All in the Family: How do family dynamics affect solicitations?Whether or not you are a member of the generational juggernaut known as baby boomers, you can’t deny their impact on philanthropy. As they prepared to retire in the 1990s, charitable giving nearly doubled in a decade, nationwide. As the first boomers turned 60 in 2006, the $6 - $18 trillion intergenerational transfer of wealth started to peel off transformational gifts to deserving causes of all shapes and sizes. The best news: This is just the beginning. The challenge: Recognizing that your donors are part of a complex committee, known as their families. The result: Because nearly every charity is in the middle of or planning to campaign, you’ll need to figure the committee structure out in a competitive environment. Family dynamics are complicated. Different generations of donors have different (sometimes opposing) interests and needs for recognition and stewardship. Money and power within a family dynamic is as taboo a topic as any. As an outsider, you have an especially difficult, but important job of helping to manage the succession of family philanthropy. Now and in the future, this intergenerational transfer of wealth veritably guarantees that the most successful fundraisers will incorporate the entire family into their donor prospect strategies. Initiating the family into the prospect process:Any experienced fundraiser knows to ask a donor about his or her spouse’s interest in being involved in the institutional relationship. It’s simply due diligence to learn where spousal passion is, whether a marriage is the first or second (or beyond that), and how many children, and grandchildren might be involved in the transfer of family wealth. So, why don’t we seek to find out that same level of detail about the rest of the family? With boomers, it’s important. The difference between good prospect research and exemplary long-term prospect strategy is in listening to your central prospect’s clues about family dynamics. In conversations, does it appear that you donor considers the opinion of family members? How is their relationship? If it’s a positive relationship, it’s fair to ask if children or other family members share philanthropic interests. If so, it’s a great opportunity to include them in the conversation. Another key point is to understand if the extended family tree includes other financially successful branches. If there are shared interests and other branches of wealth, recognition and gift levels can potentially be accelerate d and expanded. All of this information points to the necessity of detailed, expanded contact reports. Whether a donor is your managed prospect or one of your colleagues’ charges, anyone who participates in a conversation about family has an institutional responsibility of a contact report. Family RecognitionWhen a significant gift is made, it’s a link to generational support (and good manners) to include the entire family in the recognition process. Is there an event? A naming opportunity? Is the gift made by bequest? Helping the family understand the impact of a gift is key to inclusive donor recognition. At JBL, we had a client whose founding donor had been extremely generous of his time and family wealth during life and through his will. Many years after his passing, his influence was honored when the client named an outdoor amphitheater after this donor. Though the donor’s family had not made any gifts towards this project, his influence was mentioned by many of the donors who did support it. At the dedication ceremony, every member of the former donor’s family was invited to attend in honor of his profound impact on the institution. The grandchildren, great-grandchildren, and great-great grandchildren of this individual were so touched that it sparked a renewed interest in the family’s philanthropy. Though the true purpose of inviting the family was to show respect to the current donors’ wishes, it is clear that family dynamics will be key in many future gifts. JBL’s senior team of consultants can help you include the entire family in philanthropic projects to support your mission. Call 603-924-3834 to learn how we can help.
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June 2008:Archived Newsletters |
