Could your next major gift come from the millionaire next door?
A couple of weeks ago, I read a familiar story – one that was reminiscent of those told in a book I was encouraged to read early in my career. The story was that of Geoffrey Holt, the unassuming caretaker of a mobile home park who left his entire estate to the town of Hinsdale, New Hampshire. Wise investments and an extremely frugal lifestyle had paid off. His instructions were simple: $3.8 million to benefit the community in the areas of education, health, recreation, and culture. Only a handful of people in the community had any idea that this man, who didn’t own a car or computer, was as wealthy as he was. It was only after his death earlier this year that the town of Hinsdale learned that Holt was “the millionaire next door.”
In contrast to the billionaires captivating most of our attention, I would insist that today’s nonprofit organizations have greater access to donors like Geoffrey Holt than perhaps they realize. What we may not understand about them is that they are quiet givers, their names will never be on the sides of buildings, and they will never be asked to sign The Giving Pledge. As best they can, most of them just want to live as normal a life as everyone else. They don’t believe their wealth warrants their being put on a pedestal, receiving awards for being especially generous, or feeling entitled to tell anyone else what they should do with their money.
When I was a kid, I remember watching Lifestyles of the Rich and Famous. Every episode featured Robin Leach giving us an insider look at the lifestyles of those who have what the rest of us can only imagine having. Thanks in large part to programs like this one, many of us grew up with the misconception that all millionaires live in huge mansions, drive luxury cars, and have walk-in closets packed with designer clothing. It wasn’t until a mentor told me to read The Millionaire Next Door that my assumptions about who does and doesn’t have wealth began to change. I believe it’s many of these same misconceptions about wealth that are what get in the way of many organizations achieving their fundraising goals.
Several decades ago, authors Thomas Stanley and William Danko began their research into the lives of America's wealthy individuals. They began their research just as many would expect them to, by surveying those who live in so-called upscale neighborhoods. What they discovered surprised them. Many people who live in expensive homes know how to spend their high incomes; however, they don’t necessarily have much wealth. Stanley and Danko learned that the lifestyle of many millionaires doesn’t actually look like we think it does. Aside from what they have in the bank, many of them enjoy what appears to be very nondescript, middle-class lifestyles.
The Millionaire Next Door spent three years on the New York Times best seller list. For myself and many of my colleagues, it gave us a more enlightened picture of who our major donors might be. We learned that the values of those who live in Oklahoma and Texas are largely the same as those who live in New York City and Chicago. We learned that it wasn’t luck, an inheritance, or advanced degrees that got the wealthy where they were. More than 80 percent of them accumulated their wealth in a single generation; and they did it slowly, steadily. What the millionaire next door had in common with all the rest was that they lived well below their means.
What The Millionaire Next Door helped me understand early in my career was that those capable of making the most extraordinary gifts may not necessarily be those with high incomes or who live like the rich and famous. It’s just as likely that our major donors would be those who lived frugal lifestyles and relied on their own ingenuity, rather than high paying jobs, to create wealth. I learned that their decisions would more closely resemble that of a responsible citizen than that of an impulsive consumer.
To the best of my knowledge, I have never worked with an organization that has received support from Bill Gates or MacKenzie Scott; however, all of my clients have been the beneficiaries of extraordinary gifts from people who don’t live in ivory towers in far off places. When I share the profile of the donor I believe they should be looking for, it’s evident that many of them don’t know who this individual is. Little do they know that these individuals are on their mailing list, show up for their events, and give without need for any fan fare.
What I find unfortunate about the story of Geoffrey Holt isn't whether a group of grateful citizens affix his name to the new middle school, but that it didn’t ensure the opportunity of simply saying thank you. I believe now more than ever is a time when our organizations need to take chances on the fact that their next extraordinary gift could in fact come from the millionaire next door. Instead of fixating on the likes of Gates or Scott, I want our clients to direct the most energy towards the hundreds, if not thousands, of donors already in their databases who are far more accessible and already inclined to support a cause that’s much closer to home.
If your organization wants to understand how to raise extraordinary levels of support by way of meaningful relationships and higher expectations, our team at Responsive would welcome the opportunity to help you do that. If you’re interested in learning more, email me and/or our managing partner, Michael Dixon. We will be happy to volunteer an hour to get to know you and to explore with you what a partnership with our team might look like.
Want to host the Responsive Fundraising Roadshow?
We would welcome the opportunity to host the Responsive Fundraising Roadshow in your community. Since 2014, our team has been organizing high-quality, one-day roadshows in partnership with nonprofit leaders who want to showcase their space and champion thought-provoking and highly-interactive fundraising training for their nonprofit community.
Our hosts have included the Children’s Defense Fund in DC, the Henry Ford Health Center in Detroit, Cause Leadership in Toronto, Mission Capital in Austin, North Texas Food Bank in Dallas and The Gateway School in New York City. Most recently, in partnership with the Nonprofit Association of the Midlands, we hosted our most successful roadshow to date in Omaha. If you’d like to explore the idea of hosting the Responsive Fundraising Roadshow, email us today.