ABCR  Festival    

Sao  Paulo,  Brazil  

Panel  Discussion:  Creating  a  Culture  of  Philanthropy  

Bob  Carter,  CFRE,  Chair,  AFP  

 

• Consider  the  impact  of  the  charitable  sector  and  the  increasing  role  it  plays  in  our  societies.    o Millions  of  programs  and  services.    o Connecting  individuals  to  causes.    o Fostering  civic  participation.    o Improving  the  quality  of  life  for  all  people.    

• Charities  don’t  just  help  people  and  improve  society  anymore.  More  and  more,  charities  are  leading  society.  Developing  new  ideas  and  ways  to  think  about  things.  Creating  change.      

• Charities  are  a  critical  way  societies  and  communities  advance.  They  are  a  critical  force  in  uniting  and  rallying  people  around  causes  and  ideas.      

• That’s  why  organized  philanthropy  is  critical.  It’s  about  engagement;  how  we  work  together  to  improve  our  

communities.  Informal  giving  will  always  be  important,  but  it  needs  to  work  hand-­‐in-­‐hand  with  the  infrastructure  and  processes  of  more  organized  philanthropy.      

• This  is  why  working  with  individuals  in  giving  and  philanthropy  is  so  critical.  Corporate  and  foundation  giving  is  important,  but  it  doesn’t  create  the  societal  bonds  that  individual  giving  and  volunteering  create.  Individual  engagement  creates  the  building  blocks  of  philanthropy.    

• One  of  the  most  repeated  comments  I  hear  is  how  fundraising  practice  in  the  U.S.  and  Canada  is  far  more  advanced  than  anywhere  else  in  the  world.  Given  the  amount  of  giving  that  occurs  in  the  United  States  and  Canada  alone  annually—well  past  $300  million—one  can  understand  the  sentiment.      

• But  from  my  experiences  in  the  U.S.,  Canada,  the  U.K.  and  in  other  countries  that  this  expectation  simply  isn’t  accurate.  The  philanthropic  culture  may  be  stronger  in  U.S.  But  as  to  the  actual  nuts  and  bolts  of  creative  fundraising,  I  would  argue  that  many  U.S.  charities  today  need  to  look  outward  beyond  their  borders  to  countries  precisely  such  as  Brazil.      

• It’s  true  that  Brazilian  charities  and  fundraisers  can  learn  a  lot  from  their  North  American  counterparts.  But  the  reverse  is  also  true.  North  American  charities  have  been  slow  to  innovate  as  the  global  economy  has  faltered,  new  technologies  have  arisen  and  younger  donors  have  begun  to  make  an  impact.      

• But  where  U.S.  and  Canadian  fundraising  does  have  an  advantage  is  in  the  culture  of  philanthropy  and  engagement  that  has  been  built  in  the  U.S.  over  centuries.  In  the  U.S.,  being  part  of  a  community  means  supporting  that  community.  There  is  an  implicit  understanding  that  the  community  cannot  move  ahead—if  everyone  is  not  pitching  in  and  showing  their  support.      

• Part  of  that  understanding  is  that  fundraising  plays  an  important  role  in  moving  our  communities  forward.  Nearly  all  citizens  view  the  process  of  being  asked  to  engage  and  give  as  a  basic  part  of  their  lives,  integrated  seamlessly  into  community  life  and  action.      

• Let  me  stress:  this  isn’t  about  Brazilian  generosity.  The  Baazilian  people  ARE  generous.  The  critical  difference  between  the  US  and  Brazil  is  a  philanthropic  culture  where  fundraising  is  viewed  as  an  integral  part  of  achieving  

impact  in  the  community.  Fundraising  is  not  yet  seen  as  a  natural  part  of  the  community  throughout  most  of  Latin  America.    

• Big  challenge  for  Mexican  philanthropy:  creating  that  sense  and  culture  of  community  where  fundraising  and  engagement  are  seen  as  normal,  important  parts  of  society.  Implicit  in  that  goal  is  the  need  to  articulate  these  principles  as  well—we  can’t  be  afraid  to  talk  publicly  about  the  importance  of  fundraising  and  philanthropy  and  of  the  need  for  public  support.      

• Culture  building  must  begin  with  each  organization.  We  have  to  integrate  the  principles  of  philanthropy—engagement,  community,  impact,  generosity  and  respect,  to  name  just  a  few—into  everything  we  do.    This  culture  of  philanthropy  has  to  extend  to  donors  through  inspiration  and  stewardship,  but  apply  equally  to  staff  and  volunteers  as  well.      

• Culture  building  has  to  start  with  trust.  has  to  start  with  trust  too.  We  have  to  be  accountable  to  our  donors,  and  show  that  accountability  to  them  whenever  possible.  We  have  to  live  up  to  the  standards  of  our  Code  of  Ethics,  as  well  as  the  principles  outlined  in  The  Donor  Bill  of  Rights.    

