The Long Game
The importance of passion, partnership and patience in philanthropy
The world has changed a great deal since 1984, the year Apple released its first home computer, Prince topped the charts, Terms of Endearment took home the Oscar, and KCI hung out our shingle.
Over our 40 years of strengthening philanthropy, we at KCI have seen the fundraising sector undergo incredible changes. Large global nonprofits attracting billions now work alongside dedicated grassroots volunteers to support visionary and compassionate causes. Technology is helping us be more transparent and efficient in attracting gifts and proving impact to donors. While tax-receipted giving continues to climb, it’s only a portion of the money and means by which Canadians support charities. Every day we’re seeing more transformational multimillion-dollar gifts, despite the uncertain economy. Today in Canada, the nonprofit sector represents 8.3% of GDP.
At the same time, the world is facing urgent challenges. There are more people in need of services, heightened competition for professionals to raise funds, and fewer donors to answer the call.
Undaunted, Canadian nonprofits are taking bold steps to secure the future of philanthropy. In an increasingly professionalized sector, we’re mentoring our ambitious young leaders, collaborating at unprecedented levels, seeing our workplaces and brands with fresh eyes, and stepping confidently beyond our traditional circles to embrace a wider community that wants to help. In short, we’re playing the long game.
Like KCI, many players in the nonprofit sector have been working for decades and plan to continue well into the future. And while much has changed over our four decades of propelling nonprofits, we’ve seen one thing hold steady: the optimism and passion of fundraisers for making the world a better place—a world most definitely in need of some help. So in these dramatic times, we sat down with some of Canada’s philanthropic leaders, from early-career to retired professionals, to see what’s on their minds and the creative ways they’re finding to address challenges and harness shifts.
1. Big vision, big partnerships, big gifts
Our world is facing major timebound issues—climate change, conflict, displacement, homelessness—that fragmented efforts and competing visions will fail to address. “Solving these urgent challenges demands a higher vision and big-thinking partnerships at unprecedented levels,” says Alana Ferraro, Director of Philanthropy at Nature United. “And this is exactly the kind of high-impact investments that donors are now seeking.” To face these challenges, nonprofits are raising their vision—and their sights. “Donors are the most powerful players for changing the world,” says Julie Quenneville, President & CEO of the UHN Foundation. “They’re looking to make a legacy impact, rather than sprinkling around their investments.”
Partnerships at unprecedented levels
Some charity mergers have been driven by challenges to growth from a shrinking donor base. But with this year’s changes to the Alternative Minimum Tax rate impacting incentives for tax-favourable donations from high-income taxpayers, these major partnerships are becoming more common. And though big, audacious visions to change the world attract large investments, they also demand extraordinary levels of collaboration: with peer nonprofits, governments, partner corporations, and beneficiary organizations.
The Nature Conservancy (TNC) is part of Enduring Earth, an innovative partnership of global organizations and funders that works with all stewards of the environment to accelerate durable conservation worldwide. Alana Ferraro, of TNC’s Canadian affiliate, Nature United, says: “Working collaboratively can be challenging at first, but ultimately rewarding for donors, staff, and impact. It’s important to maintain your vision while holding up the vision of others and keeping your eyes on the prize: making the world a better place.” Cathy Vitkauskas, Executive Director at Western University’s Ivey Business School, worked on an inter-university collaboration, a program designed to encourage Black students to attend post-secondary. “At the beginning, we didn’t know how to work together. But the partnership let us look beyond ourselves to solve a significant issue, moving Black student application rates from 25% to 90% in this program.”
Rethinking internal alignment
Partnership to achieve more can also be about aligning better internally. “It’s critical for donors to see that fundraising is aligned with institutional goals and leadership,” says Mike Logue, Partner at KCI. A perfect example is Western University’s cross-faculty entrepreneurship program, inviting all disciplines like musicians, engineers, and doctors to become businesspeople. Cathy Vitkauskas: “While collaboration is a challenge in a traditionally siloed environment, that big audacious goal to drive Canadian innovation got donors excited, attracting over $40 million from donors to support a cross campus initiative.”
Trust-based, community-led fundraising
In a move to decolonize philanthropy practices and give community-led groups more control over their own future, many Canadian foundations and funders, such as the Foundation for Black Communities and the International Trans Fund, are donating directly to community groups without dictating how those donations are spent. Trust-based philanthropy may involve longer-term, more unrestricted funding, an easing of reporting requirements, and participatory grantmaking, which makes community members active decision-makers in the funding process. Nonprofits are also seeking volunteers, board members, and even donors within their beneficiary communities to engage and build pride for the cause.
