Donors' New Mindset
by Ashley High

On a recent conference call organized by Bank of America, Ellen Remmer, the president of the donor-advising Philanthropic Initiative, said that more donors are taking a "beginner's mind" approach to their philanthropy. She says, "We do really see a new openness. We're calling it the beginner's mind, in thinking about how they can be helpful and acting in a different way."

 

Instead of donors supporting the "latest, greatest new program," they are tending to think about how their contributions can better assist nonprofits. More donors are attempting to understand "what a nonprofit needs to be sustainable" and are giving to operating costs and to programs that have been hurt by government cuts. Also, donors are going on "listening tours" where they can speak to experts and nonprofit leaders about effective donations.

 

Gillian Howell, the head of private philanthropy at Bank of America Merrill Lynch, said donor-advised funds are growing in popularity. Many foundation officers, especially those with foundations under $5 million, are converting their foundations into these funds.

 

How do you see the recession changing your donors? What changes should your nonprofit be making to accommodate these changes?

 

Source: Caroline Preston. "Is the Recession Changing How Donors Think?" 4 August 2009. The Chronicle of Philanthropy. 5 August 2009. <http://philanthropy.com>.

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