1. The Osborne Group, Inc.1 MAJOR GIFTS AND CREATING ORGANIZATIONAL CAPACITY FOR FUND DEVELOPMENT GROWTH BBBS Large Agency Alliance January 22, 2005

2. The Osborne Group, Inc.2 Agenda Why focus on major gifts? Building a major gift prospect pool Making effective qualification and discovery visits Investing in fund development ROI Staffing Taking it on the road

3. The Osborne Group, Inc.3 “Giving USA” 2003 $240.72 Billion

4. The Osborne Group, Inc.4 BBBS Revenue Distribution By Source Events$60,726,00029% United Way$43,974,00021% Government$37,692,00018% Foundations$27,222,00013% Individuals$16,752,000 8% Corporate$ 8,376,000 4% Other$14,658,000 7%

5. The Osborne Group, Inc.5 What’s a Major Gift? For your agency? For a donor? Industry standards?

6. The Osborne Group, Inc.6 Today’s Gift Pyramids Old rule – 80% - 20% Recent rule – 90% - 10% Today’s experience – 95% - 1%

7. The Osborne Group, Inc.7 Recent Study* 23 campaigns of more than $100 million 94.4% of the money from 1.7% of the donors. * Institute of Charitable Giving

8. The Osborne Group, Inc.8 Donor Motivation Is personal! Impact – societal, community From the heart; shared values Giving back Tradition Recognition, peer influence (Leadership) Strategic investment Trust, accountability

9. The Osborne Group, Inc.9 The Major Gift Cycle Identify the critical few: those with the greatest capacity to give Discovery: Learn about them; share the story Developing a relationship Engaging and Involving Asking for a specific amount Saying thank you Providing stewardship and accountability Preparing to ask

10. The Osborne Group, Inc.10 Major Gift Time Line IdentifyLearn and Share Engage and Involve Prepare to Solicit Ask and Close ThankSteward

11. The Osborne Group, Inc.11 Filling the Major Gift Pipeline Looking for individuals with a net worth over and above value of primary home of $1,000,000 Plus Philanthropic Cares about kids Cares about community Former Big or Little Someone who knows us, knows them or there is a path

12. The Osborne Group, Inc.12 Start with Who You Know Bowl for Kids© Raising More Money© Direct mail donors who have given you $100 or more Volunteers’ prospects Corporate sponsors Foundations and family foundations Current and past leadership donors Past capital campaign donors Legacy and major gift donors and their families Current and past Bigs, past Littles Current and past staff Board members, past Board members and volunteers

13. The Osborne Group, Inc.13 Best Donors are Past Donors 4 to 11 times the cost to acquire a new donor as it is to keep an old friend!

14. The Osborne Group, Inc.14 Organize the List and Make Decisions How are you qualifying your donors now? Capacity? Inclination? Readiness? What tools have you found to be the most useful?

15. The Osborne Group, Inc.15 Get Donors, Volunteers, Staff Involved Gathering information Internal screening Peer screening Research

16. The Osborne Group, Inc.16 Rating Potential Donors’ Giving Capacity Average American gives 2% of income Average wealthy and philanthropic American gives 4% to 7% of net worth (income and assets) over one to five years Ratings based on 5% of net worth

17. The Osborne Group, Inc.17 Composition of Estates With Assets of $600,000 Plus 1. Stock 2. Real Estate 3. Bonds 4. Retirement assets 5. Cash 6. Life insurance equity and annuities 7. Other 33% 28% 13% 12% 7% 2% 5%

18. The Osborne Group, Inc.18 Rating Potential Donors Exercise Read each scenario and provide a dollar range rating for each i.e. $250K to $500K Then an inclination rating using High, Medium, Low or Remote NameCapacityInclination Joe$50k to $100KLow

19. The Osborne Group, Inc.19 Readiness versus Inclination Sally loves BBBS Wants to give Thinks a big gift is $1,000 Has the capacity to give $500,000 How inclined? How ready?

