No, social enterprise and earned revenues will not solve nonprofits’ funding problems

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Hi everyone, for those who missed the Unicorns Unite’s 5-year virtual reunion event on Valentine’s Day, the other co-authors and I are doing an encore for folks in other countries on April 18th to discuss what we’ve learned since we published the book five years ago. It’ll be midnight for me, but that’s also when I do my best work! Register here and see you then! (Folks in the US who don’t mind staying up at midnight or 3am, feel free to join too!)

A couple of weeks back, I met a great new colleague. I knew we would get along because we wore the same brand of outdoor gear, which I will not mention here until the multi-million-dollar sponsorship deal goes through. We were having a sparkling conversation when my new friend started an impassionate speech about how nonprofits should focus more on earned revenues. I watched in horror, mouth stuffed with a blue-raspberry-flavored Jolly Rancher, as my colleague, a funder, continued on about how earned income would allow orgs to have more control and not be as beholden to the whims of funders and donors.

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10 Signs You Might Have Fundraiser Stockholm Syndrome

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Hi everyone, before we get started, here’s a conversation on Donor-Advised Funds (DAFs) taking place on April 21 at 10am PT. It’s free, and auto-captions will be enabled.

Some of you may remember #DAFHobbyGate, where many, many fundraising colleagues got very upset because on an earlier webinar I mentioned that “philanthropy has often become a hobby for the rich and it really shouldn’t be.” Dozens of indignant people told stories of the wonderful donors they encountered who would die before they thought of their charitable work as a hobby. Others called me pretentious, self-righteous, and ignorant. A few demanded I apologize for my thoughtless and insensitive words (which I did, very sincerely).

Here’s the thing, though: Not a single donor indicated they were offended. Or certainly no one expressed they got offended in their role as a donor, as I suspect all of us in the sector are also donors. The folks who were bothered expressed their rage as fundraisers, wealth advisors, and fundraising thought-leaders.

In an earlier post (“White development colleagues, we need to talk about fundraiser fragility”) I mentioned Fundraiser Stockholm Syndrome, this primal urge among fundraisers to protect donors from any and all criticisms and discomfort, as if donors were perfect beings immune to committing any wrongdoings, or fragile baby birds who cannot fend for themselves. It is preventing us from having deep, necessary conversations that would advance our field.

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We need to talk about the relentless machine that is higher-education fundraising

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Every month or so, I get an appeal letter from my alma mater, Washington University in St. Louis (Go Bears!), usually with a promise of some socks or a keychain if I contribute any amount. I love Wash U. It was some of the best and most formative years of my life. It was there that I discovered the power of activism. I was vegan, and the campus had little more than salads, so I started mobilizing the other plant-eaters. We marched on the administration. Many of us fainted on the way because we didn’t have much energy, and our fake-leather shoes disintegrated. It was the longest 50 yard of our lives. But at the end, we were triumphant, and we feasted upon soy nuggets and quinoa bowls with pride. I will always be grateful for what I learned at Wash U, the friends I made, the experiences I had, and the doors that being an alum has opened for me.

But I’m not donating. Wash U is one of the most well-endowed higher education institutions in the US, with over 15 billions in reserve.

In general, the sheer scope and scale of higher education fundraising departments would make the vast majority of nonprofits’ development work pale in comparison. At a large university, we could be talking about a team of hundreds of people raising hundreds of millions of dollars each year.

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20 new rules regarding handwritten thank-you notes we must all adopt immediately

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Hi everyone, before we get started, it’s Black History Month, so let’s all remind ourselves that only about 2% of philanthropic dollars go to Black-led organizations. Funders, release all the statements of support you want, but increase funding and donations to Black organizations, movements, and individual leaders. Have more grants like the Washington Women’s Foundation’s Rest and Repair Awards, which provides $100,000 grants each to individual Black women leaders. The rest of us, meanwhile, should be donating to Black-led orgs, supporting Black-owned businesses, and calling our representatives and writing op-eds to protest the banning of AP African American Studies, among other actions.

Handwritten thank-you notes (HWTYN) have been a contentious topic in our sector of late. Some people think they are an absolute necessity for proper etiquette and relationship-building, while others believe they are an outdated relic of ancient times, like denim jackets and fair elections. Even Dr. Glaucomflecken weighed in. I have written about the cultural and equity implications of thank-you notes, so I won’t rehash.

But given that society is changing rapidly, we need some new rules. So forget everything you’ve been taught about thank you-notes, and instead follow these guidelines, which are in no particular order because I am not that organized:

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Foundations, please get over the urban myth of “tipping”

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Hi everyone, before we get started, it’s been five years since Unicorns Unite: How Nonprofits and Foundations Can Build EPIC Partnerships, a book I wrote with co-authors Jessamyn Shams-Lau and Jane Leu, was released. Here’s a free webinar taking place on February 14th at 10am PT to discuss what we’ve learned since then. Auto-captions will be enabled. Also, please use promo code UNI50 here to get 50% off your copy of the book.  

Today, we talk about an issue that many of us probably had no idea existed, but one that is very annoying to those affected, and it perpetuates inequity. The concept of “tipping.” This is basically the idea that if a foundation gives a nonprofit “too much” funding, it would “tip” that nonprofit into becoming a foundation itself, which would then open a hole in the fabric of spacetime and an ancient evil would breach our dimension to rain chaos and destruction and there would be fire and brimstone and terrible wifi.

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