How Big is Your Pond?

The call came just the other night. It was 8:15 and I had just finished putting my kids to bed. “Hello, is Karen there?” “This is she.” “Hi, Karen, my name is Jane Smith and I am a student at Harvard College. I am calling you about the Harvard College Fund.”

Ah, the Harvard College Fund. In August of 2007, the Harvard endowment was reported to have reached $34.9 billion. If it only earned 5% simple interest per year--which, given the salaries of those running the endowment seems like a low figure--that would still provide $1.7 billion a year of interest income. There are at least 6 countries just in Africa with GDPs lower than that number. And while Harvard’s endowment is huge, it is not alone; there are many other universities and organizations with bank account balances over a hundred million dollars.

People often ask me why they should donate to such an organization when the amount they can afford to give will have relatively no impact. Why be a small fish in an enormous pond when you can be a huge fish--or even a whale--in a small pond by donating the same amount? A gift that may seem insignificant to a mega-charity can literally change the world for a smaller organization.

Donating to a large organization to which you feel a connection or whose mission you support is essential. Even if your donation is small, you are signaling that you are part of the community and are taking responsibility for and ownership of the organization’s actions. This is an important message.

However, in a small organization you can have a greater impact and help shape and determine the future of the charity. If you want to get involved and become a leader at an organization, the price of entry is likely much less at a small charity that at a big one.

While being a big fish has its advantages, being the biggest can have its drawbacks. Some small organizations are not equipped to handle one donation that is significantly larger than any other. The organization might not be prepared to scale up operations or have a plan to efficiently deploy additional resources. Additionally, an organization should never become too dependent on a single donor, nor does the donor want to feel too much responsibility for an organization’s ongoing success.

That said, don’t be afraid of being that first whale! Work with the organization to develop a plan to get others to reach the same level. Make your gift a “challenge” grant and set an example for others. If you can take this kind of leadership position, then you can help your favorite charity grow and expand programming, which is ultimately the goal of any donation.