Carolyn Sakstrup of Thrivent: The Principle That For-Profit Organizations Can Be Powered By Purpose

In today’s business landscape, companies that integrate purpose into their core strategy are gaining significant traction. These businesses go beyond profit to create positive social and environmental impact, proving that doing good and doing well can go hand in hand. What are the key elements of these successful purpose-driven business models, and what can other companies learn from them? I had the pleasure of interviewing Carolyn Sakstrup.

Carolyn Sakstrup is chief growth and generosity officer of Thrivent, a Fortune 500 financial services organization that puts generosity at the heart of saving and investing. In her role, Sakstrup is responsible for elevating the organization’s brand, delivering an exceptional client experience, and enhancing the company’s generosity offerings. She uses client insights and analytics to advance Thrivent’s transformation and is evolving their generosity strategy to mobilize their clients to do even more good in their communities.

Thank you so much for doing this with us! Our readers would love to get to know you a bit better. Can you share a bit about your background and what has led you to this moment in your career?

I was born and raised in Minnesota, graduated from the University of Minnesota and got my MBA at Harvard. After working at McKinsey helping companies develop and deliver marketing and organizational strategies, I joined Target and was honored to lead in a number of roles, including a senior leadership role in Marketing, Insights, Strategy and Innovation. During my time with the retailer, I was proud to lead the launch of Target Circle, its beloved loyalty program.

Every chapter of my career has had tremendous highlights. But being the chief growth and generosity officer of Thrivent is hard to top. After nearly three years here, I’m still amazed at the innovative way Thrivent drives impact as we help build, grow and protect financial well-being through purpose-driven advice, investments, insurance, banking and generosity programs.

Can you share a pivotal moment in your career that inspired you to integrate a sense of purpose into your professional journey?

My first job out of college was a consulting project for a very successful ecolodge called Lapa Rios in Costa Rica where I had interned the year prior. The owners, Karen and John Lewis, had sold everything to buy 1,000 acres of rain forest in the early 1990s, with the vision to demonstrate that a forest left standing is more valuable than one cut down. Indeed, Lapa Rios became a testament to this statement — lifeblood for the local rural community and a pivotal model for others in the area, who together have preserved a corridor of primary rain forest adjacent to a national park. For me, it was very eye-opening to learn that for-profit organizations could be just as powerfully driven by purpose.

Can you describe your company’s mission? What societal problems are you solving? What customer problems are you solving?

Thrivent’s purpose is to empower lives of service and faith. We are member-owned, founded more than a century ago when neighbors came together to insure each other. Today we serve over two million clients and manage more than $170 billion in assets.

Unlike other financial services companies, we believe money is a tool, not a goal. This is so clearly showcased by the way our financial advisors connect with clients. To them, it’s not about getting clients in and out the door. They feel a strong sense of accountability to help clients plan for the future, establish legacies for their loved ones and make their communities better. This is what makes us shine. It’s more than simply helping clients reach their financial goals. We empower them to make an impact and support their desire to give and serve in communities wherever and however they choose. And we have the proof to back this impact up. In 2023 alone, our clients achieved the significant milestones of raising and donating more than $300 million through Thrivent’s generosity programs and volunteering 14 million hours of their time in local communities.

Do you have a big hairy audacious goal for your organization and its impact on the planet?

We have bold goals, yes. But first, I want to highlight an ambitious goal I’m so proud of because of how it touches communities across the country.

This year, we celebrated the 10th anniversary of Thrivent Action Teams, an industry-leading volunteer program that provides clients with a toolkit of resources, “Live Generously” volunteer t-shirts and up to $250 in seed money to help them kickstart service projects important to them. In just 10 years, clients have led more than 1.2 million Thrivent Action Teams, engaged more than 16 million volunteers and raised more than $1.9 billion in funds for communities nationwide. And we had some fun celebrating achieving this goal. This summer, Thrivent surprised 10 clients across the country by donating $10,000 to causes they’ve supported through Thrivent Action Teams, which this video captures so genuinely.

The reason we started this program is simple. Back in 2014, we heard from our clients that they didn’t lead volunteer efforts because of barriers in organizing and funding. Thrivent Action Teams solved this problem, allowing clients to support local pet shelters, host school supply drives reaching underserved children, help neighbors battling illnesses or whatever other causes they felt passionate about supporting.

