By Jack Cumming
The other day, I got an email. It was Tuesday, December 3, and someone, somewhere, had designated that to be “Giving Tuesday.” The email opened with, “There’s a gift in giving.” Wow, I thought, how nice. Someone wants to give me something, maybe even money. That thought made me laugh.
Giving Is Blessed
It reminded me of my childhood when we went to church every Sunday. The clergyman in charge would regularly proclaim, “It’s more blessed to give than to receive.” Then, they passed the hat and brought it forward to give to the clergy. Clearly, the clergyman didn’t believe in his own advice since he was always ready to be blessed by receiving.
Incidentally, our clergyman was called a rector. I don’t think I ever got my head around that title. As a child, I associated the title “rector” with my Erector Set. Later, I took Latin, which led me to associate the title with “rectitude.” That was followed by biology, and I shrink away from sharing what the word “rector” brought to mind in that context.
Most not-for-profit senior living organizations have an active fundraising effort even though the operating corporation may be profitable. Fundraising often targets residents, who have to disclose their wealth as a condition of moving in. Frequently, the purpose is to provide funds to cover the cost for residents who exhaust their savings. Financially sound nonprofit “homes for the aged” can lose their tax exemption if they evict such residents. What they can’t raise from donations, they have to cover from general revenues.
Giving Tuesday
It’s amazing how many people took time out of their busy lives to write to me on Giving Tuesday, December 3. They all wanted to give me the blessing of donating to their employers. That would help their performance reviews. They were there to alert me to their celebration of Giving Tuesday. Giving that makes the world rejoice. It made me wonder what happened to the United Way.
The United Way was another memory from my childhood. Every year, there was an appeal for the United Way, a civic organization that brought together agencies and charities that helped those in need to solicit funds. By joining together, charities were able to keep fundraising costs low while achieving an equitable distribution of proceeds. The United Way still exists, though not with the visibility where I now live that it had in my childhood.
The United Way Story
Its website tells the history, opening with what appears at first blush to be the setting for a joke: “On October 16, 1887, in Denver, Colorado, a woman, a priest, two ministers, and a rabbi came together with a simple goal: to make their community a better place for everyone through cooperative action.”
My dad was a stalwart for the United Way. Not only did he give generously, but he convinced neighbors that it was more equitable to give to the United Way than to disparate causes of one ilk or another. In that long ago time, most solicitors were unpaid volunteers like my dad who believed in the mission or cause.
Maximizing the Good
Dad noted that there’s no equity in having agencies compete in fundraising when, instead, they could use the money spent in getting money to do some good. Moreover, why should one cause get more money, not on the merits of the mission, but on the effectiveness of its “professional” fundraisers?
The United Way served another purpose. At certain times of the year, telemarketing fundraisers descend like locusts on those who are generous. There was not much, though, that they could say if the donor responded, “We give generously to the United Way, and we do not support any charities that don’t participate in the community effort.”
Fundraising As a Business
That earlier era, when those who donated and those who sought funding were both committed to a cause, changed in 1960 with the formation of the National Society of Fund Raisers. The first three purposes listed in its articles of incorporation were:
- To aid fundraisers in the performance of their professional duties
- To unite those engaged in the profession of fundraising
- To formulate, promote, and interpret to organizations, agencies, and the public the objectives of fundraising and the role of those who practice it
With that, fundraising became a career rather than a calling. Any cause, disease, or mission could hire a career professional to attract donations. Fundraising techniques became more important in seeking donations than the merits of the cause. Some sources suggest that spending 20% of donations to pay for “professional” fundraising is acceptable, while Charity Navigator, a fundraising watchdog, suggests that no more than 10% is appropriate.
Thus, fundraising has become a business. Just as an advertiser might track a metric like dollars of sales per advertising dollar spent, fundraising businesses track “cost per dollar raised.” Some “charities” even spend most of what they collect on fundraising. In those cases, fundraising becomes the purpose, and the mission may be no more than an appealing pretext.
The transition from donor-led fundraising to professional solicitation continues. As recently as 2012, the Lilly Family School of Philanthropy at Indiana University became the world’s first school dedicated solely to the study and teaching of fundraising. Indiana University is also the first to offer bachelor’s, master’s, and Ph.D. degrees in the field.
The Donor’s Responsibility
Competent buyers are expected to vet the reputation of those they buy from. That is a legal doctrine called “buyer beware” or, as Latinists might prefer, “caveat emptor.” A similar principle applies to donors who respond to direct mail or phone solicitations. While that can be tempting, it’s best to withhold donations until after you’ve researched the charity. Consider the following:
- How are the fundraising costs covered?
- What percentage are they of funds raised?
- Is the particular charity really the priority for your giving?
Perhaps there’s a charity that doesn’t spend money on fundraising that would make better use of your donations. If so, you can always tell solicitors that you give to the United Way or that you don’t give to organizations with professional fundraisers.
Ouch. . . As a former full-time fundraiser (in theological education and senior living)!! I was blessed to receive a true calling to that vocation–AND–as a result of that calling I was compensated for my competencies, skill sets, experience, commitment, and creativity. I would also share that I was compensated well–commiserate with our community’s accomplishments and milestones.
Now as a CEO, I spend a considerable portion of my time fundraising, with a consultant’s assistance, for a myriad of organizational priorities–not just Benevolent Assistance, but also Staff Development & Scholarships; Technology and Innovation; Capital Opportunities; and what may become a “Greatest Need.”
Fundraising, for me, is a sacred intersection of conversation and action. It is holy ground when you engage someone with resources in her/his striving for purpose, meaning, and true value-added moments in life. That requires my full attention to this sacred vocation. I am pastoral counselor, financial advisor, strategic partner, and dear family friend. Competence, compassionate empathy, caring, and commitment–these days–require strong and viable support from the charity. Those with these qualities and a true sense of calling are justified in their due compensation. They/We can change the world with the help from all friends and supporters.
I don’t believe your thesis holds in every industry or non-profit environment. I would totally agree with you on Colleges/Universities/Medical Centers with “hired hands” for fundraising. Their tenure is now a historic love of less than 14 months. . . then they run and “hide” at the next stop for 8-10 months and then the next. . . BUT in non-profit environments–like single site LPCs and the like–You will find the epitome of a true and called professional fundraiser. The few true; the few mighty!
Thank you for the kindness of your comments. I anticipated that the article might cause an “ouch.” You are generous to follow the precepts of Matthew 5:41 and to walk a bit with me. We can only learn from those who see things differently from us. We cannot learn from those who agree as pleasant as confirming conversations may be.
Donors are investors in a mission. Their hope is that their investments can produce a return that is often more than mere money. That calls for accountability. Just as investors can expect a fair return, so can donors expect a fair social return. That’s my thesis.
Given that thesis, it’s my belief that every servant working for the good in a mission-driven organization should be a fundraiser. Making it a separate calling obscures the manipulation that can result. Just as an investor who takes over a failing senior living community may be minded to make it better for the residents and their families than the prior management, so many donors hope to make the organizations they support better for their investment.
Quick Question: Do you provide scholarships for low-income people so they can afford to live in your CCRC, similar to how universities often provide financial aid to give the benefit of education to many who might otherwise not be able to afford the cost?
We have much that we could talk about. Perhaps sometime we’ll have the chance. Since you’re in North Carolina, you may find this article about another North Carolina community more uplifting. https://www.seniorlivingforesight.net/movin-the-musical/
Happy New Year. Now is the time for fresh starts. Let’s make one together.