young donors

Does “philanthropy” need a re-brand? The question is one that keeps rearing its head, and earlier this week while participating in a conversation hosted by the One Percent Foundation, it really got me thinking.  My instinctive reaction was to say “of course it does” Philanthropy is a stodgy term that needs to be rebranded kind of like civic engagement needs a good facelift – it just doesn’t seem to resonate with the rising generation of do-gooders. At the Case Foundation we often talk about how the present and the future of philanthropy is not a bunch of rich people writing checks, but it’s in the power of the five-dollar donor, just as much as it is the fifty-thousand dollar donor.

After all, the power of micro-donations is making each of us philanthropists -- and indvidual donors typically account for three fourths of charitable giving each year. Yet, still very few of us consider ourselves to be such – we don’t like that word or we don’t think it applies to what we’re doing. If you want to make philanthropy something that engages the next generation (or as Rosetta Thurman challenges, the NOW Generation) while we’re still young, then philanthropy must be relevant to the way we live our lives. When you think about it, a philanthropist is simply someone who cares about a cause, and uses what they have to help. And now there are more ways than ever for people to exercise this power – be it texting, tweeting, or even embedding it into every day acts like buying products.

I just came across an interview that Sean Stannard Stockton of Tactical Philanthropy did for McKinsey’s new Learning For Social Impact Series.  Sean suggested (and I paraphrase) that in 1982 only 6% of people in the United States owned stock.  Two decades later more than 50% of us do –and the same thing could very much hold true for philanthropy. Its becoming main stream, and if the culture of investing which has taken hold in the United States can take hold in philanthropy and become an everyday habit, then you’ll find more nonprofessionals becoming engaged in philanthropy.  Sean’s broader point is that we need to put in place greater social impact assessments, and I certainly agree – but do we also need to bring the word philanthropy into the 21st century? Something to show we're not talking about our parents style of philanthropy (more significant dollars but later in life).

Ironically, just a few short years ago the world was inundated with philanthropic advisers – people tasked with helping the rich give away their money.  When the recession hit suddenly philanthropic advisers were hit with a branding problem and according to Robert Frank in a recent Wall Street Journal post, “some philanthropy advisers started rebranding themselves as “generosity coaches,” making the whole business seem more a matter of good morals than big money.”

No matter what we call it - giving, generosity, philanthropy or something completely different -- it seems there is a gap in the communications efforts by nonprofits which causes a good portion of people who have the ability to give regularly, to give only during crisis situations.

So, what you do you think? Is philanthropy positioned in people’s minds as something that everyone can be part of, or just the elite?

Today’s guest blogger, Derrick Feldman, is CEO of Achieve where he provides guidance to organizations to help them develop new fundraising strategies. Today, Derrick continues the conversation we began last week on the importance of engaging younger donors and why fundraising isn’t just about raising money.

A personal connection to the mission

Typically, young donors are involved in organizations related to causes or issues by which they or someone close to them have been personally affected. If a woman fights cancer, she might enlist in a cancer-related organization. If a man loves to read, he might volunteer to battle illiteracy. If a young family has overcome poverty, they might volunteer at a food bank. Once connected to an organization, these people want to help shape the direction or have the opportunity to directly assist someone served by the organization.

Also don’t assume that, once you’ve made your connections, you can stop there. You must – as you would with any donor – continue to develop the relationship. Cultivate and visit with young donors to show how you admire their passion and how they can affect the work of the organization. Give them opportunities to rub shoulders with more veteran donors and community leaders. Listen to their ideas and make them feel connected to the mission. Offer them private meet-and-greets with board members before board activities, invite them to work with staff to shape a strategic plan, etc.