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Transformational Philanthropy

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101 a Dietlin presentation

  1. 2. Transformational Philanthropy Strengthening Fundraising Programs: Finding Prospects, Securing Major Gifts And All The Stuff In Between Lisa M. Dietlin Thursday, June 24, 2010
  2. 3. History of Philanthropy <ul><ul><li>Philanthropy exists in all cultures </li></ul></ul><ul><ul><li>US is the most formalized </li></ul></ul><ul><ul><li>Americans are the most generous individuals in the world </li></ul></ul><ul><ul><li>More and more nonprofit organizations are being created </li></ul></ul>
  3. 4. Overview of Philanthropic World <ul><ul><li>Competition for resources is intense </li></ul></ul><ul><ul><li>Most nonprofit organizations focus on government funding or funding from corporations and foundations </li></ul></ul><ul><ul><li>Very few have robust individual giving programs </li></ul></ul>
  4. 5. 2009 charitable giving Total = $303.75 billion* * = According to Giving USA, dollar amounts listed in billions Corporations $14.10 4% Foundations $38.44 13% Bequests $23.80 8% Individuals $227.41 75%
  5. 6. Recipient Type for 2009 $303.75 billion* * = According to Giving USA, dollar amounts listed in billions <ul><ul><li>Religion: $100.95 (33%) </li></ul></ul><ul><ul><li>Education: $40.01 (13%) </li></ul></ul><ul><ul><li>Gifts to grantmaking foundations: $31 (10%) </li></ul></ul><ul><ul><li>Human services: $27.08 (9%) </li></ul></ul><ul><ul><li>Public-society benefit: $22.77 (8%) </li></ul></ul><ul><ul><li>Health: $22.46 (7%) </li></ul></ul><ul><ul><li>Arts, culture and humanities: $12.34 (4%) </li></ul></ul><ul><ul><li>International affairs: $8.89 (3%) </li></ul></ul><ul><ul><li>Environment and animals: $6.15 (2%) </li></ul></ul><ul><ul><li>Foundation grants to individuals: $3.51 (1%) </li></ul></ul><ul><ul><li>Unallocated giving: $28.59 (10%) </li></ul></ul>
  6. 7. Transformational Philanthropy <ul><ul><li>Transformational v. Transactional </li></ul></ul><ul><ul><li>Philanthropy that changes the donor and/or the recipient </li></ul></ul>
  7. 8. Potential New Donor Prospects <ul><ul><li>Individuals are the key! </li></ul></ul><ul><ul><ul><li>Entrepreneurs </li></ul></ul></ul><ul><ul><ul><li>Women </li></ul></ul></ul><ul><ul><ul><li>Gay and Lesbian Individuals </li></ul></ul></ul><ul><ul><ul><li>Minority Communities </li></ul></ul></ul><ul><ul><ul><li>Baby Boomers </li></ul></ul></ul>
  8. 9. Basis of the Book <ul><ul><li>Several years studying and working with entrepreneurs formally and informally </li></ul></ul><ul><ul><li>Most fun in working with entrepreneurs </li></ul></ul><ul><ul><li>Entrepreneurs make transformational gifts resulting in transformational philanthropy occurring </li></ul></ul>
  9. 10. Philanthropy v. Charity <ul><ul><li>Philanthropy more long term and sustainable </li></ul></ul><ul><ul><li>Charity usually involves an immediate need </li></ul></ul>
  10. 11. Qualities <ul><ul><li>Intuition </li></ul></ul><ul><ul><li>Will </li></ul></ul><ul><ul><li>Joy </li></ul></ul><ul><ul><li>Compassion </li></ul></ul><ul><ul><li>Strength </li></ul></ul><ul><ul><li>Courage, adventure, risk…..and a pioneering spirit </li></ul></ul>
  11. 12. Who is an entrepreneur? <ul><ul><li>en·tre·pre·neur –noun Entrepreneur, translated from its French roots, means &quot;one who undertakes.&quot; </li></ul></ul><ul><ul><li>The term entrepreneur is used to refer to anyone who undertakes the organization and management of an enterprise involving independence and risk as well as the opportunity for profit. </li></ul></ul><ul><ul><li>SBA definition of a small business is one that has less than 500 employees </li></ul></ul>
  12. 13. Factors Affecting Philanthropy <ul><ul><li>Entrepreneurs are problem solvers </li></ul></ul><ul><ul><li>Facts and Figures Needed </li></ul></ul><ul><ul><ul><li>What is the project? </li></ul></ul></ul><ul><ul><ul><li>Who will be affected (in other words, who will it help)? </li></ul></ul></ul><ul><ul><ul><li>How long will it take to implement? </li></ul></ul></ul><ul><ul><ul><li>How much will it cost to achieve the results you are seeking? </li></ul></ul></ul><ul><ul><ul><li>When will results be achieved? </li></ul></ul></ul><ul><ul><ul><li>How long before the project is funded/issue is resolved/problem is solved? </li></ul></ul></ul><ul><ul><ul><li>When will it (i.e., the program, project, etc.) be sustainable? </li></ul></ul></ul>
