BASE ELEMENT 1 · THE DONATION EQUATION
Philanthropy
Philanthropy (noun): Goodwill to fellow members of the human race; active effort to promote human welfare. From the Greek philanthropia — “loving people.” (Merriam-Webster)
IN THE DONATION EQUATION
A donor’s basis for generosity, based on culture, beliefs, tradition and their history with giving, along with their available resources, general orientation to your cause area, and their previous philanthropic experience.
Let’s start with the basics. Robert Payton, a pioneer in the academic study of philanthropy, put it simply 50 years ago: philanthropy is “voluntary action for the public good.”
Giving is indeed voluntary. Few in today’s donor base will be motivated by obligation, guilt or even “tradition.” Research on today’s biggest givers confirms that they are driven by the wish to do something good in the world.
Generosity is natural. Social science research shows repeatedly that the natural human state is one of social connection, collaboration and partnership. The overriding culture can influence things quite a bit, but even the most individualistic and profit-driven nations see incredibly high levels of giving.
There is a lot more that influences Philanthropy, however.
Philanthropy is a learned behavior.
When we are young, this may come out through our faith life, in a mosque, temple or church. It is learned when we participate in toy drives and drop change in a kettle around the holidays. And it’s even influenced by those bake sales and cookie drives we participate in.
Families that give big often have a generational history of giving. We can all name the big philanthropists in American history — their names are on the plaques at the entries of schools, museums and hospitals. It’s also important to recognize the opposite: families and givers with new wealth might not completely understand our fundraising terms, and should be brought into the process with a maximum amount of listening and attention.
Wealth matters.
Of course it does. People who have more can give more. How wealth is structured can also make a big difference. The liquidity of a donor’s assets, their view on their financial future, and how the wealth is stored will all influence giving plans.
Giving is part of a bigger social package.
Big donors are often volunteers — and this combination is increasing. Political givers are highly likely to be charitable givers as well. A donor’s general level of social and civic engagement, including what they join, their faith and meaning life, and how tuned in they are to causes, will influence giving.
Giving is increasingly strategic and collaborative.
A massive growth in donor-advised funds, family foundations, giving LLCs and other strategic vehicles has transformed how we accept gifts. Giving circles, collaborative crowdfunding, and social media advocacy have made giving increasingly a group effort. Our donors are today as much strategic partners as they are “prospects.”
THE QUICK LIST
Ways to Boost Philanthropy
- Utilize the best multi-dimensional wealth/capacity screening you can afford — including wealth ratings, data on other charitable giving, and connection to other funding sources.
- Target donors based on the cause areas they’ve given to before, and the ways that they’ve given.
- Identify which of your donors have donor-advised funds, family foundations and are part of giving circles.
- Teach philanthropy. If you’re an educational organization, include giving courses in your curriculum.
- Have your students, volunteers and board members engage in asking — this is a key way philanthropy is learned.
- Ask your generational donors to tell their stories. Bring newer givers with new wealth into the process gently.
- Be part of the philanthropic community. Attend your local AFP chapter’s programs. Meet up regularly with other fundraisers.
THE KEY POINT
The Key Point
Philanthropy is a natural, human and socially contagious activity, bringing incredible joy to donors and helping change the world for good. A lot of your chance at inspiring giving will have to do with both a donor’s background and their available wealth. However, philanthropy can be both taught, and is highly associated with other civic behaviors like volunteering and political giving.
Broader Context: These principles of learned generosity, social contagion, and strategic collaboration extend well beyond fundraising — they’re equally relevant to sales professionals building customer loyalty, marketers creating brand advocates, community organizers recruiting volunteers, and anyone working to inspire human engagement and action.