Baby Boomers and Older Adults: Go For Startups

Despite the ups-and-downs of my experiences in the nonprofit sector over the course of thirty years, I remain optimistic about the future. A few years ago, I wrote a blog post on LinkedIn about the Millennial generation. There, I reference an article by Jean Case, in Forbes (June 18, 2014), “The Business of Doing Good: How Millennials Are Changing the Corporate Sector.”

“Many in this generation are known for being well-educated, entrepreneurial, tech savvy and idealistic. They take risks, are bold and want to change the world. Unlike past generations, they want to make their passions, inspirations and desire to do good part of their identity—and part of their work. The lines between personal passions and professional engagements are already rapidly disappearing. As a result, this commitment to doing good in the workplace is quickly becoming the new norm that will define the generation.”

#2030NOW

My experience is that Millennials and younger generations following on their heels are committed to a fixing the problems of society and to creating a better world at all levels. They are unafraid of tackling difficult challenges with creativity and conviction. And, they are already dominating the workforce. Their impact will continue to be far-reaching for decades to come. Hardly any American corporation today can afford to ignore them.

As I note in, “Nonprofits and Boomers: Are We Missing the Boat,” nonprofit organizations must also be mindful that Boomer and older generations are key for successful fundraising, for their knowledge and their valuable life experiences. Boomers are a generous generation and highly supportive of nonprofit endeavors, yet they are often seen as being stodgy and old fashioned.

Marketing professionals continue to focus on the young and the aesthetics of youth. And while many older adults do strive to be “younger” in some ways, as time moves forward and the aging population explodes worldwide, we are seeing a growing pride in being “older” and in the aesthetic preferences of older adults. Notice my Gravatar on Carolyn’s Nonprofit Blog: I am embracing my naturally gray hair this year (as are a growing number of other “Boomers”), after years of tinting it.

Go For

Earlier this year, I approached a large national foundation that also has a substantial number of donor advised funds, with a grant proposal for funding an outstanding nonprofit project. But the nonprofit’s annual operational budget, being “under $500,000,” meant the foundation declined support based solely on that criteria. They would not take even a cursory glance at what the nonprofit is accomplishing, at how well run it is, and how worthy it might have been as a partner. On a personal note, what that foundation’s professional advisors also missed is that some of the Board members and donors of that nonprofit were capable of establishing donor advised funds. They would have been thrilled to receive even a modest grant and might have themselves become donor advised fund clients. But the “under $500,000” rule supplanted all other considerations in this case. But why is operating budget size so important?

Since returning to Austin in 2013 and helping nonprofit “startups” bolster their infrastructure and credibility in order to be able to secure more substantial donations, I have noticed some funders reluctant to support them because they are, “too small.” Potential donors cite the nonprofits have not been in existence long enough (i.e., five years or more). Some decline because these smaller and younger initiatives have not had formal audits, which are an expensive undertaking for most small nonprofit organizations (and there are reputable alternatives). I visited with one foundation a few years ago that required every nonprofit applicant to have four consecutive years of professional audits. That is way over the top. I advised them to focus instead on gold-level or higher GuideStar profiles and GreatNonprofits reviews by those actually involved with and volunteering for the nonprofits applying.

The fact is, many of these startups and young nonprofits are lean staff- and budget-wise, and they operate highly efficiently. They accomplish amazing things with relatively little and the staff are deeply loyal to their missions. In my opinion, there seems to be a disconnect between the donor and professional advisor sectors, and the vast majority of nonprofit organizations, which are in fact smaller in size.

From the GuideStar Blog comes, “What Does the Nonprofit Sector Really Look Like?” (January 6, 2017):

“The majority of nonprofits (66.3%) have annual budgets of less than $1 million. From there, as organization size increases, the number of nonprofits decreases. For every 1 powerhouse (annual expenses more than $5 billion) nonprofit, there are thousands of grassroots organizations.”

My hope is for deeper, long-term partnerships between younger and older generations, the latter holding significant disposable income to make charitable donations. Boomers and older adults (and their professional advisors), often focus their charitable giving on tried-and-true nonprofits that have been in existence for many years. That is certainly their choice to make, but having seen nonprofits large and small in some detail as a professional fundraiser, I can say without hesitation many of younger and smaller nonprofits, startups and social good enterprises are more efficient and more likely to create positive change in society than the older, top-heavy ones. But these younger initiatives are often seen as being, “riskier.”

