1. MAJOR GIFTS, RELATIONSHIPS AND PATIENCE – A WORKSHOP FOR DEVELOPMENT STAFF Advancement Academy Conference April 29, 2003

2. Major Gifts--E. Flanagan--April 28, 2003 Objectives Examine the development process and how it insures major gift success Examine the development process and how it insures major gift success Explore how to identify the right prospective donors with whom to build a relationship Explore how to identify the right prospective donors with whom to build a relationship

3. Major Gifts--E. Flanagan--April 28, 2003 Objectives, Continued Explore strategies to engage major gift prospects Explore strategies to engage major gift prospects Examine techniques to make an “artful ask” that will insure a YES Examine techniques to make an “artful ask” that will insure a YES Examine strategies to thank the donor in meaningful ways Examine strategies to thank the donor in meaningful ways

4. Major Gifts--E. Flanagan--April 28, 2003

5. Foundations for Success Being donor-driven Being donor-driven Creating a strategy for building the relationship Creating a strategy for building the relationship Recognizing the need to operate on the prospect’s schedule Recognizing the need to operate on the prospect’s schedule

6. Major Gifts--E. Flanagan--April 28, 2003 Prospect Identification Who is responsible for prospect identification? Who is responsible for prospect identification? Development Research Development Research The Development Officer The Development Officer Look beyond the rating to assess: Look beyond the rating to assess: Attachment Attachment Engagement Engagement Current Current Past Past

7. Major Gifts--E. Flanagan--April 28, 2003 Prospect Identification, Continued Look at consistent gift record Look at consistent gift record Look at life/career stage Look at life/career stage Look at the zip code Look at the zip code

8. Major Gifts--E. Flanagan--April 28, 2003 How to Cultivate Major Gift Prospects? Objective: Build attachment … Objective: Build attachment … Knowledge/Education Knowledge/Education Relationship Relationship Assess where the prospect is now on each dimension? Assess where the prospect is now on each dimension? What do they know? What do they know? What is the extent of their relationship with the institution, the program, and you? What is the extent of their relationship with the institution, the program, and you?

9. Major Gifts--E. Flanagan--April 28, 2003 Cultivating Major Gift Prospects Develop a strategy that will: Develop a strategy that will: Allow you to build rapport Allow you to build rapport Educate the prospect on areas of interest Educate the prospect on areas of interest Facilitate his/her attachment to the institution and/or the program Facilitate his/her attachment to the institution and/or the program

10. Major Gifts--E. Flanagan--April 28, 2003 Building Rapport Personal notes Personal notes Send items of interest, related or unrelated to the institution Send items of interest, related or unrelated to the institution Remember dates of significance Remember dates of significance Share personal information Share personal information

11. Major Gifts--E. Flanagan--April 28, 2003 Educate Your Prospect Connect their needs/interests to what your institution does through: Connect their needs/interests to what your institution does through: Follow-up materials Follow-up materials Meetings on/off campus with key faculty/students/administrators Meetings on/off campus with key faculty/students/administrators Invitations to sessions on topics meaningful to them and use the opportunity to host in other ways Invitations to sessions on topics meaningful to them and use the opportunity to host in other ways

12. Major Gifts--E. Flanagan--April 28, 2003 Participation Builds Attachment/Commitment Participation Builds Attachment/Commitment What is the strategy? What is the strategy? Creating the right opportunity where the prospect can meet the right people who will inspire his/her Creating the right opportunity where the prospect can meet the right people who will inspire his/her Arrange the setting to make it happen Arrange the setting to make it happen Use other human resources, too! Use other human resources, too!

13. Major Gifts--E. Flanagan--April 28, 2003 Participation Possibilities Ask for input/advice Ask for input/advice Invite to serve on a working board Invite to serve on a working board Include as a member of a focus group Include as a member of a focus group Ask to participate on a panel/speaker Ask to participate on a panel/speaker Ask to review documents/marketing materials Ask to review documents/marketing materials

14. Major Gifts--E. Flanagan--April 28, 2003 More Possibilities Ask to serve on a planning committee/task force Ask to serve on a planning committee/task force Ask to serve on a scholarship committee Ask to serve on a scholarship committee Ask to chair a committee Ask to chair a committee Interview for a magazine piece Interview for a magazine piece How creative can you get? How creative can you get?

15. The Artful Ask Requires the “Artful Set-up”

16. Major Gifts--E. Flanagan--April 28, 2003 The “Artful Set-up” The “Artful Set-up” In the cultivation process, did you: In the cultivation process, did you: Connect interests with institutional needs? Connect interests with institutional needs? Ask them if they might be willing to consider support for that project at some point? Ask them if they might be willing to consider support for that project at some point? Ask them what might be most important to them in that context? Ask them what might be most important to them in that context? Share funding opportunities? Share funding opportunities?

17. Major Gifts--E. Flanagan--April 28, 2003 Use the Trial Ask Technique I think the dean would like to talk with you soon about the XXX program. He/she hopes you you might consider establishing a scholarship in the $500K range so that one student’s needs might be met each year… I think the dean would like to talk with you soon about the XXX program. He/she hopes you you might consider establishing a scholarship in the $500K range so that one student’s needs might be met each year…

18. Major Gifts--E. Flanagan--April 28, 2003 Another Trial Ask Example You’ve told me that you believe that faculty support is most important…. In order to supplement our faculty salaries in a meaningful way, we have determined that we need to add at least $50K/year to attract and retain star faculty. To do that, we need a minimum endowment fund of $1M to generate those resources. Is that something you might be able to consider? You’ve told me that you believe that faculty support is most important…. In order to supplement our faculty salaries in a meaningful way, we have determined that we need to add at least $50K/year to attract and retain star faculty. To do that, we need a minimum endowment fund of $1M to generate those resources. Is that something you might be able to consider?

