Successful Philanthropy - Steve Mourning

It is always worth reading the words of great people This is a tribute to Steve and his view of Philanthropy who was a great friend to Australian Fundraisers. 'Fletch'

I am finding, more and more, that the real test of executive leadership for those engaged in healthcare philanthropy is not so much how much money is being raised as it is how volunteer leadership responds to your efforts to focus them on the most productive and effective strategic issues and resolution.  For instance, in your question, it is clear that your leaders recognize a need for distinctiveness, but don’t recognize that the solution is sitting in each of their chairs.

In my experience, it has become clear to me – at least – that there are only four significant elements in successful philanthropy, healthcare-related or otherwise. 

One – and the one most people believe is singularly important – is your Case for Giving and the way it is perceived in your community relative to the customs and practices of philanthropy, there.  Is it relatively compelling and urgent?  Relative; that is, to the cases offered by other organizations that compete for the support of your donors and possible donors?  Does it focus on imperatives that are expressed from donors’ point of view or as needs of the healthcare organization?  Does it speak to the needs of your community and its well-being or does it – in reality – position gifts as important assets in your organization being able to compete with the hospital down the road?  These are important issues to resolve because the right answers can and will give you some distinctiveness in your donor market’s eyes and hearts.

The Second crucial element is the resources you invest in your development program, in general, and in creating and nurturing philanthropic relationships with donors of substantial giving capacity, specifically.  One way to think of your development program is as a “retirement account for the Hospital” . . . just as you want your retirement account to be a source of support for you when you’re enjoying bingo at the senior center, one important goal for healthcare foundations is to be a source of capital and other support for your healthcare institution in the future.  It’s crucial to invest in a solid and supportive infrastructure that creates an environment for success, excellent staff resources, and donor-centered programs and materials, to secure long-term philanthropic support.

The Third element is your probable donors . . . we used to call them prospects but guess what?  Most people don’t like being called prospects for anything.  Sounds like you’ve got them in some kind of targeting process.  You may be doing just that, but it’s just better not to talk about some things in polite company.  Add “prospect” to politics and religion as something to be avoided.  For this purpose, it is crucial that you have probable donors (people who have the ability to make large gifts, motivation to give that’s extant or achievable, and an opportunity to develop a relationship and ask) adequate to your resource development goals, downstream, or the money won’t be there.  Because of the nature of healthcare and the distinctive arena of major gifts and those who make them, healthcare philanthropy is generally a “low volume, high average gift” fund raising process.  Any attempt to deny that or to achieve remarkable success using a “high volume, low average gift” is probably doomed to failure, out of the blocks.  The short of it is:  you have to find those who can make big gifts and already love you, or who will fall in love with you, and let them express that affection – actually, it’s commitment – to you in the form of philanthropy.

The Fourth element and the one that distinguishes your organization the most is leadership.  Your case doesn’t distinguish you in most people’s minds as much as anyone “inside the tent” wants simply because it’s a very competitive environment and most people out there (Russ Prince says it’s about 91% of those in your donor market) simply care a lot more about what they need and want rather than what your organization needs and wants.  I like to think of the case as your ticket to the philanthropic dance.  Those who dance well once they gain admission, well, they’re the organizations that will succeed.  Hospitals and Foundations don’t dance.  Annual Giving or Major Gifts programs don’t dance.  People dance.  People talk.  Smart people listen.  If your leadership – and you’re part of that – builds strong, donor-centered philanthropic relationships with a coterie of solid probable donors, you will have achieved a level of distinctiveness that is unassailable.  “Innovative” names for your foundation or fund raising programs may make your leaders feel good, but they will do little to encourage the philanthropic support you seek.  “New” names for your special events or a radical departure from generally accepted annual giving processes may warm you like the sun for a while, but both will have only momentary effects.  Logos only mean much to those who design them and see them very often, as your leaders do.

What really matters is the quality and number of philanthropic relationships those leaders build with qualified probable donors, using your case for giving and the resources your organization invests ahead of the charitable gift revenue curve.  I believe the job of the development professional is to create and facilitate the processes of bring probable donors and leaders together in productive interactions.  That’s what brings home the gifts that make you successful and gives communities the opportunity to experience high quality healthcare.  Distinguish yourself where it matters – in people’s hearts and minds – because they have developed a commitment to your mission.  Changing things at the edges won’t help, but going to the core and making it effective will deliver the goods, every time. 

Steven L. Mourning, FAHP (2005)