The New Paradigm: From “Fundraising” to “Philanthropy”
There’s a new way of thinking coming along – one that is shaping the future of fundraising.
It’s a move AWAY from the narrow idea of simple “fundraising” that focuses on “money.”
It’s a move TOWARD a much broader, more holistic notion of “philanthropy.”
It’s a special land. It’s where fundraising is valued, considered an important part of an organization’s mission.
It’s where donors are engaged and honored as true partners in the organization’s work.
It’s really all about philanthropy.
Check out this important new report, “Beyond Fundraising: What Does It Mean to Build a Culture of Philanthropy?” recently issued by the Evelyn and Walter Haas, Jr. Fund.
It starts where the widely discussed “Underdeveloped” report left off.
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If you remember — “Underdeveloped” hit the sector and created an explosion a few years ago. (My take here.)
The “Beyond Fundraising” report makes it plain and simple.
It calls for a fundamental change in how nonprofits approach fundraising. That is, if you really want to be successful.
Cynthia Gibson, author of the Hass, Jr. report, says that simply adopting new fundraising tools and techniques may not be enough.
She says it’s really the lack of a culture of philanthropy that is holding nonprofits back from fundraising success.
It’s when organizations cling to short-term thinking. Where they view money as “dirty.” Where fundraising has a secondary status inside the organization.
The old attitudes about transactional fundraising are dying.
The old attitudes about fundraising as a transaction (hope this one is long gone!) are no longer applicable to today’s world.
21st century organizations are taking the broader view. They want to make the largest impact, create true social change, and solve huge problems.
Find out how we can help you achieve your fundraising goals with world-class consulting and custom training.
To do that, they realize they need deeply engaged, active supporters who will take action – and give money.
These nice ladies don’t look like ATM’s to me!
Engaged supporters will create that magic holy grail for every nonprofit –a sustainable funding base.
They will fund the organization’s work over and over, because they feel very close to the cause.
Tragic loss of our donors
And this brings us to the issue of donor retention – which is the tragic, rapid loss of donors to our organizations.
And why do donors leave? Because we don’t care enough to give them great post-gift experiences and customer service.
And why do we forget the post-gift relationship?
Because our mindset is still focused on the old way of doing things.
It’s all about the money, “get the money and run,” and my least favorite: “donors as ATM’s.”
Here’s the rub:
Many fundraising staffers understand that the paradigm is changing.
Staffers know that when everyone in the organization embraces fundraising and plays a supportive role, then fundraising flourishes and money flows in from happy supporters.
The old way of thinking does not build sustainable funding.
It makes fundraising so much more difficult!
But your board and your CEO may still hold on to old attitudes.
I bet many of them still embrace a narrow of fundraising – it’s all about “money.”
Some boards and CEO’s still view fundraising as “dirty” or as a necessary evil. It goes without saying that these attitudes impede and even BLOCK good fundraising.
When board members don’t understand fundraising –
- how its done,
- what the best practices are,
- what attitudes and values create fundraising success,
then they aren’t able to make the best decisions.
It’s important that your board members get educated on 21st Century fundraising. (that’s one of my specialities!)
Sometimes organizational leaders don’t realize that donors are expecting more and wanting more from organizations they support.
What many board members and CEO’s don’t realize:
- that donors’ expectations of customer service and effective communications are based in the amazing customer experience they get from private sector businesses like Amazon.
- that relegating fundraising to the far corners of the organization – isolated off in a silo somewhere – will not create success.
- that rapidly shifting cultural trends are forcing nonprofits to reexamine their old ways of raising money.
The New Paradigm and “Philanthropy”- Your Takeaway
Let’s educate everyone in the organization – from the board members – to the CEO – to the fundraising staff – to the important back office administrative staffers – on the new paradigm.
Let’s turn “fundraising” into a deeper, more all-encompassing idea -“philanthropy.”
Let’s bring fundraising into the center of the organization. Where it is honored and funded as a vital part of the mission.
Let’s ask everyone in the organization to take on a role that supports fundraising and honors donors. Every single person in the organization can help acknowledge donors as a friendly ambassador.
BOTTOM LINE
Where does YOUR organization stand in the shift from “fundraising” to “philanthropy?”
What do YOU think of the new Haas, Jr. report?
Leave a comment and let me know!
I’ve been preaching to my clients about a shift from fundraising to philanthropy and from donors to investors for some time now. What I find is that Boards and nonprofit leadership will always struggle with the concept of funding their organization’s good work until they can come to terms with their personal feelings about money in general. Glad to see that this is “hitting the airwaves” in a broader setting that before. Great article!
