Whither Private Fund Raising & Development? or Nobody Told Me Id Be Raising Money!

Don Gray, UW Foundation As A Leader For My Department, I Expected to: u Recruit the Best Students u Hire and Retain the Best Faculty u Encourage Junior Faculty u Cajole Senior Faculty u Worry About Ratings u Agonize Over Threatened Budgets u Play Politics With My Dean

Don Gray, UW Foundation But Nobody Told Me Id Have to Raise the Money for All This Stuff $Recruit the Best Students $Hire and Retain the Best Faculty $Encourage Junior Faculty $Cajole Senior Faculty $Worry About Ratings $Agonize Over Threatened Budgets $Play Politics With My Dean

Don Gray, UW Foundation So How Can I u Have the right attitude towards raising this money? u Understand what its all about? u Internalize how to do it? u Motivate others to help me? u Learn to like doing it?

Don Gray, UW Foundation So How Can I u Have the right attitude towards raising this money? u Understand what its all about? u Internalize how to do it? u Motivate others to help me? u Learn to like doing it?

Don Gray, UW Foundation You want to compose a good world. It is an honorable and noble profession. - Maya Angelou Don Gray, UW Foundation

Mrs. Evelyn Kaufman Stow High School English Teacher, 1958 (thats Stow, Ohio, NOT Vermont) Always be careful of the vocabulary you use. It will tell people who you are. How you feel about life and what you do is reflected in your language. Crude people use crude words; vulgar people, vulgar words; passionate people use passionate words and sensitive people use sensitive words. Never forget this and you will be just fine. Don Gray, UW Foundation

Gifts and Donations A GIFT is a tangible symbol of feelings between people A DONATION is a tangible symbol of support to a cause

Don Gray, UW Foundation Development and Fund Raising A GIFT is to DEVELOPMENT as A DONATION is to FUND RAISING Minor Point (or is it?): a person making a gift is a giver a person making a donation is a donor

Don Gray, UW Foundation Inappropriate Terms u hit up u put the arm on … u squeeze u loaded u … should give u … ought to give u … owes us u pass the hat u get into his/her pockets

Don Gray, UW Foundation So How Can I u Have the right attitude towards raising this money? u Understand what its all about? u Internalize how to do it? u Motivate others to help me? u Learn to like doing it?

Don Gray, UW Foundation ANNUAL FUND DONATIONS u Frequently Given and Asked For u From Discretionary Income; Little Decision Making; Decision is Immediate; Spouse Often Not Involved u 2-5% of Annual Gross Income (To All) u Sustaining/Operational Fund u Direct Mail/Events/Telethon u 90% of gifts; 10% of dollars u Most major gifts come from annual fund donors

Don Gray, UW Foundation Importance of Annual Fund in Major Gift Activity u For all givers to universities who make a first major gift of $25,000 or more, –75% made a first donation to the university of $250 or less in response to the annual fund –83% have made smaller level donations (annual fund donations) for at least 5 years; almost 60% for at least 11 years u Concept of Annual Fund as Living Endowment ($100K annually equates to an endowment of $2 million)

Shipwrecked or not, I never miss sending out my annual contribution to my accounting department

Don Gray, UW Foundation MAJOR GIFTS u Infrequently Given and Asked For u Made from Assets; Stop/Think Gift; Longer for Decision; Spouse Involved u Requires Development of Relationship u Special, Targeted Projects u 10-20x Annual Gift or 2-4% of Net Income- Producing Assets u 10% of gifts; 90% of dollars

Don Gray, UW Foundation Accounting Department Advantages in Major Gift Work u Accountants understand giving u Accountants seldom give to any place within a university other than to their accounting departments u Accounting firms tend to have matching gift programs u All partners are capable of major giving u Accounting firms need your graduates as employees u Many accountants end up as CEOs or CFOs

Don Gray, UW Foundation Top Three Reasons People Give Major Gifts u Belief in Mission and Stability of the Organization u Sense of Civic Responsibility u High Regard for Staff and Volunteer Leadership

Charitable giving isnt the ultimate test of ones humanity but it gives us some numbers to play with.

