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by Robert Sharpe
As many readers know, 2009 marked the 70th
anniversary of the 1939 epic film “The Wizard
of Oz.” While watching the movie again recently
I was reminded of the timelessness of its message—and its surprising applicability to those who work with
donors considering large philanthropic commitments.
On the road again
On Dorothy’s journey to see the wizard, she encounters
three friends, the Scarecrow, the Tin Man, and the
Lion, each facing a particular challenge that is keeping
him from fulfilling his potential. Over the years we have
been privileged to work with many talented individuals
who face similar challenges as they pursue excellence in
their roles.
In order to help donors realize their desire to make
substantial contributions, whether given outright or
over time, it is often necessary to combine knowledge of
how best to structure gifts (the “brain”) with an understanding
of the complex mix of motivations that drive
donors (the “heart”) and a willingness to go out and
engage donors and prospective donors (the “courage”).
Achieving balance
All too often we encounter programs of all sizes and
missions in which the “brain,” the “heart,” and “courage”
are out of balance in one way or another. For instance,
some organizations excel in the technical aspects of
gift planning. Their staff members are prepared to give
donors the latest updates on pending tax legislation
that could affect charitable gift planning and are unsurpassed
in their ability to use sophisticated software to
prepare complex gift illustrations. Unfortunately, these
same organizations sometimes lack an appreciation of
the non-financial motivations for gifts, and donor relationships
and the volume of gifts completed suffer as a
result.
Often no one is out seeing donors, or the persons
who are working directly with donors do not have sufficient
knowledge to help donors and their advisors best structure their gifts. In either case, important potential
gifts are often lost.
Other organizations are highly skilled in understanding
donor motivation and have quite professional
stewardship efforts in place, but their staff is often
unable to assist donors with the mechanics of gift planning.
As a result, many donors who would like to give
but cannot see a way to do so given their personal economic
challenges never learn of the options that would
make a gift compatible with their financial situation.
Finally, in the most unfortunate cases, we see programs
in which “fearless” staff members highly trained
in sales skills are given ambitious goals and a list of
prospective donors, but have little understanding of the
organization’s mission or knowledge of the ways to help
donors best make their gifts. Potential donors can sense
this lack of authenticity and may instead respond to
another organization’s more sincere appeal.
To succeed in major and planned gift development
work in today’s complex and challenging environment,
fundraisers must achieve a balance between technical
knowledge, interpersonal skills, and the courage to go
out and get the job done.
Is it a “no brainer”?
That being said, it is not necessary for everyone on
the development staff to be capable of highly complex
computations such as determining the tier structure
of income reporting for a charitable remainder trust or
the exclusion ratio for payments from a gift annuity. In
today’s environment, however, with an aging donor base
and fluctuating investment markets, it is increasingly
necessary that all persons interacting with current and
prospective major donors know at least the basics about
the most beneficial ways to structure larger gifts.
For example, when a large check is received, instead
of immediately depositing the check, take a moment to
consider if the donor’s gift could be funded in a more
efficient way.
Imagine how impressed a donor would be to receive
a call from someone in the development office suggesting
that it may be more cost-effective to make the gift
in the form of stock that is still worth more than it cost. The staff member could explain how to use the cash originally
given to repurchase the stock at a new, higher cost basis.
The donor could make the same size gift he or she had
originally planned, but could structure it in a more beneficial
way. The donor may even decide to give more than
was originally planned after realizing it is possible to
give more stock at the same cost as a smaller gift of cash.
He or she could then turn to an accountant or investment
advisor to execute this plan.
Depending on the size of your organization, the
amount of technical expertise on your staff may be limited.
Any organization, however, can simply encourage
donors to seek advice from their own advisors before
completing a larger gift. Regardless, it certainly helps to
point donors and their advisors in the right direction.
Taking heart
Perhaps more important than knowing how to structure
gifts is understanding why donors make them. The
reasons people make gifts are as complex as the human
mind and spirit. Many different emotions can motivate
a charitable gift. In some cases, donors give because of
religious or political beliefs. Tax savings and other financial
benefits can also be a part of the mix—though since
they are “fungible” and the same for every organization
they are rarely the root motivator.
In our experience, one of the best ways for a new
staff person to learn why donors give is to contact some
of the organization’s most faithful donors and simply
ask them about their motivations. Open the conversation
with something like the following: “I am new here,
and my job is to encourage people to support XYZ Charity.
I understand you have supported us for a number of
years and wonder if you would be willing to share your
thoughts.”
This type of interaction helps build courage to make
calls on others who have demonstrated less commitment
and will also help develop ideas about the best ways for
people to make their gifts. For example, some donors
may express a desire to give more during these calls
but feel unable to do so as they have seen their income
shrink recently. These donors may appreciate learning about gift annuities and other
gifts that may supplement their
income.
Finding courage
Finally, it is not uncommon to
encounter wonderful people who
have learned all they possibly can
about how to plan gifts and have
great empathy for their donors
and their motivations for giving, but just can’t seem to
make the phone call or get out there and see the people
they need to see. This lack of “courage” is not uncommon.
It is perfectly natural for many and is nothing to
be ashamed of. As noted above, one way to overcome this
fear is to start with the most committed and motivated
donors and let them share their enthusiasm with you.
You may find these seeds will take root inside you, and
your confidence and courage will grow as a result.
Don’t think of what you are doing as a form of “selling”
something that is unwanted. In reality, no one will
give who does not want to do so for some reason. As a
fundraiser, what you are really doing is finding people
who have a desire to support your mission and helping
them discover the best way to do it. People who began
this work with natural and understandable fears often
tell me after a short time that they love what they do
and can’t believe they get paid to do it.
The role of the wizard
At the conclusion of “The Wizard of Oz,” the wizard
bestows a diploma, a shiny heart, and a medal of courage
on the Scarecrow, the Tin Man, and the Lion. But
did he really give them a brain, a heart, or courage? No.
That is one of the primary lessons learned. The wizard
simply helped them realize that what they sought was
inside them all along.
That is the role of a good manager or “wizard” in
the world of fund development. In the best programs,
those in management monitor staff members and look
for signs that more knowledge, more understanding of
programs and motivations, or more encouragement is
needed to help them fulfill their potential and best serve
donors.
All of us want to “get back to Kansas” in some sense.
In the final analysis, we can take heart from this classic
tale, learn its timeless lessons, click our heels, and be on
our way.
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