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Philanthropy EconAround Bingo

A Brain-Friendly Concepts and Definitions Game Integrating Economics with Philanthropy

Produced by John Noling, Learning To Give Instructional Consultant and Melinda Dickinson, 5th Grade Teacher, Lansing Public Schools, Educator Associate, Michigan Council on Economic Education

Special Acknowledgements To: David Dieterle, Michigan Council on Economic Education; Marge Kosin, Vandyke Public Schools;  David Klemm, Muskegon Area Intermediate School District; Fred Meston and 5th grade students from Mona Shores Public Schools; Carol Fellows and 5th grade students from Utica Community Schools; Barb Lundquist, Whitehall District Schools; and Barbara Dillbeck, Learning To Give

Philanthropy EconAround Bingo is brought to you by:
Learning To Give
www.learningtogive.org

Directions for Philanthropy EconAround Bingo Original Version OR Introductory Version

1. Give each student a copy of the Philanthropy EconAround Bingo Vocabulary List, ablank bingo form, and sufficient Bingo tokens (not supplied).  Instruct each student tocreate their own “lucky” Bingo card by choosing 24 words from the Vocabulary Listto write into the 24 open boxes on their bingo form.
   
    
2. Pass out all of the Philanthropy EconAround cards, giving some students more than one if necessary.
   
    
3. Ask students to find and read the definition for the “I have...” term on theircard(s) on the Vocabulary List and be ready to respond when the proper “Who has?”cue is given.
   
    
4. Ask any student to start by reading the “Who has...?” portion of their card.  When astudent responds with the correct  “I have”..., all students who have that word ontheir Bingo card place a token on that space.  Ask students to repeat the definition asecond time for reinforcement.  Give real-life examples of the term if this is ateachable moment.
   
    
5. The student who correctly responded will then read the “Who has?…” portion of  thesame card.  The appropriate person responds by saying “I have…”
   
    
6. Continue this process until someone has Bingo!  Keep playing until all cards areused and you are back to the first person who started the game who will say “Ihave…” to end the game.  Teachers may refer to the Philanthropy EconAroundBingo Game Sequence sheet to become aware of what cards are coming next in thegame sequence.

General Suggestions for use of Philanthropy EconAround Bingo Original Version AND Introductory Version

IMPORTANT CAUTION FOR TEACHERS:  Students may “know the words” but not understand theconcepts behind them , so just rehearsing vocabulary words is not sufficient or recommended.  Studentsneed an “in-their-own-words” understanding of each of these terms and concepts.  It is important tointegrate quality economics and philanthropy lessons and activities into your Social Studies teachingwhere students will use these words, and many more, to deeply understand the concepts underlyingthem.  See suggestions below for websites and programs to assist in this area.

General Suggestions:

• For best results, play the “Philanthropy EconAround” portion while conducting the “Bingo” activity.However, either portion can stand alone as a quality learning activity.  The word game itself canbe played without Bingo if desired.
  
   
• Pause during the game as needed to give or ask for personal examples from life, discussgraphics on a particular card, or connect with real-world events from the news.  As students learnthe concepts and definitions, the game will flow much more smoothly than the first time through.Be patient.  Repeat the game periodically and work to improve times.
  
   
• After the first one or two winners at Bingo, have students clear their Bingo sheets and start overagain with the Bingo portion while keeping the rest of the game going with the vocabularysequence of cards.  This adds more suspense and keeps the number of Bingo winnersreasonable.  Small prizes for Bingo make great incentives.
  
   
• A note about opportunity cost and trade offs.   Opportunity cost and trade offs are different,but related.  Opportunity cost is the total cost to you, (what you gave up), of the next bestalternative to the one you chose.  It is not the sum of all the costs of the many alternatives youpassed up, only the next best one.  Trade offs are different in that it refers to giving up a little ofone or more alternatives in order to get a little more of another.  So, making a choice does notalways mean an “all or nothing” situation results.  It just means you don’t necessarily  have togive up an alternative completely.  You can in many situations in life get some or most of analternative to satisfy your wants while getting a little more of something else you also wantbecause of your economic decision to make a trade off.   Each trade off  you make, howeversmall it is, is really a choice between alternatives that reveals the  opportunity cost of selectingone alternative over the other.
  
