An Interview with Innovest’s Paul D’Alessandro on His New Book, The Future of Fundraising
In an era marked by technology's rapid evolution and a global pandemic, the nonprofit industry has unfortunately experienced some disruption. More than ever, leaders find themselves navigating uncharted territory and adapting to a new understanding of how donors are approaching solutions to social challenges. Moreover, as the boundary between nonprofit and for-profit entities pursuing social impact blurs, traditional funding paradigms no longer hold sway. The future of fundraising is not on the horizon; it is here, in the present moment.
Innovest Vice President, Paul D'Alessandro, is a seasoned expert in the field with over three decades of experience in raising more than $1 billion and engaging with over 4,000 donors. In his new book, The Future of Fundraising: How Philanthropy's Future is Here with Donors Dictating the Terms, D'Alessandro offers a road map for success in this rapidly evolving landscape.
The book discusses the power and future implications of artificial intelligence in the nonprofit sector, comprehensively capturing donor-advised funds, social impact investing, and the revolutionary potential of blockchain philanthropy. D’Alessandro also sheds light on the complexities of fundraising compensation, a potential hindrance to innovation in these critical times.
We sat down with Paul to unravel the inspiration and insights behind his new book.
1. What motivated you to write this particular book?
PD: I wanted to write something that wasn’t a “How to Raise Money” or about giving trends. The concept comes from watching how tech companies are having an impact on making nonprofits more efficient. It also came from ongoing conversations with donors who are frustrated with nonprofits, especially their ability to “move the needle” on change. Donors are looking at other options for making an impact, including donor-advised funds, Impact Investment, and venture philanthropy funds. They have choices that are varied regarding where to put their money.
2. What do you think are the biggest disrupters of the nonprofit industry in the past decade or so?
PD: Technology, absolutely – especially AI and ChatGPT. Tech companies have zettabytes of information about millions of households and individuals. They use this to inform a nonprofit who would give to them and how much, while also notifying them on the vast amount of money moving into DAFs. DAFs from Fidelity and Vanguard, for example, are becoming the largest nonprofits in the country so there is a shift in how donors give and when they give. There are billions of dollars now “parked” in DAFs that can be deployed for a great good but for now a lot of it is being managed by an asset manager. More money comes into DAFs each year then goes out. Another disruptor is government – the standard charitable deduction has caused, in some people’s minds, a decline in individual giving.
3. What themes or messages do you hope readers will take away from your book?
PD: The theme that I’ve been stressing to nonprofits is to think five to ten, even twenty years ahead and realize that the old models of fundraising, like year-end giving appeals, are not necessarily going to work in the future. Nonprofits need to invest in technology and look more towards consolidation and collaboration because the competition for donor dollars is fierce. Topics like Impact investing, diaspora giving, AI, cyber security, and building a revenue-generating mechanism for the nonprofit are all things that nonprofits should be thinking about. It truly is a time to adapt to the shifting sands in fundraising and nonprofit growth.
4. Is there anything else you'd like to share with your readers or potential readers about your book?
PD: The book was written during the time of the COVID pandemic, giving a lot of people time to reflect. Some nonprofits adapted and worked together in communities for a great good. It is a book to cause leaders to think proactively about the future and how all the changes, particularly with AI and the shift in donor thinking, will affect them in the long term. It is a good time for boards to be made aware and understand that it will require greater investment in new things to sustain and grow.
Paul’s book serves as an indispensable resource for nonprofit leadership teams, providing the essential knowledge to stay ahead of the curve and prepare for what lies ahead by unlocking the minds of 21st century donors. Pick up your copy of The Future of Fundraising: How Philanthropy's Future is Here with Donors Dictating the Terms today, available on Amazon and other outlets.