And does it matter…
If you have worked in major donor fundraising, you may be familiar with an experience wherein a generous donor makes a life changing gift. Stunned and delighted, you express the thanks of your organisation and every person who will benefit from their generosity, only to have the benefactor quickly shut down the thanks and insist that they didn’t do it for the thank you / don’t need acknowledgement / are really uncomfortable with being thanked.
I have asked countless philanthropists why they behave in this way and invariably, the answer is that they feel by acknowledging the generosity of their gift, it somehow mitigates the authenticity of it and therefore, renders the purpose invalid.
But is there such a thing as inauthentic philanthropy, and does it matter?
Inauthentic Philanthropy
According to some philanthropists, gifts that receive thanks are inauthentic. So what is authentic philanthropy? Russ Alan Prince and Karen Maru File’s The Seven Faces of Philanthropy, studied the motivations behind major gifts in America. Prince and File found that only 7% of gifts were made for ‘truly’ altruistic reasons, which is a gift made purely to help someone (or something) else for which the donor had no other motivation whatsoever to give.
The other motivations encompassed religious pursuits, community involvement, loyalty to an educational institution, being part of a social set or having an investment mindset.
So are any of these reasons more ‘authentic’ than the others; and does it matter? Well, pure altruism is noble. However, the impact of the noble philanthropist’s gift is no greater than the social donor who enjoys giving in public at a gala ball.
The only situation where gifts could be considered inauthentic are those where the philanthropist wishes to influence the use of the gift for their own gains.
Note the important distinction.
It is where the donor wishes to influence the use of the gift, that is, to alter how the charity will implement the funds. This can happen where a donor wishes to join the board and change the strategic direction of an organisation, or where the donor wants to use the application of the gift to improve their political or business ambitions. For example, insisting that the gift be used to improve a neighbourhood facility in an area that doesn’t require assistance, but will lead to political advantage, when there is a deserving area that requires a gift that will miss out.
This is completely different to the philanthropist who gives a gift without strings, but through happenstance receives acknowledgement, or social praise, or even business advantage (perhaps they helped a business associate’s charity, and that associate was pleased). The ethical line can appear blurred, but what matters is how the gift is applied, not how it was given.
Conclusion
Philanthropists, you have done a wonderful act by giving. The praise makes it no less authentic, and may even help encourage others to give.
If you need help managing your gifts, contact us.