Urban legend – An urban legend, urban myth, or urban tale is a form of modern folklore consisting of stories thought to be factual by those circulating them. (Wikipedia)

The final installment of the 3-part Urban Legends of Fundraising messages focuses on the faulty thinking that the broader economic environment will greatly impact your organization’s fundraising success.

Since the fall of 2008, organizations of all types have grappled with the fact that the economic and financial environments have been bad – very bad. The bursting of the housing bubble brought with it broad market contractions of at least 30%. Internet news outlets as well as traditional media could not file enough reports on the worst recession since the Great Depression.

And the fundraising world began to wring their hands. Articles were written, conferences were created, and shop-talk centered on “the negative impact of the economy on fundraising.” One almost came to believe that the environment was the predictor of our success or failure!

But according to the USAGiving Foundation, as compared to 2007, total charitable giving declined only 2% in the United States in 2008. So, the housing market collapsed and the equity and broad markets dropped over 30%, but charitable giving declined only 2%. Hmmmm.

I’ve sat with development leaders who, when asked about their progress, almost immediately begin to blame the economy. And yet I know of other development leaders who rarely mention the broader economy when asked the same question. Guess who is having success?

Here is the truth: Good fundraising work will predict your success, not the economic downturn (or uptick). Sure, we all have to operate within the economic environment, but in good times and in bad, money is always being given – and lots of it. In fact, over $40 billion to educational institutions in 2008. That’s billion with a “b” – during the worst recession since the 1930s.

So, yes, we should all understand the economy. But don’t get caught up in it. Why should we? Is there much we can do to impact the broader economy? Typically, no. So, why not focus on things you can impact? Focus on your donors and focus on your organization’s vision for the future. Is your vision compelling, clear, and concise? Are you operating an effective major gifts programs and moving donors closer to gifts through thoughtful visits? Is the message of your annual fund program convincing and donor-centric? If so, regardless of the economic environment, you will achieve your organization’s charitable gift goals. Because contrary to that old James Carville political slogan, “It’s really not the economy, stupid!”

Urban legend – An urban legend, urban myth, or urban tale is a form of modern folklore consisting of stories thought to be factual by those circulating them. (Wikipedia)

In part II of our three-part series, I am focusing on the “It’s All About The Ask” Urban Legend.

Specifically, this Urban Legend purports that fundraisers should be overly concerned with that moment with prospective donors when they are solicited. Unequivocally, focusing on the ask/solicitation is the wrong thing to do. And here is why. . .

It’s about the relationship, not the ask! I suggest that asking a major donor to support your institution should be like asking a girl to get married. If the fella isn’t 99% certain of the answer, he shouldn’t ask the question! The ask should be a confirmation of the many conversations you’ve had with the donor and within the context of the relationship. You both should have a good sense that an ask is coming sometime soon. And you both should have a strong sense that the answer will be affirming. An ask, then, is a natural culmination of a series of conversations.

Far too many presidents and development professionals view the ask as the most important element in securing a gift. Books have been written about “the ask,” and many conferences have been conducted to discuss the best possible ways to ask the donor. But I would offer a different thought:

For the bulk of universities, schools, and non-profits, the way you ask is really less important than you think. If you stumble, stutter, or otherwise struggle to make the smooth, polished ask, don’t worry. Donors who view you as authentic, your institution as meeting a meaningful need, and your priorities as important won’t need a salesperson to make the “perfect ask.” Instead, they will want a professional and a friend to help facilitate their giving in support of shared values.

Urban legend – An urban legend, urban myth, or urban tale is a form of modern folklore consisting of stories thought to be factual by those circulating them. (Wikipedia)

This week, my aim is to debunk a few urban legends regarding fundraising. These are examples of “conventional wisdom” that, over the years, I’ve heard repeated often by otherwise very smart development folk. Simply put, they are not true. I’ll highlight the top 3 Urban Legends for Fundraising, one at a time, over my next few posts. Today, we’ll start with…

Urban Legend of Fundraising #1 – The Well Will Run Dry. Or to put it another way You Can’t Continue Going To The Same Major Gift Donors And Expect To Get Large Gifts.

Uh, yes, you can. In fact, if you want to be successful, you have to. I recall a story told by Bruce Heilman, former president of the University of Richmond. Dr. Heilman, one of the most successful advancement presidents our country has known, was speaking to a group of major donors at another university’s Founder’s Day event. The university had early success with a comprehensive campaign but had more recently experienced a slow down in gifts.

Dr. Heilman stood behind the podium, adjusted the microphone, thanked the university for inviting him to speak and thanked everyone in attendance. He then proceeded to tell all within earshot that the university would be successful in completing the campaign because he was speaking to the very group who would be making the gifts to ensure success. This, of course, was the very group who had provided the bulk of the early gifts to get the campaign started in strong fashion in the first place! He was right, of course. And over the next 18 months the university received second and third campaign gifts from many in attendance that night and went on to successfully complete the campaign.

So, why does this thinking persist with development professionals as an urban legend? One reason is that many development officers (and donors) view money as a zero-sum game. If you have $10 million dollars and you give $1 million away, you now have $9 million. If you keep making such gifts, you will run out of money — the well soon runs dry. But the truth is, people’s wealth is not a zero-sum game. If you have $10 million and give $1 away, you just paid much less in taxes, you have the other $9 million working for you in a variety of investments, and within a very short time, you are right back to having $10 million again. The well fills back up and in most cases, the wealth level rises higher than it was before the first gift.

However, the well filling back up isn’t the biggest reason the “well runs dry” thinking is faulty. The real reason this is horrible logic is because it focuses our attention on the gift and not the relationship with the donor. It focuses on dollars and not vision. When we collaborate with donors to craft a strategic vision for our organizations and focus attention on how their giving will result in outcomes that are in alignment with their values and interests, the donor will not only give again, she will encourage others to do the same. When donors help craft the vision and understand that their giving will impact issues important to them, you no long have simple donors, you have partners and advocates. Partners and advocates won’t let you fail and they will support you over and over again.

The well running dry won’t be your problem. Abandoning the power of your organization’s vision will.