Philanthropy During the Storm...

An Examinationof Donors' Needs, Wants and

Expectations in a Time of Great Change

Network of California Community Colleges 2010 Annual Symposium

Rancho Mirage, CA

                    

Outline• My Background and Perspective

• First Questions

• A Different Model

Who Are You?

• Senior Vice President/Investment Counselor– Capital Guardian Trust Company

• Executive Vice President/COO – California Community Foundation

• Naval Flight Officer/P3 Orion– US Navy

• United Way of OC– Campaign and Government Relations Associate

• Saint John’s Seminary

“All God’s Childrenare not beautiful, as a matter of fact,some are barelypresentable…” Fran Leibovitz

Demographic Storm

WWII

Baby Boom76 Million…

X,Y,Z…

Kathleen Casey-Kirschling

Changing…

As of October 13, 2010 – 10:25 a.m…

• Percentage of USA Baby Boomers who are dead: 10.09524212 %

• Total USA Baby Boomers left alive: 76,740,903

• Seconds before the next USA Baby Boomer dies: 35.2

• USA Baby Boomers died in last 24 hours: 2,452.2 (WA)

http://www.boomerdeathcounter.com/

Boomer Storm: Why does this matter?

• Fastest growing population segment (+50).

• Most affluent consumer group that exists.

• Own over 80% of all money in savings accounts.

• Own 79% of America's financial assets.

• Own 62% of all Large Wall Street investment accounts.

BoomKathleen Casey-Kirschling

“The most reliable indicator of giving was the Standard & Poor’s stock index, with a 100-point translating into an additional $1.5 billion of philanthropy from people who report donations on their tax forms. It works just the same way on the downside.” New York Times Nov 11, 2008

Economic Storm

Other Issues• Unemployment• Other Assets• Debt/Taxes• UNCERTAINTY

• What Does Our Organization Do?

• Who Does It Serve?

• Finish this sentence: In our organization, a donor is…

First Questions: Nonprofits, Development and Culture?

“I know nothing except the factOf my own ignorance.”

Socrates

Just Wealth Re-Distribution…?(Extraction Model)

Donor:Excess Assets

Client/Org.:Life/Org. Needs

Major Gifts

Planned Giving

$ $

•Case Statement•Techniques/Trusts•Tax Effective•Timed Transactions

It’s More…A Different Model

Donor:•Excess Assets•Deeper Needs

Client/Org.:•Life/Org. Needs

•Deeper Resources

Planned Giving

Maslow’s HierarchyOf Needs

Physiological

Safety/Security

Social

Esteem

Self Actualization

Maslow’s HierarchyOf Needs

Lumarda’s HierarchyOf Donor Needs

Physiological Operational Efficiency

Safety/Security

Social

Esteem

Self Actualization

Operational Efficiency:Boomer Perspective on Service

• Lived through the Development of “Customer Service” and the Service Economy

•Friendliness

•Efficiency

•Understanding and Empathy

•Fairness

•Control

•Alternatives

•Information

Operational Efficiency:Boomer Perspective on Service

• Lived through the Development of “Customer Service” and the Service Economy

• BB straddle the era of Personal Service with the immediacy of the Internet Age

• Experiencing a “Service Gap”

“It’s not that those in their teens or 20s are lazy or mean. Or that boomers are getting crotchety as they age. It’s that both groups have far different social experiences and expectations, and demographics tend to put boomers in the checkout line and millennials behind the counter.”

Philadelphia Inquirer

Raising Money in Hard TimesChronicle of Philanthropy Feb 09

• Don’t treat giving as a financial transaction

• Keep close ties to donors

• Offer matching grants• Shore up relations with

Grantmakers• Ask donors to give

monthly

• Look for ways to save money on fundraising

• Seek alternatives to private giving

• Collaborate to raise money

• Scale back ambitious campaigns

• Avoid emergency solicitations

Raising Money in Hard TimesChronicle of Philanthropy Feb 09

• Don’t treat giving as a financial transaction

• Keep close ties to donors

• Offer matching grants• Shore up relations

with Grantmakers• Ask donors to give

monthly

• Look for ways to save money on fundraising

• Seek alternatives to private giving

• Collaborate to raise money

• Scale back ambitious campaigns

• Avoid emergency solicitations

DONOR↑EFFICIENCY ↑

Operational Efficiency: Key Service Questions

• What is your service culture? Has Your organization defined its service culture?

• What standards do you set for responding to a donors needs – customer service?

• Does everyone buy into it?

• The worst words a donor can hear…

Maslow’s HierarchyOf Needs

Lumarda’s HierarchyOf Donor Needs

Physiological Operational Efficiency

Safety/Security Management Confidence

Social

Esteem

Self Actualization

Management Confidence:Boomer Perspective on Leadership

and Permanence (?) “Each generation in this country

appears to have a defining moment, which helps us to understand how they’re different from other generations. The defining moment for baby boomers, in my opinion was the assassination of President Kennedy. That began our continual journey into skepticism, into frustration, into a lack of belief that government and society can do good and can be trusted. We’re still living with that Legacy”

Fernando Torres-Gil

Management Confidence:Boomer Perspective on Leadership

and Permanence “The Ultimate Photo Op:

This Image of Richard Nixon, trying to appear “Hip” Alongside Elvis Presley, gave Boomers the impression that our leaders would lie to us about anything.”

The Boomer Century

Management Confidence:Boomer Perspective on Leadership

and Permanence

• “Greed is Good”

Gordon Gecko

(Ivan Boesky)

Wall Street

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At whose cost…

Management Confidence:Boomer Perspective on Leadership

and Permanenceregister../showPetrue../showPe../showPe

Nonprofit Leadership Gap?

