I’m glad to be back at my desk, where I’ve been mapping priorities for the quarter and catching up on everything our team and clients accomplished while I was away. Thursday marked a new fiscal year for many nonprofits, and all of us kicked off Q4 for the calendar year. In addition, adding intensity, the U.S. is now in the final stretch to midterm elections. The weeks ahead will be crucial, but we’re in this together, and we know what to do. Avalon is ready.
DMAW Elections
DMAW announced their approved 2027-2028 Board of Directors candidate slate last week, which, I’m thrilled to share, includes Avalon VP Rebecca Shapalis. With over 20 years of experience, Rebecca understands our industry from multiple perspectives and knows how to turn her expertise into practical solutions and stronger results. She has a long history with DMAW, including prior board service, as a 2015 Emerging Leader, as co-chair of Marketing Advents, and extensive volunteering with the Bridge Conference. Rebecca will be an outstanding leader at DMAW, and she joins an experienced cohort of candidates. Voting opens October 20 for DMAW members. Congratulations, and thank you!
State of Philanthropy
A new study by the Center for Effective Philanthropy concludes that foundations must continue to adapt, in order to support nonprofits. Here’s the challenge: Although most foundations (93%) report making at least one change to their approach in the wake of drastic cuts to federal funding, payout rates are not keeping pace with nonprofit needs. Only 33% of foundations report “higher than typical” payouts since January 2025, which, according to The Nonprofit Times, falls short of their approach to the pandemic. Both foundation and nonprofit leaders also point to risk aversion as an obstacle that limits foundations’ impact.
A separate report by the Institute for Policy Studies looks more closely at payouts and concludes that both major foundations and donor-advised funds are lagging. Median payout at major foundations sits at 5.1%, barely above the 5% required by law. At the same time, DAFs, which do not have a mandate, have seen assets grow significantly faster than payouts. In addition, the report tracks the now-familiar shift towards mega-donors. Nonprofit PRO provided a helpful overview of the policy changes that IPS proposes, based on this research.
These findings are not surprising, but they are concerning. In addition, they highlight the continued, essential value of (non-mega) individual giving to help close the gap, diversify revenue, and ensure a sustainable foundation. Our role as direct response fundraisers is a critical component of the sector’s financial stability and strength.
For Big Breakthroughs, Start Small
Jeff Brooks at Future Fundraising Now reposted evergreen advice on innovation: Major breakthroughs are exciting, but they are not isolated triumphs. They are the logical outcome when professionals show up daily for the hard work, the details that matter, and the next important step. This is why Avalon has always relied on data-backed practices and a transparent, strategic process of testing and iteration. Fundraisers make meaningful breakthroughs when we are dedicated to excellence, always learning, and working together to advance the ball.
Many of the biggest ideas are really clusters of smaller ideas that come together because someone was willing to keep on trying.
—Jeff Brooks, Future Fundraising Now
On Purpose, For Purpose
Finally, I’ll leave you with these words of wisdom from Avalon COO Kerri Kerr, inspired by Alyson Van Hooser’s keynote session at last month’s TNPA Leadership Summit:
Leadership is a choice, not a position. Intentional leadership means acting on purpose, for purpose—seeing what’s happening around you, identifying the most important need, and choosing to act. We need that kind of leadership at every level, not just from people with leadership titles.
—Kerri Kerr, COO, Avalon
