Prioritizing Money Builds Fake Donor Relationships

Fake Donor Relationships
The relationship costs too much money, so I will save money and not pursue it.

And the result of that decision is disastrous.

Relationships take time. You know that. Your boss knows it. But we ignore time because that is how we have set up things. There is a budget to manage. A forecast to make.

So, we go for the fake relationship. One where we pretend to care, but only if we get the money. We do that — not because we believe it’s the right thing to do but — because we can’t see any other way to deliver on expectations.

And that is the dilemma in major gifts. The push is for instant gratification.

We are dealing with a situation right now where the authority figure does not value relationships. She says she does. She even claims to have a value set that cherishes relationships. But the money is the real value. And the need to grab it is the central drive. So, she is pushing on her major gift officers (MGOs) to get the money and is even threatening to do away with the major gifts program because it is not delivering.

But when we uncover what “not delivering” means in her view, it is not that each MGO is not producing revenue from the same donors over and above last year. Nope. It is that each isn’t producing enough revenue quickly enough.

The real story in this organization is that some of the other fundraising programs are not performing, and major gifts needs to be the scapegoat. It’s all about the money.

This is so sad because these are good people — all of them, including the authority figure. It is sad because the plan to move major gifts into real relationships is facing failure. And that bothers Jeff and me — not because it’s our plan for the organization. No, it bothers us because there are good MGOs and good donors who must revert back to a fake relationship. And that is not good.

One of our major objectives is to influence fundraisers and nonprofit leaders to highly value and respect donors. When we succeed at that, and we do, more often than not, it brings donors, MGOs and leaders a tremendous amount of joy and satisfaction. And, it brings the money. You should see the celebration!

But when money is valued over relationship, it is a dark and depressing time for us. That is why the situation I described earlier is so disturbing. It’s not that we are going to lose something. No, that is not it. It’s that some very good MGOs and some very good donors will be forced to live in superficiality and shallowness. And that is not good for anyone. And it certainly is not good for the economic well-being of the nonprofit.

Make a commitment today to real relationships with your donors. And if your organization does not support that, try to influence it to change. If the organization will not change, move on. You have a choice.

Spotlight

Nonprofit Leadership Alliance

Since 1948, the Nonprofit Leadership Alliance has strengthened the social sector by developing a well-prepared and talented workforce. The Nonprofit Leadership Alliance's flagship programs, the Certified Nonprofit Professional (CNP) credential and Leaderosity, work to strengthen social-impact organizations from the inside out by providing cost-effective talent development solutions.

OTHER ARTICLES
Nonprofit Technology

Salesforce Nonprofit Cloud Spring 2020 Release: What’s New

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The coronavirus has been disruptive, to say the least. Not to pile on more bad news, but add in the risk of a recession and a spike in unemployment, at this time even the most organized nonprofit fundraising professionals are grappling with how to move forward. We don’t know when self-quarantining will be over but we do know that with the lockdown extended to the end of April (for now), nonprofits are going to have to change up their fundraising plans. Long story short, any kind of in-person fundraising (galas, breakfasts, runs/races, etc) is going to get scrapped. But, you still need to meet your fundraising needs. To navigate these uneasy times, the only solution is to embrace a comprehensive digital fundraising strategy immediately.

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Spotlight

Nonprofit Leadership Alliance

Since 1948, the Nonprofit Leadership Alliance has strengthened the social sector by developing a well-prepared and talented workforce. The Nonprofit Leadership Alliance's flagship programs, the Certified Nonprofit Professional (CNP) credential and Leaderosity, work to strengthen social-impact organizations from the inside out by providing cost-effective talent development solutions.

