Donors tend to over-rely on family, friends, and business associates. This is understandable given the personal interests and values that often inform charitable giving; a desire for privacy; and concerns with trust and control. Yet, professionals with experience relevant to effective philanthropic decision-making represent the largest and most diverse source of talent. While family and friends may seem easiest to rely on at the beginning, they also bring the most limitations. Peer donors and others in your network can be excellent resources for referrals to professionals.
Throughout your philanthropic journey, there are people that can help you make more and better progress. These people — or talent — come from three main sources. Table 1 outlines the advantages and limitations of each.
Throughout your philanthropic journey, there are people that can help you make more and better progress. These people — or talent — come from three main sources. Table 1 on the next page outlines the advantages and limitations of each.
Sources of Talent and Their Advantages and Disadvantages
Professionals
- Philanthropic advisor
- Nonprofit leader
- Professional grantmaker
- Subject matter expert
Advantages
- Largest and most diverse, so likeliest source for breadth of capabilities needed
- Many are closer to communities you’re trying to support and the problems you’re trying to solve
- Relatively simple to disengage
Disadvantages
- More financially costly than free labor from friends and family
- May require more time to find this talent and build trust
- Breadth of talent to choose from can be overwhelming
Peer donors and acquaintances with relevant experiences
Advantages
- If already in your network, relatively easy to access
- If a peer funder, their referrals to professionals and lessons learned can be especially valuable
- May become collaborators/ co-funders
Disadvantages
- Examples and advice limited to their own philanthropic journey
- Limited time, skill, and interest for supporting your efforts
- Personal relationships can complicate philanthropic efforts and make it difficult to disengage
- May be less diverse than intended beneficiary communities/clients and may lack relevant lived experience
Friends, family, and business associates
Advantages
- Easiest and fastest to access, since already in your network
- Shared history and trust can help clarify your personal preferences and values
Disadvantages
- By far, the smallest and often more homogeneous pool of talent
- Shared perspectives can lead to blind spots
- May be unfamiliar with/distant from relevant communities and issues
- May require significant time and investment to build capabilities to be effective in philanthropy
- Existing relationship can make it awkward to disengage
Unfortunately, many donors fall into the pitfall of not paying for the talent they need, despite the fact that finding and paying for the best, professional talent is what helped them generate the wealth for their philanthropy. Donors who made their money in business likely followed some form of the advice from legendary Silicon Venture capitalist Eugene Kleiner: “1) great people,2) attractive markets, and 3) significant innovation. If you neglect even one of the three you have a big problem.”
So how do you identify the talent you need? The literature and expert opinion are clear: It is impossible to identify the talent you need until you know the job that needs to get done. The first “job” is to help you decide on your initial philanthropic goals and the approach you will take to achieve those goals.