Debunking “Accountability to Donors” Part 2

In my first post on Donor Rights / Donor Accountability, here is what I said:

The notion that organizations are primarily accountable to their donors is a dangerous sidetrack from where organizations must aim their primary accountability if we are to create an amazing future for our communities.

And so here is Post #2, as I continue to debunk the illogical constructs at the heart of the Donor Accountability movement.

Bill Gates vs. My Grandmother
If the Donor Rights advocates are correct, an organization owes its primary accountability to its donors, because their dollars make everything possible.

Does that mean the organization is more accountable to the person who writes a $1 million check than to the person who gives $10? Are we then really talking about a sliding scale of accountability, where the organization is accountable to each and every donor, in direct proportion to the level of his/her gift?

And how does that work out in practice? What exactly do those “donor rights” buy in terms of levels of accountability based on gift size?

Taking that logic one step further, does the same “accountability” apply if the $1 million check came from Bill Gates, representing a fraction of his total wealth, while the $10 came from my grandmother, living on a fixed income, to whom that $10 meant giving up something else she would have purchased that week? What rights would each of them deserve as donors to whom the organization might hold itself accountable?

Which raises the next question - if two donors are making 180 degree opposite requests / demands on an organization, and they both gave the same amount, to whom is the organization accountable?  Which one of those donors’ best interests should be the primary concern of the organization?

The questions “To whom are we accountable? And for what?” are about more than just dollars and donors. These questions are at the heart of everything community organizations are able to accomplish. And the reason for that is simple: We accomplish what we hold ourselves accountable for.

If we hold ourselves accountable for creating an amazing future for our communities, our donors will be happy, because our communities will be healthy, vibrant, resilient, humane places to live. And we will provide those results by being fiscally prudent and gracious to our donors, simply because it is impossible to produce incredible results if we do our work in any other way.

To be notified when the next part in the series Debunking Donor Rights is posted, subscribe to the feed for Creating the Future!

Debunking “Accountability to Donors”

Nothing gets my teeth gnashing like the discussion of Donor Rights and Donor Accountability. It is such a dangerous sidetrack from where organizations must aim their primary accountability if we are to create an amazing future for our communities. And yet, the notion that organizations are primarily accountable to their donors prevails, and it is growing daily.

The essence of Donor Rights / Accountability is that organizations are primarily accountable to their donors, as the donors (according to this theory) are the organization’s investors - the ones that make everything possible. Therefore, organizations owe their primary accountability to those donors, for spending the donors’ money wisely.

It sounds good at face value, but it is a logic that goes beyond being just seriously flawed (which it is). It is a concept that is hazardous to the ability of community organizations to create visionary improvement to the quality of life in our communities.

(To get a glimpse of where accountability must focus if we are to create an extraordinary future for our communities, this post is a start. And this article goes deeper.)

And so, over the next few weeks, I will be debunking, one by one, the illogical constructs that lie at the heart of the Donor Accountability movement.

To open the discussion, let’s start with an easy one.

Consider that rare animal - the fully funded, fully endowed organization.

If organizations are primarily accountable to their donors and funders, and an organization has no donors to be accountable to, to whom is the organization accountable?

And if the logic works for that organization, why is the logic different if someone has given a donation?

Does accountability really relate to the level of organizational financial security? If an organization starts out with many donors, and over the years grows an endowment to the point where it needs to do virtually no fundraising resulting in very few, if any donors - to whom is the organization accountable?

And does true accountability really change over time if an organization’s purpose does not change over that time?

The questions “To whom are we accountable? And for what?” are about more than just dollars and donors. These questions are at the heart of everything community organizations are able to accomplish. And the reason for that is simple: We accomplish what we hold ourselves accountable for.

If we hold ourselves accountable for creating an amazing future for our communities, our donors will be happy, because our communities will be healthy, vibrant, resilient, humane places to live. And we will provide those results by being fiscally prudent and gracious to our donors, simply because it is impossible to produce incredible results if we do our work in any other way.

To be notified when the next part in the series Debunking Donor Rights is posted, subscribe to the feed for Creating the Future!

We’re Back!

Hello all!

As you could tell from Monday’s Rock Out, we are back! There is much to tell, as we spent a full month on the road, all across California and Nevada.

Las Vegas to Reno to Santa Rosa to Sacramento to Santa Barbara to LA to Alpine to Fresno to Palm Springs, and then home. Makes me tired just to list it all! Truly, though, it was an amazing trip.

Now that we’re home, I am hoping to dive back into blogging. Here is just some of what I’m hoping to cover:

• “The Book.” Yes, the magnum opus will be released in the next several months, and we will be posting the initial chapters right here!

• New thoughts about how the community work we all do fits into the larger scheme of things. The economy. And the arts. And the Middle East. It’s all interconnected, and a month on the road provided time to consider that interconnectedness, even more than I normally do.

• Stories from the road - the many things we experienced and learned during the past month (including the joy of a hot stones massage - really!).

With all we have planned, I have a huge favor to ask of you:

Please invite a friend to sign up for the feed from Creating the Future.

My whole point in posting chapters from the book here at the blog is so folks will use those tools to change the world. And so, as we near the release date for the book, we want as many people as possible to be reading along.

So please, invite a colleague to read along with us. We are about to dive into the myriad possibilities we all have, every day, to create an extraordinary future for our communities.

P.S. Thanks to all who sent notes, to tell me you missed the blog in this past month. Each and every note made me smile.

Photo Credit: Dimitri!