by Charles Ostertag
This spring, at the Chinese Historical Society of America, Kay S. Grace of Transforming Philanthropy, LLC suggested the tapping of what is abundant, yet not readily apparent, is a potent fundraising and organizational strategy for local Chinatown nonprofits here in San Francisco. Within the recent economic turbulence, many smaller Chinatown nonprofit organizations offering essential services to the elderly, newly arrived, unemployed and/or ailing are now finding it more difficult to provide for those in need. While times are indeed dire and pressure-filled, with the appropriate attitude and perception, these stresses and strains can serve as valuable moments of reflection, reorientation, and reorganization for nonprofit entities, thereby strengthening an organization for the better. As I delineate my interpretations of the various shades of Grace’s presentation, it is my hope that all nonprofits and the communities they serve can benefit from these words:
Thankfully, there are constants. Even in difficult economic times, interests and passions rarely feel the gravity of money. Whether donors possess five dollars or one million, they still want to effect change and assist the causes and people they care about. Similarly, as a nonprofit faces the realties of downsizing, being acquired or merging, the fundamental interest and drive remains to provide the best level of service to beneficiaries that can be achieved with available funds. Going beyond simple solicitation of funds and donations to taking the care to sew, foster and form relationships (indeed, friendships) based on mutual philanthropic interests can be the deciding factor in the lifespan of an organization.
There is no better way to form these relationships than to communicate the values and impact of one’s organization. This is true for initial contacts, project-specific giving, and life-long investments. Both first-time donors and continued givers want to know that an organization’s core mission and values remain intact, especially when funds become tight and complementary services are being reduced. Further, everyone knows anyone needs money—and nonprofits are no exception. What donors really want to know, as opposed to monetary need (and what any one of us would want to know when putting our faith into an organization), is how this monetary, emotional and spiritual investment will translate into bringing about positive, meaningful and measurable change for the cared cause. Ms. Grace propounded a startling statistic from a Bank of America Trust study: in 2007, almost 38% of high net worth donors in the U.S. stopped supporting organizations they had previously supported. Of these donors, 57% said the primary reason they had ceased giving was because they no longer felt personally connected to the organization. In the current economic milieu, nonprofits must convey their values and impact to donors through a dialogue and stewardships that kindles, sustains are expands on the original interest and investment.
While the study mentioned above focused on high net worth donors, the reality is that donors dwell in and originate from all levels of society and economic backgrounds. Nonprofit organizations are continually surprised when thousands of dollars are generated for causes by high school students, social clubs, community centers or social entrepreneurs within their place of employment. One of the more difficult activities for a nonprofit to perform (especially a nonprofit that has limited staff and is struggling to reach beneficiaries, and complete day-to-day operations) is to take the time to entertain prospective individuals or organizations that seem to fit outside the traditional, preconceived profile of a donor. In many instances, these untraditional donors have access to funds outside of the nonprofit’s normal reach. Most importantly, when these offers are brushed aside, a gleaming chance to form a lasting relationship with other social entrepreneurs in one’s field of interest is lost. This hurts all parties involved—including people receiving services under the nonprofit’s umbrella, and potential beneficiaries that could have received services, if only these networks were forged. Above all, a nonprofit organization seeking to establish a solid foundation upon which to conduct philanthropy cannot shun these giving partners.
One organizational problem that frequently hampers the ability of nonprofits to conduct services, meet new challenges and grow is that of top-down, hierarchical management. Grace urged the need for “dispersed leadership,” a concept outlined by one of Grace’s mentors, the late John W. Gardner. Each member of a nonprofit team (interns and volunteers included) should be extended the ability and opportunity to fully express their ideas, develop projects and given the responsibility, trust and encouragement to carry these projects to fruition. Of course, this is all done within the bounds of responsibility and respect. CEOs and senior staff in this model become mentors, facilitators and guidance-givers to their team (along with performing their traditional tasks as CEOs and senior staff). Latent talent should never be kept as such and here exists the vitality that can make the difference in an organization. This is also the key to retaining new, young and eager entrants within the nonprofit field and within a particular organization. Young minds and new employees want to be challenged, respected and given the chance to display and develop their skills. By extending these individuals the leadership roles and opportunities to do so, the nonprofit organization that practices a model of dispersed leadership becomes energized, flexible and poised to meet new challenges.
All too often and all too unfortunately, individuals and organizations become solidified and mired in a certain way of thinking—a method of conduct that knows no change or malleability. Perhaps it is alright to fear change, but it is not permissible to succumb to it. Grace’s presentation urged that now, more than ever, is the time to alter one’s perceptions and preconceived notions: to discover and guide the permeating abundance that abounds; to promulgate one’s mission, values and affect; and to develop and trust the talent and leadership that exists within all levels of an organization. To put it another way, Grace offered this quote from Marcel Proust: “The real voyage of discovery lies not in seeking new landscapes, but in having new eyes.” The beneficiaries and communities a nonprofit serves depend on this.
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