With the highly anticipated initial public offerings (IPOs) of tech giants like SpaceX, Anthropic and OpenAI on the horizon, the nonprofit sector is buzzing. A massive wave of liquidity events is poised to mint thousands of new very high and ultra-high net worth individuals.
For nonprofit leaders and major gift officers, it is tempting to see these looming nine- and 10-figure exits as an immediate windfall for the social sector. If someone who has always cared about your cause suddenly has $50 million in the bank, surely they are ready to write a seven-figure check, right?
Not necessarily.
A profound disconnect often exists between how fundraisers view sudden wealth and how the newly wealthy experience it. To move this surge of capital off the sidelines and into communities, nonprofits must expand their mindset to consider the whole human being.
The Psychology Behind New Wealth
To understand why a newly minted tech millionaire might hesitate to give, start with their psychological relationship with money. Four in five ultra-high net worth individuals in North America are entirely self-made, according to new research from Altrata. Most grew up in working- or middle-class households, not with trust funds.
Wealth psychologists describe these self-made individuals as “immigrants” to the land of affluence — a concept Dr. Jim Grubman explores in his book, “Strangers in Paradise.” They are navigating a world with entirely different norms and pressures, and they carry the cultural mindset of their homeland with them.
When a founder or early employee comes into major wealth through an IPO or business sale, their bank account changes overnight, but their psychology does not. They often remain stuck in an “aspire and acquire” mindset. Despite the commas in their net worth, they do not feel like they have more than enough. They harbor unspoken anxieties: “Is this money really secure?” “Will this wealth undermine my children’s drive?”
When a fundraiser looks at a $50 million exit, they see major gift capacity. When that newly wealthy donor looks at their bank account, their fight-or-flight brain may still be asking, “Am I safe?”
Why the Traditional Pitch Fails
This psychological gap is where traditional tactics fail. Fundraisers are often trained to approach major donors with a sales funnel mindset: Polish the pitch, highlight the metrics and logically convince the donor that the organization offers the best return on investment.
But donors are not purely rational actors. If a newly wealthy individual is secretly agonizing over how their wealth might alienate old friends or demotivate their kids, a 20-page deck on programmatic efficiency is not going to move them.
The obsession with return on investment also breaks down when your organization does the complex work of systems change. A soup kitchen’s math is simple: $100 buys a predictable number of meals. But a multiyear advocacy coalition working to reduce food waste in the supply chain cannot tie a policy win to a specific donor’s dollar. In high-leverage work, impact is about contribution, not attribution.
Because donors cannot comparison-shop your outcomes, a gift ultimately rests on something more profound: trust. Trust in your proximity to the problem, your strategic judgment and your integrity. Pushing too hard for a transactional close undermines that trust. When donors sense they are valued only as a funding source, the money stays on the sidelines.
A Different Approach: Fully Human Fundraising
To engage the next generation of post-IPO wealth, the nonprofit sector must pivot from transactional selling to relational advising — what I call “fully human fundraising.” Here are five ways to start.
1. Have Powerful Conversations
Instead of launching into a pitch, ask questions that invite the donor to share their vision: “If we were talking a year from now and things had gone extraordinarily well in your world, what would you be excited to tell me about?” Then: “What is the biggest challenge standing between you and that vision?”
Worried donors won’t answer? If you feel comfortable asking, almost everyone will respond. Many people are hungry for an invitation to reflect. The exact phrasing matters less than your intent, so adapt the words to fit your relationship and setting. And make it reciprocal: Share your own answers to both questions, too.
2. Recognize the Full Spectrum of Wealth
Money is just one form of capital — alongside intellectual, social, political and cultural capital. Many newly wealthy individuals, especially former founders, are eager to contribute expertise, networks and ideas, not just checks. Non-financial capital will not fit every organization, but recognizing its potential value — and the interest of many donors in deploying it — creates more space for collaborative partnerships.
3. Look Beyond Impact Metrics
Your impact matters, but it is not the only thing donors care about. Are they hoping to bond with their children over shared values? Seeking a community of peers navigating sudden wealth? Where it fits, position your organization as a vehicle for those deeper needs.
4. Prioritize Relevance Over the Ask
If a tech founder confides they are terrified of raising entitled kids, a family volunteering opportunity or multigenerational site visit may resonate far more than a request for general operating support.
5. Embrace the Role of Trusted Adviser
The most successful major gift officers do not perform on a stage for their donors — they sit next to them in the audience and help them make sense of the play. Share your expertise, make introductions and offer candid advice about the philanthropic landscape, even when it does not lead to an immediate gift.
A staggering amount of wealth is poised to enter philanthropy in the coming years, but it will remain on the sidelines if nonprofits wait for these individuals to find their philanthropic footing on their own. Nonprofit leaders have an opportunity to guide them. By setting aside the pitch, leading with empathy and engaging newly wealthy donors as full human beings, you can help them unlock not just their financial capital, but their capacity for true, joyful impact.
The preceding content was provided by a contributor unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.
