Leadership is the biggest influence on philanthropic engagement and effective fundraising practice.
A big statement? Perhaps. However, in my observation and experience, everything hinges on leadership. More importantly, research and market evidence tells us this too.
Social purpose organisations are often complex systems with diverse stakeholders and layered leadership. And, even when there isn’t organisational complexity, there’s complexity in balancing purpose, constituency, market, funding and managing business.
In these systems, philanthropy can fall ‘under the wheels’ of organisational priorities and agendas. And, philanthropy can be seen as an ‘odd bedfellow’ within an organisation focused on delivering human services. Which in itself is odd, given that philanthropy talks to human response, but that’s another conversation.
There are also cultural and structural frameworks that will shape organisational experiences. These experiences will often influence the propensity for philanthropic engagement. Although, that may not always be recognised or understood inside organisations.
Culture is critical. And leadership, starting with Boards, shape culture. So, the role of leadership is important in positioning and advancing philanthropy and fundraising practice in these environments.
For completeness, when we’re talking about leadership in this context it covers a lot. Governance, executive, service delivery, finance, people, information and other areas of applied focus. Organisational experiences will differ, and that also creates complexity.
In this conversation I am focusing on leadership at Board level. Governance leadership. As it is a domain of leadership that shapes organisational experience on many levels.
And speaking candidly, it is an area of leadership that commonly attracts questions, challenge and critique.
There is much we could discuss in exploring Board leadership in philanthropy. Below are four themes that stand out as significant in shaping informed and effective leadership at governance level.
Exercising Curiosity
Our experiences shape what we think we know and the assumptions we frame.
Board members who are curious and enquiring create opportunity. Those who don’t lean in and find comfort in their assumptions can limit or impede progression to serving purpose.
One example is the firm views Board members may take around fundraising costs and ratios, even when those views fly in the face of market evidence and research.
Holding a view is one thing, and we’re all entitled to hold a view. However, when those views risk compromising the purpose we are tasked to serve, it may call us to challenge those views.
At a broader level, I would argue that case law identifying director’s responsibilities in regard to holding individual knowledge of finance would well be extended to other areas of organisational function. This includes service provision, human resources, information technology and data management, marketing. And, philanthropy and fundraising.
As a Director, I’m often challenged around things I know less about than I feel I need to, in order to inform decision making. So I need to be curious, lean in, and learn.
And when fellow directors look to me around philanthropy, fundraising and other sector issues where I have some knowledge, it’s an opportunity to support their learning and contribution.
It’s our shared commitment to serving purpose.
Referencing Context
It’s both common and reasonable to refer to familiar frames of reference. It helps makes sense of things. And it’s comfortable. Except it can be completely unhelpful, even corrosive, in a leadership role.
As Board members, we are generally some distance from understanding the operational detail of the organisations we serve, as well some aspects of the environment they operate in. Seeking context becomes critical to informing decision making. It shapes what we think we see and what we should actually be seeing.
The non profit sector, philanthropy and fundraising are all mysterious enough, without sustaining the ambiguity by not anchoring understanding in relevant context.
‘Help me understand’ is a great question to ask. And it’s a refreshing question to hear as well.
Respecting Power
The shadows of power often fall uncomfortably. But as Board members, we may not always see that. Unknowingly or by choice.
Let’s call this one out. There is an unequal power issue generated from Board roles by virtue of organisational structures. Of course there are responsibilities that need to be observed. But there are also responsibilities in regulating how we manage power as leaders.
Heavy handed or even ill-considered use of power and position gets in the way of serving purpose. Simple as that.
Although it’s actually not that simple. There can be real issues in the way that power is projected and used in serving purpose, and these issues are prone to be exacerbated in complex environments.
In my governance roles I am conscious that I need to be very clear about how and where I am engaging as a director, and when I’m engaging in another capacity, such as a professional advisor. I need to be faithful to that delineation.
Creating Value
Engaging in governance responsibilities is a core obligation for a director. But is that enough?
In serving purpose and fostering philanthropy, the answer is generally no.
Value creation is fundamental to serving purpose and serving people. Value is created through outcomes generated and the impact realised for people being served. Value is created through facilitating meaningful experiences in philanthropy for donors and those who offer other gifts.
So how do you offer and create value? What do you step in to as a leader of purpose?
You will identify and choose how and where you can best add value. But as a start, giving is good. Giving time, voice and money – at whatever level you are comfortable. But in a way that evidences leadership – adds value.
And the value lies beyond your gifts alone. It lies in the influence generated, the example set, and the meaningful experience that you may create for yourself in exercising your philanthropy.
There is much more to governance leadership in social purpose, than the four themes we have discussed. However, each of these themes are core to exercising governance leadership in serving purpose.
How you shape your leadership will always be a personal question, with a unique answer for all of us.
Two questions to consider in shaping your personal approach to governance leadership in philanthropy are.
‘How am I leading with awareness around how I am exercising curiosity, referencing context, respecting power and creating value?’
‘And what might be different when I focus on these leadership questions?’
Nigel Harris AM
