The Introduction to Philanthropy
Dear Diary,
I am excited to begin 2024 with a discussion on how we, nonprofit professionals, can better understand, learn, and acknowledge our role in introducing philanthropy to new and curious prospects; in addition to the conversations, we owe current donors on their philanthropy.
Let’s set the scene: You meet a prospect, and they share their interest in learning more about your organization. But this person has never donated (or they have never made a major gift), maybe they share hesitation and uncertainty about their focus areas and wish to know more about your organization’s impact on their childhood community.
In its multifaceted nature, philanthropy could and should appear in different ways to this prospect, perhaps, their historical or cultural understanding of “giving” has been shaped to not fit the modern term known as “Philanthropy.” Therefore, it is important to have curious and open conversations with people who are interested in listening and learning more about their role as potential donors. It is our role in fundraising to provide these opportunities when appropriate. So, I am very grateful to Jaclyn Schroeder, Senior Philanthropic Advisor at U.S. Bank for sharing pivotal answers and advice.
Q: Do you believe that as fundraisers we should discuss impactful giving with prospective donors? And why?
Jaclyn: Wholeheartedly, yes! My perspective is that it is the fundraiser’s goal to help individual donors connect meaningfully to the impact their gifts could have on the mission of the organization. I have never been a fan of fundraising strategies that focus on asking donors and prospective donors to “meet a goal”, “earn a match”, or even “eliminate debt” for the organization. While these are all techniques for engaging donors that we see used repeatedly, they are not effective at getting to the heart of why most donors contribute to causes they care about. A fundraiser’s objective is to help individual donors connect to the mission of the organization, understand the purpose for the work being done, and see themselves and their gifts as integral to the work and the vision of the organization.
A fundraiser can only connect prospective donors to the mission effectively by having discussions about impact, and listening to what the prospective donors share about what matters to them. Each prospective donor will have their own unique reason for considering one organization over another. The work of the fundraiser is to listen to the reasons and uncover what type of impact the organization can help that specific donor achieve in the world. It requires thoughtful, honest, and engaging conversations.
Q: What are the best conversation starters when introducing philanthropy to a prospective donor?
Jaclyn: Conversation starters are frightening for a lot of fundraisers. In fact, they are difficult for most people! My advice to a fundraiser is to enter the conversation with authenticity and curiosity. Ask questions; do not propose solutions. Introducing philanthropy should be a process of introducing the prospective donor to the work of the organization and the impact of its vision. I do not believe introducing philanthropy should be introducing someone to being asked for a gift.
There is a difference between the strategies used for donor acquisition and donor stewardship, however. It is necessary for an organization to introduce prospective donors to its work through ask events, direct appeals, and mass communication strategies via social media and the like. Much of that work should be focused on increasing brand awareness and increasing understanding of the work being done, and it is often done in conjunction with an ask. I consider this the work of donor acquisition. However, to engage a prospective donor in a conversation about their desired impact on the world requires time and stewardship.
Donor stewardship occurs when the fundraiser connects with a new or recurring donor and works to learn about what motivates their individual giving. In some circles, this is a technique for encouraging donors to increase their gifts each year. Instead, I prefer to see the work of the fundraiser as looking for ways to deepen the connection between the prospective donor and the impact their giving could have on the mission. This is a different objective than asking for a larger amount of money at each encounter. It is about understanding how the donor chooses and is able to have philanthropic impact. I do not like to emphasize giving levels, and I am encouraged by the trend in the fundraising industry to abandon them. I prefer to focus on how individuals choose to engage with the mission, whether that be through annual giving, testamentary giving, volunteering, or board service.
There are several tools available in the marketplace for donor engagement questions and philanthropic discovery surveys. I do not want to risk offending any of the practitioners who make these available by repeating questions I have seen before. But my advice to fundraisers who are engaging in conversations with donors about impact is to take a few moments to understand your own relationship with charitable giving and the impact you want to see in the world. If a fundraiser has done the work and fully understands why they give to certain causes, they will be better prepared to have conversations about impact with other donors. And I do not think we all need to be major donors to think about how we each give.
Think about your first charitable donation, or your first encounter with being asked for a gift. Think about how many organizations you support each year with small or large gifts. Once you understand your own relationship with giving, you are better positioned to engage with others and ask them authentic and sometimes very personal questions.
Fellow fundraisers, do you give at point-of-sale transactions by rounding up or adding on to your charge at commercial partners who are working with nonprofits? Why or why not? Do you contribute to organizations where you work? Or where you used to work? Do you respond to seasonal appeals like Giving Tuesday (or Give to the Max Day in my state of Minnesota)? Why do you find those efforts compelling? Do you tend to respond positively to a match campaign where you can double or triple your gift?
Fellow fundraisers, have you considered your relationship with various programs and services that focus on Prevention verses Intervention? What about your relationship with Conservation verses Preservation? Have you spent time considering Direct Service versus Systems Change? Are you likely to give to an endowment campaign to strengthen the future of the organization or to immediate expenditures that address pressing needs. All of these are different approaches to philanthropic impact. In my opinion they are all valid approaches and will find favor with different donors.
Knowing yourself is key to having authentic conversations about impact with others. My advice to fundraisers is to be open to what their prospective donors can teach them about different approaches to philanthropic impact.
Q: In my opinion, we have a great opportunity to be an educator - we can teach prospects and current donors on their privilege in philanthropy, and their role in helping their community and world? What do you think of my opinion? What are your thoughts on being an educator of distributing giving?
Jaclyn: I agree with your perspective, Joan. Educating donors about how their involvement and contributions impact our world is an important role for the fundraiser. However, I caution the fundraiser who neglects to take the time to listen to the prospective and current donor first. As I previously mentioned, listening to the donor is the key. Please do not assume that the donors have not taken this seriously. I work with several philanthropists who have made very specific decisions about where they want to have impact and where they have intentionally chosen not to engage. Do not assume that a donor’s lack of involvement with your organization is coming from a place of ignorance, it may be a deliberate decision to prioritize the impact they wish to have on the world.
Many nonprofit organizations are large and complex entities with several ways for donors to have meaningful impact. This is where education matters most. The job of the fundraiser is to educate the donor about the specific programs and services or the unique plans and dreams of the organization so that the donor has a comprehensive understanding of the organization. I encourage fundraisers to focus on the differentiating characteristics of their organization, which may include how the organization measures its impact, and sharing that information with prospective and current donors.
Fundraising is a competitive industry. That is in large part because there are so many truly extraordinary organizations doing amazing and powerful work. Each fundraiser is beholden to their employer to raise the amount necessary to achieve a budgetary goal. Excellent fundraisers are committed to engaging their donors in the impact the organization hopes to have on the world.
Happy New Year, everyone. Let’s begin with having important conversations.
Until next time, February 15th!
Art Credit: LeNia Stitt
