“Transformational philanthropy” may be a new term to some of you. Here is an easy way to understand the concept: imagine a gift that has as profound an impact on the donor who makes it (and often their family) as it does on the organization receiving the gift. That is the essence of transformational philanthropy.
One of the most interesting things about the transformations that take place with this kind of gift is that there is no relationship between the size of the gift and the degree of transformation it can bring about. The transformation occurs not as a function of the size of the gift, but instead as a reflection of the passion behind the gift.
One of our clients described the difference between a donor and a philanthropist this way: a philanthropist gives from their soul; a donor gives from their wallet. Another person said: “a donor goes to the charity’s auction to buy something (that they want or need!) at a discount, and then seeks recognition as a donor for doing so.” A philanthropist is the one who donates those items or spends their precious time obtaining the items in order to fulfill the mission of the organization.”
So, how does a donor become a philanthropist? Through a transformational gift. It is the experience of joy and meaningful accomplishment that comes from fulfilling their passions that inspires them to commit more of their time and money to organizations that allow them to fulfill their passions.
Philanthropists overwhelmingly desire to pass their philanthropic passion on to their children. The organization or advisor who facilitates that desire through multi-generational planning accomplishes several important objectives:
• Fulfilling the philanthropist’s passions through support of organization(s) that fulfill their passions;
• Developing a philanthropic spirit in the philanthropist’s children /grandchildren;
• Strengthening and uniting the family in common cause, which helps the family to remain prosperous enough to continue their philanthropy for multiple generations; and
• Creating multi-generational ‘gift streams’ to organizations.
The turbulence in our economy underscores how critical it is for non-profit organizations to build and maintain reliable, enduring, passionate donor support. Organizations and advisors who provide multi-generational planning are uniquely equipped to help achieve those goals.
Are you asking the important questions to help your donors’ gifts become TRANSFORMATIONAL?