You Won’t Inspire Philanthropic Investment By Acting Like a Charity

Jim Langley

October 18, 2024

Charitable appeals stress pressing need and urge the would-be donors to give immediately and out of empathy in response to adversity such as natural disasters or epidemics. However, real as those concerns are and as noble as it is to respond from the heart, charitable appeals do not attract the highest levels of support. A CEO of a major disaster relief organization confided that even the volunteers who engage in the relief efforts give far more to rebuilding programs than they do to the provisioning of basics such as food, water, and rudimentary shelter.

Philanthropy, on the other hand, appeals to an investment mentality by painting a picture of fundamental and sustained advances—the elimination of disease, education that empowers significant upward mobility, or scientific or technological achievements that improve the human condition or quicken the pace of human development. Philanthropy draws the highest levels of investments.

Demonstrating agency – the ability to consistently convert private investment into significant, sustainable, societal benefits – is the best way of inspiring the highest levels of philanthropic support. Institutions trying to position themselves as philanthropically worthy while, at the same time, saying they are “in need,” send a bewildering mix of signals. A university charging $75,000 in tuition, for instance, while asking donors to “help keep the lights on” begs the questions as to why such elemental needs were not covered in the setting of such handsome tuition levels. More importantly, such an institution misses the opportunity to demonstrate how even modest investments, when bundled, can be used to create the margin of excellence and ignite innovation.

The weakest philanthropic signals, those of urgency and need, are often made in the name of the annual fund, a vehicle which is proving less and less effective because of this tendency. The worst possible use of an annual fund, therefore, is to put it in service of balancing an institution’s annual operating budget. And, yet, look how often that is done.

The far greater role for the “annual fund” is to offer a series of focused initiatives that show how annual differences can be made if targeted investments are secured.

Inspire philanthropy, don’t beg for charity.

Jim Langley is the president of Langley Innovations. Langley Innovations provides a range of services to its clients to help them understand the cultural underpinnings of philanthropy and the psychology of donors, and with that knowledge, to develop the most effective strategies and tactics to build broader and more lasting communities of support. Jim has authored numerous books, including his most recent book, The Future of Fundraising: Adapting to New Philanthropic Realities, published by Academic Impressions in 2020. 

Related Resources:

• Webinar: 4-Step Process for “Reimagining Fundraising Operations”
• Webinar: Fundraising Climate Change and What You Can Do About It
• The Days of Easy Fundraising are Over
• The Power of Building Relationships: Why Donors Need Good Fundraisers

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