The Solution is Simple

Acting on it—not so much.

In a recent article in the Wall Street Journal, Yishan Wong, former CEO of Reddit and director of engineering at Facebook, made a stark comment on the effectiveness of technology in solving problems:

“There’s this subtle rule you learn: To solve a BIG problem, you want as LITTLE tech as possible,” says Mr. Wong.

Furthermore, Mr. Wong says, that many of the new tech is “half formed” and breaks constantly.

Despite this truth, our friends in the nonprofit tech community and their devoted groupies continue to churn out ever more complex and layered technology platforms claiming greater and greater effectiveness in solving the challenges of fundraising.? The software gets more and more sophisticated while the problems are chiefly the ones fundraisers have had since forever.? Too much technology actually results in jumping over the obvious solution in pursuit of who-knows-what.

Seem incongruous?? Leadership in many nonprofit organizations apparently don’t think so.

Hence the millions of dollars spent every month on tech tools by organizations which have difficulty paying their staff properly all the while whining about disappointing fundraising results, the perceived adverse influence of government policy on their fundraising or other rationalizations for not reaching their full revenue potential.

These folks are looking in all the wrong places.? And some would say, spending their limited resources foolishly.

The most expansive and permanent fundraising results come from straightforward low-tech approaches. Period.

Not that tech doesn’t have its place.? And it can be useful, in small and measured doses.?

Broad expansive claims, or “insider” tertiary insights using tech tools should be viewed with a high degree of skepticism, however.

I recommend taking a decidedly different approach to engage those who will support your worthy organization.?

A couple of helpful facts:

First, the vast majority (90%) of philanthropic funds come from individuals.? Individuals—living or deceased, directly or indirectly.? In addition to the lion share of philanthropy, gifts from individuals by far, come with the fewest restrictions on their uses and—with proper stewardship—have the highest levels of renewal.?

Second, donors often support organizations for reasons which have little or no relation to the primary mission or the beneficiaries of your work. Motives that will never be identified through AI or it's derivatives.

Let that sink in. Being aware of this will keep you from stepping on a landmine of presumption.

In such situations, tech tools which use triangulation to tell you to what, how, and how much donors will support you are useless.

Instead of acquiescing to the inevitable distance that technology puts between you and your investors, go in the opposite direction.

Use technology for the “basics”.? Name, address, previous giving history—if any. From there it’s all about getting to know the individual by giving of yourself even as you want to learn about the other.

As you proceed down the journey of discovery always remember.? It’s NEVER about money.? It’s ALWAYS about the dreams of the prospective investor—sometimes very personal.? And—occasionally—it’s about something totally unrelated to you or the donor.

If you’ve been open, willing to adjust and be authentic, you’ll never be disappointed.

“But I can’t possibly take the time to do this for every potential donor,” you say.?

Maybe not.

The choice remains yours.? And so are the results.? You have to make the judgment on how much resource to invest.? (This is one of the few areas where a true advancement professional can be helpful).

From my experience, when you engage one-by-one, the right investors will make themselves known to you.

In the practical sense, if you limit technology to identification, word of mouth—even volunteers—will do the rest.

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Larry is the founder of The Eight Principles having raised over $1B for charitable organizations worldwide, he is the recipient of Marquis Who’s Who World Humanitarian Award. ?He works with nonprofit leaders enabling them to achieve financial security for their organizations.

Want his help?? Give him a call.