The document discusses how creating a culture of philanthropy within an organization can lead to consistent fundraising success. It argues that top-performing non-profits share this culture where (1) the board accepts responsibility for fundraising programs, (2) the CEO communicates the importance of philanthropy internally and externally, and (3) the organization is open about its reliance on private donations. For a culture of philanthropy to take root, everyone in the organization must understand how their roles can support fundraising, and staff must build relationships with donors.

1. T H E
martin L E T T E R
P u b l i s h e d b y M G I / S e r v i c e s a n d C o u n s e l i n f u n d - r a i s i n g a n d c o m m u n i c a t i o n s
Creating a Culture of Philanthropy
By John A. Martin, CFRE
hy do some institutions consis-
tently meet their fundraising
targets, year in and year out,
including capital campaigns, while others
soar and dive? What is it that drives consis-
tent, quality performance?
When MGI Fund Raising Consulting began
exploring these questions several years ago,
we quickly realized that neither institutional
size nor fundraising goals were relevant
markers in identifying “sustained perform-
ance” institutions. Neither was organization
type; successful educational institutions and
health care organization displayed a consis-
tent set of characteristics. And while maturi-
ty of the fundraising programs played a part
in these success stories, not all mature
fundraising programs maintained the same
level of success.
Our analysis led us to conclude that top-per-
forming institutions share a “culture of phi-
lanthropy.”
Every employee plays a part
Some people define philanthropy as volun-
tary action for the common good. Many talk
about fund development as the engine that
drives philanthropy. Without charitable giv-
ing, most not-for-profits cannot survive.
Philanthropy and fund development -- inex-
tricably entwined -- belong to the entire
organization. Every individual. Every depart-
ment. All volunteers. For a not-for-profit
organization to be truly successful and effec-
tive, the organization must develop a culture
of philanthropy.
This means that everyone in the organization
... from the janitor to the president of the
board ... understands that philanthropy and
fund development are critical to organiza-
tional health AND that each individual (both
the janitor and board president) has a role
in the process.
But too often, this does not happen. Fund
development is isolated in one corner of the
organization. Or assigned to staff and/or a
committee of the board.
First and foremost, everyone should be an
ambassador for the organization’s service,
and for philanthropy and fund development.
Being an ambassador means doing one’s
own job well, understanding how all the var-
ious jobs in the organization create one inte-
grated system, and – most especially – treat-
ing all of the organization’s customers
(clients, donors, volunteers, community
people, etc.) with care and respect.
If board members don’t talk enough about
the organization with their friends and col-
leagues, it doesn’t matter how hard the
executive director tries to raise funds. If the
receptionist isn’t sufficiently helpful, the best
direct mail solicitation will not be as effec-
tive as it can be.
This is the culture of philanthropy. An atti-
tude. An understanding. A behavior. After the
culture of philanthropy is firmly established,
fund development is more effective.
Tools for success
Organizations that have successfully estab-
lished a culture of philanthropy share these
characteristics:
1. The governing Board accepts
responsibility for and leadership of
the annual and capital giving pro-
grams. Many organizations hire develop-
ment staff or assign development to their
executive director. All organizations
should establish a board-level develop-
ment committee. But regardless of staff
or committee, the board is ultimately
responsible for the financial health of the
institution. That means that the board is
ultimately responsible for fund develop-
ment. Governing boards at philanthropi-
cally savvy institutions understand the
importance of investing in their founda-
tion or development office staffs to realize
the potential within their constituencies.
Such boards are populated with individu-
als equally adept at making solid business
decisions and helping raise annual and
capital funds in partnership with CEOs
W

2. M G I / S e r v i c e s a n d C o u n s e l i n f u n d - r a i s i n g a n d c o m m u n i c a t i o n s
Publisher: John A. Martin, CFRE
Editor: Pamela Capriotti, CFRE
Contributing Editors:
Elizabeth Hamrick
John Schwietz
Published by:
MGI Fund Raising Consulting, Inc.
600 South Highway 169, Suite 180
Minneapolis, MN 55426
For information on our services, call toll-free
1.800.387.9840 (U.S. or Canada)
Visit our website: www.mgifundraising.com
Reproduction without permission is prohibited.
