Are you Chasing People with Lots of Money?

There's no shame in admitting it.

I hear this from nonprofit professionals ALL THE TIME in reference to certain foundations or high-net-worth individuals: “Such-and-such funder has a lot of money, which means they have the potential to give us a lot of money. How do we get them to give us a million dollars?

It is the wrong perspective. And it would be really funny if it wasn't really sad. The awful truth: there is very little correlation between how much money a person or an entity has, and how much they give away to nonprofit causes. I know very modest companies who give away a lot of money to charity. I know modest families who give significantly to nonprofit causes. And I know a lot of affluent individual and business who don’t give away anything. It’s about values, not about how much money people have.

If you don’t believe me, look at Apple. (mic drop.)

So if you ever find yourself saying “They have so much money! They should give us some…” please save yourself some frustration, and remember this:

1. People with lots of money are guarded because they have had less-then-positive experiences in the past. They have to be guarded.
2. People with lots of money also have lots of people at their doorstep with a hat in hand, asking for some of that money. Look at the biggest foundations in your city. EVERYONE KNOWS ABOUT THEM, and everyone applies for a grant regardless if they fit the focus or not…
3. People with lots of money are usually very sophisticated because they understand money and they talk about money a lot. Expect pretty direct inquiry, expect direct questions, and expect due diligence.
4. People with lots of money have to be sold on your product, program or mission as much as anyone else. You still have to tell them your story and get them excited, just like you have to do it for people with less money…

Just because people or institutions have a lot of money doesn’t mean anything. There is no direct correlation between generosity and assets. So do your homework well when approaching large foundations, people with huge capital, and families with deep pockets.

And in the meantime, MAKE NO ASSUMPTIONS and chase less glamorous prey…