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Fear of Failure

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Many philanthropists, both new and experienced, frequently ask a universal, fear-based question: “What if it fails?”

For example, they ask, “What if we launch a new funding initiative and it doesn't achieve the desired results?” “What if we invest our money in mission-related investments, but we don't get the same return rate?” “What if I don't have what it takes to be the CEO?”

“Many philanthropists have a mind-set that if it doesn't work, it's a failure. This mind-set holds them back,” explains Meredith Shields, managing director at the Sorenson Impact Foundation. “When you don't have a complete guarantee, when you can't rely on a tried-and-true strategy, sometimes you just need to do it and learn.”2

The fear of failure is real and prevalent. Philanthropists respond to this fear with a scarcity mentality—they hold back themselves and their resources. But at the same time, they invest time, talent, and treasure on the wrong things. They engage in labor-intensive efforts dancing around the question: conducting excessive research and data analysis to unearth every facet of an issue before deciding to launch the initiative. Relentless benchmarking to see how they compare against others. Participating in endless leadership development programs instead of taking the plunge and applying for that CEO role. Or simply never trying.

Delusional Altruism

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