2. The new donor, giving in new ways
The trend of fewer donors giving more marches on. How are Canadian nonprofits addressing this challenge? They’re guarding against the “fewer donors” part of the equation, because while it may be more cost effective to retain donors, it’s more future-proof to gain them.
Expanding your prospect sights
Many Canadian nonprofits are moving to broaden their donor relationships beyond the Civics generation, the white male donor, and postal code targeting. “Diversifying fundraising means capturing the passion and interest of new communities we may not have thought to ask before,” says Leonard Nolasco, Director of Campaigns at SickKids Foundation. This includes engaging successful women, new and second-generation Canadians, international donors, and multiple generations within a family. “The Canadian nonprofit challenge is to make sure everyone sees themselves as philanthropists,” says Julie Quenneville. “Everyone has the power to be a community builder, not just a select group of wealthy Canadian families.”
Millennials: your current and future donors
Many charities underestimate the potential of Millennials, the children of Boomers and older GenXers, born from 1981 to 1996. A recent report from the U.S. rates a $10K gift from a Millennial better than a $10K gift from a Boomer. Since their incomes are higher and rising faster than older generations, that gift could represent the first minimum in a long relationship—if cultivated properly. With the great wealth transfer, Boomers are passing on trillions, mostly to Millennials who have fewer siblings. By 2030 Millennials will be five times as wealthy as today. Cultivating interest and passion is even more key here: 74% of Millennials consider themselves a “philanthropist” compared to 35% of Boomers, and 66% track results for nonprofits they support compared to 32% of Boomers. “At SickKids we engage young professional donors in our Innovators program,” says Leonard Nolasco, “which gives them networking opportunities and a chance to pitch and vote for programs in a kind of Dragon’s Den.”
Evolution of the sponsorship
As nonprofits expand their prospect list for individuals, they are also broadening their sights for corporate partners beyond the blue chip firm. “It’s important to match not only hearts but also minds with your work,” says Leonard Nolasco. SickKids has found unexpected affinities with the many tech entrepreneurs in Ontario through the Upside Foundation of Canada. Startups are matched with a health area that resonates, like a Chair in bioinformatics or predictive analytics, for a pledge of future equity. Of course the line between philanthropy and sponsorship must never blur. “There is a place for visibility of corporations that are taking steps to be part of the solution,” says Greg Epton, Chief Advancement Officer at Arts Commons. “We embrace the opportunity to provide a platform for meaningful conversations in the public realm.”
Cause shift
With younger donors entering the fray, donations are shifting, albeit slightly and slowly, away from the hegemony of healthcare and education. With urgent environmental challenges on the horizon, there are hints that funders plan to direct more financing to climate-change-related initiatives. And broader awareness of the needs within Indigenous communities is fueling a more intentional response to Indigenous-led causes.
3. Growing staff leadership, diversity, and excellence
In 2024, the fundraiser talent pool is smaller than demand—across all levels of seniority. More jobs than hires means a lot of job jumping, especially among early-career staff. Promotion has become a common retention strategy, which works well when the candidate is highly qualified.
But the most recent Canadian Survey of Business Conditions showed that 44% of nonprofits expect to be challenged by labour issues this year. Organizations need to seek out but more importantly develop entry-level, mid-career, and senior professionals who are driven and passionate for the cause as well as the cheque. Engaging in effective search and recruitment can help you build dedicated teams as diverse as your community—or even more so.
The art of leadership
As the fundraising profession simultaneously matures and comes under heavier scrutiny, the need for highly skilled CEOs intensifies. “Leading a nonprofit is a hugely challenging job,” says Celeste Bannon Waterman, Partner at KCI. “It’s easy to have misalignment between expectations.” Leaders must effectively and transparently manage multimillion-dollar operations, work collaboratively with volunteers and boards, get all staff contributing efficiently in the same direction, and control costs. “As leaders retire, to avoid an inappropriate hire that causes unnecessary churn, it’s key to have excellent, open communication early on,” says Samantha David, Vice President, Search + Talent at KCI. “Be frank about expectations and set goals that are ambitious, realistic, and data-driven.” And always have an eye to your next generation of leaders: ambitious and passionate team members who need challenges and mentorship.