Brief extracts may be made with due acknowledgment.
Additional copies are available free of charge by
contacting The Editor at our South East office.
T H E
martinL E T T E R
and fundraising staff. They take personal
responsibility for the success of annual
and capital programs.
2. The CEO understands his/her role in
the fundraising effort and uses every
opportunity to communicate the
importance of philanthropy to inter-
nal and external constituencies. Top
fundraising institutions are headed by
individuals who blend management acu-
men, vision, and interpersonal skills into
the ability to communicate to internal and
external constituencies the value of phi-
lanthropy to their organizations. During
capital campaigns, these CEOs may spend
a significant amount of their time on
advancing the campaign — overseeing
the strategic planning/needs assessment
processes, recruiting campaign leader-
ship, rallying staff around the institution’s
needs, addressing civic groups, attending
campaign leadership meetings, and culti-
vating and requesting gifts from the top
25–30 prospective donors. Their institu-
tions benefit from their investments in
private philanthropy that can produce
fairly predictable results and a handsome
return on investment.
3. The institution is open and frank in
describing its dependence on pri-
vate philanthropy in its Board meet-
ings, publications, constituent
events, and personal visits with con-
stituents. There is a regular spot on
Board meeting agendas for reporting and
discussing private philanthropy initiatives.
The Board openly celebrates positive
results or is visibly excited by news of a
major funding commitment, and Board
members openly volunteer to take on
fundraising assignments. Regular publica-
tions inform, educate, and celebrate phi-
lanthropy. Publications and websites
openly evidence the connection between
About the author…
John Martin, has more than 30 years
experience in the not-for profit field, on
both the organizational and consulting
sides. Through his consulting work with
clients seeking counsel for major capital
and endowment campaigns, Mr. Martin
has earned a reputation as one of North
America's top strategists for the not-for-
profit sector. His brash mix of social con-
cern and aggressive business smarts has
helped raised hundreds of millions of dol-
lars for colleges, hospitals, human service
organizations and arts and cultural groups
throughout North America. He can be
reached via email: martinmgi@cs.com
MGI is a full service fund-raising and com-
munications consulting firm operating
across North America. We consult through-
out the United States and Canada for a wide
range of not-for-profit clients:
• Hospitals and Health Care Organizations
• Social Service Organizations
• Private Schools, Colleges, Universities and
Post-Graduate Schools
• Cultural and Arts Organizations
• Churches, Synagogues and Religious
Organizations
The experience and resources of the firm
have been used by a variety of clients from
well-established national not-for-profit
organizations looking to prepare themselves
for the 21st century to first time start-up
capital campaigns.
For more information about planned giving
and planned giving consultancy, please con-
tact John at: martinmgi@cs.com or call our
Toll Free Number: 1-800-387-9840.
private philanthropy and excellent service
to customers and community. Successful
institutions carefully craft personal com-
munications to their most consistent and
generous donors, which are often deliv-
ered in person.
4. The foundation or development staff
is proactive in explaining the insti-
tution’s funding priorities to
prospective donors and stewarding
relationships with existing donors.
Publications and events may inform and
educate constituents, but gifts that make a
difference are obtained by building and
maintaining personal relationships with
prospective donors. Development or
foundation officers cannot increase annu-
al giving totals nor achieve campaign suc-
cess while working behind their desks.
The institution that develops the closest
relationships with prospective donors,
and stewards well the gifts of existing
donors, will receive the majority of those
donors’ philanthropy. The desk and the
office may hold the keys to donor strate-
gies, but the strategy must be implement-
ed frequently and in person.
5. Employees recognize the integral
nature of philanthropy in generating
revenue for the institution and,
thus, are willing to support the
activities of the foundation or devel-
opment staff.
6. Foundation and development staffs
are acknowledged as important con-
tributors to the life of their institu-
tions and are accorded appropriate
respect.
7. The institution is genuinely proud of
its fundraising accomplishments and
expects to continue a pattern of
ever-increasing fundraising success.