A locally based community services organization receives a pitch from a philanthropist: “I’ll donate up to $100,000 to match any funds that you raise on your own.” The Board gets excited, springs into action immediately, and focuses most staff and volunteer efforts on raising money.
In another setting, a philanthropist donates money on the condition that it be used for projects that are marginal to the organization’s core mandate or are not current priorities. He is assertive and definitive, and the Board acquiesces. After all, who can argue with money?
POTENTIAL DAMAGE
The organization’s agenda is hijacked by a shortsighted focus on money. Staff and volunteers are distracted from the core mandate, and the focus on serving community clients is diluted. With reduced service levels, client frustration grows and the organization’s credibility suffers. In the case where the Board gives in and concentrates on the philanthropist’s projects, attention is diverted from the Board’s strategic plan.
INTERVENTION
Resist the temptation to pursue anything and everything that smells of money. Insist that the Board be driven first and foremost by its core mandate, vision, and strategic plan. Yes, raising money may be important, but financial goals are likely to be achieved and sustained with a happy and satisfied community of clients.
If a philanthropist places conditions on a proposed donation, meet him or her in person, review the organization’s strategic priorities, and negotiate an appropriate use for the funds. But capitulating to such a donor’s demands would be misguided and inappropriate.