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PR Newswire | February 02, 2024

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TIFIN Give expands its reach as a leading technology powered philanthropy platform for wealth enterprises

PR Newswire | February 01, 2024

TIFIN, a leading AI and innovation platform, today announced its philanthropy platform TIFIN Give has acquired Giving Place, the tech solution for family office giving programs and private foundations. The newly combined company now has increased scale and resources to service families through advisors, the workplace, and family offices. The firm now helps oversee $670 million in philanthropy assets and helped facilitate $40 million in charitable donations in 2023. The donor-advised fund (DAF) space has seen rapid growth in recent years. DAF assets nearly doubled between 2018 and 2022 and stand today at ~$230 billion; total DAF assets are estimated to grow to $1 trillion by 2030. Private foundation assets reached $1.25 trillion last year. The ability of TIFIN Give to serve these charitable structures, among others, continues to unlock substantial opportunities and value for wealth enterprises and their clients. TIFIN Give's next-generation DAF platform provides a multi-custodial platform, SOC-2 security compliance, and expanded investment options including custom model portfolios. It is now deployed at leading wealth enterprises and employers through their recent partnership to power an employee DAF solution with Morgan Stanley at Work. Through the Giving Place acquisition, TIFIN Give can now address the philanthropic needs of all asset classes in the wealth enterprise space," said Cor Hoekstra, Head of Wealth Enterprise Partnerships at TIFIN. "We are excited to now reach all types of donors. The new company will be led by Giving Place's co-founder and CEO, Paul Lussow. Co-founder Alex Paul, will remain involved and serve on the TIFIN Give board. "Our focus on supporting and growing the philanthropic capabilities of wealth enterprises will accelerate through this combined company," said Lussow. "The key to solving many pain points for donors and their advisors will be powered by the integration of TIFIN Give's digital-first DAF platform with Giving Place's philanthropy software solution for family offices and private foundations," said Giving Place co-founder and TIFIN Give board member Alex Paul.

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The National Geographic Society Breaks Fundraising Record with $122.8 Million in New Commitments

PR Newswire | January 25, 2024

Today, the National Geographic Society announced its largest fundraising year in its 136-year history with $122.8 million in new commitments for 2023 the Society's third record-breaking year in a row. Contributions came from individuals, corporations and foundations to support the nonprofit's mission work, including the transformation of its Base Camp in Washington, D.C., global community of National Geographic Explorers and portfolio of impactful programs. The Society invests 100 percent of donor contributions into the organization's programmatic priorities to strengthen its mission of illuminating and protecting the wonder of our world. Donors and partners fuel the Society's ability to leverage scientific research, exploration, education and unparalleled storytelling to spark curiosity in hundreds of millions of people to learn about and care for our planet. These philanthropic investments accelerate the Society's sustainable business model and build a culture of philanthropy, key to the organization's five-year strategic plan, NG Next. This achievement underscores our community's belief in our mission and vision for the future," said CEO Jill Tiefenthaler. "The dedication of our donors is instrumental to funding the extraordinary National Geographic Explorers who are driving positive change for our planet and its people. Thank you to all those helping us support our Explorers, transform our Base Camp, and achieve our mission and global impact. Last year, the Society launched its newly formed Principal Donors Society, the highest designation for lifetime giving, which recognizes individuals, corporations and foundations who have championed the nonprofit through cumulative philanthropic support of $1 million or more for pivotal priorities and impact areas. The second annual Principal Donors Society induction ceremony and celebration will take place on February 7, 2024 in Los Angeles, California. "We are most grateful for the unprecedented generosity of our donors that this year's giving reflects, as it clearly demonstrates the growing global support of the National Geographic Society's mission to illuminate and protect the wonderful of our world," said the Society's Board Chair Jean Case. 2023 fiscal year fundraising highlights include: Secured the largest commitment in the Society's history from long-time partner, Rolex $122.8 million in overall new commitments, a 4% increase from the previous record-breaking fiscal year ($117.9M) 81 new commitments of $100,000 or above, a 16% increase over 2022 16 new commitments at $1 million or above $13.2 million raised through Annual Giving & Membership, a 13% increase over 2022 100% participation by the Board of Trustees 100% participation by the Society's Senior Leadership team Increased membership in the Hubbard Council (annual donors of $50,000 or more) by 30% Launched the Principal Donors Society in January 2023, recognizing donors of lifetime giving of $1M or more to the Society, with 65 donors; adding an additional 11 donors during 2023 "We accomplished this tremendous fundraising year thanks to our loyal, global network of industry and thought leaders who are personally dedicated to the Society's success," said Chief Advancement Officer Kara Ramirez Mullins. "It's encouraging to see real investment in, and momentum for, the Society's key priorities like the Base Camp renovation project. We have a bold vision for the future and the time to invest in the Society is now!"