  13. 14. Common Misconceptions & Frustrations of Entrepreneurs <ul><ul><li>What happens when they get involved; why doesn’t it go as they think it will? </li></ul></ul><ul><ul><li>If they support a nonprofit organization, all their friends and colleagues will, too! </li></ul></ul><ul><ul><li>Understanding the Long Decision Making Time is the Norm for Nonprofit Organizations </li></ul></ul><ul><ul><li>Realizing the timeframe for things to be implemented and/or executed </li></ul></ul><ul><ul><li>Why don’t nonprofit organizations operate like businesses? </li></ul></ul><ul><ul><li>Why aren’t nonprofit organizations quick to respond to market conditions? Why don’t they seize the opportunities? </li></ul></ul>
  14. 15. Trends or Commonalities <ul><ul><li>Entrepreneurs see a difference between charity and philanthropy </li></ul></ul><ul><ul><li>Most wished they had become involved earlier in their philanthropic and charitable endeavors </li></ul></ul><ul><ul><li>They are becoming more strategic </li></ul></ul><ul><ul><li>Most see a positive impact on their business when they become more charitable </li></ul></ul><ul><ul><li>Most do not come from “philanthropic” families but saw their parents giving back primarily through food </li></ul></ul>
  15. 16. Women as Donor Prospects <ul><ul><li>Women live longer than men </li></ul></ul><ul><ul><li>Inherit the wealth in the country </li></ul></ul><ul><ul><li>Rarely are they approached </li></ul></ul><ul><ul><li>Want to give to “new” projects or initiatives </li></ul></ul><ul><ul><li>They are risk takers </li></ul></ul>
  16. 17. Gay and Lesbians as Donor Prospects <ul><ul><li>Usually are dual income </li></ul></ul><ul><ul><li>Usually have no children </li></ul></ul><ul><ul><li>Very well educated </li></ul></ul><ul><ul><li>Committed to improving their communities </li></ul></ul>
  17. 18. Minority Communities as Donor Prospects <ul><ul><li>African Americans as donor prospects </li></ul></ul><ul><ul><ul><li>Uniqueness and ways to approach </li></ul></ul></ul><ul><ul><li>Hispanics as donor prospects </li></ul></ul><ul><ul><ul><li>Uniqueness and ways to approach </li></ul></ul></ul><ul><ul><li>Asian Pacific Islanders as donor prospects </li></ul></ul><ul><ul><ul><li>Uniqueness and ways to approach </li></ul></ul></ul>
  18. 19. Baby Boomers as Donor Prospects <ul><ul><li>10,000 turning 60 every day </li></ul></ul><ul><ul><li>Encore careers </li></ul></ul><ul><ul><li>Want to make a difference </li></ul></ul>
  19. 21. Moves Management <ul><ul><li>Identification </li></ul></ul><ul><ul><li>Qualification </li></ul></ul><ul><ul><li>Cultivation </li></ul></ul><ul><ul><li>Solicitation </li></ul></ul><ul><ul><li>Stewardship </li></ul></ul>
  20. 22. Moves Management Cycle Entire Process Takes on Average: 18 months Identification Qualification Cultivation Solicitation (Ask) Stewardship
  21. 23. Skills of a Major Gifts Fundraiser <ul><ul><li>Must be a good listener </li></ul></ul><ul><ul><li>Must be a quick study </li></ul></ul><ul><ul><li>Must be multi-faceted and able to multi-task </li></ul></ul><ul><ul><li>Must know who is leading and who is following? </li></ul></ul>
  22. 24. Praise Pride Ask How to Ask
  23. 25. What’s the Difference? <ul><li>Volunteers, Donors and Board Members </li></ul><ul><ul><ul><li>Volunteers give their time </li></ul></ul></ul><ul><ul><ul><li>Donors give their money </li></ul></ul></ul><ul><ul><ul><li>Board members give both </li></ul></ul></ul>
  24. 26. Capacity Building and Sustainability <ul><ul><li>Critical to success </li></ul></ul><ul><ul><li>Long Term Strategy </li></ul></ul><ul><ul><li>Financial Stability </li></ul></ul><ul><ul><li>Growth Opportunities </li></ul></ul>
  25. 27. Get Ready…. <ul><ul><li>Board </li></ul></ul><ul><ul><li>Current Donors </li></ul></ul><ul><ul><li>Volunteers </li></ul></ul>
  26. 28. Get Set….. <ul><ul><li>Three Things a Day </li></ul></ul><ul><ul><li>Personal correspondence </li></ul></ul><ul><ul><li>8-12 Meetings Per Month </li></ul></ul>
  27. 29. Go…. <ul><ul><li>Major Gifts Program </li></ul></ul><ul><ul><li>Planned Giving Program </li></ul></ul><ul><ul><li>Marketing and PR Efforts </li></ul></ul>
  28. 30. Questions Lisa M. Dietlin President/CEO Lisa M. Dietlin and Associates, Inc. PO Box 7029 Chicago, IL 60680-7029 773-772-4465 [email_address] www.lmdietlin.com