HOW TO ASK FOR THAT NEXT GIFT?

Transcription

1 T HOW TO ASK FOR THAT NEXT GIFT? Page Bullington, M.P.A and Kristin Ludwig, PhD 06/09/2011 Bullington & Ludwig 1

2 AGENDA Common Terms Annual Fund Best Practices Major and Planned Giving Tips and Tricks Prospect Research 101 Toolbox Review 06/09/2011 Bullington & Ludwig 2

3 C O M M O N S T E R M S 06/09/2011 Bullington & Ludwig 3

4 DEVELOPMENT CYCLE 06/09/2011 Bullington & Ludwig 4

5 TERMS AND DEFINITIONS: Contact a face to face visit (also known as a Primary Move ); significant phone call conversation with forward movement in the relationship (also a Primary Move); one-to-one exchange that leads to forward movement. Actions are recorded in the Action Tab in RE and are considered Secondary Moves which may include a phone call to set up or confirm an appointment, or a chance meeting where you had a conversation. Visit a face to face visit Suspects constituents who have been identified by Research as possible major gift prospects for assignment to gift officer prospect pools. Once assigned to a portfolio these are called Prospects. 06/09/2011 Bullington & Ludwig 5

6 TERMS AND DEFINITIONS: Prospects individuals who have been assigned to a gift officer to be qualified and moved into cultivation and then forward. Qualification occurs during the Assessment stage. Includes review of data and visiting with individual to determine if he/she is a valid candidate for solicitation at the major gift level. In this stage an individual is either qualified and moved into cultivation or removed from the portfolio. An action should be filed in either case. A Solicitation Plan should be filed within 60 days of having qualified the prospect. (see below) 06/09/2011 Bullington & Ludwig 6

7 TERMS AND DEFINITIONS: Move a strategic and substantial personalized interaction with a prospect which directly and tangibly advances that prospect towards an ask or a close. It can be a personal meeting or visit (preferred), telephone conversation, or letter. It is not casual interaction at an event or a casual update meeting, phone call or . Solicitation Plan filed in proposal notes in RE, this should include a description of the purpose of the gift, the dollar amount ( Expected Ask ) and an approximate deadline for making the ask ( Ask Date ). The solicitation plan may be modified or edited as needed going forward with explanatory information entered in Notes on the Solicitation Plan. Pipeline the concept of moving a constituent through various stages to an ultimate closing of a gift and post-gift stewardship. 06/09/2011 Bullington & Ludwig 7

8 TERMS AND DEFINITIONS: Pipeline Movement includes: ID Suspect ID Prospect Assessment Cultivation Solicitation Gift closure Post-gift stewardship 06/09/2011 Bullington & Ludwig 8

9 PROCESS FLOW Identification Prospect is identified for further research ASSESSEMENT The prospect is being qualified as a major gift prospect. This results in the prospect being QUALIFIED (an action is filed to reflect this) and moved into CULTIVATION or REMOVED from the portfolio. CULTIVATION During this stage, a solicitation plan is created and entered into RE7. REMOVED Prospect indicates no interest or financial capacity to make a major gift. Removed from portfolio. SOLICITATION The ask is made. The ask is rejected, the proposal will be re-evaluated and the prospect is put back into CULITVATION SUCCESS The prospect agrees to the proposal and makes a gift or pledge. STEWARDSHIP The prospect is moved into stewardship. After a time, it may be determined that the prospect is ready to move back into CULTIVATION to start the process over with a new proposal. 06/09/2011 Bullington & Ludwig 9

10 A N N U A L F U N D 06/09/2011 Bullington & Ludwig 10

11 ANNUAL FUND RFM is a method used for analyzing behavior and defining market. It is commonly used in database marketing and direct marketing. RFM analysis can work in tandem with reporting you already do. RFM stands for Recency - When was the donation? Frequency - How many donations have been made? Monetary Value - What is the value of donations? 06/09/2011 Bullington & Ludwig 11

12 ANNUAL FUND To create an RFM analysis, create categories for each attribute. Example: Recency attribute might be broken into three categories: Donors with donations within the last fiscal year Donors with donations last two fiscal years Donors with donations last three fiscal years Frequency might be broken into two categories: Donors with monthly gifts Donors with yearly gifts Value can be segmented at many levels: $1-$50 $51-$100 $101-$250, etc. 06/09/2011 Bullington & Ludwig 12

13 ANNUAL FUND Once each of the attributes has appropriate categories defined, segments are created from the intersection of the values. If there were three categories for each attribute, then the resulting matrix would have twenty-seven possible combinations We may also decide to collapse certain sub-segments. If the gradations appear too small to be useful. The resulting segments can be ordered from most valuable (highest recency, frequency, and value) to least valuable (lowest recency, frequency, and marketing). It is highly recommended that secondary data be applied when looking at RFM analysis. 06/09/2011 Bullington & Ludwig 13