   
• Customize EconAround Bingo by creating new cards (using blanks included) or deleting somecards that do not fit your curricular needs. The game is a continuous loop, so you will need to“break into the loop” at the appropriate point by doing some manual cutting and pasting of “Ihave” and “Who has?…” prompts.  Clip art can be found on the Internet or other print sources.Some terms not included in the game which you may consider adding are:  cash, currency,coin, credit, command economy, traditional economy, division of labor, public goods,private goods, government sector, etc.   For reputable glossaries of Social Studies andeconomics terms, consult your state or local curriculum sources. For philanthropy terms, checkwww.learningtogive.org., go to Resource Room, then click on Vocabulary.
   

For high quality lessons, activities, and other resources, the following sites and programs are HIGHLY recommended:

1. www.kidseconposters.com   KidsEcon Bingo game available here.  Click on LiteratureConnections for great lessons tied to excellent trade books, also click on Econ Songs for29 great songs you can download.
   
    
2. www.ncee.net  Click on EconEd Link and you are in business with over 350 free lessons!
   
    
3. www.fte.org  Click on For Teachers, then Lesson Plans and you will be amazed!  Be sureto check out Economics for Leaders program for teachers and students!
   
     
4. www.learningtogive.org  Over 1,600 well-crafted philanthropy education and service-learning oriented units and lessons that integrate economics with all subject areas.  Clickon Lesson Search Engine, then Keyword Search and see how easy it is to find greatlessons aligned with state and national standards.
   
   Link the terms, concepts, and graphics from the game with The 6 Core Economic Principleswhenever appropriate:

1. People Choose
2. All Choices Involve Costs
3. People Respond to Incentives In Predictable Ways
4. Economic Systems Influence Individual Choices and Incentives
5. Voluntary Trade Creates Wealth
6. The Consequences of Choices Lie in the Future 

Philanthropy EconAround Bingo Game Sequence - Original Version

Following is the sequence of  the 47 terms and concepts built into Philanthropy EconAroundBingo. The logic of this sequence is designed so that both philanthropy and economic termsand concepts build on each other in a spiraling level of complexity, beginning with Economicwants and ending with the term Incentives. Of course, the game can be started at any point inthe sequence and continue around to where it first began.

BINGO CARD  

Instructions: Create your own lucky Philanthropy EconAround Bingo sheet!  Choose 24 different terms and concepts from the Philanthropy EconAround Bingo Vocabulary List and write one in each open square above.

Philanthropy EconAround Philanthropy Bingo Vocabulary List - Original Version

Barter-  Direct trading of goods and services without using money.

Benefits-  Something  good or of positive value to someone when making a choice or decision.

Budget-a time based plan for spending a limited resource.

Capital Resources-Goods produced and used to make other goods or services. (they helpincrease productivity.)

Choice-What someone must make when faced with two or more alternative uses for aresource.(also known as economic choice)

Common Good-the greatest possible benefit for the greatest possible number of individuals.

Community Need- a condition or situation in which something is required or wanted by citizens.

Consumers-People who buy, and/or use, goods and services.

Corporation-Business owned by a group of people legally bound together, who share all therisks and profits.

Cost- The total amount of money, time and resources accumulated when you make a choice,such as a purchase or an activity

Distribution- The delivery or movement of goods or services from producers to consumers.

Economics-The study of how people make choices when dealing with scarcity.

Economic Wants- Things people like or desire that can be satisfied by consuming a good,service, or leisure activity. (also  known as wants)

Entrepreneur-An individual who takes the risk of producing a product or starting a newbusiness.

Exports-The goods and services producers in one nation sell to buyers in other nations.

For Profit Sector- that portion of the market economy composed of organizations providinggoods and services who seek to make a profit.

Goods- Objects people can hold or touch that can satisfy their economic wants.

Human Resources-The people who work to produce goods and services. (also known as laboror human capital)

Imports- The goods and services that consumers buy from sellers in other nations.

Incentives-  Benefits or costs that influence the choices people make.

Individual Ownership-A business owned and managed by one person who assumes all the riskof loss and gets all the profit.

Interdependence-What occurs when people and nations depend on one another to provide thegoods and services they want.

Interest-The money earned on the money saved and invested, or the money paid to use a credit card or take out a loan.

Investing-Putting money or resources to work in a way that increases the future value.