Boomers and Younger Generations Are Each Part of the Puzzle

Lose your fear and support startups and smaller nonprofit organizations. Younger generations are – and will be – driving much of the social change ahead. We need to trust and encourage them. But also, younger generations need to engage older citizens and tap their knowledge and enthusiasm for social good, as well as their charitable donations. Together we can change the world for the better.

You might also enjoy reading:

“Furthermore, demographic trends make it clear that over the next decade increasingly greater numbers of Millennials will be elected to office, giving them the power to enact laws that can change how corporations are governed and what responsibilities those entities owe to all of their stakeholders. When that happens the entire edifice of corporate governance constructed on the idea of only maximizing shareholder value will come crashing down and a new foundation for American corporations, built on trust and the values and beliefs of Millennials will arise in its place. Those companies that dedicate their future to changing the world for the better and find ways to make it happen, will be rewarded with the loyalty of Millennials as customers, workers and investors for decades to come. Those that choose to hang on to outdated cultures and misplaced priorities are likely to lose the loyalties of the Millennial generation and with it their economic relevance.”

  • Philanthropy News Digest, “Millennials Are Changing the Landscape of Social Change, Report Finds” (July 29, 2019).
  • United Nations Foundations, Social Good Summit 2014, #2030NOW
  • Wise: Seniors in Business is a website you might enjoy perusing. “Seniors in Business serves the fastest growing segment of entrepreneurship in the world – senior (experience and knowledge) entrepreneurs (people over the age of 50) who are looking for an encore career, whether it is because they want to, or have to.” Older adults are also establishing nonprofit organizations to meet critical needs. Professional advisors need to be aware of this, too.

Thanks to the Adobe free image library for the photographs used to illustrate this blog post.

Rethinking Major Gift Fundraising

In reviewing some 30 years of work in the nonprofit sector, I look back and say to myself, “well, everyone knows that.” But in truth, no one has walked in my shoes and experienced the world in the exact same way as I have. That is why I often say, “context matters.” I can suggest ideas for nonprofit fundraising and communicating with donors all day long, but in the end, the context in which you are operating influences new concepts and how they should be applied.

Clint_Eastwood
Some have said I am the nonprofit version of characters portrayed by “tough guy” Clint Eastwood. Click to read more. (Wikimedia Commons, Franco Pagliarulo, 2011)

But from the world of, “just tell me I can’t do it, and I will,” I wanted to point out that I have continued to update several key major gifts pages on Carolyn’s Nonprofit Blog. Foremost among them is, “Are You Ready for a Capital Campaign.” There I quote a solid, traditional professional in our field. Alongside his suggestions, I make comments based upon my experiences. In tandem, some of my most important fundraising experiences are discussed in, “Are You Ready | Is It Feasible?” Feasibility studies have long been the bread-and-butter of the standard nonprofit consulting business, but I have a different take on them.

“Taking a Step Back Will Lead You Forward” is an article on Carolyn’s Nonprofit Blog that I fine-tuned and gave as a webinar for ADRP: Association of Donor Relations Professionals in 2018. Yes, there are things nonprofits can do to instill donor confidence as they chart a course forward for major giving. A consultant does not need to be hired and paid a handily to tell you to do these things. #JustDoIt

Since Carolyn’s Nonprofit Blog was launched in 2011, I have noticed many innovative social good entrepreneurs are rejecting traditional approaches to major gift fundraising. If you read, “Nonprofits and Startups | Birds of a Feather,” you will discover how similar major gift campaign preparation is with launching a for-profit business startup. In fact, I have suggested that 3 Day Startup, which I reference in the article, re-engineer their course with nonprofit social good enterprises in mind, and with an eye to major gift “investments.” Times are changing! I would love to see NTEN: Nonprofit Technology Network and AFP: Association of Fundraising Professionals team-up with 3DS for “power” sessions along these lines.

Crowdfunding

As I say on my nonprofit resources page, which includes quite a few articles by other experts on crowdfunding, many of the same principles apply to major gift fundraising as they do to launching a startup or crowdfunding. To think the latter two efforts are easier than traditional major gift fundraising is incorrect. The same attention to planning, research, communication and the like apply to all of them. They are just different ways of reaching the same result: securing major gifts. Keep in mind, each nonprofit is unique. A traditional major gift campaign may not be the best option for your organization today.