I absolutely 100% agree with this shift! As a millennial myself (26 years old) leading a non-profit start-up, I see the fundamentality of shifting from a mentality of scarcity (“we need to get money from people”), to one of abundance (“we are overflowing with human resources”). As your article suggests, I think it is key to shift the focus from “money” to “people”, and “save-the-world causes” to “curious co-creation”. I find myself much more interested in creating lasting collaborative relationships rather than “getting people to support” my cause. I am inspired to think about the exponential creative power that could come through collaboration and a culture of philanthropy. Thank you for posting this!
Wow Shasha, you are the kind of deeper nonprofit leader who will take us well into the 21st century! Thanks for your perspective and for implementing it at your start-up. You are sure to be successful!
Oh wow, Sue, you are so right. It’s boards and leaders who do have issues with money and the entire idea of “asking” for support. We have to start with the leadership – to get them to understand that this is a kinder, gentler, more fun, and much much more successful to win supporters – and their financial investments!
Thank you Gail! Your resources, experience, and expertise have been invaluable for me.
Yes, Good article. I may be a little out of touch with things in the fundraising, although I have been somewhat active in AFP since 1990. But, I don’t know how new this cultural ideal/shift is per se. We’ve heard about doing business this way for years, decades, at conferences, articles, etc., but maybe it not applied as broadly as assumed. Or, maybe I serve in a somewhat unusual situation. And, know that my organization is far from perfect. Working in a faith-based, non-profit much of this we’ve tried to apply and integrate in the culture for 25+ years. The approach comes from a Biblical stewardship gird, which helps to provide the compass for an organizational’s worldview. Where one starts, and which map is used, sets the direction and the destination. The approach and culture is to take a long-term view. Whether is Dale Carnegie, Jesus or anyone else, we know doing business “in the other person’s best interest,” (donors/staff/community) is operating in the organization’s long-term best interest.
Larry you are one of the enlightened ones! Hurray for your perspective and your long-term view. I imagine you have been quite successful. You are correct that these ideas have been or should have been practiced for a long time — it’s just taking a very long time for them to catch on!
You nailed it !
Gail, thanks so much for this great post! I really appreciate the way you’ve called out the different roles that staff, leadership and board play in cultivating a culture of philanthropy and how each needs attention. And I also agree on the importance of acknowledging and helping people move past baggage they have around money that feeds discomfort with fundraising. I know sometimes development directors, especially in social change organizations, feel like they are dismissed for being the “dirty money people.” At the Haas, Jr. Fund we’re inspired by examples of organizations that have found a way to raise resources that reflects and is consistent with their core values and organizational identity.
Hi Linda! Hats off to you smart people at the Haas, Jr. Fund for your enlightened work! It’s so encouraging when foundations recognize and publicize these kinds of issues that are so fundamental to our success.
Policy, attitude and strategy all work together inside organizations to move causes forward, or to hold them back! Thanks again!
There are many boards who want the money, but don’t understand why “it’s so hard” or “takes so long.” Not so much that fundraising is “dirty” but that it’s someone else’s job and a limited frame of reference for how it’s done. Bad, “scorched earth” type consultants–and there are a few out there–also impede building a culture of philanthropy. Great posting; keep ’em coming.
Oh boy, Mike yes! I know of a “scorched earth” university dean who was so aggressive in fundraising that it took years for the fundraising program to recover cordial relationships with donors. Lotsa bad ideas out there! That’s why one of my missions is to communicate with board members!
Gail, thanks for the great post and for all your work on this issue for so many years. Glad to see it’s getting some traction!
Cynthia – YOU are the author! Thanks to you we are all having this discussion. Can’t thank you enough for your thoughtful insight and excellent recommendations.
As a board member and advisor to many non-profits, you are correct that MANY boards and CEOs do not grasp the true importance of fundraising, specifically planned gifts. Their budgets, staffing, and culture show this. I have found a great way for a board member to understand and appreciate the challenges in securing and retaining these types of gifts is to have them run shotgun on a call with you (after being prepped of coarse). Your donor/prospective donor might like the attention too!
Hi Erich, thx, and I love the idea of a “shotgun” board member. We could have some fun with that idea – and I think it would be an idea board members could embrace.
In the private sector it’s called “permission marketing” or “inbound marketing”. For our industry I coined a phrase for it: “Engagement Fundraising”. The key is to engage and involve supporters and boards. If you provide valuable offers for more engagement, you’ll get more money!
Right on Greg! Love your 10 Commandments!