The Magic Donor Myth
The New York Times published an article this week about the Gilmanton New Hampshire Year-Round Library Association and their efforts to raise money for operating costs. Led by dedicated and committed volunteers, a facility has been built by moving and refurbishing an 18th century barn, but no funds are in hand to open the doors. The article reports that they are “looking for someone who will provide at least $1 million for a private endowment” to support the ongoing operating costs. Wouldn’t every nonprofit like to “find” someone who will donate $1 million! This is a case for Mythbusters - Nonprofit Finance Edition.
There are no magic donors. In the article, one of the volunteers hopes that “Maybe someone out there has had a dear loved one that’s passed away, or a child or parent they’ve given everything possible to, and this would be a special new gift.” I don’t mean to pick on the volunteers for their effort. And I certainly love the picture of the barn/library, having grown up in New England with a lot of time spent in a picturesque, cozy library. I hear that kind of wishful thinking elsewhere, though, and am concerned that the myth of the elusive, secret donor is dangerous. Hoping and waiting for One Big Gift that solves everything might just be an excuse not to do the hard work of fundraising. Now, as always, fundraising involves identifying those who care about the cause, building relationships, making the case, and demonstrating responsibility - step by step. I recommend this recent blog post from PhilanTopic that smartly translates the core principles of donor cultivation and planning into useful advice for today.
If you’re like me, you’re reading a lot of reports, surveys, and advice right now looking for useful data and direction. To help you cull through this material, Nonprofit Assistance Fund has launched a new blog, Nonprofit Harvest. Our goal is not to post every available resource, but to consistently provide useful content that will help nonprofits. I encourage you to read the blog, share resources you have found helpful, and offer your own suggestions for how nonprofits can navigate this challenging economy.
You are so right, Kate. The nursery rhyme from the 1600s goes:
“If wishes were horses then beggars would ride,
If turnips were swords I’d have one by my side.
If ‘ifs’ and hands were pots and pans
There would be no need for tinkers hands!”
Now is NOT the time to be hoping or wishing. Sharpen your case for support to more clearly point to the value for your clients and the community. Keep your donors close to your mission. Remind everyone of the benefits afforded to others through their giving. Hard work will be rewarded….wishing seldom is!
Reid
Comment by Reid Zimmerman — November 21, 2008 @ 3:24 pm
Good post Kate, thanks! As someone who reviews grants, I’m afraid that sustainability plans are often not much different than wishing for the “Magic Donor.” Many nonprofits can say little more than “we’ll get a grant.” I wish they realized that hearing the truth (”we haven’t figured it out yet” or better yet “here is our plan to diversity our donor base”)is better than hearing the “Magic Donor” myth…even if they really, really believe it.
Comment by Suzy — November 24, 2008 @ 11:33 am
Yes, that’s a great perspective. I think that the idea of being really honest about the unknown, especially when communicating with a funder, is very uncomfortable. It’s always good to hear that foundations appreciate that kind of honesty.
Comment by Kate Barr — November 25, 2008 @ 10:30 am
It seems like “magic donors” are going to be more likely to help people who prove that they’re capable of helping themselves. It gives them confidence that their generous gifts will be well managed.
Comment by Ed Kohler — November 29, 2008 @ 1:20 pm
We’ve actually found an innovative way to raise funds, our organization helps those in need during the holidays with a digital storefront that donors can easily use to give. Just go to reasontogive.com and you can literally choose what to give. We use sustainable products too.
Abs
Comment by abs — December 11, 2008 @ 1:19 pm