 • There  are  important  questions  we  have  to  ask  of  our  organizations.    o Do  our  boards  and  our  leadership  understand  the  philanthropic  relationship?      

o Do  they  see  its  impact  on  fulfilling  their  mission  and  providing  their  programs  and  services?      

o Do  they  understand  what  philanthropy  is,  what  drives  it  and  how  it  relates  to  fundraising?    

o And  the  biggest  question  of  all  –  do  our  boards  and  our  organizations  embrace  philanthropy  as  a  key  part  of  their  organizational  culture?    What  do  you  think?    

• If  we  focus  just  on  the  getting  the  gift,  then  we  have  failed.  When  you  focus  on  ‘fundraising’—when  it  is  not  in  the  bigger  context  of  philanthropy—the  tendency  is  to  focus  on  the  problem  rather  than  on  the  solution.      

• Philanthropy,  however,  is  a  much  broader  concept,  the  goal  of  which  is  to  systematically  solve  problems.    It  is  based  on  carefully  thought  out  plans,  built  on  previous  successes,  focuses  on  the  community  and  benefits  many  people.        

• So  how  do  we  get  there?  This  is  a  big  question.  But  I  do  have  some  ideas  about  starting  that  process  and  what  we  can  look  for  in  our  organizations  to  assess  where  we  are.  These  are  ways  you  can  tell  how  philanthropic  your  organizational  culture  is,  and  I  think  these  ideas  can  be  a  springboard  for  further  discussion.  

Sign  #1:  Your  organizational  leadership  understands  and  acknowledges  the  difference  between  philanthropy,  development  and  fundraising.      

• Philanthropy  is  the  giving  and  receiving,  the  exchange  based  on  shared  values.        

• Development  is  the  management  of  all  the  processes  and  relationships.    It  is  the  enabling  factor  for  donors  to  fulfill  their  philanthropic  goals  and  dreams.        

• And  fundraising  is  the  methodologies  and  functions  themselves.    It  is  really  the  carrying  out  of  specific  activities  to  raise  a  gift.    This  is  what  our  volunteer  leadership  so  ably  does  –  hopefully!    

• And  there’s  a  hierarchy  here  too.  Fundraising  and  development  are  critical,  but  philanthropy  is  on  top,  it’s  the  most  important.    

Sign  #2:  Your  organization  recognizes  that  its  primary  role  is  NOT  fundraising.  It  is  building  the  philanthropic  culture  in  your  organizations  so  that  philanthropic  relationships  can  survive  and  thrive.  

• is  where  philanthropy  and  building  a  philanthropic  culture  begins.  By  putting  a  priority  on  building  relationships.  If  we  think  our  role  is  to  ‘raise  money’  then  we  will  forever  be  locked  in  the  charity  approach.      

• This  isn’t  a  challenge  unique  to  Brazil.  Charities  have  no  problems  “getting”  donors,  or  attracting  them.  Our  issue  is  keeping  them.  According  to  the  Fundraising  Effectiveness  Project,  of  which  AFP  is  a  sponsor  and  participant,  most  charities  churn  though  donors  very  quickly.  For  every  100  new  donors  we  get  a  year,  we  are  losing  107  previous  donors.  And  while  that  figure  is  for  the  U.S.,  we’re  seeing  this  trend  around  the  world.    

• We’re  not  focusing  on  our  donors  enough.  We’re  not  treating  them  like  they  are  important  once  the  gift  is  made.      

• It  can’t  be  just  the  job  of  the  fundraiser.  Regardless  of  position,  we  are  ALL  facilitators  of  the  philanthropic  process,  catalysts  for  social  change  and  the  conscience  of  

our  charitable  mission.  Fundraising  is  important  but  it  can’t  be  seen  as  our  primary  role.  Or  we’ve  already  failed.  

 

 

Sign  #  3:  You  have  a  statement  of  philanthropic  values.  I  almost  made  this  my  first  sign,  because  a  statement  of  philanthropic  values  is  a  great  way  to  start  thinking  about  a  culture  of  philanthropy.    

• Many  of  you  probably  have  statements  about  your  mission  and  vision.    So  why  not  have  a  Statement  of  Philanthropic  Values  as  a  way  of  nurturing  a  common  understanding  among  volunteers  and  staff  of  how  and  why  development  efforts  should  be  designed  and  implemented?    o Get  some  discussion  and  consensus  going,  seek  and  acknowledge  input.      

o How  do  you  want  to  treat  your  donors?      o How  important  are  they  to  your  organization?      o What  is  everyone’s  role  in  the  philanthropic  process?        

• A  statement  like  this  can  be  a  powerful  tool.  Coming  together  and  examining  our  own  concepts  of  philanthropy  is  a  terrific  way  to  begin  the  conversation  of  building  a  culture  of  philanthropy.    