As for what’s next, we’re already on our way to the next million Thrivent Action Teams and the next billion dollars in funds raised. We’re also continuing to focus our goals on advancing our digital evolution, so clients and future clients have everything they need when and how they want it, for a financial plan reflecting their personal values.

Finally, when you say “audacious,” that’s a high bar, and it’d better be future-focused. The biggest thing we’re focused on is showing people everywhere how financial health and generosity go hand-in-hand. This is our long-term goal and while we know it won’t happen overnight, it’s worth the effort and I’m excited for the insights we will learn along the way.

Can you please describe some of your successes to date?

There’s so much to celebrate since I’ve joined Thrivent, and absolutely none of the success would be possible without the expertise and passion of the talented team of people I have around me. Here are a few achievements that really stand out to me:

• We partnered with the Minnesota Twins to launch one of the most unique partnerships in Major League Baseball. Thrivent and the Twins share a common goal of bringing communities together and inspiring generosity, which is why we launched an innovative, multi-year partnership that directs $200,000 annually to nonprofits. What makes this different from other Fortune 500 partnerships with a professional sports team? We put the power in the hands of fans. They get to pick which nonprofits receive a portion of the funds, with every nonprofit receiving some level of funding.
• We also shifted our approach to advertising last year and put real clients at the center of our advertising for the first time. Our rational was simple: who better to tell our story than the people experiencing Thrivent’s purpose-based financial advice every day? Thrivent’s Follow Your Heart marketing campaign highlights real-life examples of clients who achieve their financial goals with the help of Thrivent to support their loved ones and their community. In the first half of 2024 alone, the campaign drove a 15% increase in Google searches for Thrivent and a 30% jump in the number of visitors to Thrivent.com. And with 30 million Americans watching the 2024 Paris Olympics each day this summer, we strategically ran our ads hundreds of times during coverage of the Olympics to reach millions of people.

How would you describe your business model? How is impact engrained in the business model?

Our business model is anchored in three things that Thrivent has done well for more than 120 years: positively impact communities, provide value to clients, and grow our sales through our financial strength and stability.

As you can see, impact is the very first element to our business model. It’s why we exist — to help our clients use their finances to lead lives of service and faith. We drive impact through our generosity programs as it’s an incredible advantage our competitors cannot match. This allows us to connect with clients and deliver value to them as we provide competitive products and solutions to help them build, grow and protect their financial well-being.

Can you share an example of an innovative solution your company developed that aligns with your core purpose?

We have numerous innovative programs grounded in our purpose, but there are two that make me really proud.

• Thrivent Choice brings our purpose of empowering lives of service and faith to life in such a meaningful and measurable way. Clients are at the center of all we do, which is why about 15 years ago we created Thrivent Choice. Through this program, we put the power in our clients’ hands as we let eligible clients direct how Thrivent distributes our charitable grant funding through Choice Dollars. They can even nominate a nonprofit to be part of the program as we have over 45,000 nonprofits as options to receive funding. Since launching in 2010, over $600 million has been distributed to churches and nonprofits across the country, including organizations like Feeding America, Habitat for Humanity, and the United Way. Even non-clients benefit as anyone can make a personal donation through Thrivent.com’s portal to an organization and Thrivent pays the processing fees.
• Our impact goes beyond enabling our clients’ generosity. Thrivent believes everyone deserves a plan for their finances — regardless of income level or investable assets — and we know having a strong financial foundation is key to helping people use their time, talent, and resources to make a difference. This is why in 2019, we launched another unique program, Money Canvas, to provide a free budget coaching service available to anyone, not just our clients. Through the program, we’re making financial education more accessible, and, so far, Money Canvas has delivered nearly 20,000 free coaching sessions nationwide and motivated participants to save an average of $600 per month.

Many purpose-driven businesses have struggled to achieve growth. What are some of the biggest mistakes purpose-driven businesses make in their business model and approach to selling to customers?

When I think about a successful purpose-driven business model, two key components come to mind to avoid making mistakes.