Something I would like to see – having pulled major gift fundraising campaigns out of the gutter on more than one occasion (without support of any kind) – is a reduction in the condescending attitude of many in the “big box” consulting community. “You couldn’t possibly know how to work with major gift donors! We’ll do that for you.” Even the most well-meaning among them can bill you heavily, and sometimes they will walk off with your nonprofit’s contacts.

From the other side of the table, I have also found some donors and potential donors like the hooplah they perceive as being involved in major gift campaigns. The hiring of expensive “consultants” is part of what they believe to be essential. #Resist

Real major gift donors do not need expensive consultants to help the nonprofit organizations they care about. Be careful.

If you have questions at any time, use the secure contact form on Carolyn’s Nonprofit Blog to reach me. I am in the process of merging my professional work and volunteering website with my blog, so you will see some new information added to my blog the next few weeks!

As always, best wishes for your fundraising success.

Carolyn M. Appleton

February 27, 2019

 

Hurricane Inspiration on the Gulf Coast

Sea Turtle Surgery
Thanks to the Baltimore Sun for covering Texas Sealife Center in Corpus Christi, Texas (February 14, 2017).

When Hurricane Harvey began to threaten the Texas Coast, one of my foremost concerns was its potential impact on Texas Sealife Center. I met founder Dr. Tim Tristan before I moved from Corpus Christi about seven years ago. He shared his vision of a veterinarian-driven wildlife rescue and rehabilitation center to aid shorebirds, raptors and sea turtles with me back then, and I have never forgotten.

In 2011, Texas Sealife Center was established, and it has not looked back since. The Center is all-volunteer and it has been highly successful in helping animals caught in and injured by fishing lines, those that have ingested fishing lures, metal and plastic objects of all varieties, as well as those that have sustained physical injuries and contracted troublesome diseases.

Tim and I have kept up remotely on Facebook. This summer, I agreed to help with some grant research and writing. The Center’s goal is to secure new equipment to support its medical and rehabilitation activities, with an emphasis on sea turtles. Sadly, the number of stranded and injured animals in the Coastal Bend of South Texas continues to increase. And, more sea turtles require help than ever before.

Brown Pelican, Hurrcane Harvey
Click to reach Texas Sealife Center’s Facebook page and more photos illustrating its work during Hurricane Harvey and more.

As the volunteers have done time and again, they made themselves available 24-7 to aid wildlife caught in Hurricane Harvey and its aftermath. One of the Center’s primary partners is the ARK, or the Animal Rehabilitation Keep of the Marine Science Institute of The University of Texas at Austin, located further north on the Texas Coast. The ARK was heavily damaged during Hurricane Harvey, and Texas Sealife Center gladly took-in injured wildlife that could not be successfully released there. They continue to provide critical medical care and a safe haven until the animals can heal and be released into their natural habitats. Facebook became a powerful platform for conveying the work of Texas Sealife Center during this challenging time. Follow this link for information and powerful photographic documentation of its work.

Aside from researching and submitting proposals for the Center’s urgent equipment needs, one of the most important things I did for this relatively young nonprofit was to create a meaningful GuideStar profile and to obtain the gold seal for transparency. Quite a few nonprofits with which I have worked fear they must have raised a lot of money and have well-known Board members, for instance, before establishing a full profile on GuideStar.

But what GuideStar is about is not money as much as it is how transparent nonprofits are about their operations and programs, their tax statements, future plans and more. GuideStar is about trust and honesty. And hopefully, by taking the worthwhile step to secure the gold seal will inspire even greater confidence by prospective donors in the Center and its management, with the current capital campaign in mind.

I have worked with nonprofit organizations large and small. Many of the larger ones have accomplished less than the smaller ones! Donors must be wary that a well-known “name” and a list of prominent Board members does not guarantee professional operations, efficiency, and genuine dedication by the leadership and staff.

I have found small nonprofits and startups work exceedingly hard, and their volunteers are often more dedicated than those supporting organizations with ample budgets and long tenures. After a long career in major gift fundraising, some of my most fulfilling projects have involved helping small groups build the credibility necessary to inspire significant donations. With this in mind, I urge you to support Texas Sealife Center, and please follow its progress on Facebook. Thank you!

You might enjoy reading my LinkedIn blog post from 2014, #2030NOW, which addresses startups and innovative young nonprofit concepts, and my hope more “Boomers” will fund them.

Did you know? You can donate to Texas Sealife Center directly from its GuideStar profile