The pros and cons of joining different community organizations

You bought into the idea of networking with high net worth individuals as a way of getting wealthy clients. You have tossed out the idea of meeting a stranger, leading with your business card and pitching insurance. (You can still keep that strategy but confine it to networking groups.) You bought into the idea of joining the right organizations and becoming “part of their world.” Why? Because people do business with people they like. But first, they need to meet you and get to know you on a social level. What next?

Now it’s time to choose the right organizations. Plenty of nonprofits, charities and volunteer organizations are all around you. You can support any and as many as you want. If your objective, in addition to serving, is to meet high net worth individuals, the organizations must possess certain qualities. What are they?

• They need to attract high net worth individuals. It’s hard to meet wealthy people if there aren’t any. Most nonprofits attract wealthy people as donors, but some nonprofits attract more wealthy people than others.
• You want opportunities to meet high net worth people. It doesn’t help if they never get together or they meet only once a year for a big gala.
• Your chosen organizations need high visibility. Joining a sleeper cell won’t work if the objective of the organization is for no one to know about it.
• The organization has a positive impression in the community. It is difficult to be a New York Yankees fan in Boston when everyone cheers for the Boston Red Sox.

Let us move from that 30,000-foot level to boots on the ground. What kinds of community organizations attract plenty of wealthy people?

1. Museums and cultural institutions. Remember the Star-Kist tuna ads with Charlie the Tuna? Charlie was always trying to show he had good taste. When people achieve a level of success, they want to show they have good taste. Giving back to the community often means getting involved with the local museum, symphony or theater company. They have frequent exhibition openings, concerts and performances.

Pro: You can find some smaller organizations where your contribution dollars go further. Historical societies are more relaxed organizations.

Con:  There are very few of this type of organization. Other advisors might get there first.  Huge museums seek huge donors. You might get overlooked.

2. Social and community services. This includes local medical charities. Animal charities such as the local SPCA are good too. Public parks, zoos and aquariums also have fundraising arms and roles for volunteers.

Pro: It’s easy to match up a personal interest with the right organization. Your passion comes through. The local advisor community might have overlooked this group.

Cons:  They might do one or two events a year instead of having an event every month. You likely will work on a committee, getting to know a small group of people.

3. Business organizations. The chamber of commerce comes to mind. Trade organizations and networking groups fit into this category as well.  In addition to chambers of commerce that serve a geographic area, there are cultural chambers such as a Black or a Hispanic chamber.  There are often several chambers in a metro area.  The state has a chamber too.

 

Pros: You want business owners. You got them. You want to prospect? Prospecting is accepted and encouraged.

Cons:  There are other agents and advisors in the membership.  While you are prospecting everyone, everyone is prospecting you.  Many people you meet are in sales, not the C-suite executives.

4. Religious organizations. We are talking about your religious organization, not all religious organizations. You might consider this Kryptonite, something you don’t touch. Handing out business cards is bad.  Raising your visibility through volunteer involvement in a committee or ministry is fine.

Pros:  You get a cross section of the community. Everyone is welcoming.

Cons:  They might be wary of “advisors.” Spend time volunteering and turn acquaintances into friends.

 

5. Your college alumni association. You have heard about “the old school tie” and “the old boy network.” College alumni often do business with each other. They can open doors. One alum calling another might get your call accepted. You have more than one school if you count high school and graduate school.

 

Pros: Research is easy. Find those fellow graduates who did well and live nearby. You meet through alumni club activities. If they don’t attend, you encourage them to get involved.

 

Cons: Is your college nearby? If your school was both far away and small, this might not be a big pool.

 

6. Community associations. Think of homeowners, residents and block associations. You must live there to be accepted as a participant.

Pros: Your neighbors are in your economic bracket. The dollar cost of involvement is zero.

Cons: Time. These meetings take place in the evening and run late. Squabbling is involved.

 

7. They are high profile organizations. I heard a financial planner refer to the hospital board as “The CEO Club.” Disease-specific or children’s hospitals might have lower dollar thresholds for involvement.

 

Pros: They attract the great and the good. They hold splashy fundraising events.

Cons: The development department encourages the involvement of deep-pocketed involvement. You are a prospect too.

 

8. Country clubs. In the suburbs, there are private golf clubs. In town, there are private city dining clubs. They attract people who pay for privacy.

 

Pros:  You have plenty of opportunities to meet the people you want to cultivate.

Cons:  Assuming you can be voted in, the initiation fee and monthly minimums are costly.  If you are not good at golf, that’s a missed opportunity.

 

9. Special interest clubs. Think sports car, polo or RV owners’ clubs. These are people who can afford the “playing pieces” to be taken seriously as a participant. Wine also qualifies. That is a crossover area.

Pros: People with a shared interest are often passionate, eager to share knowledge with fellow enthusiasts.

Cons: This is not for spectators. For example, the yacht club probably requires boat ownership.

To make the maximum impact from a business and community involvement perspective, you must choose your organizations thoughtfully.

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