“Doug Burgum is founder and chairman of Kilbourne Group, a company committed to inspiring and supporting the redevelopment and revitalization of downtown Fargo, North Dakota, and is co-founder and chairman of Arthur Ventures, a Fargo-based venture capital group that focuses on early-stage software companies – ”  

The official website for Kilbourne Group

But many of us recall Doug as a thoughtful, enjoyable, and clever member of the Stanford GSB Class of ’80.  A successful consultant, entrepreneur and executive. And  seasoned cowhand!

Cowboy Doug at work

Recently, I had the opportunity to catch up with Doug and to gain his perspective on philanthropic activity. Doug’s career since the GSB has given him a global view through consulting, building Great Plains Software from a 1983 startup to selling it to Microsoft in 2001, and serving as part of the Microsoft leadership team for over six years. Since 2007, he has co-founded Arthur Ventures,  and Kilbourne Group mentioned above.

During all of this, Doug has remained close to his roots in North Dakota where he and his family have a (very) full life. When we spoke, he was about to spend a weekend participating in an annual cattle roundup and calf-branding event that’s been part of his agricultural surroundings for decades.

Early Years … Early Lessons

In response to a question about early family influences on Doug’s current philanthropic and community activities, he quickly noted the important theme of gratitude in his heritage, and in the values he works to convey to his children. Doug’s parents were actively engaged in their small town community of Arthur, ND, current population of 346. He noted, “There wasn’t much cash, but my parents gave a great deal of time, energy and enthusiasm, particularly in the areas of healthcare and education.”

“Joey B” Burgum and Katherine (Kilbourne) Burgum 1963

Evolving Role in Philanthropy

Later in life, after working though the startup challenges and financial bootstrapping of Great Plains Software, Doug found himself very busy, but with some liquidity. So he wrote checks to some worthy causes. But he also applied his professional curiosity and analytic approach to better understand “what makes a philanthropic activity effective?” Reminds me of the kind of questions that Project Redwood’s Impact Initiative is working to address with respect to our Grantees and their projects.

Over time, Doug had the good fortune to be exposed to several progressive and thoughtful leaders in the not-for-profit arena. Some of these were executives at the Gates Foundation following Microsoft’s acquisition of Great Plains. Others from whom he received inspiration included Laura Arrillaga-Andreessen, who developed and has been teaching the GSB course on Strategic Philanthropy since 2000. Laura was also a founder of the SV2 venture philanthropy fund and later authored Giving 2.0: Transform Your Giving and Our World. Tom Tierney, formerly of Bain and author of Give Smart: Philanthropy that Gets Results, also influenced Doug’s thinking and activities in this area.

Making an Impact … Close to Home

Doug summarized his approach to helping charitable activities succeed using the phrase “catalytic contributions”. He contrasted that approach with “giving dollars to fund operating losses”. Doug described several examples where this approach is bearing fruit – in the arenas of healthcare, education, and the arts. He pointed to a situation that involved bringing together the local fine arts museum, the local school district and a downtown development group in Fargo. Securing a 3-year commitment from the local school district to send 6,000 K-6 graders through the facilities annually, resulted in better use of facilities and content, saved three adjacent historic buildings, and amplified the art museum’s own parallel capital campaign. With collaboration driven by donors, these three groups achieved much better outcomes than they could on their own.

Family HealthCare has the only homeless health clinic in North Dakota.

Another example involved turning a $25,000 seed contribution into $15 million by securing a public grant, salable tax credits, and private funding by helping the organization develop and implement a thoughtful and creative plan. This funding provided desperately needed new facilities for a Family HealthCare, a local provider that serves New Americans and operates a homeless clinic. Family HealthCare specializes in addressing chronic disease and wellness and addresses the barriers to patients that find access to care challenging. This effort also saved four historic buildings that add to the vibrancy and fabric of the city.

Doug also noted a growing theme in his consideration of philanthropic activity: the broader benefits of urban core utilization, including accessible transportation, lower environmental impact and greater social interaction among diverse populations. Both of these projects generate positive impact in an urban setting.

Sometimes There are Surprises

Asked what “surprises” he has experienced in his charitable activities, Doug noted that his perspective continues to change. He commented on the reality that people leading charitable activities have oceans of good intentions, but often limited skills and experience in building effective organizations. Doug’s advice to those, including Project Redwood participants, who want to give back and make a difference follows a theme of close and careful engagement… helping the well-meaning to move toward developing well-operated and well-governed organizations.

Doug also described his current approach, which I found to have several similarities to the Project Redwood grant review process. When a packaged capital campaign or personal “ask” attracts Doug’s interest and that of JoDee Hanson, his philanthropy coordinator, they respond with a request to visit the grantee’s location or facility, to meet with the management team, to talk with the board members and to review the financials and operating records. He described this as similar to the due diligence of a venture investment or acquisition. This effort is clearly more resource-consuming than simply “writing a check”. Doug makes the extra effort to provide reasons and recommendations to those that do not receive assistance. That kind of thoughtful feedback is valuable in itself.

So, What’s Next ?

Most of Doug’s activities currently focus on his communities. His youngest son will finish high school in a couple of years. Doug was very complimentary of the efforts and results that Project Redwood has delivered over the past decade,  He is excited to see the Class of ’80 paving new paths of collaboration and connection. I have a sense that we could encourage Doug to lend his valuable perspective and energy to Project Redwood in the coming years. If you agree, there’ll be an opportunity to tell him so at the Annual Meeting and Reunion in October!

By DJ Crane