|
|
|||||
|
|||||
| Path: Main Street : Resources & Library : Research Articles : Feature Article |
Nature of philanthropy: what motivations drive our donors?October 23, 1995; Canadian FundRaiser
Blake Bromley, of Douglas, Symes & Brissendon, told CAGP delegates at their Annual Meeting that he increasingly goes back to the 1500's, in the time of Elizabeth I, when the Poor Laws were instituted, and finds the concepts very relevant today. A focus on the concept of Donor Motivation, he said, takes us even further back, to Ecclesiastes: "Vanity of vanities, all is vanity ". In fact, he stressed, the motivations driving donors are extremely complex and conflicting, and are profoundly affected by the societal context in which we do our fundraising.
As Bromley sees it, there are three important forces in Canada affecting fundraising:
Our senior donors, claims Bromley, are losing their self-confidence. Hopefully, our system of retirement planning will not continue to break down, but in anticipation of all kinds of dire forecasts such as the bankruptcy of the Canada Pension Plan, serious money is moving offshore all across Canada. Donor motivation, he pointed out, is not the central issue when you can't be certain that your hospital will still exist in 20 years, or still be involved in heart surgery. Donors being asked to make what amount to long-term investment decisions are increasingly skeptical of the cases and forecasts presented by fundraisers.
- Canadians have a profound aversion to being dictated to by elites.
- There is a growing "tax revolt rage", particularly among the rich.
- We have become, as a society, genuinely concerned about our social services and the overall social safety net, and that concern is evolving into worry and even fear.
For Bromley, philanthropy can be viewed in three contexts: virtuous, vulgar and virtual.
Virtuous philanthropy implies total, naive and virginal commitment. We need to preserve and nurture idealism, rather than cynicism, deal-making and tax advantages. The problem is that many donors, who are otherwise virtuous philanthropists, are not blind to developments in their society. They do not need or want recognition, and are becoming incensed with medical politics, self-serving boards, and professional egos. These donors, and wealthy donors particularly, Bromley says, are tired of just alleviating symptoms, and giving alms to the poor. They're sick of slick fundraising marketing, and are looking for charities that are problem-solvers, and that are involved in breaking down the cycle of poverty. They are deeply concerned about cynical fundraising programs that are not rooted in service.
We're moving, as a result, to a new paradigm, says Bromley, where the key questions - even from the most virtuous fundraisers - are, "What is this really going to accomplish? How is it going to deliver healthcare services in a more cost-effective manner? " If all we are trying to do is fundraise to fill the hole left by government cutbacks, it won't work. We have to be looking for new solutions, and more effective ways to deliver the services.
Vulgar philanthropy, as Bromley sees it, is philanthropy without culture, taste, delicacy, manners and consideration. The dividing line between vulgar and virtuous philanthropy is self-interest, or more precisely, tax motivation and self-aggrandizement. The growth of this type of giving, in Bromley's opinion, has brought a big swing to self-motivated fundraising activities such as charitable gaming and sponsorship arrangements, none of which have a desire to donate at their base.
Virtual Philanthropy - a new paradigm
Collins English Dictionary defines "virtual" as "having the essence or effect but not the appearance or form". The new paradigm of charity, said Bromley, will involve more and more of what he calls virtual philanthropy - the altruistic essence and charitable effect of traditional philanthropy, but "carried out in forms which are not recognized by an increasingly antiquated law of charity and do not appear to be charitable to either the doctrinally orthodox or Revenue Canada."Donors who are tired of giving money to alleviate symptoms are often keen to reject the form of the traditional charity as well as specific organizations and programs, he pointed out. The donor in this new paradigm wants to fund solutions rather than services, and ideological and fiscal concerns mean that the solutions are not simply more tax money. However, the donor is pragmatic enough to know that almost any solution will require significant government funding if it is to be implemented on a broad enough scale to accomplish fundamental change. The strategy then, he said, is to collaborate with government rather than enter into partnership with it. Prior to collaboration with government, however, the new donor frequently prefers to collaborate with charities in finding solutions. Charities wanting to receive significant funding from virtual philanthropists must thus position themselves as problem solvers more than service providers. "The solutions will have the essence or effect of charity but not its appearance or form."
Don't become mesmerized by techniques
In the process, says Bromley, the appearance and form of donations will change even more than the appearance and form of programs. The biggest change will be the shift away from cash gifts to assets. As funding techniques pioneered by fundraising activity in international jurisdictions such as Hongkong (which has a negligible tax rate) are imported and refined in Canada, the "form and appearance" of donations will radically alter. Nonetheless, one of the dangers of this brave new world of virtual philanthropy, warned Bromley, is that it can become merely virtual reality. "We must be careful," he said, "that we do not become so enamoured with all of the potential for change that we become mesmerized by techniques and concepts."In the face of these trends, Bromley posed a challenge for the professionals attending the CAGP Conference. Pointing out that there is a huge and growing opportunity to tap into tax revolt rage, he urged them to use it to overcome donor fatigue by demonstrating that their institutions are developing and offering important solutions that will benefit society.
|
|||