Don Gray, UW Foundation Bottom Three Reasons People Give Major Gifts u Guilt and Obligation u Promotional Materials and Proposals u Tax Considerations (probably more important for accountants than others)

Don Gray, UW Foundation So How Can I u Have the right attitude towards raising this money? u Understand what its all about? u Internalize how to do it? u Motivate others to help me? u Learn to like doing it?

Don Gray, UW Foundation Successful Development THE MYSTICAL MINGLING OF A JOYFUL GIVER AN ARTFUL ASKER A GRATEFUL RECIPIENT

The Cycle of Successful Development Creating the Joyful Giver Attention Interest Desire Action Making the Artful Ask no,no,no maybe yes acknowledge Invoking the Grateful Recipient Show Creativity Additional Gift Interest Identification Initial Contact Don Gray, UW Foundation

So How Can I u Have the right attitude towards raising this money? u Understand what its all about? u Internalize how to do it? u Motivate others to help me? u Learn to like doing it?

Don Gray, UW Foundation Enlisting Support to Help u Educate your faculty on benefits of a successful program u Choose your external advisory board carefully, looking for the 5 Ws u Convince your dean that your success is his/her success u Be successful

The Five Ws of Being an Effective Advisory Board Member Advisory Board Work Wisdom Wealth Wallop Wow Don Gray, UW Foundation

So How Can I u Have the right attitude towards raising this money? u Understand what its all about? u Internalize how to do it? u Motivate others to help me? u Learn to like doing it?

Don Gray, UW Foundation Learning to Enjoy Development u Realize that everyone out there loves you u You make great friends u You make alumni/friends feel good u You take your department to a new level u You truly do compose a good world by attracting the funds that can your department responsive to student, faculty, and program needs. u It is indeed noble work

February 5, 2001 Donald R. Gray University of Wisconsin Foundation

Successful Development THE MYSTICAL MINGLING OF A JOYFUL GIVER AN ARTFUL ASKER A GRATEFUL RECIPIENT Don Gray, UW Foundation

The Cycle of Successful Development Creating the Joyful Giver Attention Interest Desire Action Making the Artful Ask no,no,no maybe yes acknowledge Invoking the Grateful Recipient Show Creativity Additional Gift Interest Identification Initial Contact Don Gray, UW Foundation

Major Issues in Asking u When is the timing right? u How much do you ask for? u Who makes the ask? u Where is the best location to make an ask? u How do you make an artful ask? u Common pitfalls in making an ask? u How do you respond to objection? u How do you follow up? u What do you do if the answer is no? u What do you do if the answer is yes?

Don Gray, UW Foundation When is the timing right? u Should be a natural flow in the process (cycle) u Listen for signals: Listen, Listen, Listen u Develop a touch for knowing u Remember: this is an art, not a science

Don Gray, UW Foundation How much do you ask for? u If youve had good prior contact, youll have a good idea u Ask for somewhat more than you expect u Ask specific amount or list of levels u Expect to discuss u Form of gift (payment period; endowment or annual; combo with planned gift; etc.) I havent got a clue!

Don Gray, UW Foundation Who makes the ask? u Whoever is most appropriate u Consider team approach u Caution when using volunteers: –need training –often are uncomfortable Lets see, now, who gets this assignment?

Don Gray, UW Foundation Where is the ask made? u Wherever the potential giver is most comfortable u Avoid noisy restaurants u Best places: donors home, with spouse; office; club; deans or presidents office; favorite place on campus u Pay attention to setting; make it classy home office campus restaurant ?

