Annual Giving: Creating a Funnel to a Strong Advancements Program Date: Thursday, May 9, 2013 Andrea B. Wasserman Chief Development Officer BBYO Rob Henry Executive Director of Emerging Constituencies CASE

Why is annual giving important? Case study of how annual giving feeds the BBYO major gift program and efforts Most common mistakes in annual giving Questions Discussion Topics 2

Campaign mode Membership growth Strong investments and endowments Priorities in the Current Landscape… 3

Why is Annual Giving Important? Development Pyramid Principal Gifts Special Gifts Major Gifts $XXX+ $10,000- $XXX $500- $10,000 Under $500 Annual Giving

Development Structure Annual Giving Principal Gifts Major Gifts Special Gifts

Annual Giving Structure Non-Donors Special Gifts Annual Lead Gifts Annual Support Acquisition Upgrades Reactivation/Donor Retention Tip: $5,000 in annual giving is the same as a $100,000 gift in the major gift program

Ways to Solicit Annual Gifts 7 Personal Asks s Calling Programs Direct Mail Tip: Solicitation envelopes have a little return

Goals of a Healthy Program 8 Build a donor funnel that can be cultivated and developed to support all fund raising efforts. Develop and motivate donors who will, on an annual basis, provide gifts to support an institution. Identify and cultivate larger annual giving prospects for special, major, corporate and planned gifts. Get the gift, repeat the gift, upgrade the gift

BBYO’s pluralistic movement of Jewish teens, alumni, parents, volunteers and philanthropists will serve as the Jewish community’s most valuable platform for delivering to the post Bar/Bat Mitzvah audience fun, meaningful and affordable experiences that inspire a lasting connection to the Jewish people. 9 BBYO Vision BBYO Mission More Jewish teens, more meaningful Jewish experiences.

Overview: Presenting Challenge  Nine years of steady growth in revenues  Reliance on a few large donors  Ambitious plans for growth and depth

Overview: Presenting Opportunity –Roadmap to optimize  Acquisition of donors  Gift step-up program  Honed message  90 th Anniversary

 Develop a clearer articulation of the role and impact of philanthropic contributions in supporting BBYO’s mission  Create opportunities for donors to make minimally restricted contributions  Recategorize gift types based on gift size to distinguish more clearly between annual and major giving  Work with the direct mail vendor to develop a direct marketing strategy that focuses on renewals, upgrades and greater segmentation  Leverage the 90 th anniversary as an opportunity to develop a reunion program and reengage more alumni  Adopt systematic relationship management practices to build the pipeline of major and planned gift donors and prospects  Actively involve the Board and senior staff in advancing relationships with major donors and prospects  Invest in additional staff to support expanded fundraising activity that is more clearly delineated between annual and major gift fundraising Campbell & Company Report: Executive Summary

Direct Response Mail Phone On-line Events Planned Giving Annual Fund = <1800 Electronic Screen Research Leadership Level Communications Engagement MD Prospects= $500 - $1799 Portfolios Rel. Management Recognition Society Planned Giving Major Gift = >$1800 Strategic development communications Data scrub, sync and maximization of database Professional, board & lay leadership development & engagement Metrics for measuring & celebrating success Integrated Development Operation

Enhanced Approach: Annual Fund  Integrate direct response (DR) techniques into FAN using existing data from non-donor constituents.  Maximize DR by focusing on increasing retention, gift level and integration into overall development program of donors at the $180 and over level.  Build strong group identity around $180 gift level as entry into BBYO’s development program and develop step-up program for gifts between $180 - $1800.  Use social media and 90 th anniversary alumni reunions to grow FAN program.

Enhanced Approach: Major Gifts  Finalize and market giving circles to incentivize movement along the giving continuum, build positive group identity among and better steward major donors.  Using information gleaned from data enrichment and wealth screen, assign and track major donor and prospect portfolios development professionals, management, board and lay leaders.  Design series development communications, presentations and cultivation and stewardship touch points to inspire deeper connections and greater giving.  Track all interactions with major donors and prospects through proposals in softtrek’s moves management feature.

Understanding the role of annual giving to a strong advancement program Single approach to annual giving (focused solely on direct mail solicitations) Over budgeted for acquisition mailings Lack of a comprehensive approach to annual giving- all parts working together Unawareness of annual giving response rates verses a focus on money Most Common Mistakes 16

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