1. The “Ask” You can do it! Presented By: Mark C. Germano
Creating Solutions

2. The Environment

3. Philanthropy is Huge in U.S.
Philanthropic giving by Americans is larger than:
Google, Facebook, and Amazon Combined
It is over $200,000,000,000 a year – That’s a lot of money!

4. Where Does the $ Come From?
90% of philanthropy in the United States comes from individuals, families, and family foundations
Corporations give ~5%
Foundations make up another 5%
These %s have been consistent for 40 YEARS!

5. Data To Track for Philanthropy
S&P 500 Index – Every 100 point sustained gain usually means $1,000,000,000 more to U. S. not-for-profits
Unemployment Rate
Gross Domestic Product
Consumer Price Index
Philanthropy is a LAGGING economic indicator

6. Key Data About Donors
68% of American Households (HH) report making a charitable gift
50,000,000 itemized their returns
3% came from households (HH) with $200,000+ income
10.5% HH income $100,000 - $199,000
Over 70% of the $$$’s given come from these HHs
Use to understand your donor base

7. What About St. Joseph’s County?
What would is your guess on the number of Households with Income of $100,000 or more?
$100,000 - $149,999 = 1,651
$150,000 – 199,999 = 478
$200,000+ = 557
TOTAL = 2,686
Source: NonProfit Times, October 30, 2006
Study by Center on Philanthropy, Indiana University
Funded by Bank of America

8. Motivations for Giving
Meeting Critical Needs – 86.3%
Giving Back to Society %
Those with More Should Give to Those with Less -81.5%
Leaving A Legacy %
Limiting Fund to Heirs – 8%

9. Correlation: Time and Dollars
Myth: Wealthy “write a check to discharge moral obligation” Volunteer Hours Average Donation 1 – 50 Hours $31, – 100 Hours $92, – 200 Hours $104,691 Over 201 Hours $132,086

10. Ten Reasons Why People Give
Belief in the institution and its purposes
Belief that current needs are important
Sense of loyalty, gratitude, affection
Tax considerations
Friendship and respect for solicitor

11. Ten Reasons Why People Give
Honoring the past
Funding the future – not the past
Involvement with peers
Recognition
Identification

12. Why do Wealthy Donors Stop Giving?
The top 3 reasons why donors stopped giving to a particular charity include:
“No longer feel connected to the organization.”
“Decided to support other causes.”
“Feel I am being solicited too often.”

13. Create Your Agency’s Story
Themes
Imagine your audience
How we began/who influenced us/founders/family/ board
Obstacles faced and problems solved
On-going benefits given
Examples-specific people
Values in action
Before we came on the scene/after we did our thing
Accomplishments/victories, feeling good

14. Elements of a Good Story
Pathos – Emotion
Logos – Reason or Logic
Ethos – Guiding Belief

15. Speech Structure
Hi! My name is_____________________ and I work with… organization
You know how… problem
Well, what we do is… feature
So that… benefit
We’re kind of like the… metaphor

16. What Must Be in Place Within The Organization for Success?
Unifying Vision
3 – 5 Key Message Points
Strategic Plan (Values/Vision/Mission)
Outcome Measures/Ability to Articulate

17. What Must Be in Place Within The Donor to Prompt a Significant Gift
Alignment with Values
Ability to Self Select through Engagement Strategy
Feeling of Stewardship
Perception that their Gift is Truly Important
Perception of Legacy with Lasting Impact
Philanthropic Reciprocity

18. Engagement Continuum DONOR I N S P I R E D MONEY TIME Invest Involve
Interest
Inform
Invite
Identify
TIME

19. Consistent financial support
Asking for Support:
Building Relationships
Stewardship JZ

20. Using Your Data to Build Success
Identify at least 3 strengths in the Individual Giving data
Identify at least 3 challenges or concerns
Create an Action Plan that identifies
Targets for upcoming fiscal year
Tactics that you would use for certain donor groups

21. Prospect Rating System
Capability: A qualitative estimate of what is thought to be the prospect’s financial capability to make a gift, usually expressed in a dollar range.

22. Prospect Rating System
Inclination: A subjective assessment of what is thought to be the prospect’s likelihood to give, or make a gift at the rated capability level.

23. Prospect Rating System
Readiness: A subjective assessment of when, or how soon, the prospect is likely to make a gift or gift commitment/pledge.

24. Major Gifts Lead to Major Engagement
Individuals that reported giving away $50,000 or more per year want deep & meaningful engagement with the institution
76% want to direct the funds within the organization
72% want to be ‘highly involved’ with the organization
Source: 2007 Prince & Associates Wealth Management research report

25. Donor Solicitation Strategies
Select the right person to ask the right person at the right time for the right amount in the right way for the right reason.

26. Let’s Practice

27. Asking for Major Gifts Six Phases of a Solicitation Call
Opening
Questioning
Listening
Presenting
Overcoming Objections
Closing

28. Four Rules of Persuasion
Reciprocity
Scarcity
Authority
Consistency

29. Reciprocity
People try to repay, in kind, what another person has provided them
Reciprocity’s power stems from the fact that a person can trigger a feeling of indebtedness by doing an uninvited favor
The rule can be put in use by pointing out the services, benefits, and advantages that have already been realized

30. Scarcity Opportunities seem more valuable when they are less available
Uncommon or unique features or benefits that can not be found elsewhere

31. Authority Knowledge and trustworthiness
Uncover and communicate organizations expertise

32. Consistency
Once people make a choice, personal and external pressure exists to behave with the commitment
One sale leads to another
Rippling impact of past behavior on future behavior

33. Closing Techniques
Primary Objective: Showing the donor how to best satisfy needs, solve problems or gain desirable benefits by supporting the organization.
Verbal Signals
Non-Verbal Signals

34. Board Member’s Role In Development
Make Your Gift First
Actively Participate in Stewardship (Use the Personal Touch)
Be an Advocate
Focus on Top Donors First, Then Next Level, Then Next Level, etc. 34

35. Board Member’s Role In Development
Ask Donors for Feedback – Online Survey’s Are Inexpensive and Easy To Do
Host Cultivation Event(s)
Invite Donors to Visit Your Agency
Get Comfortable Making the “Ask” 35

36. Successful Communications
57% Visual
37% Vocal
6% Content

37. Alignment What needs to be in place in the organization?
What is the donor experiencing?
What aligns between the two?
What does research tell us?

38. Thank You Make a commitment to change Expect what you inspect
Celebrate successes publicly
Critique privately
Believe in your mission

39. The More You Create Meaningful Engagement, The More You Improve Your Organization