• Over the next decade, Org’s with budgets >$250K will need to attract 640K new senior managers

• The range for this need covers 330K to more than 1 million leaders

• Increase desire for

for-profit experience

“Define Reality &

Give Hope”

Management Confidence: Key Leadership Questions

• Is your organization defined by ITS Leadership or Someone’s Leadership?

• How do you display institutional security, permanence and transparency?

• Root of Major Gifts & Planned Giving

Maslow’s HierarchyOf Needs

Lumarda’s HierarchyOf Donor Needs

Physiological Operational Efficiency

Safety/Security Management Confidence

Social Community-Belonging

Esteem

Self Actualization

Community /Belonging:Boomer Perspective

• We are Bowling Alone. More Americans are bowling than ever before, but they are not bowling in leagues.

• Participation in clubs and civic organizations has been cut by more than half over last 25 years.

• Each 10 minutes of additional commuting time cuts all forms of social capital by 10 percent--10 percent less church-going, 10 percent fewer club meetings, etc.

• The best predictor of tax evasion is the number of times annually that one gives the finger to another driver, and social capital is the best variable to successfully predict levels of tax compliance state-by-state.

• We're not experiencing a Springtime of volunteering, but an Indian Summer, propped up by our nation's seniors -- who have been more civic throughout their lives.

Need for CommunityDuring Tough Economic Times…

• Not home, not the office – the Third Place – The GREAT GOOD PLACE

• During economic stress, the need for a haven is even more urgent, said Oldenburg, a professor at the University of West Florida in Pensacola. “I think it makes this more important. If you are down and out, to hang around with friends helps.”

Community of Donors: Key Questions of Belonging

• Are you building Social Capital between and among donors? A community of donors?

• What opportunities do you give your donors to get in the same room? To get to know each other (and how well)? To share their knowledge? Their stories?

• Where’s your Great Good Place?

Maslow’s HierarchyOf Needs

Lumarda’s HierarchyOf Donor Needs

Physiological Operational Efficiency

Safety/Security Management Confidence

Social Community-Belonging

Esteem Meaning

Self Actualization

Meaning:Boomer Perspective On Personal Significance

• Boomers feel that “passion” is what they bring to the things that are important to them.

• Boomers evince a strong sense of Personal Responsibility. They believe individuals can make a difference for a better society and the common good, so everyone should do his or her “one small part to help.”

• Boomers believe there is a critical need for passion, personal responsibility, and unending involvement to deal with the future.

“A small group of thoughtful people could

change the world. Indeed, it's the

only thing that ever has.”Margaret Mead

“Unless the distant goals of MEANING, greatness, and destiny are addressed, we can’t make an

intelligent decision about what to do tomorrow morning much less set a strategy for a company or

for human life. Nothing is more practical than for people to deepen themselves. The more you

understand the human condition, the more effective you are as a business person.”

Peter Koestenbaum

“Do You Have the Will to Lead” Fast Company

Meaning: Key Questions

• How do you tap into what they care most about? Their “Passion”?

• Is this done accidentally or intentionally?

Meaning: Key Questions

• How do you tap into what they care most about? Their “Passion”?

• Is this done accidentally or intentionally?• Knowledge Workers to Social

Entrepreneurs – Drucker• The Second Half of Your Life• What are my strengths?• What is my contribution?• Where do I belong?

Meaning: Key Questions

• How do you tap into what they care most about? Their “Passion”?

• Is this done accidentally or intentionally?• Knowledge Workers to Social Entrepreneurs –

Drucker• The Second Half of Your Life• What are my strengths?• What is my contribution?• Where do I belong?

• Are You Helping...

Maslow’s HierarchyOf Needs

Lumarda’s HierarchyOf Donor Needs

Physiological Operational Efficiency

Safety/Security Management Confidence

Social

Esteem Meaning

Self Actualization

Community-Belonging

“ Even if all these needs are satisfied, we may still often (if not always) expect that a new discontent and restlessness will soon develop, unless the individual is doing what he is fitted for. A musician must make music, an artist must paint, a poet must write, if he is to be ultimately happy. What a man can be, he must be. This need we may call self-actualization.”

Abraham Maslow

Maslow’s HierarchyOf Needs

Lumarda’s HierarchyOf Donor Needs

Physiological Operational Efficiency

Safety/Security Management Confidence

Social

Esteem Meaning

Self Actualization Identification*

*Paul Schervish Identification Model

Community-Belonging

“ Even if all these needs are satisfied, we may still often (if not always) expect that a new discontent and restlessness will soon develop, unless the individual is doing what he is fitted for. A musician must make music, an artist must paint, a poet must write, if he is to be ultimately happy. What a man can be, he must be. This need we may call self-actualization.”

Abraham Maslow

Giving = Identification = Self Actualization

Identification: Key Questions• Do you realize and embrace the role you

have in the personal fulfillment of your donors?

• If the donor sees you as a mirror to their philanthropy and identity: What do they see? People? Givers? Managers? Leaders? The Future? Themselves?

One last distinction…

Maslow’s HierarchyOf Needs

Lumarda’s HierarchyOf Donor Needs

Physiological Operational Efficiency

Safety/Security Management Confidence

Social

Esteem Meaning

Self Actualization Identification*

Transactional

TRANSFORMATIONAL

*Paul Schervish Identification Model

Community-Belonging

Donor are helping us to transform our communities and institutions.

Do we* recognize and embrace our role transforming the lives

of our donors?*Our whole organization

Thank you!

“We make a living by what we get.We make a life by what we give.”

Winston Churchill