The Danger of Dowagers

We met with a group last week that, by rights, ought to have a robust donor base. Over 100 years old, founded by and affiliated for most of its first century with several of New York’s most august and philanthropic families.

Rescued by a bequest by one of those families last year, from near-death due to mounting debt.

There are many factors that brought this group to its knees like that, but one, frankly, was the curse of the benevolent “fixer.” I’m referring to the long-time (multi-generation, often) donor affiliation which has lost its luster – so that the family members still affiliated are giving out of duty, but are not motivated enough to be asking. The nonprofit was really important to someone a couple of generations back, but not to the folks on the board, now.

So why does this leave a group worse off than groups without this affiliation?

First, because, more often than not, the affiliation with this founding family has enabled the nonprofit to rest on that affiliation – to let its fundraising muscles go flabby. Janet will write a check, goes the history…so why do the hard work of finding and stewarding new donors, when Janet and her descendants will fill the void?

And second, because the group has people filling seats on its board who aren’t fulfilling the board’s primary role – to serve as ambassadors. Other board members get the message that what’s valued isn’t activation but check-writing; and while they may not be able to write that level of check, they’ll give up on the activation too, because it’s not the driving paradigm.

And finally, because having that level of resources on a board, puts stars in people’s eyes. The $500 donors don’t seem worth going after, because you’ve got $50,000 donors within reach.

But do you really?

You may have one at hand, who’ll eventually give you a bequest…but more than that is a mirage.

And mirages don’t cut it, these days...