Sign  #4:  Development  isn’t  seen  as  a  necessary  evil,  but  is  rather  a  core  function  that  is  long  term,  strategic  and  responsive  to  community  needs.      

• So  many  organizations  fail  to  see  development  as  a  core  program.    I’ve  even  worked  with  Executive  Directors  who  see  it  as  a  necessary  evil.          

• “Selling  the  Institutional  Soul:    The  Heart  of  Development”    Terrence  C.  Deal  and  Casey  Smith  Baluss:  “The  further  nonprofit  organizations  allow  the  cultural  values  to  shift  away  from  the  responsibility  to  contribute  ideas,  services  and  human  capital  to  improve  society,  the  more  difficult  fundraising  becomes.    Fundraising  professionals  should  help  nonprofit  institutions  renew  their  symbolic  cores  and  strengthen  their  links  to  donors  and  beneficiaries.”    

• We  must  be  working  in  sync,  in  tandem  with  other  facets  of  your  organization  that  are  relying  on  philanthropic  support  to  deliver  their  programs.      o Philanthropy  and  development  must  be  ‘at  the  table’  when  strategic  planning  is  being  conducted.      

o Philanthropy  and  development  must  be  pursued  as  a  ‘strategic’  direction  of  the  organization.      

o And  philanthropy  and  development  must  interact  and  be  integrated  into  all  other  functions  of  the  organization.    

Sign  #5:  Accountability  is  a  word  your  organization  lives  by.    

• Ethics  and  public  trust  are  incredibly  important  to  philanthropy.  Because  while  the  for-­‐profit  sector  can  offer  profits  and  products,  what  we  offer  is  change.  But  donors  have  to  trust  us  to  make  that  change.  They  trust  us  to  act  ethically.  And  if  we  don’t,  that  trust  is  lost.    

• The  way  we  show  our  ethics  is  through  accountability—doing  what  we  said  we  would  do.  And  it’s  one  of  the  most  popular  reasons  why  donors  stop  giving.      

• I  know  that  all  of  the  AFP  members  here  subscribe  to  our  Code  of  Ethics?      o What  about  your  organizations?    Your  boards?      o Do  you  subscribe  to  an  organizational  code  of  ethics  and  follow  it,  or  did  you  just  pass  it  as  a  motion  at  a  board  meeting  because  you  were  submitting  a  grant  request  to  a  Foundation?      

o Have  you  ever  put  it  into  your  policies  and  operationalized  it?    Had  discussions  about  it?  

o How  about  the  Donor  Bill  of  Rights?    Has  your  board  adopted  it?    Is  it  posted  somewhere  in  plain  view  –  and  I  don’t  mean  on  the  bulletin  board  in  your  office?    

• I  think  charities  are,  to  an  extent,  afraid  to  talk  about  ethics  and  trust  and  accountability,  as  if  by  bringing  it  up,  we’ll  start  people  thinking  about  past  controversies.  But  the  truth  is,  people  want  to  hear  about  the  ethical  safeguards  we  have  in  place  so  they  know  their  contributions  will  be  used  well.    

Sign  #6:  And  Last  but  certainly  not  least,  donors  are  viewed  as  stakeholders  in  your  organization  .  

• They  are  not  a  necessary  evil,  a  burden,  all  rich,  your  best  friends,  your  board  members’  best  friends,  suckers,  targets,  or  a  nuisance.    They  are  stakeholders,  they  have  invested  because  they  care.      

• There  is  communication  between  your  organization,  your  board,  your  leadership  and  your  donors  on  a  regular  basis.    They  are  celebrated  and  recognized  and  probably  most  importantly  –  appreciated  for  the  tremendous  gifts  they  make  to  the  community  through  your  organization.    

• And  that  is  what  philanthropy  is  all  about:  focused  on  the  donor  and  making  them  an  equal  partner  in  the  philanthropic  process.  

 

• Fundraising  can  certainly  occur  in  the  absence  of  a  philanthropic  culture,  it  just  won’t  go  as  far,  soar  as  high  and  achieve  as  incredible  impact  for  your  mission.    

• So  those  are  my  ideas,  and  hopefully  you  have  your  own  and  have  some  comments  to  add  because  I’d  love  to  hear  them.      

• People  want  philanthropy  as  a  key  part  of  their  life,  something  they  integrate  into  their  daily  routine,  just  like  their  new  smart  phone.  And  that’s  going  to  require  us  to  be  prepared  to  integrate  them  into  our  lives—that  is,  our  organization’s  culture  of  philanthropy.    

• Fortunately,  there  is  a  growing  tradition  of  philanthropy  here  in  Brazil,  and  we  can  use  that  traditino  to  build  our  cultures  of  philanthropy  at  our  organizations.  And  we  can  use  the  tools  and  knowledge  we  have  to  engage  people  and  inspire  them.