Demystifying Philanthropy: How Your Organisation Can Unlock Transformational Opportunities
Philanthropy is a powerful force for social impact - and yet, much about it can feel like a mystery for charities and donors alike. Many see philanthropy as something unattainable, something that is only relevant for the very wealthy. However, philanthropy can be for everyone. Read on to find out how your organisation can effectively engage with committed donors and philanthropic partners and unlock transformational opportunities!
Defining Philanthropy
Greek playwright Aeschylus coined the term philanthropy in the 5th century BCE. It meant “love of humanity.” Today, philanthropy means generosity in all its forms and a commitment to supporting positive social impact. It is often defined as the giving of “time, talent and treasure” to help make life better for other people. Anyone can be a philanthropist, regardless of status or net worth – it’s simply about committing to a cause you believe in.
The Evolution of Philanthropy
In Ireland, the landscape of philanthropy has evolved significantly over recent years, and is now backed by Ireland’s dedicated National Philanthropy Policy, the purpose of which is to deepen understanding and knowledge, create an enabling environment and accelerate engagement with philanthropy in Ireland for social good. Its launch marks the beginning of a new evolution of philanthropy in Ireland that is sustainable, effective, and impactful. The policy defines philanthropy as "long-term, strategic and sustainable. It is solution-focused, often evidence-based and can take risks. It is private giving for public good”
How charities can effectively engage with philanthropy
Bring The Entire Team Along: To cultivate a culture of philanthropy within your organisation, it's crucial to have all staff and board members aligned as ambassadors. In the arts, they say from the box office to the boardroom - everyone should understand the potential impact of a philanthropic gift. At every touch point, it’s important that everyone understands that philanthropy is critical to organisational health and they have a role to play in the process.
Be Aware of Trends: Follow experts on LinkedIn, subscribe to Trusts & Foundations’ newsletters, and stay attuned to emerging trends in philanthropy. Understanding these trends can help your organisation position itself strategically and effectively when approaching potential philanthropic partners. Here are some recent trends worth taking note of in an Irish context - research from Community Foundation Ireland shows a growing focus on legacy giving, planning, innovation, and sustainability in Irish philanthropy. And in a recent RAISE workshop, Social Impact, Philanthropy and Partnerships specialist Caroline McLaughlin cited the importance of intersectionality (the interconnected nature of social categories, like gender, race or class as they apply to a given group) as donors want to be more strategic in their giving. As Kimberlé Crenshaw, who coined the term, says: “Intersectionality is a lens through which you can see where power comes and collides, where it interlocks and intersects. It’s not simply that there’s a race problem here, a gender problem here, and a class or LBGTQ problem there. Many times that framework erases what happens to people who are subject to all of these things.” Think about who your work impacts and how can you talk about it across a number of different areas - for example, not just education, but education and gender equality. Another trend that Caroline mentioned was the rise of donor-advised funds, which is being seen at Community Foundation Ireland. These funds are often seen as the ‘holy grail’ of philanthropy, but rarely will an organisation see overnight success. Which brings us to tip number three!
Make Yourself Known to Trusts and Foundations: Trusts and Foundations play a pivotal role, either as direct donors or in their management of donor-advised funds, in aligning their philanthropic goals with impactful causes. Ensure that your organisation is on their radar by participating in information sessions, applying for open-grant rounds and proactively sharing information about your projects. Establishing relationships with Trusts & Foundations is vital - pick up the phone and ask their advice before applying; if you’re unsuccessful in an application, then ask for feedback and continue to build connections that extend beyond grant applications.
Tailor Your Approach: Recognise that one size does not fit all in philanthropy. Tailor your proposals and communications to align with the values and interests of potential philanthropic partners. Conduct thorough research to understand their previous commitments and ensure that you’re a good fit.
Demonstrate Impact: Quantify and qualify the impact of your work. Share specific, measurable success stories that highlight the transformation and change made possible through philanthropic investments. These narratives should not be confined to annual reports but should be woven throughout your website and all communication channels.
Relationship-building: Remember that people give to people, and within every grant-making entity are people! Building lasting philanthropic relationships, be they with Trusts & Foundations, Donor-Advised Funds, or Individual Donors is a long-term commitment. Treat philanthropic partners as stakeholders, engage in ongoing communication, and participate in relevant events. Personal connections matter, so make the most of opportunities to invite potential partners to your activities and events and foster a sense of shared purpose.
Governance: Ensure that your organisation’s documentation and impact reporting are easily accessible and well-structured. A transparent and accountable framework enhances trust and confidence among potential philanthropic partners. People don’t decide to give solely because of good governance - but people definitely decide not to give if good governance isn’t clearly evidenced.
Ask: Don't shy away from making the ask. Do your homework, make the connections, build the relationships, and then be brave and make the ask. Remember, philanthropy isn’t about asking people for their money - it’s giving them an opportunity to invest in social impact, and be part of the change they would like to see in the world.
The Importance of Saying Thank You: Expressing gratitude is fundamental. Appreciate both your donors and the foundations that facilitate philanthropic partnerships. A simple 'thank you' goes a long way in nurturing and sustaining relationships. (Check out our article on cultivating donor appreciation here!)
Stewardship: Once you’ve had success with a philanthropic partner, be sure not to stop there! Effective donor stewardship is vital, and contributes to long-lasting, sustainable partnerships. Make sure that you’re nurturing relationships with donors, acknowledging their support, communicating their impact, and building trust.
We hope that this article has been helpful in demystifying philanthropy for you and your organisation! Remember that success in philanthropy requires a strategic, personalised and proactive approach - and it’s nothing to be intimidated by. As you embark on the journey of engaging with philanthropy, OKC are here to support you through our Donor & Partnership Engagement service, so that you can unlock transformational opportunities and make a lasting difference. Don't hesitate to get in touch with the team if you are interested in having a conversation about how we can work together.
Ireland’s National Philanthropy Policy
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