2. Transformational Philanthropy Lisa M. Dietlin Wednesday, November 11, 2009

3. History of Philanthropy Philanthropy exists in all cultures US is the most formalized Americans are the most generous individuals in the world More and more nonprofit organizations are being created

4. Overview of Philanthropic World Competition for resources is intense Most nonprofit organizations focus on government funding or funding from corporations and foundations Very few have robust individual giving programs

5. Corporations $14.50 5% Foundations $41.21 13% Bequests $22.66 7% Individuals $229.28 75% 2008 charitable giving Total = $307.65 billion

7. Transformational Philanthropy Transformational v. Transactional Philanthropy that changes the donor and/or the recipient

8. Potential New Donor Prospects Individuals are the key! –Entrepreneurs –Women –Gay and Lesbian Individuals –Minority Communities –Baby Boomers

9. Basis of the Book Several years studying and working with entrepreneurs formally and informally Most fun in working with entrepreneurs Entrepreneurs make transformational gifts resulting in transformational philanthropy occurring

10. Philanthropy v. Charity Philanthropy more long term and sustainable Charity usually involves an immediate need

11. Qualities Intuition Will Joy Compassion Strength Courage, adventure, risk…..and a pioneering spirit

12. Who is an entrepreneur? en·tre·pre·neur –noun Entrepreneur, translated from its French roots, means "one who undertakes." The term entrepreneur is used to refer to anyone who undertakes the organization and management of an enterprise involving independence and risk as well as the opportunity for profit. SBA definition of a small business is one that has less than 500 employees

13. Factors Affecting Philanthropy Entrepreneurs are problem solvers Facts and Figures Needed –What is the project? –Who will be affected (in other words, who will it help)? –How long will it take to implement? –How much will it cost to achieve the results you are seeking? –When will results be achieved? –How long before the project is funded/issue is resolved/problem is solved? –When will it (i.e., the program, project, etc.) be sustainable?

14. Common Misconceptions & Frustrations of Entrepreneurs –What happens when they get involved; why doesn’t it go as they think it will? –If they support a nonprofit organization, all their friends and colleagues will, too! –Understanding the Long Decision Making Time is the Norm for Nonprofit Organizations –Realizing the timeframe for things to be implemented and/or executed –Why don’t nonprofit organizations operate like businesses? –Why aren’t nonprofit organizations quick to respond to market conditions? Why don’t they seize the opportunities?

15. Trends or Commonalities Entrepreneurs see a difference between charity and philanthropy Most wished they had become involved earlier in their philanthropic and charitable endeavors They are becoming more strategic Most see a positive impact on their business when they become more charitable Most do not come from “philanthropic” families but saw their parents giving back primarily through food

16. Women as Donor Prospects Women live longer than men Inherit the wealth in the country Rarely are they approached Want to give to “new” projects or initiatives They are risk takers

17. Gay and Lesbians as Donor Prospects Usually are dual income Usually have no children Very well educated Committed to improving their communities

18. Minority Communities as Donor Prospects African Americans as donor prospects –Uniqueness and ways to approach Hispanics as donor prospects –Uniqueness and ways to approach Asian Pacific Islanders as donor prospects –Uniqueness and ways to approach

19. Baby Boomers as Donor Prospects 10,000 turning 60 every day Encore careers Want to make a difference

21. Individual Philanthropic Audit Assessment + Values + Passion = Strategic Plan of Action Begin by thinking about two questions: –Lift something/someone up –Eradicate or relieve something

22. Moves Management Identification Qualification Cultivation Solicitation Stewardship

23. Moves Management Cycle Entire Process Takes on Average: 18 months Identification Qualification Cultivation Solicitation (Ask) Stewardship

24. Skills of a Major Gifts Fundraiser Must be a good listener Must be a quick study Must be multi-faceted and able to multi- task (able to distinguish which dance to do) Must know who is leading and who is following?

25. Praise Pride Ask How to Ask

26. What’s the Difference? Volunteers, Donors and Board Members Volunteers give their time Donors give their money Board members give both

27. Capacity Building and Sustainability Critical to success Long Term Strategy Financial Stability Growth Opportunities

28. Get Ready…. Board Current Donors Volunteers

29. Get Set….. Donor Recognition Giving Clubs Increased Volunteer Participation

30. Go…. Major Gifts Program Planned Giving Program Marketing and PR Efforts

31. Book Transformational Philanthropy: Entrepreneurs and Nonprofits published by Jones and Bartlett You can order on www.amazon.com, www.borders.com, www.barnesandnoble.com or by contacing the LMDA offices.www.amazon.comwww.borders.com www.barnesandnoble.com

32. Questions Lisa M. Dietlin President/CEO Lisa M. Dietlin and Associates, Inc. PO Box 7029 Chicago, IL 60680-7029 773-772-4465 lisa@lmdietlin.com www.lmdietlin.com