Beyond Either/Or: The Power of Both
In 1981, I earned my Ed.D. in Higher Education Administration from Vanderbilt University. For my dissertation, I researched the thirteen best universities in the United States in regard to fundraising, as well as thirteen average universities. My goal was to uncover what set the best apart––what made the exceptional institutions truly exceptional and what kept the average average. Identifying the key factors behind excellence in fundraising, and the resulting insights I gained, shaped the rest of my career.
During the research process, I sat down with the gentleman overseeing fundraising at Pomona College in Claremont, California. Pomona, established in 1887, has fewer than 2,000 students today, yet their endowment is over $2.8 billion. Then and now, their funding is disproportionately large compared to their size. Clearly, they are doing something right. So, I asked him directly: “What do you know that no one else knows that has made you successful?”
He pulled out a piece of paper and drew two ovals. In the first oval, he wrote the initials “D.I.” and explained, “Eddie, most nonprofits ask donors to make gifts out of discretionary income (D.I.). All these nonprofits are competing for about 4.3% of the average person’s budget. The really smart organizations,” he pointed at the second oval with a “N.W.” in the middle, “ask for gifts of net worth (N.W.).”
This insight struck me. As I continued my dissertation, I found his observation held true across institutions: the most successful universities understood the importance of engaging donors beyond their discretionary income.
Why does it have to be just discretionary income gifts or gifts of net worth? Why can’t we do both?
On my flight back from California, though, I began to wonder why it has to be one or the other. Why does it have to be just discretionary income gifts or gifts of net worth? Why can’t we do both? As I delved deeper into my research, I found that donors were already ahead of us in this thinking.
The Power of Both: Donor-led Blended Gifts
A nonprofit gets a call from an attorney: Mrs. Smith has died, and she’s left the organization $100,000. Everyone around the table asks the same question––who is Mrs. Smith? No one knows. They go back and look at her giving records and see she consistently donated small amounts––$25, $50, $100––year after year. Then, she gave a substantial estate gift.
Without realizing it, she was making what we call a blended gift long before we had a term for it. She instinctively did what we now strive to encourage, giving both during her lifetime and as part of her legacy.
A Vision for Consulting
When I went to work for a university, I quickly discovered that I was at a disadvantage in helping people because I didn’t have their net worth statement. Honestly, though, I understood why. I myself wouldn’t want to hand over that information to a nonprofit. Who wouldn’t fear that an organization might ask for too much? I worked first as a director of planned giving and then as a vice president, but I came to a realization. If I really wanted to be successful in helping donors make meaningful gifts, I had to get outside the nonprofit world. I needed to find a way to help nonprofits while being independent of that sector.
A fundraising strategy focused purely on raising money would never work as well as one centered on helping donors achieve their goals.
I started doing some consulting on the side, and I began to envision a firm replete with integrity––no games, no tricks. If I could become fluent in tax law, I could sit down with folks and ask them, “What do you want to do?” The more conversations I had, the clearer it became that prioritizing the charity over the family, which was my job while working for the university, would always be less effective. A fundraising strategy focused purely on raising money would never work as well as one centered on helping donors achieve their goals.
Throughout these conversations, three fundamental questions emerged:
- How much do I need to live on for the rest of my life?
- What is the smartest way to give to heirs?
- Would I rather some of my estate go to the IRS or to charity?
The answers to these questions could help donors make more intentional and impactful gifts. I figured if I could find nonprofits that would allow me to work with their donors in confidentiality, I could help them solve their biggest problems, and we could raise more money for charity, which was the goal.
One fundraising industry leader cautioned me, “Eddie, a nonprofit will never hire you to do what you want to do.” I responded confidently, “The smart ones will.”
I estimated that if I could find seven smart nonprofits willing to embrace this donor-centric approach, I would have a meaningful career. After two years of planning, I launched my company on December 28, 1991. By January 3, I had seven clients.
Who We Are
I used to say we’re estate planners, and while that’s still true, it doesn’t fully capture what we do. We are, above all, educators. We listen. We gather information. We teach donors what’s possible. Our goal is to equip them with knowledge so they can confidently present their plan to their attorney, accountant, or financial advisor––not just hand it over but understand and articulate what they want to do and why.
We work with people who want to help others. I started this company because I wanted to help people help others, to serve as a conduit through which people could change lives.
Why do we exist? People want to help those in need, and often, their biggest challenge is knowing how to do so wisely.
It’s About the Donor
Take Betty Byers. She lived on a small, fixed income. Each Sunday after church, her friends would go out to lunch, but she wouldn’t join them––her budget was too tight. And yet, she owned a farm.
After gifting some of the land to her nephew, Betty put the rest of the farm in a charitable remainder trust. The payout from the charitable trust provided her with a steady income for the rest of her life. Her income from that trust was greater than what she previously made from renting out her farmland.
She wasn’t wealthy, but her gift allowed her to live more comfortably and leave a meaningful legacy. One of my proudest moments was helping Betty realize that potential.
The Importance of Blended Giving
Great organizations focus on both short-term and long-term giving. Fundraising professionals juggle many roles, leaving little time for direct donor engagement. At its core, though, fundraising is a relationship business. The more relationships you build, the more resources you raise.
The best fundraising strategies aren’t just about asking for money, they’re helping donors fulfill their vision.
Unfortunately, many professionals are so consumed with hosting special events that they aren’t spending enough time building relationships. But donors, like Mrs. Smith and Betty Byers, are already leading the way. The best fundraising strategies aren’t just about asking for money, they’re helping donors fulfill their vision. By embracing blended giving––gifts made both during life and through estates––nonprofits empower donors to give more efficiently.
Eddie Thompson, Ed.D., FCEP
Founder and CEO
Thompson & Associates
“If we merely aim for the industry standard, then our goal is mediocrity. Emulating the average nonprofit, we are destined to live with all the problems the average nonprofit faces. So, we suggest you aim to be exceptional in your approach to fund development.” —Eddie Thompson
copyright 2025, R. Edward Thompson