Market Economy-An economic system based on the interaction of supply and demand inmarkets to determine prices.

Market- What exists whenever people buy and sell goods and services and where prices aredetermined.

Money-What people use to buy goods and services.  (money is a good that is a medium ofexchange)

Natural Resources-“Gifts of  nature” that are used to produce goods and services. (also knownas land)

Nonprofit Sector- that portion of the market economy composed of organizations providinggoods and services, but not seeking to produce a profit.

Opportunity Cost-The next most valuable alternative you give up when you make a choice ordecision.

Partnership- A business owned by two or more individuals who share all the risks and profits.

Philanthropy- voluntarily giving time, talent, or treasure for the common good.

Price- The amount a buyer pays and seller receives for a good or service.

Productive Resources-The natural, human and capital resources we need to produce goodsand services. (also resources)

Productivity- The measure of how many goods or services that are produced by each worker.

Producer-People who use productive resources to make or sell goods or provide services.

Profit-The difference between  the money people make when they produce and sell a good orservice and all their costs of production?  (opposite of loss)

Savings-The part of a person’s income that is not spent for goods or services, or used to paytaxes.

Scarcity-The condition of not being able to have all the goods and services you want because oflimited resources.Services-Actions or work that a person does for someone else that can satisfy their economicwants.

Specialization-When people produce only some of the goods and services they consume, thentrade with others to get more of the things they want.

Supply and Demand- the interaction between sellers and buyers that determines prices in amarketSurplus-Having more goods, services, or resources available than you want.

Taxes- Money that households and business firms are required to pay to government to providepublic goods and services.Trade-Exchanging goods and services with people for other goods and services or money.

Trade-off- When you choose to get less of one thing in order to get more of something else.(Life is full of these!)

Volunteer- a person who gives or donates their time without pay.

Handout 2Print Handout 2

Economic Decision-Making Model

Handout 3Print Handout 3

Running a Nonprofit

Running a Nonprofit
(This information is also available on the www.moneysmartchoices.org website.)

Programming

• One program might bring volunteers to schools, to educate students about fire safety.
• Another program might give fire safety brochures to hiking clubs.
• Another program might sell T-shirts with a logo. The logo could remind hikers to prevent fires when they hike.
  To be effective, programs must understand the real needs of their clients. They must respond to those needs directly. Nonprofits often conduct research to learn how they can best help clients. This research shows what clients need, and how those needs can be met. Programming research may be conducted by experts. However, it also should contain input from clients themselves.
  Programs often start with a brief “test period.” This test period is known as a pilot. Pilot programs run for six months to one year. They allow the nonprofit to see how well the program functions. After running a pilot, nonprofits may improve the program. When the final program is launched, it will run effectively.

Budgeting
Programs must fit within a nonprofit’s resources. Programs cost money to run. This money must be generated every year, or the program will fail. To keep their programs running, nonprofits must manage their money well. For this reason, they use budgets, just like people do. 
Like personal budgets, nonprofit budgets have two main sections. The first section lists income, also known as revenue. Here, the nonprofit names all of its sources of income.  The second budget section contains expenses. Expenses normally include salaries and administrative costs. These are required just to keep the nonprofit open. Expenses also include program costs. These enable the nonprofit to run its activities.
Budgets help nonprofits determine how much money they need to operate for the year. In every budget, income should at least equal expenses. If expenses are greater than income, then the nonprofit has revenue need. It must meet this need by raising funds from different sources.

Support Sources
Sources of support for nonprofits include grants and donations, earned income, endowments, in-kind support and volunteer service.  Each of these sources of support is described in more detail in the following sections.

Grants and donations
Nonprofits operate through many types of support. Grants and donations are cash contributions. They represent money that is given to the nonprofit directly.

• Grants often come from foundations. Foundations are organizations that support charitable activities.
• Grants also may come from government sources. Grants are provided by federal, state, and local government.
• Many donations come from individuals. These individuals may join the nonprofit as members. Individuals also may donate to a nonprofit even if they are not members.
• Some donations come through major donors. Major donors contribute large amounts of money. Major donors may be individuals or businesses. Corporations often support nonprofits through an arrangement known as sponsorship.