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American Camp Association Receives $45.5 Million Grant from Lilly Endowment Inc. to Strengthen Character Development Programs for Young People

PR Newswire | February 02, 2024

The American Camp Association® (ACA) is honored to announce that Lilly Endowment Inc. has awarded ACA a $45,535,623 grant to support the creation of a new, multiyear initiative to grow, improve, and celebrate character development at camps across the United States. Character at Camp is an innovative initiative anchored in the belief that summer and year-round camp programs provide an unparalleled opportunity to promote the character development of young people. While camps vary greatly in their mission, size, activities, programming, and location, many are run with an intrinsic focus on youth development and character-building skills and traits. ACA's recent National Camp Impact Study demonstrated that camp experiences support social connectedness among youth and the development of skills and traits such as perseverance, responsibility, and the willingness to try new things. This study also found that these skills and traits last over time. Individuals who attended camp as children demonstrate these skills and traits throughout academic environments and well into their early careers. For more than a century, character development has been foundational to the camp experience, as each camp distinctively offers a variety of opportunities to develop important character skills and traits. Camps provide young people with experiences in less-distracting settings, often surrounded by nature, that can help support character development through social interactions with peers and counselors, time for reflection and other activities. For example, campers learn responsibility as they help set tables in the dining hall, engage in leadership when guiding groups during hikes, and practice empathy when they support fellow campers who are missing home. In today's world, the benefits of building character skills and traits such as gratitude, kindness, creativity, curiosity, perseverance, resiliency, empathy, courage, and teamwork could not be more important. The Character at Camp initiative will be conducted during the next six years. ACA will make available in-person and virtual training opportunities, educational tools, and other resources to camps to strengthen, expand, or establish character development programs at the more than 15,000 year-round and summer camps across the US. As a direct result of this new initiative, ACA will invite camp leaders to participate in educational and peer-learning opportunities, networking, training, other experiences to learn how to help develop character skills and traits at camp. ACA will work with camp professionals, youth-development experts, and others to create new educational resources, training, and assessment tools to provide camps with opportunities to engage in this important initiative. Starting in 2025, all eligible nonprofit camps will have the opportunity to apply for competitive one-, two-, or three-year grants to support their character development programs. Eligible organizations will be able to apply for funding in amounts ranging from $50,000 to up to $300,000 based on the length of the grant period. Funds may be used for staffing, training, curricula, assessment, communications, and/or outreach and partnership efforts to support camps' specific goals related to character development. The initiative will support a broad range of camps serving young people from varied backgrounds and experiences, including under-resourced and underrepresented youth, as well as provide funding for developing character-based programming that is culturally relevant and values the diverse perspectives of youth and families. "We are deeply grateful for Lilly Endowment's support of ACA and our shared commitment to support camps across the country with the funding, tools, resources, and education to expand and prioritize character development programs," said Tom Rosenberg, ACA president/CEO. "This Character at Camp initiative recognizes the diverse needs of children and youth. We know camp experiences build a world of belonging and growth, and we're excited to engage camps as they work to strengthen their character development programs." "Lilly Endowment's founders firmly believed that developing the character of young people was vital to the future of communities and our country, and they supported many efforts to understand how character is formed," said N. Clay Robbins, Lilly Endowment's chairman and CEO. "For decades, well run camps have had a positive impact on the character development of thousands of campers. We believe, with the commitment, leadership, and expertise of ACA, its Character at Camp initiative can meaningfully enhance and expand character development from a variety of perspectives and in a diverse array of young people throughout the nation."

Read More

Financial Management, Philanthropy

TIFIN Give expands its reach as a leading technology powered philanthropy platform for wealth enterprises

