Thoughts on Fundraising; Talking with Lisa Gurwitch

We had the pleasure of interviewing Lisa Gurwitch, Esq. who currently is a senior vice president of World Learning (a nonprofit devoted to international education, development and  exchange programs). She previously was the Executive Director and Director of Gift Planning  of the Jewish Community Endowment Fund of the Jewish Community Federation of San Francisco. In these positions she has worked with a multitude of donors in a gift planning context and also has been heavily involved in donor education about various gift types and income and estate planning strategies for planned gifts. She contributed to the growth in assets of almost $3 billion in her 18 years with the Jewish Community Endowment Fund. Our questions and responses were the following:

In your experience what are the motivations of donors who give major gifts?  I’m sure there is a mixture of good intentions, tax considerations and desire for recognition all mixed in but what do you think comes through the loudest usually? 

While donors of course have concern over the income and estate tax consequences of a gift the overriding energy behind most gifts is a passion for the mission of the charity. For example, many GI generation donors, who experienced real hardship in their lives in the Depression or WWII, are motivated to help others facing these challenges. In one particular case, a gentleman’s charitable planning was in direct response to having been given up by his parents as a child, because they couldn’t afford to feed him. He went on to great success in business and wanted to help at risk youth. The motivations and approach of donors frequently varies depending on the source of their wealth. Givers with inherited wealth are frequently very careful in making their gifts, particularly when it is a one-time infusion of philanthropic capital. In certain cases guilt plays a part in inheritors’ motivations to give. Self-made donors, particularly entreprenuers, tend to have a different approach.

What can a charity do to infuse the major donor with enthusiasm enough to make a major gift?

First, listen to the donor. Then, educate the donor about your charity’s programs and projects to see if there is a fit for his or her charitable intentions. If  a donor is interested, the charity will want to get to know his/her background, family and estate planning situation.  Every donor is unique.  The GI generation cohort tends to have great trust in large institutions, whereas younger donors often require more hands on engagement with the organization and more information about exactly how the gift will be used.

How do you determine which donors have sufficient capacity to approach about a major gift and how do you determine how to make the ask?

Most organizations have some ability to do research on prospects using publicly available information. Google has made that much easier. The best donors probably have some current connection to your organization or your employees or Board members. Having peers participate in the solicitation is often the best way. We also found that more often than you might think major planned gifts, particularly bequests, come from people who had never been identified as a prospect by the organization . In light of that phenomenon, be sensitive to all the people who love and are connected to the organization and its mission (employees, for example), as you never know who might have the inclination and recourses to be generous at some point. They certainly will not be motivated to give if they feel overlooked by the organization.

Traditionally, single individuals (those never married and widows/widowers) without children are among the most likely, if encouraged, to make charities the recipients of their estates. The extension of the IRA charitable rollover has also made it much easier for certain donors to make substantial gifts to the charity.

I should add that another significant source of donations in the San Francisco Bay Area was from appreciated real estate.  Having the ability to assess and close gifts of real estate, after an appropriate due diligence process, can be helpful to a charity.

What responsibilities does the charity have ethically in soliciting and accepting a major gift?

You never want to have the donor regret making a gift to your organization or the organization regret accepting a gift (which does happen). The gift needs to be in the best interest of the donor and in the context of his or her family situation. I remember the case of a donor who was quite ill establishing a charitable gift annuity and insisting upon receiving a lower payout percentage than we were offering. The donor ended up living longer than he anticipated and had some regret about having a lesser return than he could have received in that situation.  You can also have family problems surface as a result of a donor’s gift.

Another way to focus on responsible practices is to periodically review and update your gift acceptance and investment policies.

What donor management is necessary after the gift is made?

Stay in touch and acknowledge and appreciate what the donors’ gifts made possible. Keep them informed about the activities and accomplishments of the organization. There has been a lot of publicity lately about the ongoing role of the donor –some donors can become involved in management to an unhealthy degree.

One final thought — everyone can make an impact in the world through their favorite charity, be it financial, volunteer hours or expertise as a Board or committee member.  The needs are great.