Bottom Line: Philanthropy Culture Improves Fundraising

Sign posted in window

Is a culture of philanthropy just something that’s ‘nice’ to have? Does it simply make people feel good? Or might it actually affect your bottom line – making it ‘necessary?’

Do you wear your values as a sign, or live them?

“Philanthropic culture is a key driver of fundraising performance.”

Adrian Sargent, Institute for Sustainable Philanthropy

I know I’ve worked with organizations who looked at the notion of developing a philanthropy culture a bit like doing staff morale building or sensitivity training. It certainly sounds good, and who can argue with reports from pioneering organizations like the Walter and Evelyn Haas Jr. Fund (see Underdeveloped, Beyond Fundraising: What Does it Mean to Build a Culture of Philanthropy, and Fundraising Bright Spots) and Sea Change Strategies (see Inside-Out Fundraising) that embracing a culture of philanthropy (COP) will bring all sorts of benefits, including recruitment and retention of talent, stronger development plans and infrastructure, a better understanding of the board role in fundraising and a shared understanding of the importance of fundraising across functional siloes.

“As a sector, we need to elevate the importance of fund development as a leadership issue, invest in a stronger talent pool, and strengthen the ability of nonprofits to develop the systems that enable fundraising success.”

Jeanne Bell, CEO of CompassPoint, co-author of Underdeveloped

“Generally, a culture of philanthropy is one in which everyone—board, staff and CEO—has a part to play in raising resources for the organization. It’s about relationships, not just money. It’s as much about keeping donors as acquiring new ones and seeing them as having more than just money to bring to the table. And it’s a culture in which fund development is a valued and mission aligned component of everything the organization does.”

Cynthia Gibson, author, Beyond Fundraising

“Without tackling internal issues head-on, we believe the prospects for major fundraising progress are limited. In most organizations, fundraising is limited more by organizational culture and structure than by lack of strategic or tactical know-how.”

Alia McKee and Mark Rovner, Founders, Sea Change Strategies

Despite the impressive research that’s been done showing the value of a philanthropic culture, too many nonprofits have simply assumed they had one by virtue of merely existing within the social benefit sector.

Or they’ve just been so wrapped up in the process of implementing — delivering services, generating revenue, and adapting to changing ciirrcumstances — they’ve just never moved developing a philanthropic culture from the back burner to the front.

It’s Time for a Change

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Major Gifts Fundraising: Pie in the Sky, Pie in your Face or Your Piece of Pie

Painting of pieces of pie by Wayne Thiebaud

Which major donor prospects are your best ‘piece of pie?’

Do you think Bill Gates, Warren Buffet or MacKenzie Scott are likely prospects for major giving to your nonprofit?

Sadly, all too often I hear board members suggesting names like these (perhaps it may simply be the richest known philanthropist in the community) – despite the fact that the prospect has (1) no known interest in the cause, and (2) nobody at the organization knows or has any link to this person.

Really, this practice must stop!

There’s a much better way.

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Three San Francisco Hearts: Beyond the Horizon; Eons of Love; Secrets of the Heart

Evolving Top Nonprofit Storytelling Practices

Three San Francisco Hearts: Beyond the Horizon; Eons of Love; Secrets of the HeartEveryone knows storytelling = good. Humans wired for stories. We want to enter into them … become part of them… see ourselves, in some way, expressively reflected in the characters, plot and struggle. Everyone responds, all ears, to “Shall I tell you a story?”

Yet there’s been a brouhaha of late around so-called “donor-as-hero” stories. I’ve long been a proponent of encouraging donors to jump right into the narrative to give it a happy ending. Yet, today, people worry these stories reinforce “white saviorism,” especially in cases where donors are perceived to be in positions of privilege and power. In such situations the impression is donors unfairly get to feel good about helping those less fortunate. And it’s unfair because donors are part of, and contribute to, an unfair system — even if unconsciously. And this unfair system keeps people in need in their disadvantaged state.

Related to this are the ethics of making poster children of clients. Program staff may fear the commodification of stories as “sales products” for fundraising.  There’s tension between departments, fueled by misunderstanding and mistrust.

I’d like to address (1) the overarching storytelling challenge, with specific attention to both the (2) white saviorism and (3) ethics conundrums. Let’s begin with.

(1) How to Meet the Challenge of Doing Good, without Doing Harm?

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Transform Annual Reports into Gratitude Reports for the Best ROI

Grateful signAnnual reports don’t have to be dry as dust. In fact, the most effective ones are not financial reports; they’re a story with the donor at the center. And they inspire action.

When you consider all the blood, sweat, tears and money that go into them, you want to assure they:

  • Resonate with people emotionally.
  • Paint a picture people want to jump into.
  • Showcase the value of philanthropy and what it does to create change.
  • Shine a light on how much the donor is needed.
  • Include specific areas where donors can help.

Towards getting the biggest bang for your annual report buck, consider renaming them (or at least thinking about them) as Gratitude Reports. Make them all about your donors, how grateful you are to them for making your work possible, and how appreciative you are for all the accomplishments they enabled.

Rather than “2023 Annual Report,” consider a more donor-centered title like “Generosity Report,” “A Gratitude Report,” “The Year of the Donor,” “Impact Report.” or “You Make it Possible.” I’ve seen all of these; feel free to get creative and let your title guide your content!

Top 5 Gratitude Report Strategies

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