Charitable fundraising vs. a culture of philanthropy: What is the significance for your nonprofit organization?

By Alyssa Kaelin

Let’s take a look to see how making the switch from every-day fundraising to a culture of philanthropy can help take your rural nonprofit organization to the next level.

Why do we need a culture of philanthropy?

Inspiration for this post comes from a quote found in New Directions for Philanthropic Fundraising (note: subscription required to access). In his 2004 article, titled  "Transforming philanthropy: Generativity, philanthropy, and the reflective practitioner," author James Hodge offers this quote and commentary:

"And as Viktor Frankl reminds us, ‘It is not a matter of technique per se, but rather the spirit behind the technique that is important’ (Frankl, 1984, pg. 29) Too often, development officers and consultants focus on fundraising techniques rather than on the spirit of philanthropy, particularly in the education of newcomers to our profession.  Hence, there is a need to transform ourselves and our work” (pg. 84).

What is the difference between charity, fundraising, and philanthropy?

           

In the book Nonprofit Management: Principles and Practice,  Michael J. Worth (2012) defines them as the following:

• Charity: “Giving intended to meet current individual human needs or to alleviate current human suffering” (pg.20)
• a type of organization to fit this description would be one that feeds the homeless or aids victims of a natural disaster
• e.g., The American Red Cross
• donations made to charity are often impulsive and emotionally driven as a result of a crisis or disaster
• e.g., Hurricane Sandy in 2012 or the terrorist attacks on September 11, 2001

• Fundraising: “an activity undertaken with the goal of eliciting charitable or philanthropic giving” (pg. 269)
• Worth illustrates that “fundraising is related to philanthropy as preaching is to faith” and “one is intended to inspire the other” (pg. 269)

• Philanthropy: “giving to strengthen the infrastructure of society, that is, to develop institutions that serve human needs or enhance human development over the long run” (pg. 268) 
• in Greek means “love for humanity”
• thoughtful gifts made for long-term enrichment in society
• e.g., donations to universities (alumni association) or hospitals

Key point: You don’t have to be a billionaire to be a philanthropist!

Charity giving is often thought of as being more realistic for those of us on a tight budget.  In reality, anyone can become a philanthropist if they desire to contribute towards long-term goals.

 To learn how to start your own philanthropic mission, check out this short video.

Now that we know what philanthropy is and who it is for, let’s see how philanthropy applies to nonprofits.

5 steps to forming a philanthropic culture in your nonprofit organization

Step 1.  Start by defining a philanthropic culture.

Karla Williams, author of the article “Create a philanthropic culture in your nonprofit” (pg. 6), states that “Culture is the force and the spirit that bring internal values, attitudes, and beliefs into sync, giving an organization the power to connect with external constituents and secure outside resources.”

Karla then goes on to provide a list of common characteristics for a philanthropic culture:

• “There is an interdisciplinary development team”
• “Everyone has contact with donors”
• “Donors are valued, not for their money alone, but for their input"
• “Development costs are seen as an investment”
• “A volunteer from the target group heads campaigns”
• “Donors receive funding reports, in addition to recognition and appreciation”
• “There is more than cooperation- there is true collaboration”
• “More time is allocated to keeping donors than acquiring new ones”

Karen Eber Davis also lists additional characteristics of a philanthropic culture including:

• "Income knowledge"
• "Active use of donors motivations"
• "Key messages in use"

For more characteristics from Karen Eber Davis, check out the full article “Don’t do this alone! Creating a culture of philanthropy”

Step 2.  Encourage staff members to become philanthropists themselves through giving.

In her TED Talk video, You are the future of philanthropy, Katherine Fulton describes the benefits the average person has towards collaborative philanthropy and giving not only money, but time and innovation to change the face of philanthropy in the future.

Step 3.  Think outside your organization

The spirit of philanthropy doesn’t have to stay within the walls of an organization or community- think BIG, think GLOBAL

Step 4. Help staff understand that philanthropy is everyone’s business

John Jacobs, co-founder of the Life is Good company, describes how their company is developing a culture of philanthropy.

       

Step 5.  Believe in the power of philanthropy and leaving a legacy.

James M. Hodge (pg. 89) provides key practical points in changing philanthropic fundraising:

•  “Our profession must make a transformational shift from fundraising to moral training, to believing in the noble role of philanthropy and its transformative power in peoples’ lives.”
• “Development officers must consider what master key questions help people lead well-examined lives. These are questions focused on meaning and making a difference, on leaving a legacy and how donors can be remembered for a life of giving back to the world.”

Let’s get to work. Gone are the days of emotion-driven, one-time charitable giving for your organization.  Today I encourage you to replace donor-pools with lasting relationships, obligation with understanding, and impulsive action with love and collaboration.  It will take time, but we can do it.