Grow your own
Speaking of development, a recent Canadian Survey of Business Conditions revealed that, to deal with skills gaps within their workforce, nonprofits are most likely to provide staff with internal training (72%) or feedback (52%), pointing to the value of on-the-job learning in the fundraising profession. Give your ambitious young fundraisers stretch goals and opportunities. Let them find that diamond in your annual database, follow it to a big gift that you never thought to ask for, and, most importantly, let them keep that relationship. Developing leaders is about confidence and mentorship. “The younger generation is so sharp and socially-conscious, with a strong desire to make a difference,” says Cathy Vitkauskas. “An increasingly professional nonprofit sector is an amazing place for this generation.”
Boards come of age
Boards exist to guide you on to greater impact, but a board with a single voice can be limiting. Greater DEI broadens perspectives and helps your initiatives hit home in their community of benefit. We’ve seen progress over the years in gender diversity: today 47% of positions are filled by women (up to 70% in social services organizations). But racial diversity on boards lags behind, with only 10% of positions today filled by members of racialized groups (only 3% in environmental charities). Julie Quenneville: “Boards are thankfully becoming less risk averse, and with more C-suite women, they are growing in business skills, fundraising abilities, and connections.” Priyanka Singh, Vice President of Development at Children’s Hospital Foundation of Manitoba, says: “Nonprofits looking to fill seats need to be patient and attract candidates for the diversity and critical skills you need, including opening doors in the community.”
Wanted: Passion and commitment
“My advice to younger workers is to strive to be exceptional at what you are tasked to do,” says Greg Epton. “That alone will open doors way beyond ambition.” Good leaders are also seeking people with staying power. “I would only consider candidates who worked in previous jobs for at least two years, otherwise I anticipate they would be looking to move just as they begin to get really productive,” says Susan Horvath, Retired President & CEO of ROM Governors who is now Chair of the TELUS Greater Toronto & Hamilton Area Community Board. “Job-seekers should also look for strong staff continuity on the teams you’re joining—it’s the leading sign of a great workplace.”
4. Creative brand-building inspires donors, current and new
Spurred on by fresh ideas that grew out of pandemic necessity and increasingly creative nonprofit ad campaigns, charities are eying new approaches. They’re applying creativity not only in donor outreach like events and communications, but simply being open to new ideas about ways to thrive, find donors, and structure the workplace.
Digital + personal
The digital social world offers charities a whole new world of engagement, plus more accurate ways of measuring the impact of our efforts. “The success, agility, and cost-effectiveness of digital continue to put into question how much we invest in traditional direct mail,” says Julie Quenneville, “if environmental concerns have not already done so.” But nonprofits need a whole new skillset to carry out digital marketing effectively. Boards and leadership will continue to question the amount of effort and resources you are putting into building awareness, profile, followers, and brand trust through digital outreach. “Even if it’s hard to measure, you’ll need to get data-driven to prove your efforts are growing new audiences and driving engagement, volunteering, and donations among more diverse audiences,” says Shannon Moon, Vice President, Research + Analytics at KCI. Here are some high-level stats that may help:
- 55% of people who engage with nonprofits on social media take some sort of action
- 59% of those people donate money, 53% volunteer
- Nonprofits spend $67 USD on social media ads to acquire a donor
- 71% of nonprofits worldwide agree that social media is effective for online fundraising
New modes of giving
“As younger donors move to more grassroots microgiving through easier, faster methods like text, social media, and web, it’s important to ensure these methods are not only available but also engaging and trustworthy,” says Priyanka Singh. While many younger donors are not investing for the tax credit as much as older generations, nonprofits are seeing an opportunity to educate younger donors on making their charitable investments go further.
Surprise me
Nonprofits are breaking through the noise with surprising content, timing, media, and approaches. “The SickKids VS Limits campaign let us retain our donor base while attracting a new younger male demographic because of the look and feel of the new brand,” says Leonard Nolasco. But surprising doesn’t have to be as major as an ad campaign: “it could be as simple as sending thanks at an unusual moment,” says Susan Horvath. While events are important to bring the community together, try something unexpected and fun like a learning event or a twist on the traditional gala. Priyanka Singh at the Children’s Hospital Foundation of Manitoba: “Our annual children’s gala is always sold out because it’s geared for families.” No budget? No problem. Most donors favour creative on a shoestring over big budget.
