Back in the day of Rockefellar and Carnegie and others, we saw a real shift in the way donors began to think about giving back and making an impact. Charity had long been top of mind for anyone who wanted to help others, a cause, etc. Charity was/is easy, it meets an immediate need and does not always have to have a long, thought out process behind finding a solution to a problem. Charity is necessary and we always see a pendulum swing back toward this style of giving when the economy begins to slide.
Well, when Rockefellar and Carnegie (and others, there were definitely others, but for the sake of this post, let's keep it simple) came along with their mega bucks and powerful leverage in the world, they started a movement to something referred to as scientific philanthropy. They wanted to create long term and ongoing solutions to problems. This is not meant to be a history lesson, so I'm going to stop there with the background info, but there is a reason I bring it up. I feel that we are once again in a new era of philanthropy.
We have new power leaders in town (Gates, Buffett, Oprah, etc) and these folks are getting really tired of stroking a check without it being an investment that is going to work, create a major impact and it is going to be a VERY long term solution that will keep giving back. I, for one, am in love with this notion. Others, I think, are scared of it. What does this mean for us? Many leaders in the NPO world think it means nothing for them. They aren't going to change, their models are still going to work, they will still raise money.
This isn't totally incorrect. I have no doubt their models will still work for
some and they will still raise money, but things will change - with or without them. See, it isn't just the big power gurus who are beginning to think this way. The entrepreneurs that you so desperately want on your board... they think that way too. Many donors are getting tired of you asking them time and again to give you millions of dollars. What did you do with the last round? Why are you not changing your model to make the funds you raised an
investment rather than a gift?
Ok, Tucker, what are you talking about really? Let me give you an example that was related to me... and I think it makes the point. The local University wants to build a new music studio and library that teaches many languages, has a recording studio, etc... you get the picture. In order to make it happen in the best possible way, they will need to "raise" $10M from the greater community. You have two options, you can either do it the traditional way and go get a $3M gift and a $1.5M gift, a couple of $750,000 gifts and then move to the $500K level and so on. OR you can decide, let's look at this project a bit differently. You begin to ask, what would it take to generate revenue from the community for this facility in exchange for it being open to them? If you could answer that question and approach an
investor/donor with the invitation to invest in this project, knowing that in 10 years, that $10M would be earned in revenue, then be
reinvested... meaning that the original investment of $10M would continue to be reinvested... what else could you build, install, make happen?
So my question is why are we NOT thinking this way? What would it take to make us start thinking this way and asking these questions?
Because whether or not we, as nonprofit professionals, are ready to change in the face of this new philanthropy, our donors are there... I suggest we jump on this train and soon!