The future of charity partnerships (and why sunk cost fallacy is preventing us from saving the world)
Disruption sounds good on paper. In reality, we’re attracted to comfort
Most of this happens in the background - out of the conscious mind. Be that a snappy decision to bat away a challenge or the longer-term delusion that keeps us investing in something that isn’t working. Here’s why protecting the status quo is counterproductive when it comes to saving the world.
The cold call reflects in just seconds how vigilantly we shield ourselves from challenge
For me, the cold caller represents a threat to my safety (scams) and my time (productivity). Shutting off is a healthy response to this threat.
Having been on the other side, making hundreds of cold calls, I’ve become fascinated by the nuances of the first few seconds.
Take these guidelines, they won’t win friends, but surprisingly they work:
Do not ask how they are - friendly is suspicious
Don't ask if they have time - they don't.
Don’t confirm their name - it creates distrust.
All of this goes against my instinct. I am wired to be courteous and respectful. Particularly if I'm interrupting.
But here's the thing - we are all wired to avoid threats and challenges. It’s instinctive and immediate. The ‘Reptilian’ or ‘Primal Brain’ provides both healthy protection and an obstacle to useful challenge.
The ‘Sunk Cost Fallacy’ reflects how we protect long term investment, even when it no longer serves us
The Sunk Cost Fallacy, the cognitive bias that makes it harder to walk away from something we have invested money, time or effort in, even when the investment no longer makes sense.
Disrupting what we have always done, especially the more invested we are, is hard to do - even when it’s not in our best interests.
Charity partnerships fall into the same track. Part comfortable. Part sunk cost fallacy. So why change?
I believe most businesses are taking comfort over impact - the last vestige of a world that felt nice and looked good. So we protect it with all our might. Justify it in the name of our people. But, that's a problem and here's why:
We can't solve society's problems without the private sector. Whatever you might think about it - we've created a world in which much of the power sits in the hands of business. Be it equality, diversity, or the climate. Without business, we cannot solve our biggest challenges. We can all do our bit. Government can legislate, but ultimately if businesses don’t act, then we’re in trouble.
Employees and customers want businesses to be actively solving problems. Charity partnerships are still aiming for comfortable - but they miss the gravity of what is needed. They paint fences to feel good - some charities actually invest in fences to paint (yes, that happens!). They run, walk, bake to raise money. And, whilst raising money is a beautiful thing, it is not enough.
The future of charity partnerships is going to be different. Forward-thinking businesses are already moving towards a new world of genuine purpose. Check out Leah’s blog for an insight into purpose-driven fintech and an incredible example of purposeful nonprofit collaboration.
The future of charity partnerships is going to be different. Customers are demanding and rewarding it, and many early movers already recognise it. Don’t get left behind because of sunk cost fallacy.
And the next time the phone rings...