PR Newswire | February 01, 2024

TIFIN, a leading AI and innovation platform, today announced its philanthropy platform TIFIN Give has acquired Giving Place, the tech solution for family office giving programs and private foundations. The newly combined company now has increased scale and resources to service families through advisors, the workplace, and family offices. The firm now helps oversee $670 million in philanthropy assets and helped facilitate $40 million in charitable donations in 2023. The donor-advised fund (DAF) space has seen rapid growth in recent years. DAF assets nearly doubled between 2018 and 2022 and stand today at ~$230 billion; total DAF assets are estimated to grow to $1 trillion by 2030. Private foundation assets reached $1.25 trillion last year. The ability of TIFIN Give to serve these charitable structures, among others, continues to unlock substantial opportunities and value for wealth enterprises and their clients. TIFIN Give's next-generation DAF platform provides a multi-custodial platform, SOC-2 security compliance, and expanded investment options including custom model portfolios. It is now deployed at leading wealth enterprises and employers through their recent partnership to power an employee DAF solution with Morgan Stanley at Work. Through the Giving Place acquisition, TIFIN Give can now address the philanthropic needs of all asset classes in the wealth enterprise space," said Cor Hoekstra, Head of Wealth Enterprise Partnerships at TIFIN. "We are excited to now reach all types of donors. The new company will be led by Giving Place's co-founder and CEO, Paul Lussow. Co-founder Alex Paul, will remain involved and serve on the TIFIN Give board. "Our focus on supporting and growing the philanthropic capabilities of wealth enterprises will accelerate through this combined company," said Lussow. "The key to solving many pain points for donors and their advisors will be powered by the integration of TIFIN Give's digital-first DAF platform with Giving Place's philanthropy software solution for family offices and private foundations," said Giving Place co-founder and TIFIN Give board member Alex Paul.

Read More

Fundraising, Nonprofit Management, Philanthropy

The National Geographic Society Breaks Fundraising Record with $122.8 Million in New Commitments

PR Newswire | January 25, 2024

Today, the National Geographic Society announced its largest fundraising year in its 136-year history with $122.8 million in new commitments for 2023 the Society's third record-breaking year in a row. Contributions came from individuals, corporations and foundations to support the nonprofit's mission work, including the transformation of its Base Camp in Washington, D.C., global community of National Geographic Explorers and portfolio of impactful programs. The Society invests 100 percent of donor contributions into the organization's programmatic priorities to strengthen its mission of illuminating and protecting the wonder of our world. Donors and partners fuel the Society's ability to leverage scientific research, exploration, education and unparalleled storytelling to spark curiosity in hundreds of millions of people to learn about and care for our planet. These philanthropic investments accelerate the Society's sustainable business model and build a culture of philanthropy, key to the organization's five-year strategic plan, NG Next. This achievement underscores our community's belief in our mission and vision for the future," said CEO Jill Tiefenthaler. "The dedication of our donors is instrumental to funding the extraordinary National Geographic Explorers who are driving positive change for our planet and its people. Thank you to all those helping us support our Explorers, transform our Base Camp, and achieve our mission and global impact. Last year, the Society launched its newly formed Principal Donors Society, the highest designation for lifetime giving, which recognizes individuals, corporations and foundations who have championed the nonprofit through cumulative philanthropic support of $1 million or more for pivotal priorities and impact areas. The second annual Principal Donors Society induction ceremony and celebration will take place on February 7, 2024 in Los Angeles, California. "We are most grateful for the unprecedented generosity of our donors that this year's giving reflects, as it clearly demonstrates the growing global support of the National Geographic Society's mission to illuminate and protect the wonderful of our world," said the Society's Board Chair Jean Case. 2023 fiscal year fundraising highlights include: Secured the largest commitment in the Society's history from long-time partner, Rolex $122.8 million in overall new commitments, a 4% increase from the previous record-breaking fiscal year ($117.9M) 81 new commitments of $100,000 or above, a 16% increase over 2022 16 new commitments at $1 million or above $13.2 million raised through Annual Giving & Membership, a 13% increase over 2022 100% participation by the Board of Trustees 100% participation by the Society's Senior Leadership team Increased membership in the Hubbard Council (annual donors of $50,000 or more) by 30% Launched the Principal Donors Society in January 2023, recognizing donors of lifetime giving of $1M or more to the Society, with 65 donors; adding an additional 11 donors during 2023 "We accomplished this tremendous fundraising year thanks to our loyal, global network of industry and thought leaders who are personally dedicated to the Society's success," said Chief Advancement Officer Kara Ramirez Mullins. "It's encouraging to see real investment in, and momentum for, the Society's key priorities like the Base Camp renovation project. We have a bold vision for the future and the time to invest in the Society is now!"

Read More

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