First — businesses need to be great at what they do each day, no matter their industry or expertise. “No money, no mission,” right? It’s a phrase commonly used in the nonprofit sector but certainly applies to business. You can have the most incredible purpose, but if your business itself isn’t strong, engaging and relevant, then your purpose won’t be able to make the difference you seek.

Second — your purpose has to be authentic and at the core of everything you do. It cannot be manufactured. It must be found and that can only be done by listening intently to your team members and customers. It must be true to your company. A strong purpose will also be a beacon and a filter, calling people toward your company when the reason you exist matters to them, and acting as a filter when it does not.

With the design of your business model, what has allowed your organization to achieve growth and deliver on impact?

We believe money is a tool, not a goal, and our more than two million clients — who are driven by purpose just as much as we are — trust in our purpose-based financial advice as it allows them to care for themselves and create the meaningful impact they want.

Our continued growth is also a testament to Thrivent’s long history of having a disciplined approach to building and preserving our financial strength and stability. In 2023, we grew our adjusted surplus to $17.3 billion by year-end, the strongest capital position in Thrivent’s history. The amazing part about this is that by having this type of financial strength, our members get to share in our success. Throughout this year, we provided $542 million in dividend payments and policy enhancements to clients with membership. That’s a record-setting year that surpasses our 2023 payouts by 26%.

So, because of our purpose-driven clients, and our long history of financial strength and stability, we’re able to grow as a company and continue the impact we’ve been making for generations.

What are your “5 Things You Need To Create a Successful Purpose Driven Business Model”?

1. An industry-leading business model that’s grounded in purpose.

The first step forward for companies should be the strength and differentiation of their business (“what” they sell) and not to expect their purpose (“why” they sell it) to carry all the weight for the business. We have previously thought we should lead solely with our purpose, but we’ve heard from our clients that our first step forward should be with our industry-leading financial services and that our purpose-based approach and differentiation is an important fast follow.

2. A team that believes.

An authentic purpose statement is found, not created. Whether or not you’ve stated it, an organization’s purpose and its values are reflected in those who choose to be part of an organization, so you have to engage them to find the authenticity. At Thrivent, our purpose statement was one we found after listening and learning alongside our team as we interviewed nearly a hundred of them and surveyed another 1,000 colleagues over months and months to get us down to the impactful and differentiated purpose — to empower lives of service and faith.

3. Relentless focus on those who you serve

I’ve seen people be confused before by the idea of “customer obsession.” Truly purpose-driven companies are obsessed with what they can give to customers, not what they get from them. The reality is when you really do focus on those you serve, you can get a lot from them in return. Our Thrivent Action Teams are led by our clients and it’s hard to go through an airport, visit the grocery store or be at a local school ballgame and not see people wearing one of our Live Generously T-shirts. Because our purpose resonates so deeply with our clients, they proudly wear our volunteer shirts all the time.

4. Commitment to the long game

A purpose is not something an organization refreshes frequently. Instead, it’s why an organization exists in the first place. If it’s named clearly, a purpose statement should last for decades. I’m not sure if people commonly used the word “empower” in the early 1900s (I doubt it), but if they did, I would imagine the founding leaders of Thrivent would have agreed they were there to empower lives of service and faith. Just like they had the foresight to establish an organization that would persist into the next century. We owe it to those who follow us to leave this organization stronger than we found it. This requires commitment to relevancy for those we serve next by maintaining our financial strength and stability and continuous improvement of our offerings and experiences.

5. Organizational activation of the purpose

Once you have stated your purpose and values with clarity, they should be shared, utilized, and reinforced. We had a strategic approach to cascade our purpose and values at Thrivent and one of our learnings was highlighting the people who make our purpose real. Across our internal communications channels we highlighted standout team members who embodied our purpose and values and those stories ended up being some of the most highly engaged stories we published this year. The team reacted so strongly when we put a real face to our purpose and values.

What advice would you give to other entrepreneurs looking to create a successful purpose-driven business model?

It starts with “Yoda wisdom”: Have purpose or do not. There is no try. In all seriousness, from that list above, if you can’t focus on those you serve and what you can do for them, you are not building a purpose-driven business. This is not to say that you can’t make money. Purpose and profit are not mutually exclusive, but in a purpose-driven company, profits are one outcome of service. So, very practically speaking, start with the question: who am I here to serve, and how can I do that better than anyone else?

