“Marketing Is What Happens When Relationship Fails”

The future of philanthropy belongs to a certain structure of nonprofit, and the shape and goal of that nonprofit structure will forever change the way fundraising is conceived and executed.

It is the most basic of structures:

  • An individual embraces a cause and grows to comprehensive maturity in it
  • The individual gathers around herself a community of practice and trains them to grow to comprehensive maturity in the cause
  • Members of that community of practice gather communities of practice around themselves and train those communities to grow to comprehensive maturity in the cause

Growing to comprehensive maturity in a cause entails learning how to impact that cause both directly and in concert with others seeking to impact the cause. The nonprofit organization is nothing other than everything that occurs after the “and” in the previous sentence, i.e.:

A nonprofit organization is a community of practice acting in concert to impact the cause.

Fundraising, then, is nothing other than the coordinated giving that occurs as a community of practice acts in concert to impact the cause.

Enter Carolyn Hook on her Acronym blog, who was listening to a sermon recently where a pastor opined, “Marketing is what happens when relationship fails”.

That sentiment is eminently sensible in light of this understanding of nonprofits and fundraising. Marketing becomes a (poor) substitute for an individual gathering a community of practice around her as a result of having been a part of a community of practice where she learned to grow to full maturity in a cause that engaged her.

Marketing, in other words, is the price nonprofits pay for having donors instead of cause champions.

Donors are largely inert. They don’t reproduce. Cause champions reproduce by nature because they are taught that such reproduction is essential to achieving that to which the cause aspires.

Carolyn sharpens the question up for us nicely:

How can we form and multiply relationships that matter and inspire members instead of relationships that have a goal of developing and maintaining a membership base in order to generate profit for our organizations?

Starting point:

  1. Read our recent three-part series about sustainable fundraising, starting here.
  2. Thank and disband your donor file. They’re a luxury that will distract you wholesale from creating a community of practice.
  3. Gather around yourself a community of practice whom you train to be as mature in the cause as yourself. (You might find some candidates in that donor file you just disbanded under point 2.)
  4. Train them to gather around themselves a community of practice whom they train to be as mature in the cause as you enabled them to be.
  5. Embrace the reality that your nonprofit is nothing more or other than the vehicle for the shared action of the communities of practice you’ve initiated.

Or, as David Armano advocates in HBR, Fire Your Marketing Manager and Hire A Community Manager.

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Churchgoers Less Generous Today Than During the Great Depression

That’s true–3.2 percent of churchgoer income was given in 1933, versus 2.5 percent in 2007.

So the sum total of modern church fundraising tools, techniques, and strategies has been a precipitous drop of 0.7 percentage points in giving as a percentage of income among congregation members.

There is not a “creeping crisis” of relevancy in American Christianity, she [Sylvia Ronsvalle of empty tomb, inc.] said.

“It is a galloping crisis, and it’s immune to the economy,” Ronsvalle said. “The church needs to dig in and figure it out.”

Indeed.

The quote and the stat are part of a sobering Money and Religion quiz on the long-term challenges facing church finances, available at Faith & Leadership. Well worth checking out and seeing if you can beat my 8 out of 11 performance.

Fitting that today I would finish the final version of a new church-based Transformational Giving Ten list, in preparation for beginning to write my second book on church-based Transformational Giving–a book intended to be equally applicable to churches, Christian nonprofits, and individual Christians. Draft due in November, publication set for the turn of the year.

I’m thinking to post the new church-based TG Ten on the blog here in a week or two. I just want to make sure the “final” final version is really, um, final.

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OK, So Giving Is About Affiliation AND Investment

Interesting follow-up to our post earlier this week on the overlooked dimension of giving as a statement of affiliation, not just an investment.

Seems that I’m thinking like a billionaire these days.

Check out this quote from BusinessWire founder Lorry I. Lokey, one of the 40+ billionaires who are pledging to give away half  their wealth in response to The Giving Pledge, from Peter Panepento’s Chronicle of Philanthropy post:

I like gift officers who approach me on a peer level and truly are friendly whether or not I say yes. And if I become a donor, I, in effect, am adopting that organization as if I worked there or owned it or had close ties with it. It becomes an investment that I want to follow and see success. My grants are not gifts. They are investments.

“Adopting the organization as if I worked there or owned it or had close ties with it”–one would be hard pressed to find a better definition of affiliation.

It’s worth checking out the rest of Lokey’s remarks to Panepento at Inside the Mind of a Top Donor.

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