logo
    • Magazine
    • Membership
    • Donate
  • Racial Justice
  • Economic Justice
    • Collections
  • Climate Justice
  • Health Justice
  • Leadership
  • CONTENT TYPES
  • Subscribe
  • Webinars
    • Upcoming Webinars
    • Complimentary Webinars
    • Premium On-Demand Webinars
  • Membership
  • Submissions

Nothing Can or Should Substitute for Philanthropy, Part 2

Simone Joyaux
July 15, 2010
Share
Tweet
Share
Email
Print

Simone Joyaux

Yes, I’m worried by what I see as an excessive focus on generating revenue by nonprofits. Of course, nonprofits should generate revenue if they can. Fees for service. Admission fees. All that stuff.

But what I’m hearing is something different. What I’m hearing is: “Let’s start a business where customers buy stuff and then we won’t have to rely so heavily on donations!” Articles proclaim that nonprofits are “finally wising up.”

It’s as if revenue is better than charitable contributions. It’s seems as if the reliance on donations is seen as somewhat demeaning. Wow. Stop right there!

Sure revenue is good but it doesn’t substitute for charitable gifts. Sure, customer loyalty is great. I’m an ardent Apple fan. I’m a very loyal customer. But in a tough economy, I may not buy the newest iPod or the even newer laptop, which is so cool and better than the one I have.

I was a loyal customer of Michigan State University, my alma mater. But I’m not a customer any longer. I am, however, a donor. I’m a loyal donor. I’ve made a bequest in my will to MSU, too.

Loyal customers are wonderful…those Apple buyers and Trinity Repertory Company subscribers. But the Trinity Rep subscribers who are also donors – now that’s really something.

Customers and donors are not interchangeable, not even the really loyal ones. Yes, customers and donors have much in common. Just read Adrian Sargeant’s book Building Donor Loyalty. But customers and donors are not exactly the same.

Loyal customers can be affected by the economy. Customers can move on once their need is met, or in search of product enhancements.

Sign up for our free newsletters

Subscribe to NPQ's newsletters to have our top stories delivered directly to your inbox.

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

Ticket buyers may not buy tickets to the most challenging and controversial plays, even though that’s the mission of the theatre. Donors allow the theatre to fulfill its mission rather than produce popular plays only. (Popular plays, subject to customer whim, is Broadway.)

Donors give beyond a particular play because they’re committed to mission. Donors give in tough economic times. Donors increase their gifts without the expectation of goods and services. Donors can be forever, even after death.

Fundraising events aren’t as good as charitable gifts either

Nothing substitutes for donors. And there’s a parallel in fundraising itself: Nothing substitutes for charitable gifts, not even ticket purchases for fundraising events. Fundraising events cannot substitute for requesting a donation.

The reality is, buying a ticket to an event is usually about attending the event. If people are not interested in attending the event, they may not buy the ticket. And most fundraising events have no real connection to the cause anyway; the event is just about making money. (Oh don’t even get me started on golf events!)

Also, in my experience, the economy affects fundraising events more than the economy affects charitable giving. Corporations back off of event sponsorship, but still may give a gift. Individuals don’t buy tickets to events when times are tough, but these same individuals will still give a donation. The ticket is equated with the event. A donation – with no goods or services exchanged – is about the cause.

So beware of too much focus on fundraising events. Spend more time on charitable gifts and donors. Beware of too much time focused on revenue generation – or over-reliance on revenue, which is subject to the whim of customers.

Nothing substitutes for donors. Nothing. Ever. Never.

Read Part I.

Share
Tweet
Share
Email
Print
About the author
Simone Joyaux

Simone P. Joyaux, ACFRE is recognized internationally as an expert in fund development, board and organizational development, strategic planning, and management. She is the founder and director of Joyaux Associates.

More about: OpinionPhilanthropyUnraveling Development

Become a member

Support independent journalism and knowledge creation for civil society. Become a member of Nonprofit Quarterly.

Members receive unlimited access to our archived and upcoming digital content. NPQ is the leading journal in the nonprofit sector written by social change experts. Gain access to our exclusive library of online courses led by thought leaders and educators providing contextualized information to help nonprofit practitioners make sense of changing conditions and improve infra-structure in their organizations.

Join Today
logo logo logo logo logo
See comments

Spring-2023-sidebar-subscribe
You might also like
Arab American Philanthropy
Tamara El-Khoury
The Nonprofit Sector and Social Change: A Conversation between Cyndi Suarez and Claire Dunning
Claire Dunning and Cyndi Suarez
Nonprofits as Battlegrounds for Democracy
Cyndi Suarez
Sankofa Philanthropy: Hip Hop’s Sixth Element
Jason Terrell
Why Social Change Films Matter
Cyndi Suarez and Saphia Suarez
Philanthropy Must Move from Charity to Solidarity
Son Chau

NPQ Webinars

April 27th, 2 pm ET

Liberatory Decision-Making

How to Facilitate and Engage in Healthy Decision-making Processes

Register Now
You might also like
Brown-skinned Arabic woman wearing a bowler hat and looking into the camera. She is standing in front of a bougainvillea plant.
Arab American Philanthropy
Tamara El-Khoury
The book "Nonprofit Neighborhoods" leaning against a wall
The Nonprofit Sector and Social Change: A Conversation...
Claire Dunning and Cyndi Suarez
Nonprofits as Battlegrounds for Democracy
Cyndi Suarez

Like what you see?

Subscribe to the NPQ newsletter to have our top stories delivered directly to your inbox.

See our newsletters

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

NPQ-Spring-2023-cover

Independent & in your mailbox.

Subscribe today and get a full year of NPQ for just $59.

subscribe
  • About
  • Contact
  • Advertise
  • Copyright
  • Careers

We are using cookies to give you the best experience on our website.

 

Non Profit News | Nonprofit Quarterly
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.