Show how you’re delivering on your purpose every day, even when it’s hard to do so. Clearly communicate and create ways for like-minded stakeholders to get on board and become lifelong advocates of your brand through your purpose. It’s also really important to have clear ways to measure if your purpose is resonating. At Thrivent, we measure everything from our sales and the number of clients we serve to product and investment performance to volunteer hours and charitable giving. The more we lean into our purpose, the more we see these metrics grow.

Finally, stay committed to who you are. In a world where everyone seems to be jumping on the purpose bandwagon, those who are genuine, inspire others, and drive meaningful impact, will be the ones who win in a constantly changing business world.

Can you share a story of a mentor or a leader who inspired you in your journey?

The founders of Lapa Rios (mentioned above) were pivotal mentors for me on my career journey, not only in modeling that purpose and profit are not mutually exclusive, but in modeling excellence in business development and management. One thing I learned from them was the importance of partnership and complementary skills. John brought a fierce commitment to their vision that never wavered. He had countless stories of people around him who would introduce doubt as they would say “You can’t dig a swimming pool into a remote jungle hillside on the Osa Peninsula without harming the environment.” His response to challenge after challenge like this as they built Lapa Rios? “Watch me.” Karen brought a relentless learning mindset combined with tremendous operational acuity that was mission-critical in building a business with the local community. She tapped into local wisdom for building construction (the Suita Palm leaves to make the thatched roofs could only be cut at certain times of the month or bugs would destroy them) and rallied a local team to deliver service-standards worthy of awards from Condé Nast.

What do you envision for the future of purpose-driven businesses, and how do you see your company contributing to this vision?

These are critical times to be a leader in business. More than ever before, businesses are impacting the future trajectory of our society, our climate, and our world. The best leaders in business have recognized and embraced this and see their work having impacts far beyond a monetary bottom line. Consumers see this and want to know their consumption choices are aligned with their values. They want to give their hard-earned money to companies they believe in. This is why I envision a future where purpose-driven businesses aren’t just part of the mainstream but lead the mainstream. And it’s exciting to know that more and more, companies are embracing purpose-driven models because I have seen first-hand the powerful impact they have.

At Thrivent, we wake up every morning ready to serve our clients and deliver a unique, purpose-based approach to finances. Why do we do this? Because we believe in the difference it makes. We help people across the entire country plan for their future, establish legacies for their loved ones and make our communities better. Every day we seek to empower lives of service and faith. And in another 120 years, we will continue to lean into who we are and be an example for other leading companies looking to take a similar approach and put purpose at the center of their business.

How can our readers further follow your work or your company online?

We hope readers have seen the Follow Your Heart ads we’ve been running nationwide showing the impact our clients make as they achieve their financial goals. I also welcome everyone to follow Thrivent across our social channels and Thrivent.com to see how they can work with a financial advisor and make an impact that’s meaningful to them.

This was great. Thanks for taking time for us to learn more about you and your business. We wish you continued success!

About the Interviewer: Russell McLeod is an experienced business leader, social entrepreneur, and mentor. A champion of profit with purpose, the circular economy and of collaboration for positive progress. Russell is the founder of Mightyhum a Toronto-based impact enterprise dedicated to supporting growing organizations. And, while it’s not a requirement, the Mightyhum team has a passion for collaborating with purpose-driven businesses. Mightyhum specializes in providing consulting services and turning hairy audacious concepts into achievable ventures & projects. The Mightyhum team work with C-suite executives and leaders, developing new product offerings, effective go-to-market strategies, building for profitability, and streamlining operations. Before Mightyhum, Russell was involved in the world of social enterprise as the Executive Director of ME to WE, one of Canada’s best known and most awarded social enterprises. While at ME to WE, the team demonstrated that being profitable and impactful was indeed possible. During his tenure, ME to WE delivered $20M in cash and in-kind to WE Charity, helping transform the lives of over 1 million people through access to clean water; the lives of 200,000 children with access to education; and 30,000 women-led businesses launched globally.

Russell’ personal mission is to inspire others that there is ‘a better way to do business,’ ‘that through business we can solve some of the world’s problems at the same time.’ You can follow Russell’s work at https://www.linkedin.com/in/russell-mcleod1/ or www.mightyhum.com.