Building A Successful Major Gifts Program Jamie Phillippe, CFRE Non-Profit Executive Program University of Notre Dame November 8, 2012

LEARNING OBJECTIVES Utilize the “cycle of donor relations” Participants will learn how to: Utilize the “cycle of donor relations” Create a cultivation plan Create solicitation strategies based on donor motivation Conduct a face to face solicitation Maximize gift results Verbally state the learning objectives FOLLOWING LEARNING OBJECTIVES: Ask the class how much money they might guess was given philanthropically in the United States this past year. Let them guess at it for a little while. AND ask them what percentage of that they think came from individuals versus corporations or foundations. Put up the AAFRC/Giving USA slide showing total giving divided by sources. Emphasize that today’s course is primarily focused on major gifts from individuals because that is where the money is, not with corporations and foundations. I usually ask how many of them have boards who believe that corporations and foundations will be our saviors. There usually is some consensus in the room. I explain where this research comes from, that they can obtain it and use it with their boards as training and education. Then put up the overhead showing total giving by purpose. Review it briefly. Then hand out the paper copies of the pie charts.

Difference Between Annual Gifts and Major Gifts Given each year and can range from $10 to $1,000 Often given as a one-time commitment of significant resources Given from current income Given from capital assets- appreciated which save on capital gains tax Motivated essentially from “general loyalty” to institution and often unrestricted Stimulated by donor’s interest in a specific program and therefore often restricted

Difference Between Annual Gifts and Major Gifts (cont.) Solicited on a cyclical basis, against a short-term deadline and process is repeated each year Timetable dictated in part by donor’s financial circumstances and therefore has a wide time range Volunteers handle many more prospects at a time and often “close the deal” on their own Volunteers work on one or two prospects at a time, supported by a wide range of institutional resources: CEO, chief fundraiser; etc. Made out of interest & involvement Made out of deep commitment

Key Points to Remember in Major Gift Work Average length of time to get a "cold" prospect to the point of making the gift they are capable of making is ________. People make major gifts out of a sense of engagement and involvement. People give for emotional reasons - later they find the rationale to support their emotions. The first bullet, “Average length of time to get a “cold” prospect to the point of making the gift they are capable of making is ______” ANSWER: 18-36 months. Then discuss the importance of this length of time and what it means to overall fund raising efforts.

Key Points to Remember in Major Gift Work (cont.) Do not talk about the needs of your organization - instead talk about the need in society and how your organization addresses that need or problem. Listen to the donor's needs and interests. Talk the language of the prospects, rather than institutional or programmatic jargon.

CYCLE OF DONOR RELATIONS Identification Research Cultivation Solicitation Stewardship Acknowledgement

CULTIVATION Cultivation is the process by which you involve and engage the prospect in your organization and its mission to the point that they want to make a significant investment.

Brainstorm cultivation opportunities Step #4: Involving the Prospect. Use the flip chart to brainstorm ways to cultivate a prospect.

The Five I’s of Fund Raising Before making a major gift to a campaign, each prospect passes through five phases of interest. “Cultivation” is the process by which prospects are led through the phases.

Identified: First, the constituent is identified as a donor prospect. For a major donor prospect, those leading the campaign should learn about the prospect’s gift potential, level of interest, contacts among other constituents, etc.

Informed: Once identified as a prospect, the individual must be fully informed of the organization’s distinctiveness, place in the community, history of success and funding needs. This takes place through repeated personal visits from the President and volunteers, informative special events and publications such as mailings, newsletters and fact sheets.

Interested: Once informed, prospects are then helped to decide that the project is important to them. When the prospect begins to react to the information he/she has received--asking questions, making comments, offering suggestions--it is clear that he/she is ready to be involved in the fund raising program.

Involved: Interested prospects are invited to take some action in support of the fund raising effort. By attending a meeting, making some calls, giving input on the project, co-hosting a social gathering, joining a committee, agreeing to help solicit, etc., the prospect signals that he/she is personally committed to the success of the organization.

Invested: After a prospect is clearly committed to the project, then he/she should be asked to invest financial support. If the prospect has really passed through all of the phases, then he/she will participate financially to the limit of his/her potential and interest. If the prospect is rushed through the process, the gift is bound to be smaller than it might have been.

CYCLE OF DONOR RELATIONS Identification Research Cultivation Solicitation Stewardship Acknowledgement

Best to have a team of two solicitors Determine in advance which of the two solicitors will ASK FOR THE GIFT Have a specific dollar amount in mind Helpful words to use: "consider" "join me" The Ask may be either in the form of a question or a statement Be quiet after the Ask!!!!

Be prepared with a fall-back position, just in case Do NOT leave pledge card Verbally outline next steps Close meeting graciously Send "thank you note" for their time and consideration, even if they have not yet given you their answer

The Solicitation Visit Set the meeting Prepare for the meeting The meeting Opening The presentation Questions and comments Move to the prospect specific The “ask” Prospect reactions Establish next steps Follow-up Systems

Closing the Solicitation Follow-up as agreed upon in meeting Keep to the time frame Send letter acknowledging their pledge Enclose pledge card and return envelope with acknowledgment Inform other solicitors of results

CYCLE OF DONOR RELATIONS Identification Research Cultivation Solicitation Stewardship Acknowledgement

Post-Solicitation Follow-Up Continue to steward the relationship Insures fulfillment of pledge Will lead the donor to give again in future years Always easier to retain existing donors than to acquire new donors

STEWARDSHIP Acknowledgement Fulfillment of obligation Reporting Recognition Cultivation

CYCLE OF DONOR RELATIONS Identification Research Cultivation Solicitation Stewardship Acknowledgement

The Seven Faces Of Philanthropy By Russ Prince and Karen File THE ALTRUIST: Doing Good Feels Right THE REPAYER: Doing Good in Return THE DYNAST: Doing Good is a Family Tradition

The Seven Faces of Philanthropy (cont.) THE COMMUNITARIANS: Doing Good Makes Good Sense THE INVESTOR: Doing Good is Good Business THE SOCIALITE: Doing Good is Fun THE DEVOUT: Going Good is God’s Will

The Seven Face of Philanthropy

LEARNING OBJECTIVES Utilize the “cycle of donor relations” Participants will learn how to: Utilize the “cycle of donor relations” Create a cultivation plan Create solicitation strategies based on donor motivation Conduct a face to face solicitation Maximize gift results Verbally state the learning objectives FOLLOWING LEARNING OBJECTIVES: Ask the class how much money they might guess was given philanthropically in the United States this past year. Let them guess at it for a little while. AND ask them what percentage of that they think came from individuals versus corporations or foundations. Put up the AAFRC/Giving USA slide showing total giving divided by sources. Emphasize that today’s course is primarily focused on major gifts from individuals because that is where the money is, not with corporations and foundations. I usually ask how many of them have boards who believe that corporations and foundations will be our saviors. There usually is some consensus in the room. I explain where this research comes from, that they can obtain it and use it with their boards as training and education. Then put up the overhead showing total giving by purpose. Review it briefly. Then hand out the paper copies of the pie charts.