The Rundown - New Research on Donor Intent - March 31, 2023
We end March with some new research on why donor intent is critical to gaining trust with those that give
New Research on Donor Intent
In the act of giving money, time, or resources to charitable causes with the goal of creating a positive impact on society, donor trust is clear. As we all know, philanthropy has been practiced for centuries, and continues to be an essential part of a well functioning society. As the number of philanthropic organizations and foundations continues to grow, so does the importance of donor intent.
Donor intent refers to the goals, beliefs, and values that a philanthropist has when they make a charitable donation. It is a critically important concept because it ensures that the donors's vision is carried out throughout their relationship with the organization, even after the donor has passed away or moved on. For large or complex gifts, donor intent is often expressed in the form of a written agreement, which outlines the specific purposes for which the donation can be used. But even in smaller gifts, donor intent buids trust between the donor and the receiver — any trust is the best currency a good fundraiser should carry at all times.
There are several reasons why donor intent is important in philanthropy. For some donors, it helps to preserve the donor's legacy. A philanthropist may have spent years building their wealth and reputation, and they want to ensure that their donations are used in a way that reflects their values and beliefs. Donor intent ensures that their charitable contributions will continue to reflect their vision long after they are gone.
A small word of caution though, I have always believed that nonprofit organizations are not in the business of reputation rehabilitation. Organizations need to be very clear on not only what can be given, but who can give as well. While most nonprofits may never deal with this, large organizations with strong reputations run the risk of having donors wanting to give money from less than scruplous sources or people with legal problems.
I am not saying don’t accept those funds if you believe it is in the best interest of your organization, including your organization’s reputation. What i am saying is that our sector is not there to simply bring people back into good graces of society by simply throwing their money towards are important work.
Donor intent helps to ensure that funds are used in a responsible and effective manner. Without clear guidelines, charitable organizations may use donations for purposes that do not align with the donor's original intent. This can lead to a waste of resources and a lack of impact. Donor intent ensures that funds are used in a way that is consistent with the donor's goals and values, which can lead to more effective and meaningful outcomes.
Donor intent promotes transparency and accountability. When donors specify how their funds should be used, they can monitor the progress and impact of the organization they support. This helps to ensure that the organization is transparent about its activities and accountable for achieving the goals set out by the organization.
In addition to these benefits, donor intent also helps to foster trust between donors and charitable organizations. When donors feel confident that their funds are being used in accordance with their wishes, they are more likely to continue supporting the organization over the long term. This can lead to stronger relationships and more sustainable funding for charitable causes.
To sum it up, donor intent is essential in philanthropy. It ensures that a philanthropist's vision and legacy are preserved, promotes responsible and effective use of funds, promotes transparency and accountability, and fosters trust between donors and organizations. As the number of philanthropic organizations continues to grow, it is essential that donor intent is respected and upheld to ensure that charitable donations have the maximum impact on society.
Why are we talking about donor itent today? Well, I found this new research from Philanthropy Roundtable that talks about donor itent and how it is critical to gain trust from our donors and society at large.
There were five main points that the research showed that is worth restating here:
Accountability and trust between donors and charities are vital to foster charitable giving and a robust civil society.
Protecting donor intent is paramount to this trust. This is true for instances when donors give to a charity with specific agreements for how the donation will be used, and this is also true for when donors pass, and their intent is protected by their successors.
Empirical research demonstrates that betraying a donor’s trust creates a significant drop in the donor’s willingness to give again. Ultimately, those served by charities lose when donor intent is violated.
History offers us an abundance of examples of philanthropists whose charitable intentions were manipulated or disregarded over time. While there are specific steps donors can and should take to protect their intent, additional legal protections would benefit both donors and those who benefit from their gifts.
For donors to give freely without concern that their mutually agreed upon instructions will be violated, a legal pathway for the enforcement of endowment agreements should be established.
The Weekly Notebook
A quick rundown of what I am seeing and hearing in the nonprofit world….
Now Hiring!
I have a nonprofit in Sidney, Ohio that has reached out to me looking for a new Executive Director. I can tell you that this a very strong organization that needs leadership that has strong entrepreneurial and staff management skills. If you have any interest, please drop me a line at pinnaclestrategiesltd@gmail.com and let’s talk!
Also, the local CASA/GAL agency in Troy, Ohio is looking for a new staff member as well. It’s a great agency with solid leadership. If you have interest, please let me know by sending an email to pinnaclestrategiesltd@gmail.com and I will share what I know.
The Habitat for Humanity affiliate serving Miami and Shelby Counties in Ohio is looking to a hire a Community Development Director. This looks like a great posiiton for anyone interested in helping build communities and affordable housing. The position is located in the growing community of Troy, Ohio. You can look at the listing here. Applications are due April 15, 2023.
Another organization in Troy, Ohio is also hiring. Troy Main Street, which is the major downtown development non-profit in the community, is looking for their next Executive Director. You can learn more about the position from their website at www.troymainstreet.org and scroll down to the “jobs” tab.
What Can We Work on Together?
Did you know that Pinnacle Strategies works individually with nonprofit and public sector leaders to help them solve problems, achieve goals and gain confidence in their roles?
Why?
Because, this work is hard and it’s often a lonely road. Our nonprofit and public sector leaders need people that they can talk to to get solid advice and encouragement to do the work that is in front of them. If you feel that this can be of value to you, or a member of your team, please reach out to pinnaclestrategiesltd@gmail.com and let’s talk.
Ready to Learn Something New?
One of the prettiest cities in the Midwest is Indianapolis and travelling there can open a perfect opportunity to sharpen your skills and meet new professionals in the field. I would encourage you to look at some of the offerings of The Fund Raising School at the Lilly School of Philanthropy at Indiana University’s campus in Indianapolis. The professional development school has great programming both on-line and in-person both in Indianapolis and at other sites across the country. Take a look at their course offerings here!
Online Learning Options from Texas A&M Announced
If travelling for professional development isn’t in the cards (or the budget), the Center for Nonprofits at Texas A&M University has some great offerings! I recently enrolled in one of their certificate programs and really enjoyed the online format and the online discussions that were developed. It was time and money well spent and I would highly recommend this program, especially for early or mid-career professionals. The next session begins in early February and you can learn more here!
Other Ways to Connect
Our coaching practice has openings and it has been a blast working with nonprofit leaders all across the country! If you are interested in working with me to get your nonprofit organization on a track to achieve the big missions you have, please reach out to me at pinnaclestrategiesltd@gmail.com.
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