Economic Stimulus: Inspiring Donors to Invest in Nonprofit Capacity and Change

By Tracy Gary

When talk of tax rebates abounds and how to save or spend them, I’m recommending that to strengthen community the best investment is to strengthen our nonprofit sector with at least half of any rebate this May and June. And to those in the top 5% of America’s wealth, who won’t likely receive rebates, we support added investment in nonprofits for diversifying portfolios. For great return on investment, growing leaders during these times of intergenerational transfers in wealth and leadership is, from my experience, apt to give society the best possible return.

I have worked with major donors and been to over two thousand donors’ homes. I know they are hearing from you in print. Many say they are rarely asked to join as partners in either planning or strategic decision-making, unless they are on a board. From nonprofit leaders I hear, “Donors so rarely call us back!”

Seeing the hundreds and even thousands of requests some donors receive, I’ve discovered one of the most helpful things I could do was support nonprofit leaders to present their work and to help donors organize their giving.

Meaningful dialogue often begins with a question:

• Donors, what is it that you want to change or preserve during your lifetime through your nonprofit work and leadership?
• Nonprofit leaders, what is your change strategy and what is it that your agency uniquely contributes?

As a philanthropic advisor, I help match missions and leaders. The added value we offer through Inspired Legacies, the nonprofit I run, is to “grow great donors and their leadership.” In this changing environment how, beyond raising money, are you working to “grow great donors” and their knowledge and leadership?

Here are 5 key strategies as you partner with donors:

1. Take advantage of new media to communicate your message and theory of change. Use new media to make your work and partnerships visible. Engage the creative collaboration thriving in new media by offering competitions to create videos, podcasts, and blog posts that spread your message. Try starting a Twitter for your nonprofit to give regular 140 characters or less updates on your news and needs. Check out the new Google for Nonprofits tools for ways to promote your work and raise money. Watch organizations like Grassroots.org and Netsquared.org for new media and technology that nonprofits can use.



2. Educate donors about giving plans and creating a legacy. Engage the giving spirit by bringing out gratitude. Inspire loyalty by working with donors on long term giving plans. Be actively engaged with donors. As a Donor Educator and Coach, I make house calls and seek to be personally helpful while talking with donors about priorities and their leadership. Donors need community and mentorship as well. Supporting key donors by introducing them to other donor partners or coaches is a gift of your social capital that will not be forgotten.



3. Collaborate with your board. Engage your staff and board in better relationship management and fundraising. Get the board on board with capacity building money for additional development staff and partners for the organization.



4. Engage financial advisors. With underused vehicles like charitable lead trusts, annuities, insurance trusts, and life income estates, there are innumerable ways for a win-win between the philanthropic client and their advisory team. Help create clear connections between donors and advisors.



5. Start with Your Own Exemplary Philanthropic Leadership. Do you have a giving plan ? What about a legacy plan? You will be so much more earnest and engaging on the subject of giving and legacy planning if you have done your own work and have it up to date. Do your donors and your family a service; update your own documents and develop a giving plan.

Stimulate the economy: Unleash generosity.

About the Author

Tracy Gary has been a donor activist and philanthropic advisor for over 30 years. She is a nonprofit entrepreneur and leads Inspired Legacies, her 18th nonprofit start up. She is the author of Inspired Philanthropy: Your Step-by-Step Guide to Creating a Giving Plan and Leaving a Legacy, 3rd Edition and can be reached for consulting, coaching and keynotes, through Inspired Legacies at tracy@inspiredlegacies.org. For more information about the book and to view resources mentioned in this article, visit Tracy's website at www.inspiredphilanthropy.org or www.inspiredlegacies.org.