“ Prerequisites Donors in the study, whether born in China or in the U.S., were clear about their requirements for deciding to provide philanthropic support of an organization or cause; those considerations included the following. ■ Donors will select an organization whose mission is meaningful to them personally… ” Personal affinity with the cause. Whether it was education, poverty alleviation or a particular arts group, supporting causes that are meaningful to them is fundamental for most donors. All of the donors cited giving to organizations that provide services or conduct activities that are of personal interest and had resonance for them. The specifics of those causes will be discussed below. An exception to the personal connection as a primary consideration may be made for giving to organizations and causes supported by families and friends; these donations generally were not considered a component of the donors’ own philanthropy, but rather were seen as showing support to loved ones and others in their social and professional circles. A personal connection to the organization. Donors were firm about the importance of having a personal connection with the recipient organization so that they can follow how their funds are used and perhaps have some input. This requirement may also be met by knowing someone who is affiliated with a new organization before engaging. Having a personal connection, either directly or through trusted associates, is essential for feeling confident about making a philanthropic investment in an organization. Due diligence. When considering engaging with an unknown organization, donors first personally conduct research on it to ensure that they can expect their funds to be used appropriately and well. Some participants use nonprofit rating services, such as GuideStar and Charity Navigator, and review Internal Revenue Services records to evaluate a potential recipient organization’s activities and management. Major considerations are that the organization: • • • • • • Has good leadership both at the board and executive levels; Has a clear and compatible mission; Functions transparently; Uses funds efficiently; Provides effective services with documented results; and Has a high program-to-administrative funds allocation ratio. ■ ■ A number of donors described personally visiting the prospective recipient organization, reviewing its activities, and meeting with key staff. These activities reinforce the personal nature of the donor’s concern about the best possible use of donated resources. A clear issue for many is control over where and how their resources are used and the expected effects. Importantly, once an organization has been identified and has satisfied the criteria detailed above, many donors noted not feeling the need to have further control over the funds. They were confident that their funds would be used efficiently and for useful purposes. This included providing funding for general support for the organization in some cases, rather than only supporting particular projects or purchases. In summary, before engaging in philanthropic activities, donors will select an organization whose mission is meaningful to them personally, and will want to have personal knowledge of its effectiveness, efficiency and good management. 6 SILICON VALLEY COMMUNITY FOUNDATION SILICON VALLEY COMMUNITY FOUNDATION 7