1. Overview of Effective Philanthropic Strategies
Executive Fund Development
Leadership Program 2012
Overview of Effective Philanthropic Strategies
Drew Buscareno Assistant Vice President, Office of University Relations Monday, October 22, 2012

2. Agenda Operating Environment Art and Science of Fundraising
Components of a Development Program
Core Building Blocks of a Relational and Data Driven Program
The Art of Solicitation

3. Operating Environment Regional Economic Data – St. Joseph County, IN
Labor Force, 2011
Number
Indiana
Total Resident Labor Force
128,868
3,188,260
Employed
115,815
2,901,084
Unemployed
13,053
287,176
Per Capita Personal Income (annual) in 2010
$33,322
33,981
Median Household Income in 2010
$42,316
$44,616
Annual Unemployment Rate
10.1
9.0
August 2012 Unemployment Rate
9.2
8.0

4. Recent Major Campaigns
St. Joseph’s High School
Kroc Center
St. Pius Parish and School
Holy Cross School
South Bend Civic Theater
WNIT
Source for United Way Data:
“United Way affiliates raised roughly 1.8 percent more public support last year or $3.927 billion -- an increase of $69 million compared to It’s the second consecutive year public support is up after two years of declines, though it trails the rate of inflation in 2011 (3 percent) and early estimates of U.S. charitable giving last year (4 percent, 0.9 percent inflation-adjusted).”

5. Fundraising as Art & Science
Why do people give?
Why do you give?
What is the most memorable charitable gift you have given?
What is the most memorable gift you have received?

6. Engaging the Heart and Mind
INTERESTS
PASSION
INVOLVEMENT
IDEAS
IMPACT
Interests – finding the intersection of donor interests and organizational priorities
Passion – attitudes, values and behavior
Ideas – what do people think about your organizational mission and programs; what do donors think you are doing well and can do better (with their support)
Involvement – how can they become a part of what you do
Impact – what can be accomplished with their gift and investment in your mission? SMART impact(specific, measurable, achievable, realistic, time sensitive)

7. The Art of Fundraising
Building enduring relationships that generate meaning, joy and real value to individuals and organizations

8. Fundraising as Art & Science
Transactional Vs. Relational
Dollars Now
Long-term Growth
Benefits Focused
Donor Experience
Fundraising Events
Donor Stewardship

9. The Science of Fundraising
Donor database
Building a gift pyramid (now and future)
Donor Retention
Donor Acquisition
Donor Research
Fundraising metrics (inputs and outputs)

10. Relationship Lifecycle
Identification
Engagement/ Involvement
Solicitation
Stewardship
Identification
Engagement/Involvement
Solicitation
Stewardship

11. Gift Pyramid
$100K +
$10K +
$1K +
$1-999

12. Calculating Annual Fundraising Goals

13. Components of a Development Program
Major and Leadership Gifts
Annual Fund
Planned Gifts
Corporate and Foundation Relations
Development Stewardship
Development Research

14. Major/Leadership Gifts
Disproportionate focus on 5, 6, and 7 figure donors and prospects
Primary focus of executive director, board members and development director
Leverage existing networks among donors
Establish concrete funding priorities with associated naming
Identify meaningful opportunities for leadership and engagement
Customize stewardship approach

15. Leadership Councils
Advisory/Auxiliary groups that are developed to involve leadership donors in a more meaningful and formal organizational role

16. Annual Fund Direct mail Telephone On-line
Emotional, story based, impact oriented, concrete levels of support
Telephone
Engage staff and volunteers once a month; recognize high-producers
Highly effective at acquisition and upgrading donors
On-line
Need web page with giving option
Electronic newsletters excellent form of communications

17. Annual Giving Societies
Establish at the $1,000 level
Organize an annual event/activity for the group
Recruit a strong chairperson
Communicate with on a regular basis

18. Planned Giving Bequest Expectancies (wills/estate planning)
Donor Advised Funds
Charitable Gift Annuities
Charitable Trusts
Gifts of Real Estate
- Highlight in marketing and communications
- Discuss with leadership donors

19. Corporate and Foundation Relations
Focus on personal relationships with key contacts
Corporations are an excellent source for event sponsorships and volunteers; public recognition is important
Foundations focus funding around specific priorities and/or geographic regions

20. Development Stewardship
Genuine, timely acknowledgements of all gifts
Hand-written notes for all gifts above X$ amount
Call and thank all first-time donors
Organize engagement events for new donors to learn about who you are and what you do
Organize stewardship events to thank and recognize your leadership and annual giving society donors (fun, unique, engaging)

21. Development Research
Organize confidential screening of donor lists to identify donor interests, potential, and personal networks of current leadership donors
Utilize various wealth screening tools every 1-3 years

22. Building A Relationship Based Development Program
Commit personal time to cultivating X # of existing leadership and prospective leadership donors;
Assign small pool of donors to key staff and/or board as well;
Develop individual cultivation and plans for solicitation;
Develop leadership councils and board structure to establish formal opportunities for involvement;
Create regular opportunities for leadership donors to associate with one another in the name of your organization (privately hosted receptions/dinners; unique stewardship events)

23. Building Your Fundraising Dashboard
Identify number of leadership donor phone calls per day and MEASURE
Identify number of leadership donor visits per week and MEASURE
Establish a donor retention goal by gift pyramid level and MEASURE every month
Identify donor acquisition goals by gift pyramid level and MEASURE every month

24. Notre Dame Dashboard Comprehensive Giving Cash Receipts
Unrestricted Giving
Alumni Participation

25. Make it Personal and Data Driven
Core Building Blocks
Increase focus on leadership gifts
Develop a leadership council
Establish an annual giving society
Shift from fundraising events to stewardship experiences
Measure donor retention and acquisition
Make it Personal and Data Driven

26. Volunteer Leaders Emotionally invested Philanthropic capacity
Strong network
Refuse to fail

27. Art of Solicitation at Leadership Level
Purpose of solicitation aligns with interests, needs, values and motivations of donor
Solicitation expresses urgency
Solicitor is “most difficult” person to say “no” to
Solicitation at the leadership level builds on a “pattern of involvement” or a series of “yes” responses over time