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The Multiplier Effect So why do we continually hear about millions of dollars being given to a nearby university or large amounts of money being given to a relief organization? In good and bad economies, the simple constant is people want to invest in something that will result in a significant return. In the case of philanthropy, people want to invest in the betterment of people. Nonprofit organizations are simply conduits. Over the past decade or so, our industry has come to champion the ask. Organizations that once shied away from closing gifts are now full-fledged, card-carrying experts at solicitation. Unfortunately, the byproduct of all this asking is an assumption that the donor is ready, willing and able to give a significant gift simply because someone was bold enough to make a request. Not Owed Money Money will remain in the bank and not begin to circulate establishing endowments, building facilities, introducing new programs unless (and this is big) the organization asking for a gift proves the money will have a positive effect on the human condition, in other words, provide the patron a significant return on their investment. I will admit I am disappointed, even appalled, by the comparatively small amount of money raised in our profession. Of the total gross domestic product (GDP), only 2 percent typically will find its way into charitable causes. That means 98 percent does not. Two percent is an embarrassment to our profession. Why only 2 percent? Is it because we are not asking? That is no longer the case. We ask often. So why are we unable to make a bigger dent in the GDP? I would suggest our limited piece of the pie directly corresponds to a poor assumption: people are just waiting to be asked. If they are waiting to be asked, then our fearless asking should be enough to push them over the edge into a commitment of significant proportions. Clearly, this is inaccurate. And it is not really very sensible. Success More Than Asking The only reason philanthropy works in fact, the only reason what we do is ever successful is because people want to make a difference in the world and they believe they can achieve that through a particular organization. I hope all fundraisers will hold themselves personally responsible to grow the percentage of our countrys GDP benefitting philanthropy each and every year. Everyone has heard of companies where the employees enjoy a vested interest in profit taking. Every day they check the board to see if the value of company stock has risen. They celebrate a rise in stock price, however slight, without reserve. Call me overeager, but I would like to see fundraisers watch the annual percentages of giving and take a personal interest in any gains we make as a profession. Will that occur because we ask more often? No, because donors do not want to give their money away. They want to invest it. And they want to invest it wisely and profitably. So lest you forget, if your organization receives a substantial gift, it will not simply be because of need, and it will certainly not come because it was expected. It will happen because donors decided it was the best place to invest in people and you made it easy for them to see that. Principle No. 1: ©2002 by ASR Philanthropic Publishing. All rights reserved. This publication may not be reproduced, stored in a retrieval system or transmitted, in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of ASR Philanthropic Publishing.
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