In my recent post on listening to donors I told you about the non-profit CEO who sought advice from her board members and business advisors on a critical organizational decision she needed to make, got the advice, then promptly ignored it and did what she wanted.
This always amazes me. And it happens way too often. These kinds of power hungry, arrogant leaders of non-profits are so self-focused that they just cannot receive advice and counsel from those around them. People like this should not be in leadership positions. Sadly, though, many are. And they are hurting the organizations they are charged to care about and steward.
Their damage to the organization and the donor is bad enough on its own. Little do they know that they are also hurting the organization financially in a big way. Here’s how.
More and more high net worth, high capacity donors, in addition to giving, want to be involved in providing management and technical advice to the organizations that represent the causes they love. It is a trend of the up and coming younger donors.
In a Bank of America Study of High Net Worth Philanthropy, one data point showed that although the most common volunteer activity is serving on a board, over 40% of these good donors want to be involved to a greater degree by providing technical services. And here’s the kicker: those who were allowed to do this gave twice as much per year – on average $78,000 vs. $39,000!
This is so interesting to me. Here’s the CEO feigning interest in the opinions of her board and business advisors, and then, upon securing that advice, getting puffed up and enamored with her own wisdom on the subject and not only alienating her advisors, but walking away from a ton of money! This is absolutely crazy.
Now, you might argue that these advisors are not going to immediately decide not to give, and you may be right. But just give it a little time. Decision after decision that is managed this way will wear these good donors down to the point that they will move on.
I was in a meeting recently with the top leader of a Southeastern non-profit and one of his board members who was also a very good donor AND an important influencer/connector to opinion leaders and donors related to this leader’s non-profit. I sat there and watched as this leader carefully and expertly minimized the board member and his opinions and then, almost with a sweep of the hand, told the man that while he valued his opinions (uh-huh), “we are going to head down this other direction.”
It was smoothly done, but not lost on this donor. He got the message. And it slightly turned him, I could tell. It turned him away from the non-profit he so dearly loved.
This is so sad… and so unnecessary.
The reason I am writing about this topic is (a) to make you aware of it if you aren’t already and (b) to ask you to help become part of a growing group of professional fundraisers who bring up this topic in the public forums of your non-profit as well as the fundraising circles you run in.
Jeff and I believe that as more of us talk about honoring those donors who want to be more involved, along with the consequences of not honoring them, it will raise awareness on this important topic and, hopefully, start to curtail this damaging behavior.
And the result will be happier and more fulfilled donors who stay with you longer and give more. You can’t beat that!
Richard
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I appreciate the sensitivity you bring to asking advise of donors and Board members. But how do you deal with advise that is off the cuff and poorly thought out? Usually we’ve studied, researched, and solicited different inputs to a problem that might have several good answers. Some folks take great offense if you do not follow their advise and they do not respond to reason. Once identified, you know not to ask them again. Other than being vague about how you will proceed, how does one proceed without offending?
Sorry, but it sounds like you are saying that non-profits have to go with every idea their board gives them. And as I’m sure you’re aware, it is very easy to get caught in a trap of following up on everybody’s little ideas that more often than not don’t make any sense and don’t fit in to the overall strategy of the non-profit. This is why you need leadership- to carefully plot out what the organization’s mission is (and yes, the board absolutely should have input on this) and then to make sure everything the org does goes toward fulfilling that mission- not toward fulfilling pet projects for board members and/or donors. A good leader will take a board member’s idea and channel it toward something that is in fitting with the org’s direction. A bad one will find him/herself chasing pipe dream after pipe dream of board members, meanwhile not serving the mission they are supposed to be serving.
I agree with Crystal. I usually value this blog and Jeff and Richard’s advice, but this post seemed reactionary to me. Listening, as the CEO did, but then determining what course to follow based on her own experience seems like responsible management to me. There must be more to the story.
I have known arrogant CEOs who cannot seem to ask for advice, much less heed it, and I do often coach those above me in the organization to find some area of expertise that a particular donor has that our nonprofit can learn from. Nonprofits have many differences from the for-profit sector where many of our donors made their money, and that can make following their advice hard. Most non-profits I know well do have an earned income component to their revenue, and I have found that is one way to channel donors’ expertise to our benefit. But I have spent a fair amount of time chasing wasteful or irrelevant donor ideas over the years, because we have a hard time saying “no” to them…that’s the other side of the same coin.
Very good point, Crystal. And I should have included it in my post. There are many times that a leader needs to take counsel, from a number of sources, weigh that counsel then chart the course that is best for the organization. I agree that that is what a good leader does. In my experience, though – especially the recent experience that I talk about in the post, these two leaders had already made up their mind BEFORE they asked for the advice. And the whole discourse with the board members and business advisors after that was a sham. Jeff and I have seen this happen too often.
But your point brings balance to the advice I was giving which when re-stated is this: Good leaders will take advice and, to use your words, channel that advice towards fulfilling the mission of the organization. They will also guard against ignoring good counsel and opting instead for personal preference. Lastly, good leaders will embrace the fact that more and more donors, who are very good leaders themselves, will want to sit at the management table.
Thanks for writing.
Jill and Peter – thanks for your input. You saw my response to Crystal. Adding to that….
Jill, to be fair, I was reacting to the two instances cited in the post since, in those situations, the leader handling was not done right. It also reminded me that this kind of thing happens too often which is why I wrote about it. But my main reason for writing on this topic was to emphasize the point that donors, more and more, want to be involved and we need to allow more of them to sit at the table. I could have done a better job of framing that point.
I do agree, and I have experienced, the situation you and Crystal talk about, where a donor throws out cute ideas that are not practical and the leader must carefully wade through that – or a board member uses his/her authority to push an initiative that does not align to the organization’s plans. The leader, rightfully so, must navigate those waters carefully.
Peter, to your question on how to handle this without causing offense. My rule and suggestion is to always speak honestly. So if the idea does not align then to carefully but honestly take the time to help the donor or board member understand your rationale. I think taking the time to explain shows that you have interacted with the idea and that is honoring. Often, though, a crazy idea is introduced and then dismissed in a nano second. It is HOW you handle it that makes the difference more so than if you take the idea or not.
Great discussion. Thanks for talking back.