Is your organization philanthropic?

In looking at our strategic priorities for the coming year, one priority that’s a little harder to “get” at first sight or on paper is our goal to be a more philanthropic organization. The George Pocock Rowing Foundation (GPRF) is a nonprofit organization, a registered 501c3 charity…isn’t it a given that we’re philanthropic? The answer is yes and no. 

Yes, we are philanthropic

By definition, “Philanthropy refers to charitable acts or other good works that help others or society as a whole.” We exist, like all nonprofits, to provide a charitable good. This is why our organization was created in 1984 and received Federal tax-exempt status. The GPRF is a unique nonprofit in that we not only provide and run rowing programs directly serving young people, we also support other organizations through grantmaking. Donations given to our organization support young people for a charitable purpose either directly through our programs or indirectly through our grantmaking, so in that sense, the short answer is yes- we are philanthropic.

It’s in our blood. George Pocock was an extraordinarily generous and philanthropic man. He gave away hundreds of boats and equipment in his lifetime, not to mention his contributions as a mentor, coach, and leader for our sport. He is our ultimate inspiration when it comes to rowing philanthropy. George’s legacy inspires us to “give the gift of rowing”, and when we challenge ourselves to be more philanthropic, we are asking how to best do just that. The purpose of making this a strategic priority for the GPRF is to internally measure where we stand, and ensure our dollars are making as big of an impact as possible, but also to learn, grow, and be a resource for others in their effort to be more philanthropic in the future. 

No, it’s not a given that we’re philanthropic

New nonprofits are created and tax-exempt status is granted to hundreds of new organizations every single day. Honestly, it’s not that difficult to get tax-exempt status. If you’ve worked in rowing or worked in nonprofits before, you know that not every 501c3 is as philanthropic as the next. Large funders pay attention to certain aspects and ask tough questions, but not every donor is as experienced in looking for the right things before they click on the donate button. And when it comes to impact, not every donor has the time to extensively read an organization's Form 990 tax return or thoroughly research their return on investment. Nor should they have to. While I’m all about being a savvy donor, I believe it’s also up to us, those working in the sector and sitting on boards to up our game in keeping a close eye on our purpose.

Rowing organizations usually get by with a revenue stream that consists of program fees (pay for service, benefiting those who are paying) and donations (tax-deductible gifts that do not benefit those donating). It’s easy to see how businesses that rely on both fees and donations can get sidetracked and not live up to their full philanthropic purpose. Why? Because those paying for services will usually keep staff accountable for excellence. If a customer isn’t getting what they want out of the experience, they’re likely to advocate for themselves. Donors, on the other hand, give freely of their resources, with the assumption that the organization they’re giving to is going to do right by the people they’re aiming to serve. 

The risk that rowing organizations run - as entities that both serve members and a mission, is that they end up bringing their focus and attention to the seemingly most important or loudest need in the room. That doesn’t mean that we can’t and shouldn’t push for philanthropy in every space, and it doesn’t mean that a revenue stream from membership is a bad thing.

And to provide a little more empathy to this conversation before the tough questions, I want to acknowledge that to be philanthropic - it takes work! It’s not just going to happen organically or on its own. Running a rowing organization is hard enough. Getting by is hard enough. Finding people to join our - at times goofy, masochistic, elite sport, and pay for it so we can make ends meet - is hard enough. Our sport is nontraditional and expensive but it doesn’t give us an excuse not to be curious or to push for excellence in this space. Our sport has the potential to change lives. I can’t think of a better reason to fine-tune our approach, with so many people out there who stand to benefit from getting an oar in their hand. 

So, how do we know if we’re as philanthropic as we should be? We ask tough questions, and I’m curious to hear about what questions you may ask yourselves as well? Maybe sharing our process can inspire more philanthropic activity this year. Let’s lift while we climb and ask the difficult questions together: 

Operations Questions: Follow the Money

• What percentage of every dollar is going directly towards programs? An industry standard is that at least 80 cents of every dollar go directly towards programs if not more…but to question the question: is this important anymore? Is it changing? I’m curious to get your thoughts. Thought leaders like Dan Pallotta are challenging this standard, check out his Ted Talk if you haven’t already, “The way we think about charity is dead wrong.”
• How is staff time allocated? What percentage of human resources is going to philanthropic charitable programs, and what amount is going to serve those who can pay for the sport? Human resources are an organization's greatest resource. Where does the staff spend their time and should we update our allocations with a time study? Are our allocations telling us a story we’re happy to hear? 

Culture Questions: What’s the Norm?

• Are we inspiring future generosity so that our organization can be around for years to come? Is philanthropy a value we have instilled in our programs and are we teaching our young people and other members about the importance of giving back? Do we encourage service days and volunteer opportunities? Do we honor or recognize volunteers or philanthropic leaders in our organization at our events and in our communications? Essentially…do we give back something we celebrate annually…weekly….regularly?
• Does our board give to the organization? They understand the ins and outs of our business better than anyone. If they’re not giving…why not? Are we having direct conversations with our stakeholders, board members, and decision-makers about what’s holding them back from contributing at a level that is meaningful to them?

Strategy Questions: Less is More?

• How often are we saying “no” to things that either don't align with our mission or are seemingly not philanthropic? Nonprofit organizations are aiming to solve big problems with few resources, we have to use strategic filters to make a dent in the problems we’re aiming to solve. It may seem odd to ask if we’re saying “no” enough, but on the flip side, are we saying “yes” to everything and trying to be all things to all people all the time (and how sustainable is that)? A focused mission and resources allow for a philanthropic impact. An unfocused, “yes” driven, or chasing the money entity is going to spread itself too thin, burn out its staff, and fail to meet the needs it's aiming to address in the first place. 
• What can we stop doing? Sounds funny but the pandemic has allowed more time for this conversation because of the change in resources and the need to tackle the basic needs of our mission. If we have to stop everything and just run one program, which would it be? If we removed an event, program, or transitioned an effort elsewhere…would it allow us to focus on what matters most? 

These are the questions we’re asking, rumbling with, and continuing to focus on. We’re far from being able to answer any of them perfectly, but we’re asking them because we believe they must be asked and they make us better. At times, they show us our vulnerable spots, and in others, they remind us of our strengths. They’ve led the GPRF to make some big changes, and grapple with some complicated elements of our business, and they’re inspiring us to get better every day.

There’s a lot of trust in nonprofits. Donors trust us with their resources and those we aim to serve need us more now than ever…tough questions are always going to be necessary.

What questions are you asking to fully live up to your organization’s philanthropic purpose? What transitions are you going through to ensure you’re more philanthropic in the future? Let’s continue to learn from one another.