Is “philanthropy” dying?

I recently had the privilege of speaking with the Executive Director of a nonprofit involved in cancer research/funding.  She described the changes she is witnessing in how fundraising is conducted and voiced her concern about the future of what has classically been defined as “philanthropy,” or  major giving. 

Her logic is as follows: if younger donors are giving through new channels (i.e. online, mobile) on impulse, with small donations, because of specific events and not because of an emotional or intellectual involvement with a cause or an organization, what will does this mean for the development of major donors in the future?   Major donors – those who give in very large amounts – are few and far between.  They are cultivated over time and, over the time, they have usually aligned themselves with cause(s) with which they have a passion, ranging from academia (where they went to school, for example) to the arts to others in the sciences, environment, social justice, etc.   

Major donors, as a general rule, have been cultivated.  They become associated with an organization because of their passion or involvement with the mission.  Most importantly, however, their donations end up funding roughly 50 - 60% of the operating costs for a nonprofit…

But where are we today?  Younger donors can make a “quick hit” donation via mobile or other digital device in an instant – on an emotional whim.  What’s a $10 or $25 or even $50 donation if you can afford it?  For major catastrophes or other “events” this works fine.  But this is not helping to cultivate the idea of involvement or mission that grooms major donors for the future.

So what are E.D.s and Development offices to do?  How do they cultivate future donors?   Do they hope that they can match the sexy digital “quick hits” of the “event” driven causes?  Do they stick to the tried and true fundraising techniques that have worked in the past, and hone their targeting skills?  Do they continue to work on personal relationships with donors – focusing on the new young wealth and developing them? 

Is the model truly broken?  Or is it simply a matter of using what’s traditionally worked in the past, testing new ideas and methods, and continuing to reshape what philanthropy can be for the future?

What are your thoughts?