Earned income
Nonprofits also gain income by earning it. Nonprofits earn income just as businesses do. They provide a product or service in exchange for a fee. For example, a counseling agency might charge fees for counseling. Nonprofits also may earn income from investments.
Earned income represents the main source of income for many nonprofits. A nonprofit becomes independent when it earns its own income. It need not rely on other sources for funding. Nonprofits often run programs that earn income on a regular basis. These programs are known as sustainable programs. They help sustain the nonprofit by keeping it running independently.

Endowments
Some nonprofits earn income through endowments. Endowments are very large donations, usually millions of dollars. Endowments are set up as investments.  The donated funds are invested to earn interest. The interest is then used to help the nonprofit operate.
Endowments are very important to nonprofits because they represent continued support. Organizations that have endowments never spend the money that’s invested. They only spend the interest from the investments. The original investment continues to grow and to earn interest. Large endowments can support a nonprofit for a long period of time. There’s no limit to the time of support, since interest is always being earned.

In-kind support
In addition to money, nonprofits also receive other types of support. Money enables nonprofits to buy the products and services they need. Sometimes, however, nonprofits receive these products and services directly. For instance, an animal shelter might need food to feed its animals. It could receive animal food directly from a pet supply business. Such non-cash support is called in-kind support.
Another example of in-kind support occurs when a nonprofit receives free office space. For example, a nonprofit might occupy space in a government building. The government might not charge rent or utilities to the nonprofit. No money is exchanged. In this way, the government contributes office space in-kind.

Volunteers
Volunteer support is crucial for nonprofits. Volunteers work without pay to serve nonprofit goals. Though volunteers aren’t paid, their time and services are valuable. An organization known as the Independent Sector conducts yearly research on the value of volunteer time. According to the Independent Sector, American volunteer time had an estimated value of $18.04 per hour in 2005.
The value of volunteer time adds up quickly! Imagine a nonprofit with 20 volunteers. These volunteers deliver meals to the elderly each week. Each volunteer works 10 hours per week, or 520 hours per year. Together, the 20 volunteers work 10,400 hours per year. They contribute $187,616 per year in volunteer time!

Raising Revenue
Each year, nonprofits must raise revenue to meet their needs. To raise revenue, nonprofits develop fundraising plans. Fundraising plans define the steps that a nonprofit will take to gain support.

• First, fundraising plans establish revenue goals. They also list steps for reaching those goals. These goals and steps are approved by the nonprofit’s board of directors.
• Next, fundraising committees are formed to raise funds. Depending on the size of the nonprofit, different committees may be needed.
• An outreach committee often identifies the most likely donors.
• A membership committee often makes requests from individual donors.
• Board members may make requests from major donors.
• A grant writing committee may be formed to apply for grants. To obtain grants from foundations, nonprofits must submit applications in writing. Written applications must be submitted for government funding as well.
• Special events committees help coordinate fundraising events. The nonprofit may hold an annual dinner, dance, carnival, or other event. By charging admission for these events, the nonprofit raises income.

Fundraising continues throughout the year. If a nonprofit gains more income than it needs for one year, it may increase its programs. For example, it may serve more people. If the nonprofit gains less income than it needs, it often decreases its programs.

Handout 4Print Handout 4

Planning a Nonprofit Budget

Instructions:

1. Carefully review the nonprofit/civil society organization’s description, including paying close attention to budget explanations.
2. Use figures from budget explanations to complete the budget worksheets (revenues and expenses worksheets)
3. Complete revenue worksheet first for the organization.  Include revenue from all sources.
4. Then, complete expenses worksheet based on nonprofit description.
5. Compare revenue and expenses.  If they are not the same, go back and recalculate until they are equal.

Choosing your nonprofit
Choose from one of the nonprofits listed here.

Animal Rights Organization

Anti-crime Organization

 

Human Rights Organization

Environmental Protection Organization

Budget worksheets
Use the worksheets below to list revenue and expenses for your chosen organization.  Base your amounts on the figures given in the nonprofit descriptions.  You may have to calculate some answers.


Revenue:

Handout 5Print Handout 5

Answer Key

Animal Rights Organization

Revenue:

Expenses:

Anti-Crime Organization

Revenue:

Expenses:

Human Rights Organization

Revenue:

Expenses:

Environmental Protection Organization

Revenue:

Expenses:

Philanthropy Framework: