1. Presented by Kathleen E. Pavelka, CFRE, President Paul Kemblowski, Vice President Call Center Operations Telecomp, Inc. NEAHP District Conference March 17, 2009 Newport, Rhode Island ROLLING UP YOUR SLEEVES AND GETTING IT DONE Increase your Results Now

2. Formula for Success There are only TWO ways to Increase your Success: #1 Increase the number of people giving #2 Increase the average level of support Do BOTH

3. Your Foundation for Success Major Gift Donors Leadership Donors Repeat Annual Donors First-time Annual Donors

4. #1 Increase the Number of Donors Ask More – Expand your solicitation pool (Ask More People) – Increase the number of times you ask (Ask More Often) Ask Smarter – Increase response rates (A Higher Percentage of your prospects become donors)

5. #2 Increase the Average Gift Ask More –Increase your Expectations (Ask people to give more) Ask Smarter –Determine most capable and willing donors (Ask the right people) –Method (Ask the right way)

6. Embrace the Power of Math You are smarter than a 5 th Grader There is no test at the end This isn’t Rocket Science Numbers tell a story – get into your comfort zone

7. The Power of Math Client A 9,305 Donors $114 Average Gift Increase Average Gift by $10 = $93,050 (8.7% increase) Client B 6,406 Donors $226 Average Gift 75,000 Patients Increase Response Rate by ½ point = 75,000 x.005 = 375 new donors x $226 = $84,750 (5.9% increase)

8. Expand your Pyramid Major Donors Leadership Donors Repeat Annual Donors First-time Annual Donors Increase your Success

9. Your Foundation for Success Just Grew! Your Foundation for Success Just Grew! Major Donors Leadership Donors Repeat Annual Donors First-time Annual Donors

10. #1 Increase the Number of Donors ASK MORE PEOPLE I.Improve Database Accuracy 1. Run file through NCOA - Contact your local post office - Very low cost 2. Add Return Address Requested on every mailing - Same conversation w/Post Office for rules 3. Enter updates/bad addresses timely - Hire a Temp/Intern; use receptionist

11. #1 Increase the Number of Donors ASK MORE PEOPLE I.Improve Database Accuracy 4. Telephone Number Research - Computer matching very low cost (Allant) - Directory Assistance if worth the investment 5. Advanced Research - Has come down in cost dramatically ($.30 per) - Based on Last Known Address and/or SSN 6. First Class Mail - F or most important prospects - Provides information - To control timing

12. Soliciting people with bad addresses or phone numbers wastes precious resources.

13. The Power of Math The U.S. Post Office estimates that 20% of the population moves each year. Database = 30,000 or 10,000 Mailing Cost = $.30 per piece Number of Mailings = 4 annually 30,000 x.20 x $.30 x 4 = $7,200 10,000 x.20 x $.30 x 4 = $2,400

14. Soliciting people with bad addresses or phone numbers means fewer donors.

15. The Power of Math You are not reaching everyone you think you are. What is the lost opportunity? Database = 30,000 or 10,000 Typical Response Rate = 5% Typical Average Gift = $100 30,000 x.20 x.05 = 300 x $100 = $30,000 10,000 x.20 x.05 =100 x $100 = $10,000

16. #1 Increase the Number of Donors ASK MORE PEOPLE II. Increase Prospect Pool 1. Patients and Parents of Patients - Tremendous prospect pool right at your finger tips - More effective than many donor populations (unique to healthcare) 2. Special Event Donors/Attendees 3.Volunteers/Auxiliary 4.Staff 5.Affiliated Staff

17. #1 Increase the Number of Donors ASK MORE OFTEN III. Increase Solicitations 1. Increase the number of times you Ask - Solicit as long as each successive effort is cost effective - Expect each successive direct mail effort to produce half of the previous effort Suggested Opportunities per year: Leadership: 3-5 Long-Lapsed/Non-Donors: 1-2 Potential Leadership: 5-8 Second Gift Appeal: 1-2 Renewals: 5-8 Lapsed Donors: 3-5

18. #1 Increase the Number of Donors ASK MORE OFTEN III. Increase Solicitations 2. Add additional Solicitations to Marketing/Other Materials - Newsletters (add clip out coupon or box minimally, envelope ideally) - Annual Report - Displays in key areas in hospital and your other facilities (lobby, waiting areas, info desk, cafeteria) - Donor wall (add permanent display) - Event Program/Tables

19. #1 Increase the Number of Donors ASK MORE OFTEN III. Increase Solicitations 3. Giving on your Website - Must be a “tab” on home page - “Giving” versus “Foundation” - Make sure it is easy to give and easy to find you - Web site should be given as an option on your response device; drive donors to the web site

20. More opportunities More donors =

21. #1 Increase the Number of Donors ASK SMARTER I.Case for Support 1. Talk about the Future - The “What if” is a lot more important than the “What was” for nearly everyone that you solicit 2. Tell a story - Giving originates from the heart; the head is the regulator 3. Peer-to-Peer is best - Major gift rule that applies to all giving

22. #1 Increase the Number of Donors ASK SMARTER I.Case for Support 4. The Most Compelling - Cancer - Heart - Emergency - Children

23. #1 Increase the Number of Donors ASK SMARTER II.Prospect Selection 1. Make friends with IT and learn some basics about your systems - Often they will determine whether or not you receive the proper patient selection 2. Know your Patient Census - All Hospitals must report basic information (Admissions, Inpatient days, Outpatient visits, Births, etc.) - Does your Patient selection make sense?

24. #1 Increase the Number of Donors ASK SMARTER II.Prospect Selection 3. Exclusions You Know - Deceased in hospital, Medicaid, charitable care, accounts in collection, etc. 4. Exclusions You May Not Know - Lab-only (blood drawn at doctors’ offices, nursing homes, etc. that is processed at the hospital) - Age Groups (young adults, older adults) - Diagnosis/Department (Psychiatric, STD, etc.) See Bill McGinley re: HIPPA - Litigants (see Legal)

25. #1 Increase the Number of Donors ASK SMARTER II.Prospect Selection 5. HIPPA - Be familiar and confident on the rules and regulations; be ready to do battle with legal if necessary; use your resources 6.Some tips for Patient Selection - Select Next of Kin for Parents of Pediatric Patients (Mothers give better than Fathers, who are usually the Guarantor) - Select Parents of Newborns by the age of the newborn (0 to 10 days old on date of discharge) and select Next of Kin

26. #1 Increase the Number of Donors ASK SMARTER II.Prospect Selection 6.Some tips for Patient Selection (continued) - Ask IT to start with the entire pool and then exclude who you don’t want rather than selecting those you do want; this avoids big mistakes - Exclude those without a telephone number for patients (if Admissions wasn’t able to secure a phone number, info is probably bad or they are impossible to reach) - If going back more than 12 months for Inpatients or 6 months for Outpatients, exclude those with only one visit beyond that period (go to multi-visit patients after these periods to increase results)

27. #1 Increase the Number of Donors ASK SMARTER III.Segmentation 1. Relationship to Institution - Group prospects/donors by their relationship to you - Hierarchy 2. Unique and Meaningful Case for Support - Segment should require a unique message (i.e. Parents of Pediatric Patients versus Adult Patients) 3. Unique Objective - Each segment should merit a specific objective

28. #1 Increase the Number of Donors ASK SMARTER Sample Donor Objectives Leadership: Increased giving/planned gift cultivation Potential Leadership: Increase gift to Leadership Level Renewing Donors: Increase gift by 30% or more Lapsed Donors: Reactivate giving; increasing is secondary Long Lapsed Donors Sybunts: Reactivate giving (even if decrease) Special Event/Telethon/ Memorial-only Donors: Convert to unrestricted Annual Donors Employee Donors: Renew and increase gift; good example of unique message

29. #1 Increase the Number of Donors ASK SMARTER III.Segmentation 4. Segmentation versus Fragmentation - If it doesn’t require a unique message and/or have a unique objective, then don’t waste time and energy creating a segment 5. Segmentation versus Tracking Codes - Track results within segments as much as you would like – just be sure group is large enough to provide meaningful measure of results

30. #1 Increase the Number of Donors ASK SMARTER III.Segmentation 6. Segmentation versus Restricted Giving - allows you to appeal to their interest, but does not mean that you have to restrict their gift to a particular area -- two separate and distinct issues (i.e. Discussing cardiac care as an example of the excellent care provided, but asking for the whole hospital)

31. #1 Increase the Number of Donors ASK SMARTER IV.Timing is Everything 1.Create Master Calendar of Events/Activities - Marketing efforts/advertising - Foundation Newsletter/Annual Report - Special Events (yours and other related groups) - Medical Symposiums/Etc. - Holidays/Tax times/Etc. - News items

32. #1 Increase the Number of Donors ASK SMARTER IV.Timing is Everything 2. Ride the Momentum - Best time to solicit Special Event Donors/Attendee - Marketing spends millions on advertising for cardiology; do you have a solicitation out there? - Feature your letter signer’s story in Newsletter - Invite Donors to Medical Symposiums - Etc.

33. #1 Increase the Number of Donors ASK SMARTER IV.Timing is Everything 3. Solicit Patients as close to their experience as possible - Your Case for Support is the most relevant - Monthly is best, if mailing - Quarterly is best, if telephoning - Weekly is best, for personal solicitation - Response Rates will easily rise ½ point if you follow this strategy (Remember the Power of Math)

34. #1 Increase the Number of Donors ASK SMARTER IV.Timing is Everything 4. Calendar Year-End a MUST for Donors - Many Donors only give at year-end; you must be in the “pile” - Must be a real solicitation; holiday cards with return envelopes do not count (see them as cultivation and stewardship) - Fiscal year-end a MUST if different

35. #1 Increase the Number of Donors ASK SMARTER V.Solicitation Method 1. Number of People to Solicit - Personal Solicitation for only the chosen few - Direct Mail or Telemarketing for everyone else 2. Make sure the investment is appropriate to the expected outcome.

36. More Donors More Dollars =

37. #2 Increase the Average Gift ASK FOR MORE I.Raise Expectations 1. Be Specific - Include a specific gift expectation or range of gift expectations in each solicitation 2. Be Bold - Lift your own expectations and ask for More - a lot More - Remember it is our job to provide the opportunity only; it is the Donor’s job to decide when to give and how much

38. #2 Increase the Average Gift ASK FOR MORE I.Raise Expectations 3. Do not create low-end Donors - Adjust the gift levels on your response device - Make sure to provide Leadership level options 4. Leadership Package - Includes a series of letters with a follow-up call and ask Donors to take a LEAP to $1,000 or more - Invitation to join Leadership Society

39. #2 Increase the Average Gift ASK FOR MORE

43. II.Solicit Current Year Donors 1. Ask for a Second (or Third) Gift - Akin to the old adage: If you want something done ask someone who’s busy - Donors will usually repeat their earlier gift; effectively doubles their gift - We usually experience a 30% to 50% response rate (remember the power of math) - Monthly giving program

44. #2 Increase the Average Gift ASK FOR MORE Sample Current Donor Results New York Presbyterian Hospital @ Columbia

45. #2 Increase the Average Gift ASK SMARTER I.Raise Sights 1. Wealth Screening - Not just for Major Giving; use highly-rated prospects in direct mail or telephone outreach; target for leadership gift - Use Leadership Package for targeted solicitation 2. Quality of Solicitation - Look at your direct mail or pre-call materials with a new eye; don’t read them – just look at them – What impression are they giving?

46. #2 Increase the Average Gift ASK SMARTER II.Method 1. Personal Invitation, Tour and Solicitation - Set-up a medical briefing with a prominent physician; personally invite your top annual giving prospects (by phone as well as mail) - Give them a tour of the hospital – or specifically the area of the physician’s expertise - Send them home with a solicitation package (nicely done) - Call them and mail them for follow-up

47. #2 Increase the Average Gift ASK SMARTER II.Method 2. Personal Solicitation - Make sure Annual Giving is on the agenda of your major gifts officers - Personal Solicitation is not just for major gifts officers; make your own appointments – just one a month would reap big benefits - The side benefit is: you will learn about your donors and how they see your institution in the community; it’s like getting research for free

48. #2 Increase the Average Gift ASK SMARTER III.Cultivation and Stewardship 1. Involvement - Expand Board and/or Committees - Invite to everything you do - Special seating at events - Periodic email (let your best donors into your “inner circle”); treat them like a good friend - Announce newsworthy items to them first - Take a look at AFP’s Leadership Society – good model

49. #2 Increase the Average Gift ASK SMARTER III.Cultivation and Stewardship 2. Thank You Method/Frequency - Determine method(s) that are appropriate Handwritten note Personal letter Personalized form letter Telephone Call Receipt (not desired method for any donor) E-mail Other (flowers, candy) - Determine who should thank the donor (CEO, Chair of Board, Volunteer, Doctor, etc.)

50. #2 Increase the Average Gift ASK SMARTER III.Cultivation and Stewardship 2. Thank You Method/Frequency - Determine how many times you wish to thank the donor (never worry that it is too many) - Formal Recognition (Recognition v. Benefits) - Don’t get hung-up on Benefits; fashion them from things you already do or the Hospital already does (educational seminars, special events, volunteer or community days, etc.) - Most importantly, make them feel good about their giving; that they are making a difference

51. MEASURE EVERYTHING After all, you must Know Your Math MEASURE EVERYTHING After all, you must Know Your Math

52. Barriers to Getting It Done Budget Restrictions Short-Staffed Management Approval Board Approval Philosophy IT

53. Show them The Power of Math

54. Hold on as you take your institution to new heights!