Whether an organization has just begun to explore development for their communities or embraced it fully, philanthropy offers an invaluable tool that members can tap to extend their resources and reach. LeadingAge recently connected with Jane Mack, President and CEO of Friends Services for the Aging and Laura MacDonald, President of Benefactor Group, who shared their views on the enormous potential benefits of fundraising.
They make the case that philanthropy is much more than simply raising funds for a building or project. Rather, it serves as a powerful vehicle for mission fulfillment and community engagement and offers a revenue sources exclusive to nonprofit organizations. The views of Mack and MacDonald reflect those of the strongly-committed LeadingAge Philanthropy Cabinet members who believe that philanthropy can have an enormously positive impact on aging services communities. It offers a way to fill the void in financial and human resources to meet the growing need while also raising awareness.
“I have always liked the saying that philanthropy isn’t just about fund-raising, it is about friend-raising.” said Mack. “A well-developed philanthropy program provides ways to introduce people to what you do and find ways they can partner with you in making a difference to those you serve.”
Meeting Increasing Demands: Bridging the Gap
With an increasing U.S. life expectance and more than 10,000 baby boomers crossing the 65-plus threshold each day, the needs and demands of seniors are far outpacing state and federal governments’ resources. Fund development offers a means to help fill the gap between public funding and community need.
“When it comes to meeting these needs, public funding only goes so far,” said MacDonald. “Regardless of the size or mission of an organization, philanthropic gifts help sustain essential services and create lasting connections with the surrounding community.”
Furthermore, fundraising is a potentially robust revenue stream available only to nonprofit organizations. Development programs that incorporate annual, major and planned giving can generate additional funds to give organizations flexibility and creativity in supporting their strategic initiatives. Funds funneled into an organization through development programs can support direct operating expenses. This allows organizations to direct resources to other critical projects or programs. In this way, philanthropy fuels numerous efforts and kindles the collective energy that drives mission-driven organizations.
Mack described it as "the ember that glows inside and drives our work every day."
"The resources, both financial and human, that can come to an organization through philanthropy fan those embers and help to make your organization glow," Mack said.
With the help of charitable donations, whether they be major gifts or small donations, aging services providers can expand upon and refine their service offerings. This relieves the pressures associated with public funding while sustaining key programs, resources and facilities for the long term. In this way, philanthropic gifts provide an extra measure of quality to ensure that aging services organizations can transform lives.
Raising More than Funds: The Gift that Keeps Giving
While philanthropy is often viewed in a strictly finance light, the tremendous social impact cannot be overlooked. Businesses and community members who donate to aging services organizations become well-versed in the value of the members’ mission. Through charitable gifts, these donors take part in a larger movement to improve the aging experience. This spirit of generosity, when combined with a shared vision, forges a connection between community, aging services organizations, and the individuals who benefit from their resources, bringing skills, talents and other contributions.
“It could be as a donor, a volunteer, or a potential committee or board member… said Mack.” All are gifts to the organization.”
The power of development as a tool cannot be underestimated. Over time, an organization-wide culture of philanthropy can lend greater legitimacy to nearly every facet of a nonprofit’s operations. Stronger philanthropic practices among LeadingAge members can yield immediate and longer-term benefits.
“I firmly believe that effective philanthropy is a holistic enterprise,” said MacDonald. “… When an organization has a culture of philanthropy, everyone—from staff to board members—takes part in fundraising and development efforts. For these nonprofits, cultivating support isn’t just about raising money; it’s about establishing strong connections with donors and community members.”
With that, the benefits grow even greater, she stresses. Philanthropy boosts employee loyalty by helping staff members recognize the role they play in serving the common good. It also increases financial transparency as it encourages organizations to disclose how they cultivate and allocate revenue. Lastly, a commitment to philanthropy clarifies marketing practices with a focus on beneficiaries rather than the bottom line.
For those who see its value, philanthropy makes the seemingly impossible possible by filling unmet needs in multiple arenas of the organization. As developing philanthropy programs grow, their influence also grows. It brings additional financial and human support with benefits going well beyond new buildings, equipment or programs. Development funds offer additional resources for facility maintenance, tuition grants for employees for further education, career options and training program for staff and critical financial support for those clients who have outlived their resources.
“A well run philanthropy program is the gift that keeps on giving,” said Mack enthusiastically. “It can mean more volunteers, more applicants for jobs, more potential residents/clients, more people who might serve on committees or the board, and of course possibly more donors.”
That, in itself can make a difference for individual lives. Consider, said Mack, “Just one gift or volunteer or potential board member can make an immediate impact.”
For LeadingAge member, the growth in philanthropy has exponential mutual benefits. To imagine LeadingAge members throughout the country adopting the practice of raising funds, the results could be formidable.
“If members throughout the country embraced philanthropy it could become as much a part of the ethos of organizations as a service mindset, said Mack. “Boards as whole and individual trustees embrace their role in creating this culture and understand their roles; they lead by example.”
LeadingAge: A Catalyst for Philanthropy
LeadingAge could foster connection and collaboration nationally thereby expanding the potential for organizations individually and collectively. LeadingAge could engage their constituencies in conversations on charitable giving, and as members gain expertise and resources to support each other, they can develop a common language with which to discuss their fundraising and development efforts. This idea generates tremendous enthusiasm among those LeadingAge members who see how far it could take organizations and the association.
“In five years,” MacDonald said. “LeadingAge could transform into a network for charitable giving—incorporating a spirit of philanthropy into the services, advocacy, and resources it provides for older Americans.” She believes that LeadingAge is well-positioned to advance philanthropy among its members and the people they serve by engaging them in discussions on charitable giving where the major gifts, annual giving and legacy gifts become a part of their vocabulary. The result would create greater visibility for the LeadingAge mission and greater community engagement.
LeadingAge is keenly positioned to support member organizations exploring whether to initiate or grow a philanthropy program, according to MacDonald. Benchmarking services and development software systems for participating organizations are two key supports that could assist members, reflects MacDonald. Benchmarking would allow them to measure their strategies and successes against those of comparable organizations within the LeadingAge network to help nonprofits set realistic goals and determine best practices for introducing philanthropy into their operations.
“Once member organizations understand where they stand in comparison to their peers, they’ll need to find ways to cultivate donor support,” stressed MacDonald. Today, there are countless software programs that connect nonprofits with potential donors, track philanthropic giving and organize project information. By referring quality software systems and strategic partners, LeadingAge can equip its members with the technology infrastructure they need to grow.
LeadingAge has been expanding its efforts to support philanthropy in its member organizations and the work of the Philanthropy Cabinet has resulted in some concrete recommendations, according to Mack. She believes that LeadingAge can continue its role by providing strong education programs at its conferences and partnering with other organizations to allow access to additional training and resources. It can also assist member organizations in connecting with experts in the field.
Perhaps the most valuable asset LeadingAge can share with aging services organizations is its vast network of members, professional partners and affiliates. As a national organization with ties to both the for-profit and nonprofit sectors, LeadingAge can connect member organizations with resources they need—from marketing assistance and financial support to consulting services to ensure that aging services providers have the support needed to sustain lasting impact.As LeadingAge member organizations strengthen their philanthropy, MacDonald emphasizes that members must hold tight to a cornerstone of fundraising: gratitude.
”While working to create a brighter future, these nonprofits should take time to celebrate successes and graciously thank those donors and supporters who help them along the way.”
Mary Kemper is a Director of Education at LeadingAge in Washington, D.C. Menu| Next Article| Video| Resources| More Spotlights