Missioneurs.com

I read certain things about social entrepreneurship that make me think that the people writing have never raised money.

I am a professional fundraiser.  I’ve been called cynical, callous, cold.  I really don’t think I am.  What I am is real.  I really understand the dynamics at work in the nonprofit world.  And for the record, people don’t like to hear the truth about philanthropy.

Let’s start with the basics.  Donations are transactions.  There’s no such thing as free money.  This is especially true with donations.

Many folks on the outside looking in to the nonprofit world think money is given freely to nonprofits without any remuneration.  They call it a hand-out.  This could not be further from the truth.  There are no shares or owners, but there are customers.

The person who writes the check in any transaction is the customer.  In a nonprofit, the customer is its donors.

I believe this point is completely missed by 90% of all nonprofit workers and 100% of all folks looking at nonprofits from the outside in.  This point is not lost at all, however, on the donors.  Every donor knows he/she is the customer.

That’s right.  It’s a transaction.  Trading money for certain social outcomes.  Donors have expectations.  These expectations can be very high.  When these expectations are not met, funding is withheld and nonprofits fail.  When these expectations are met or exceeded, other donors join in.  They tell two friends, and they tell two friends, and so on and so on.

Consider the metrics a foundation asks for: clients served, outcomes, change in socio economic status.  Did they get a GED or didn’t they?  Did they get a job or didn’t they?    Did they get fed or didn’t they?  What are we paying you for? Did you overcome the roadblocks?  Did you succeed at your mission?  No this is notRudy, but it’s close.

Donors put their name on building.  Go to a museum, I dare you.  The company or donor gets recognition at every gallery.  It’s not the Eagles stadium, it’s Lincoln Financial Field.  And it’s not the water table at the Please Touch Museum, it’s the Aqua Water Company water table.  Name recognition, donor recognition, outcomes, measurements.  It’s a transaction.

So why do nonprofits fail?  Because they don’t have customers.  It’s the same reason for-profits fail.  So who are the customers?  Donors.  DONORS…  Scream it out loud…. get angry!!!!! You’re a nonprofit.  You have customers.  Your customers are your DONORS!!!!!!!!

Distasteful right? That’s why I’m a cynic.  It’s also what makes me a good fundraiser.  I’ll say it again, 100% of all donors know they are the customer.  100% of nonprofits who forget that fail.

Anthony Pisapia is a missioneur at the intersection of for-profit and nonprofit.  To read more posts like this one visit www.anthonypisapia.com.