Fed Chairman Alan Greenspan isn't throwing around the term
"irrational exuberance" like he once was during
the heady days of never-ending stock market growth.
Still, in our work with donors, we see plenty of irrational
behavior when it comes to the ways some of them give away
their resources. And while exuberance is fine, we have found
that other factors must come into play. Two of these factors
include:
- core values: What is it you believe about the world, humanity
and spiritual issues? And which programs match your values?
- passion: What is it that you care passionately about, and
who else out there shares your commitment?
These two items are critical in helping you decide a sound,
principled approach to your giving. If you have not addressed
how these factors affect you giving, the tendency is to give
to any cause that asks you for help or become so frustrated
that you may even stop giving all together.
And there are plenty of opportunities for this to happen
each and every day. With over 700,000 charitable organizations
in America, you probably receive a large amount of requests
each week.
Most of the larger organizations spend tons of money on
advertising and marketing to sway your attention and checkbook
to their program. Many also hire consultants who tell them
how they can get to you and your money.
But who helps the donor in this environment, where the odds
are traditionally stacked in favor of fundraisers?
It was to address this unequal balance that I created The
Gordon Loux Co. (TGLC) seven years ago. This wasn't the first
organization I have created. In the 1970s, I helped Charles
Colson found Prison Fellowship, which has since grown to an
international organization serving over 100 countries.
Here at TGLC, we don't work for charitable organizations.
Rather, we work exclusively for givers as a "donor advocate."
In recent years, we've found that there's a new generation
of people who believe that God has entrusted them with significant
resources, and they want to make sure they're spent well.
They appreciate having an advocate on their side who can
help them sort through the hype and hoopla in order to give
in ways that are deliberate and effective. Many men and women
are no longer willing to give just to give. They want their
giving to produce results.
Many of these donors have venture-capitalist mindsets. They're
looking for a sense of participation. They're looking for
return on their investment dollar. They want to be heard and
listened to, and if an organization is not meeting their needs,
they're going to go where those needs will be met.
It's helping people like this that give us both challenges
and excitement.
The challenges come from dealing with some of the inherent
limitations of the nonprofit world, which changes at a slower
pace than the technology industries. But the excitement comes
from helping people identify their giving and then find a
"match" with a charity that is doing the kinds of
things they care about.
It's very easy to become caught up in the emotional aspect
of one's giving. Seeing the lives changed as a result of your
participation may be one critical component to your giving.
But it should not be the only driving force with your giving
decisions.
Principled giving also takes rational decision making ability
as well. In order for you to maximize your giving potential,
you should also look at your decisions with a dose of common
sense. Will my gift be used wisely? Is the organization fiscally
responsible? Is this the best use of my philanthropic dollars?
And many others.
We have found that ultimate satisfaction in giving comes
from understanding as much about what makes you tick and then
applying that to your philanthropy. By developing a giving
strategy to connect your heart with your head, you can begin
to experience fulfilled giving, instead of irrational exuberance.
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