Richard and I travel around the country constantly, talking to executives and front-line folks working in non-profits and major gift programs. We have become absolutely convinced that, unless non-profits radically change their approach with donors and adopt a true culture of philanthropy, they will never thrive – or most likely not survive – over the next 10 years.
We define a culture of philanthropy like this: From your CEO down to the janitor, your non-profit embraces your donors as central to your mission, as central as your organization’s programs to change the world.
This is a radical statement. This is not, “hey, everyone needs to be donor-centric and make major donors important in your organization.” That is nice, but it doesn’t go far enough. Elevating your major donors to the same status as your organization’s programs takes this to a whole different level.
We believe it has to be brought up to this higher place in order for non-profits to thrive in the coming decades, or they should be worried about their own extinction.
This is why I’m making this topic a six-part series: this is serious stuff. There are six steps that will help you create this culture of philanthropy that your organization needs.
Richard and I have been researching and listening over the last several years. To show you WHY you need to adopt this radical culture of philanthropy, here is what is happening to both non-profits and people just like you who are major gift officers, Development Directors and Executive Directors.
Let’s start with your organization:
- Donor retention overall has decreased from 50% to 39% over the last 10 years; this equates to millions of dollars lost in major gift caseloads.
- Only 23% of new donors are being retained.
- For every 100 donors gained, 105 donors are lost.
- There is more competition everyday in the non-profit marketplace.
- The percentage of gross income donated has been hovering around 2% over the last few decades. People are not giving more of their salary to charity.
- There is more and more pressure from donors to report on IMPACT.
- The watchdogs are focused on how much overhead you have.
This is a lot tough news here for any non-profit. What about you personally? Here is what we are hearing from you:
- You’re expected to raise more revenue from your caseloads, with no increase in budget.
- There is interdepartmental conflict, usually between development, finance and program.
- Lack of executive and management support.
- You’re forced to focus only on financial goals.
- You’ve lost sight of the mission.
- You’ve lost sight of the donor.
- You’re stressed out and want to get out.
- You’re leaving every 2.3 years.
Yikes! This is NOT good. It can’t continue. This is why developing a radical culture of philanthropy will not only ensure that your donors will be engaged with you, but YOU too will be re-energized and filled with passion once again.
Here’s Step One to creating this radical culture of philanthropy.
Getting Your Head and Heart Right
I have to start here. You see, if you don’t have your head and heart right, you will never be able to participate fully in developing a culture of philanthropy within your organization. Passion, strength and determination is required.
So I’m going to ask you a few questions. If you can’t answer “yes” to every one of these, you have some serious thinking to do. Here you go:
- Do you want to do this work? If you don’t love fundraising, then you shouldn’t be in this business. Now, I didn’t say “do you love your organization?” I said, do you love fundraising? This is incredibly important to answer honestly. Richard and I have worked with way too many good people who should not be in this profession. If donors are your mission, then you have to love it.
- Are you passionate about changing the world? This has to be inherent in you. Do you want to make a difference?
- Are you passionate about the mission of the organization? If you are not passionate about your mission, then you need to find a mission that you are passionate about. There is nothing worse than someone working at a non-profit who doesn’t believe in the mission. It’s toxic.
- Do you get excited to ask people to give away their money? As someone working in major gifts, asking has to be second nature to you.
- Do you feel that helping people give away their money is one the greatest things you can do for that person? Both of these questions are really about how you view the donor. I’ve known too many development professionals who can’t ask because they are afraid they will offend the donor by asking for money.
- Do you believe you can make change happen? This is huge. Each of us in our own way is empowered to make changes. If you don’t see that, then you cannot be an advocate for creating a culture of philanthropy in your organization. It just won’t work. You can make a difference. We have seen first-year development folks just out of college change multi-million dollar non-profits — because they thought they could.
If you answered “YES” to all six of these, then you’re ready to work on the other five steps. Stay tuned.
Jeff
Series details:
- Getting Your Head and Heart Right
- Donors are your Mission
- Leadership Must Be On Board
- Telling Your Story
- Get Everyone Involved
- Expressing the Need
Also, see our free White Paper: Building a Culture of Philanthropy
Jeff,
I agree with you 100%. All 6 of these questions are critical to the success of a fundraiser and the organization where they are working. I look forward to the following articles. Gail