19. Major Gifts--E. Flanagan--April 28, 2003 The Results of the Trial Ask You know where the prospect sees him/herself You know where the prospect sees him/herself You know how to proceed You know how to proceed More education More education Create a formal proposal Create a formal proposal If you take the President/VP/Dean, you want to insure that he/she will get a “yes” If you take the President/VP/Dean, you want to insure that he/she will get a “yes”

20. Major Gifts--E. Flanagan--April 28, 2003 Planning for “The Ask” Visit Who goes? Who goes? Who says what? Who says what? Send materials in advance? Send materials in advance? Review information on the case Review information on the case What is exciting about the program? What is exciting about the program? What are the needs and the funding opportunities? What are the needs and the funding opportunities? How will the gift add value to the program and to the institution? How will the gift add value to the program and to the institution?

21. Major Gifts--E. Flanagan--April 28, 2003 The Conversation The Warm-up/Socializing The Warm-up/Socializing State the Agenda State the Agenda Tie it to vision for institution Tie it to vision for institution Find common ground Find common ground Your said …critical to CSU Your said …critical to CSU Discuss the impact that his/her involvement would have… Discuss the impact that his/her involvement would have…

22. Major Gifts--E. Flanagan--April 28, 2003 Making the Ask: Raising Sights “We hope that you will consider a six figure gift so that…” “We hope that you will consider a six figure gift so that…” “I hope that you will consider making a leadership gift in the $$$ range…” “I hope that you will consider making a leadership gift in the $$$ range…” “Your participation at the $$$$ level would enable the school to…” “Your participation at the $$$$ level would enable the school to…” “We hope that you will consider funding the first 21 st Century Professorship at the $1M level…” “We hope that you will consider funding the first 21 st Century Professorship at the $1M level…”

23. Major Gifts--E. Flanagan--April 28, 2003 Managing Objections Explore a “No.” It may mean: Explore a “No.” It may mean: “Not yet.” “Not yet.” “not now.” “not now.” Not sure how…” Not sure how…” Explore the objection Explore the objection Tell me more about your concern… Tell me more about your concern…

24. Major Gifts--E. Flanagan--April 28, 2003 Use Listening Skills Restate what you heard Restate what you heard Ask open-ended questions Ask open-ended questions Pause to see if there is more Pause to see if there is more Demonstrate empathy Demonstrate empathy

25. Major Gifts--E. Flanagan--April 28, 2003 Respond to the Objection Seek the prospect’s reaction Seek the prospect’s reaction Inquire if it is the only concern that stands in the way of a commitment Inquire if it is the only concern that stands in the way of a commitment Address the concern then or at a later time Address the concern then or at a later time Verify that the concern has been addressed Verify that the concern has been addressed Return to the gift discussion Return to the gift discussion

26. Major Gifts--E. Flanagan--April 28, 2003 Negotiation Techniques Timing – “What would be a better time?” Timing – “What would be a better time?” Purpose – “If you could make a difference, what would you want to do?” Purpose – “If you could make a difference, what would you want to do?” Amount – Demonstrate how the gift will benefit the donor and the program/recipients. Amount – Demonstrate how the gift will benefit the donor and the program/recipients. Flexibility – State pledge period and possibility of using non-traditional assets to get to the goal. Flexibility – State pledge period and possibility of using non-traditional assets to get to the goal.

27. Major Gifts--E. Flanagan--April 28, 2003 Closing Each conversation is a step toward resolution and commitment. Each conversation is a step toward resolution and commitment. Overcome sticking points in additional visits/calls/actions. Overcome sticking points in additional visits/calls/actions. Share vision for program and institution. Share vision for program and institution. Underscore his/her role in the future of your institution. Underscore his/her role in the future of your institution. Get it in writing. Get it in writing.

28. Major Gifts--E. Flanagan--April 28, 2003 Creative Expressions of Gratitude Do the less creative things first! Do the less creative things first! Personalize the expression while keeping the gift size in mind Personalize the expression while keeping the gift size in mind Ask: What motivates this donor? Ask: What motivates this donor? Create a unique experience Create a unique experience Video of horse Video of horse Intimate venue with special people Intimate venue with special people Give item of special meaning, e.g. box of dirt Give item of special meaning, e.g. box of dirt Scrapbook Scrapbook Honorary coach on field Honorary coach on field Involve the family for ideas Involve the family for ideas Publication by faculty dedicated to donor Publication by faculty dedicated to donor

29. Major Gifts--E. Flanagan--April 28, 2003 Summary The more significant the gift, the more personalized the cultivation and stewardship The more significant the gift, the more personalized the cultivation and stewardship The larger the gift; the longer it is likely to take; the higher the expectations will be for stewardship. The larger the gift; the longer it is likely to take; the higher the expectations will be for stewardship. It is all about relationship building with the people who can make a difference in your institution. It is all about relationship building with the people who can make a difference in your institution.