Monday, May 6, 2013
BIG’s Blog: Are you risk averse?
According to Wikipedia, the meaning of “risk averse” is “a concept that plays out typically in the fields of psychology, economics, and finance based upon the behavior of people that are exposed to uncertainty and seek to attempt to reduce that uncertainty.”
I think it plays out in every field of endeavor, including fundraising.
Why do I ask you to consider whether you are risk averse? Because a lot of fundraisers believe that making major changes in the way they might practice fundraising might be a risky move. “What don’t I understand? What happens if I mess up? What happens if it doesn’t work?”
In other words, they worry about what they don’t know.
I understand that. I think everybody understands that. That is precisely why we created our online learning program to educate fundraising professionals about what has shifted in the fundraising world, and why the current methods of fundraising aren’t working well today . . . and to show them a path to engagement with younger supporters that can dramatically increase revenue.
But this blog isn’t about selling you on us. It’s about having you start thinking about what has changed in fundraising and what must be done about it.
If you are risk averse, you need to think about how the greatest risk can be mitigated.
First, you have to figure out what the greatest risk is.
Is the biggest risk moving to transform your fundraising away from purely a transaction model to one that seeks out first relationships and engagement via the Internet and then asks for support? Or, is the greater risk in NOT moving or changing the way you are practicing fundraising today?
One thing is certain…both paths involve risk. One path offers almost guaranteed failure, while the other path offers conditional risk. What is conditional risk? Conditional risk is, for example, the possibility that you can’t learn a new fundraising model and execute its strategy.
So then, what is the greater risk? Stand pat or move to shift your game?
-MikeWelcome to BIG's Blog! Please feel free to forward this post to your friends and coworkers...and email me a comment at: email@example.com