14 ANNUAL FUND TO MAJOR One of the best tools will be trend analysis Review trends that occur in several ways Pull data on $25 donors Look for common constituency codes Look for events occurring before gifts Monitor successful solicitation Pull data on specific constituency codes Do all alumni typically give a $25 gift first or is it $50 Reviewing data in this manner can help with both major and annual gifts Establish trigger amounts or events that can help move individuals into major gift cultivation and / or research 06/09/2011 Bullington & Ludwig 14

15 M A J O R G I V I N G 06/09/2011 Bullington & Ludwig 15

16 METRICS FOR EVALUATION The level of activity and success are the best indicators of the value of major gift officers. Activity may be assessed in terms of visits, solicitations, qualifications, active movement of all portfolio prospects. Success is assessed in terms of movement within a portfolio. As suspects are qualified and moved down the pipeline to closing of a major gift. All prospects should be moved forward within days (3-6 months) of receipt into the portfolio 06/09/2011 Bullington & Ludwig 16

17 METRICS FOR EVALUATION Initial qualification of suspect pool may take about days and a clear move forward should occur every 3 months for each prospect. Once the qualified prospect pool is determined, active cultivation and solicitation are the next steps. Number of qualified prospects in a portfolio may range from 30-50; the entire portfolio (including those being qualified) may range from /09/2011 Bullington & Ludwig 17

18 METRICS FOR EVALUATION Reasonable Goals include: A minimum of 12 visits per month for assessment and/or cultivation (130 annually) (This factors in vacation, holidays, etc.) Add five new prospects to the portfolio through officer discovery and identification Remove unqualified prospects each month through assessment. Contact reports should be filed within 5 business days of the contact. The 15 th of the month is the deadline for the previous month s contact reports 06/09/2011 Bullington & Ludwig 18

19 RESOURCES TO SUPPORT THE MGO Prospect Research Team brief, profiles, wealth analysis, gift capacity ratings, prospect screenings, prospect identification, prospect management reports and moves management training CRM Database Team query support and training; biographical data updating; targeted mailing lists Director of Development strategic portfolio planning; trouble shooting and coordination of multiple contact situations; monthly review of portfolio activity Executive Director strategic planning and solutions with operational perspective to ensure adequate infrastructure support and compliance with policies and procedures. 06/09/2011 Bullington & Ludwig 19

20 PROSPECT MANAGEMENT MEETINGS Meeting length Optimum is 60 minutes No good work happens after 90 minutes Frequency Roles Depends on need for new prospects When demand is high, meet weekly As prospect portfolios fill out, reduce frequency No less than monthly Moderator keeps the meeting moving Note taker records minutes and distributes them by the beginning of the next business day Roles can rotate 06/09/2011 Bullington & Ludwig 20

21 PRINCIPLES OF PROSPECT MANAGEMENT Clearance system managed by director of prospect management Clear and specific procedures and criteria for establishing an assignment Assignment to a development area is driven by donor interest One prospect manager per prospect Prospect research establishes potential and inclination Prospect manager qualifies the prospect 06/09/2011 Bullington & Ludwig 21

22 PRINCIPLES OF PROSPECT MANAGEMENT Prospect managers can nominate prospects on their own, but assignment must be validated by director of prospect management Prospect manager controls and monitors contact with the prospect Solicitors may be other than prospect manager Meaningful reports Assigned prospects System for succession of assignments Contact reports are mandatory Clear definitions of moves 06/09/2011 Bullington & Ludwig 22

23 RELATIONSHIP MANAGEMENT BENCHMARKS To assist in prospect management, below are some national relationship management benchmarks: moves per month face-to-face visits per month Portfolio size: prospects Identification 25% Cultivation 50% Solicitation 25% Portfolio size influenced by Ask amount Geography Job responsibilities Annual or semi-annual review with supervisor 06/09/2011 Bullington & Ludwig 23

24 T O O L B O X R E V I E W 06/09/2011 Bullington & Ludwig 24

25 PASSING IT ALONG SAMPLE PROFILE 06/09/2011 Bullington & Ludwig 25

26 PASSING IT ALONG Other information to include Charitable giving Frequency of giving to your organization and other non-profits Average gift size Current relationships Alumni, Membership Status Peer relationships Think about what is important for your team 06/09/2011 Bullington & Ludwig 26

27 TICKLER REPORT TO TRACK ACTIONS BY SOLICITOR 06/09/2011 Bullington & Ludwig 27

28 OUTSTANDING PROPOSAL REPORT BY SOLICITOR 06/09/2011 Bullington & Ludwig 28

29 PROPOSAL ANALYSIS REPORT 06/09/2011 Bullington & Ludwig 29

30 PROPOSAL PIPELINE 06/09/2011 Bullington & Ludwig 30