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Phenomenal fund-raiser rarely asks for money, but he pitches ideas that inspire philanthropy.
The Atlanta Journal-Constitution
Published on: 02/17/08
James Hackney knows how to separate the wealthy from their wealth.
The consulting firm of which he is a part-owner, Alexander Haas Martin & Partners, helps nonprofit organizations raise huge sums.
The 1996 Olympics, the High Museum, the Atlanta History Center and Zoo Atlanta have all benefited from the firm's services.
Hackney's particular expertise is raising money for museums, which typically means selling a vision to a few rich people who can make a big difference.
"Individuals give away 85 percent of the money that's given away in the United States," he says. "Corporations this past year gave away only 4.3 percent of the money given away."
In 2006, approximately $295 billion was donated nationwide, Hackney adds. Fund-raising is very big business.
Q: How do you go about asking for millions of dollars?
A: One, you don't ask for money. You ask for somebody to fund a project. It's all about the idea. What is this dollar going to enable an organization to do that they're not now doing? The biggest mistake people make in trying to raise money is that they're trying to raise money. What you're really doing is appealing to someone's desire to want to make good things happen.
Q: So it's all about goodwill?
A: Absolutely. And people give because they want to keep bad things from happening. Rarely is it the tax deduction that impacts why they give; it can impact how they give and the size of their gift.
Q: Have concerns about the economy made your job more difficult?
A: Fortunately, we are busy and have been busy. When things get a little tight a lot more nonprofits will call us seeking advice and help about how do they generate more contributed income. It's a very small percentage of people who really have the ability to make megagifts; the economic downturn doesn't necessarily affect them like it does the middle class.
Q: How does your firm get paid?
A: We never take a percentage of what's raised. We feel like that's very unethical. We work strictly fee for service. ... We get the same amount whether or not some of our action generates a $100,000 gift or a $100 million gift. When we do campaigns our fund-raising expenses come down to half of 1 percent and up to no more than 4 percent. No organization should ever spend more than 15 percent on their fund-raising.
Q: What do you do exactly for that fee?
A: We train their volunteers, help hone their case down to make sure they're presenting themselves the right way. We make sure they're comfortable and know what to say. We get them to go meet with people face to face. If I go in to somebody and say, 'I'm a paid consultant from Atlanta that your nonprofit has hired to come and ask you for a gift —- it's real easy for somebody to tell me 'no.'
Q: So you don't ask for money?
A: On a rare move we'll do it. If the nonprofit can convince me that I'm the right person to go in and do something, then we'll do it. For example, the art museum in Roanoke, Va., said we're interested in building a new home. The first thing we did was meet with their board and try to determine their needs and why did they want to do that and make sure they had the right case. Is it really going to help you serve your mission better? Then we interviewed 35 to 40 people in the Roanoke Valley area who all had the ability to make an impact gift, and we did that face to face. We actually asked them, 'What do you think about this organization? Would you consider the possibility of making a large gift if they were doing this?' People are very open and honest about what they'll tell you. Then we go back to the organization, share with them the information and put together a campaign plan for them. The organization sends people out under our coaching.
Q: Are people by nature generous or do they want to hang onto their wealth?
A: It varies from person to person. Rich people do not necessarily become philanthropists. Philanthropists are not necessarily rich people. The top giving group, as far as percentage of income that they give away every year, is schoolteachers, which are some of our lowest-paid professional people. The reason for that is because schoolteachers know the difference a dollar can make. They see it every day in their classrooms. As a group, physicians are the worst givers. We think it might be because any profession that makes money by procedure or by time tends to be less philanthropic. Also, most physicians do a lot of pro bono work anyway, so they feel like they're giving back through their service. Now, there are certainly examples of doctors in this country, in this town, who've been incredibly generous with their money.
Q: How did you get in this line of work?
A: In 1982 I became the director of alumni programs and the annual fund at Wofford [College]. That was really my first taste of fund-raising. I'd had a little bit when I was at Yale in graduate school (1977-79). I worked part time for the campaign for Yale as a telephone solicitor. I really enjoyed that, connecting people back to the university. Doug Alexander, who is the Alexander in the name of our firm, was our consultant for the campaign at Wofford. So Doug really taught me [institutional] development during the 1980s. I left Wofford to become the director of marketing and development at the Mint Museum of Art in Charlotte. I'd been in place for six weeks when the director of the museum resigned and the board named me acting director for the next 18 months. During that time the museum went from being a city department to being a fully private 501(c)(3) organization. We went from having to raise $800,000 a year to $4 million a year overnight. In 1995 I decided to join this firm.
Q: Why do you like your job so much?
A: All we do is work with people who want to do something for the public good. To work with philanthropists, to help them learn to give away money, to work with boards to make those friendships that we've been able to make across the country through the years —- is to me a real honor, a real privilege. All we're about is trying to help the world become a better place.
THE JAMES HACKNEY FILE
> Age: 52
> Home: The Parkside Walk subdivision in East Atlanta.
> Family: A partner who works as an insurance underwriter and their golden retriever, Clay. Also, a son, John, who's an investment banker, and a daughter, Ann, who's a college student.
> Education: Wofford College and Yale University.
> For fun: Collects pottery, hikes, explores museums, watches women's volleyball at Georgia Tech and ACC basketball on TV.
> Favorite recent book: "Them" by Nathan McCall, about living in the Old Fourth Ward.
> Favorite recent movie: Oscar nominee "Juno."
> Favorite possession: A tall vase by North Carolina potter Shane Mickey that was a gift from colleagues.
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