By Chad Paris, Partner & CEO, Parisleaf
Like many, today’s fundraising leaders face unprecedented challenges and opportunities. As we transition into a new era marked by shifting generations, donor priorities. and technological advancements, it is critical that leaders adapt.
Over the past year, I have visited some of the leading fundraising shops in the country and met with some of the brightest minds in the field to learn about their experiences and how they’re adapting. Drawing on these recent insights on leading practices, and from the Giving Institute’s March Meeting, this article outlines some of these insights for successful fundraising, and leadership, in today’s dynamic environment.
Impact > Dollars-Raised
An ongoing shift is the emphasis on Impact rather than merely the amount of money raised in a campaign. Donors are keen to see how their contributions can make a difference. Leaders should focus on communicating the real-world impact of their fundraising efforts, showcasing success stories and measurable results to foster deeper donor engagement. A Dollars-raised focus makes many donors feel like their support can have little to no effect. Transparent reporting on the outcomes and successes funded by philanthropic support lends credibility and trust. Dollars-raised is great for a few things: for the internal team to know where the goal post is (and to pad their resumé) and for mega-donors to know that your organization has a sophisticated enough palette to handle their philanthropic support.
Cause > Institution
Donors today are more Cause and Impact-focused, motivated by the impact their contributions can make, rather than the name brand of any organization they support. Fundraising leaders must align strategies and messaging to highlight how contributions directly advance a cause, demonstrating tangible outcomes and stories of change. This approach not only resonates more with donors but also builds a stronger emotional connection to the cause. A book could be written on this.
Authenticity > Differentation
We are in a differentiation-obsessed world, but authenticity has become a cornerstone of effective fundraising and something the world is craving, overall. It isn’t a coincidence that ‘Authenticity’ is Merriam-Webster’s Word of the Year. Since the advent of social media, authenticity has taken a leading role. It’s not that differentiation doesn’t matter, it’s what we lead with. Authenticity is the hook, differentiation is the line and sinker. Fortune 500 companies understand this better than most – look to their taglines. Nike lives “Just Do it” as part of their DNA, as does Apple with “Think Different”. Donors (and employees) seek genuine connection and transparency from organizations and their respective leaders. By fostering an environment of authenticity, leaders can build lasting relationships based on trust. This means being honest about both successes and failures. This involves open communication, sharing both achievements and areas needing improvement, and maintaining a consistent, honest narrative.
The Great Wealth Transfer
Books need to be written on this. The ongoing transfer of wealth from older generations to younger ones presents a unique opportunity. Recent projections I’ve come across range from $70T-$140T, of which one-third is projected to come in through philanthropic support. This has the potential to 3x-6x our industry. This demographic shift calls for strategies for a more dynamic donor-base of older as well as their younger counterparts. These younger donors have different values and expectations. Surprisingly, the pendulum is swinging back from Digital back to human-to-human, in-person connections for younger generations. Fundraising leaders need to understand the motivations of these young donors and tailor their approaches, emphasizing global, social causes that resonate with them like global warming, war, famine, systemic racism, women’s reproductive rights, and democracy.
Donors Partners
“Creating a safe space” was an interesting insight presented during the Giving Institute Meeting this past March. Not many heard it, but this is critical. We need to align with donor needs, concerns, and motivations, and ensure they feel valued and respected. As one of the top fundraisers in the country recently told me, “I did well in fundraising because I never treated Billionaires any differently.” A shift in perspective from seeing donors as mere benefactors to recognizing them as partners in the mission is essential. This partnership approach fosters a shared sense of purpose and collaboration. Leaders should engage donors in meaningful ways, involving them in the ideating, and decision-making processes and acknowledging their contributions beyond financial support. Bring them along for the ride. Leaders should foster an inclusive environment where donors feel comfortable expressing their opinions and feedback.
Balancing Creativity and Politics
I’m not sure this is something new, but as the years go on, I’m realizing how much of an art form politicking is. Fundraising is as much about creativity and innovation as it is about navigating the political landscape. Leaders need to love politics because Politics = People. Leaders must balance fundraising targets, talent, and innovation with slowing down and leaning into political dynamics. This involves seeing the bigger picture, being politically astute, building alliances, and fostering collaborative environments to drive successful campaigns. This also goes back to the last point – treating people as partners. Again, bring people along.
Fundraising Campaigns as Branding Campaigns
When you’re a hammer, everything looks like a nail (written by the CEO of a Fundraising Campaign Branding Agency). That said, some of the greatest minds in this field have shared with me that fundraising campaigns are essentially large marketing (branding) campaigns. It’s branding that helps foster impact and a successful campaign. A strong, cohesive brand message that everyone can get behind and that resonates with donors can elevate the entire fundraising operation. Leaders should ensure that their fundraising campaigns align with the organization’s overall brand strategy, creating a unified and compelling narrative that attracts and retains donors. As a favorite fundraising consultant of mine talks about, “Getting everyone to sing from the same songbook.” Consistency and clarity is key. Brand with authenticity as the leading role.