Don Gray, UW Foundation How do you make an Artful Ask

Making the Artful Ask Attitude is Everything

Don Gray, UW Foundation How do you make an Artful Ask u bestow honor/praise on potential giver u show your organizational pride (knowledge, commitment, passion) u be considerate; ask for consideration u state specific amount u state specific purpose u shut up

Is This an Artful Ask? u bestow honor/praise u show organizational pride u be considerate; ask for consideration u state specific amount u state specific purpose u shut up u Joe, we know you have a lot of money. Your career as a successful accountant is because of the education you received at good ol State U. We need your money because our accounting curriculum is in disrepair. We think you should establish a professorship in accounting. You get a whopping tax deduction, and all of us can use that, cant we? By the way, hows your golf game? Don Gray, UW Foundation

Is This An Artful Ask? u bestow honor/praise u show organizational pride u be considerate; ask for consideration u state specific amount u state specific purpose u shut up u Joe, you are one of the most successful and most highly respected professionals in the field of accounting, and you bring honor to State U in so many ways. It would be a distinct privilege for State to have your name and reputation forever imprinted on our outstanding and growing accounting department. Would you consider a gift of $250,000 to establish the Joe Goodfellow Professorship in Accounting? Don Gray, UW Foundation

Would you hire Snoopys brother Spike as your development director?

Don Gray, UW Foundation What are the common pitfalls in asking? u We talk too much u Ask sounds cold or inconsiderate u We use words like should and ought u We ask apologetically and are embarrassed u Eye contact breaks down u The ask is rushed u We break the silence too soon after ask is made Hee Haw

Don Gray, UW Foundation How do you respond to objections? u Im a bit strapped right now. You know, kids in college, building a new house, the divorce is killing me, etc. u I give to so many different causes, I dont know how I can expand to include the university u Oh my goodness, I dont have that kind of money? u The last time I gave to your institution I didnt even get a thank you letter! u What possible impact can my modest gift make?

Don Gray, UW Foundation How do you follow up? u Seldom will you close a major gift on the asking call u Plan ahead for following up u Before the meeting ends, make sure the potential giver knows the next step: who will contact whom; when; contingencies

Don Gray, UW Foundation What do you do if the answer is no? u Realize there are many reasons for a no: –timing is bad –project is wrong –amount of ask is wrong –wrong person asked –not enough time creating joyful giver u Three nos is halfway to a yes u Be considerate, thank the person, continue contact, listen for signals Ugh

Don Gray, UW Foundation What do you do if the answer is yes? u Make sure all appropriate people say thank you u Design a creative plan to continue saying thanks u Continue visiting the giver and listening for next opportunity u Keep working the Cycle!!!!! Yippee

Don Gray, UW Foundation Conclusion u For successful development at your department, you are –the catalyst –the cheerleader –the visionary u Its your vision, your knowledge, your passion, and your enthusiasm that will make it succeed u Good luck and go forth joyfully, artfully, and gratefully. It is noble work!

Don Gray, UW Foundation But Be Careful: Different Strokes 4 Traditionalists (born prior to WWII) 4 Boomers (born ) 4 X (Next) Gens (born ) 4 Echo Boomers (young-uns) Each of these groups thinks differently and requires special understanding

Don Gray, UW Foundation Traditionalists u Major life events forming their values and thought patterns: –The Depression –World War II –The Atom Bomb u Attitudes toward giving –Sense of giving something back –Great loyalty to institutions they love –Quid pro Quo less important –Understand philanthropy

Don Gray, UW Foundation Boomers u Major life events forming their values and thought patterns: –Assassinations –Vietnam –Watergate –Questioning of Institutional Values u Attitudes toward giving –Show me why I should give –Whats in it for me? –Think social investment

Don Gray, UW Foundation X (Next) Generation u Major life events forming their values and thought patterns: –Computers and Technology –Economic Boom (never seen a bear market) –Impatient Society u Attitudes toward giving –Not yet sure, but –Will probably involve technology –Will inherit trillion –Think venture capital for social improvement