5. Making hybrid work for us
Work models have shifted dramatically over 40 years, moving from strict Monday to Friday 9-to-5 in the office, to increasingly flexible work hours, to today’s post-pandemic hybrid models. Like it or not, it’s the new normal, and Canadian nonprofits are getting smart and creative about it. In fact, the home-office mode has proven to allow more diversity in hiring by being more attractive to women, visible minorities, and immigrants. There are multiple ways that these work models can be successful.
Working at home
Those home days can be gold for your passionate hard workers. While some leaders may worry that employees work less while at home, desktop monitoring is not gaining much traction in the passion-driven charitable sector. More effective, say some Canadian fundraisers, is giving your teams data-driven stretch goals they can work towards on their own schedule. “Driven and effective team members want their feet to the fire so they can demonstrate results,” Susan Horvath. “Goals help you discover who’s struggling so you can help them develop their skills and productivity.”
Battling isolation
While most people love their at-home days, loneliness is a growing concern. A recent TELUS Health report revealed that under-40 Canadian workers feel more isolated and lonely than their older colleagues, with younger workers more likely to lack trusted relationships. Loneliness and isolation are now recognized by the WHO to be pressing global health risks equivalent, according to the US surgeon general, to smoking 15 cigarettes a day. Workplaces must ensure staff feels supported and embraced. Along with flexibility should be opportunities to get to know and learn from their co-workers.
Building team culture
Yes, you can still build team culture over videoconferencing (cameras-on please!). But the other half of hybrid is in-person office time. Nothing is more frustrating to employees than being forced to come into a workplace where they end up alone. “Those days in the office must be about culture building,” says Alana Ferraro. “Give people a reason to come in and feel part of a team by creating both informal and intentional opportunities for gathering, learning, mentoring, shadowing, synchronicity, and having fun together.” Nonprofit leaders are getting creative with office days: organizing team days, cross-functional days, and maybe even a ‘serendipity’ day on a Monday or Friday, luring people in with lunch and a fun activity outside of the favoured Tuesday to Thursday. Importantly, be sure to reduce your office size to exactly what you need so you’re not wasting valuable donor dollars on unused space.
6. Great tech creates time for donor relationships
How do you find the time for creativity and the perennially important face-to-face donor relationship building? Fortunately, more great tools are becoming available to support you in those thankless tasks using up your valuable time, while giving you insight into donors and prospects you’ve never had before.
AI for everyday writing
Nonprofits are using AI and other automation to do what they do best, faster and better than us. This inexpensive to free technology can help you create those routine, high-volume emails and thank-you’s. Feed whole sections of your Case for Support into ChatGPT and watch it take a crack at web copy, event remarks, or even proposals. If you’re not impressed, you can always sharpen up the results. Get ahead of the tech by providing training in AI use, ethics, and legal issues to ensure these tools are working in your favour.
Analytics for deeper donor insights and stretch goals
Excellent data on your efforts lets you set stretch goals, track progress, keep costs down, and hold up under scrutiny. Better analytics can give you more insight into your donors and prospects to improve your outreach, whether first-touch content or more in-depth proposals and donor meetings. While IT can help customize automation of repetitive tasks, some nonprofits are putting pressure on software vendors to improve innovation, integration, and analytics.
The last word: Relationships and passion never go out of style
Though in 2024 few of us are rocking 1984’s shoulder pads or asymmetrical haircuts, some things never really change. Today as ever, the success of nonprofits hinges on the passion of our people and the quality and authenticity of our community relationships.
“I cannot overstate the importance of external focus, deep face-to-face relationships, and patience,” says Greg Epton. “Involve donors and funders in your work, spend time together, and live your role as a community-building organization.” But to sustain that authentic focus on the community as we do this important work, it’s key to set the right tone to inspire the best work from your teams. “Your conduct creates an atmosphere,” says Alana Ferraro. “Having steady, positive energy has an impact: set your teams up for the marathon, not the sprint.”
As we celebrate 40 years of strengthening philanthropy, KCI congratulates all of the world-changers who work hard every day through empathy, focus, passion, partnership, and patience. We wish you the best of success in the year to come, over the next 40, and beyond. Let’s win that long game together.
Special thanks to our sector leader interviewees – Greg Epton, Alana Ferraro, Susan Horvath, Leonard Nolasco, Julie Quenneville, Priyanka Singh, Cathy Vitkaukas – for the thoughtful investment of their ideas, which are so essential to the richness of this article! And kudos goes to KCI Communications Consultant Sherry McPhail for expertly weaving together insights from across the KCI team into this piece.