20. The Osborne Group, Inc.20 Major Gift Maxim We don’t have control over capacity We have very moderate impact on inclination Readiness is our JOB

21. The Osborne Group, Inc.21 Wealth Screening Opportunity National initiative User friendly Powerful tool

22. The Osborne Group, Inc.22 Types of Visits Qualifying and Discovery Cultivation (developing and advancing relationship) Recruitment Solicitation Stewardship (connecting with impact of past gifts, advancing relationship)

23. The Osborne Group, Inc.23 Preparing for the Visit First impressions Do your homework Check the facts Listen to others Choose the setting Set your agenda

24. The Osborne Group, Inc.24 The Donor Puzzle© Motivation Knowledge Philanthropic decision makers Natural partners Issues Involvement and contribution preferences Stewardship preferences

25. The Osborne Group, Inc.25 Elements of Successful Qualification and Discovery Do your homework Set agenda Ask questions about: Work Life Philanthropy LISTEN Share your case for support Ask for feedback Discuss next steps IF this is a real (now qualified) prospective donor

26. The Osborne Group, Inc.26 Visit Maxims People remember more of what they say than what you say People believe what they say more than what you say You ask questions and share 30% of the time You LISTEN 70% of the time

27. The Osborne Group, Inc.27 Key Take-Aways Qualified – yes or no If yes, capacity and inclination rating Perhaps readiness rating Possible giving interests, values, process Next steps

28. The Osborne Group, Inc.28 Is This a Qualified Prospect? LISTEN to the exchange What did you learn about: Capacity? Philanthropy? Inclination? Readiness?

29. The Osborne Group, Inc.29 As Relationship Develops Determine: “Right” purpose “Right” amount “Right” solicitors “Right” time “Right” place “Right” participants “Right” materials

30. The Osborne Group, Inc.30 The Role of the Annual Fund in Major Gifts Bumping folks up Learning the donor’s decision-making and negotiation processes Learning more about giving interests Opportunity to engage other decision makers Preparing donors for a comprehensive ask

31. The Osborne Group, Inc.31 Getting Appointment Tips Agenda: Face to face meetings, ambitious and inviting itineraries Skills: Confident tone, brevity, specific time, persistence Call to appointment slot ratios Setting aside blocks of calling time (with plenty of lead time) Personal assistants hold the keys to the inner sanctum Planning two trips at once (options for donors) Analyzing your statistics (by region, time of day, day of week, etc.) Handling objections/three no’s

32. The Osborne Group, Inc.32 Three Inviting Reasons for the Appointment Advice Input Expertise Action Involvement Solicitation Stewardship Information

33. The Osborne Group, Inc.33 Making a Visit Former Big Board member recommended; doesn’t know her well Declined invitation to out of town RMM event Lives in upscale neighborhood Owns her own business

34. The Osborne Group, Inc.34 Investing in Fund Development ROI People Time Infrastructure Organizational Will

35. The Osborne Group, Inc.35 AHP Study 2004 Lessons for Us 24 highest performing hospitals Focus on major gifts Leverage leadership and board relationships The highest performing hospitals secured 51% of their revenue from major gifts

36. The Osborne Group, Inc.36 Highest ROI % of Revenue from Major Gifts 51%35%16%11% Highest Fundraising Performers Top 25%Second 25% Third 25% Bottom 25%

37. The Osborne Group, Inc.37 Ideal Balanced Portfolio!

38. The Osborne Group, Inc.38 Starts With Leadership CEO Board Chief Development Officer Senior Staff

39. The Osborne Group, Inc.39 Staffing The Functions Chief Development Officer Strategy Management Major Gifts/staff CEO Special Events Fundraising Cultivation Bowl for Kids Sake Individual Giving Annual Appeals Raising More Money Leadership Gifts Corporate and Foundation Giving/Grant-writing Data entry, Reporting and Research Development Assistant and Stewardship

40. The Osborne Group, Inc.40 BBBSA Fund Development Organization

41. The Osborne Group, Inc.41 A Model for Large Agencies

42. The Osborne Group, Inc.42 How National Will/Does Help Training Tools Consultation Wealth screening Partnerships Gift sharing

43. The Osborne Group, Inc.43 What Will You Do Differently? What ideas did you find the most useful? What do you want to know more about? What will you try?