Are you ready for a major gifts campaign?

Transcription

1 Are you ready for a major gifts campaign? Habitat for Humanity Texas Lone Star Summit August 12, 2014 Presented by Nora Linares-Moeller, Development Consultant to HousingWorks Austin Christi Cuellar Lotz, CFRE Development Director, Ballet Austin

2 Questions to ask of you and your organization Do you have a fundraising board? Do you have a clean database? What do you call a major gift? Have you qualified a list of prospects? What does your non-profit look like in a public profile?

3 Questions + Answers Do you have a fundraising board? Does 100% of your board give to your organization? Have you asked them for a minimum amount/personal leadership gift, etc? Are they well-enough connected in the community to help you build your prospect list for major gifts? Are they willing to make asks on the organization s behalf?

4 Questions + Answers continued Do you have a clean database? Updated info on all prospects? Take time to clean up contact info Combine lists board, volunteers, staff, etc. De-duping Relational database in Outlook, know how to pull reports Look into cloud-based databases for small non-profits

5 Questions + Answers continued What do you call a major gift? Define amount based on: your budget comfort level of making the ask (At what level do you know you want to have ALL your ducks in a row before asking?)

6 Questions + Answers continued Have you qualified a list of prospects? Gathered all relevant public info (County Appraisal District, campaign giving, etc.) Relationships, anecdotal info, etc. Have you cultivated them enough to the point you feel comfortable, as an ED or DD, walking into their home and asking them for $$.

7 Questions + Answers continued What does your non-profit look like in a public profile? Have you Googled yourself? Are your 990s in tact and available for public distribution? Guidestar Do you have the best rating they offer of your organization?

8 And, internally Do you have the processes in place to manage Investment giving? Gifts of stock? Multi-year commitments? Appropriate staffing Can you provide the major gift donor with all of your audited financial statements?

9 Internally Answers Do you have the processes in place to manage Investment giving? An estate attorney or someone who is willing to advise and answer donors questions Gifts of stock? Financial Advisor who can tell you whether to keep stock or when to sell it Multi-year commitments? Detailed processes for remembering each year when to request payment, etc.

10 Internally Answers Do you have the processes in place to manage Appropriate staffing Development Director? OR IS ED THE DD? CFO/Finance Director, plus financial advisors on board to provide guidance Database Administrator someone to do the actual gift processing? Can you provide the major gift donor with all of your audited financial statements? THIS IS A MUST!

11 The role of the Board of Directors: Building a Fundraising Board

12 And Now A bit of rocket science.

13 Having a fundraising board is essential

14 It is the result of hard work.

15 Giving is a choice

16 And donors realize this.

17 Our first and most important donors

18 are our board members. (treat them well!)

19 Rebuilding or redefining a Board s role is a Process.

20 The first step Develop a road map.

21 Define the role of the Board and write a contract.

22 Assess the current make-up & structure of the board

23 Develop a strong Nominating Committee Present the Board analysis to the Nominating Committee Develop a working wish list of prospective candidates Identify the best member of the Board to cultivate each prospect Be diligent with research

24 Who Needs to Go... And why??

25 Increasing Value contributed by Trustee Individuals Self-Assessment Perfect Trustee" High Value / High Maintenance High Value / Low Maintenance Low Value / High Maintenance Low Value / Low Maintenance Increasing Ease of Retention of Trustee

26 Be willing to wait for The Right Stuff Ask for 18 months to 2 years in advance if you truly want a specific board member cue yourself up to be their cause.

27 Practice what you preach. As we ask more and more of our Board members, we must ask more and more of ourselves.

28 Walk before you run. Don t get ahead of yourself. Hands-on board to fundraising board happens over time. Hands-On volunteer board members are an important phase of development and organizational cultures As the Board commits to increase its commitments and giving don t retreat! Grow as you go

29 and be careful what you wish for. High profile Boards have HIGH expectations and limited patience Time is money and we cannot waste it. Managing a high-profile Board requires top-notch staff with exceptional professional skills, customer service and PATIENCE.

30 As you move forward

31 Don t forget to dance with who brung ya. You reach maturity with the best of your cherished founding members in tact. Maturation should not be a process of dumping out the old for the new but a careful blending of the two. The heart and soul of the organization resides in the passion of those who believed in it organization from the start.

32 Board Toolkit The Science of Fundraising

33 For a Board Member What are the Leadership Expectations? Review required minimum annual Personal Leadership Gift Having skin in the game provides moral authority Leadership gift is a gift of cash that is not assigned to other activities (galas, fundraisers, etc.) What is the annual fundraising commitment Do you have specific fundraising goals in mind for each Board member? Review prospecting process and how your office manages this What is the annual time commitment? (Be specific.) # of board meetings per year, duration of each? Other special events? Schedule? Participation in task forces/committees?

34 The Development Cycle Moves Management

35 The Development Cycle #1 Assessment #2 Cultivation #3 Solicitation #4 Stewardship

36 Step 1: Assessment... Assessment is the science of: Identifying prospects Gathering and utilizing information/donor prospect research Qualifying prospects Qualified Donor Unqualified Donor Wait List Why we need it? Knowledge conquers fear

37 Step 2: Cultivation... Cultivation is the Art of: Sharing your mission Friend-raising Developing a trust relationship with the Prospect

38 Step 3: Solicitation... The Moment of Truth... The Ask More on this later

39 Step 4: Stewardship... The many ways... to say Thank You The process of expressing gratitude commensurate with the gift Obligation to acknowledge a gift 5-7 times before asking for the next gift... Say YOU a lot.

40 ...and the cycle begins again and again. #1 Assessment #2 Cultivation #3 Solicitation #4 Stewardship

41 Breaking it down a bit more Cultivation and The Ask

42 The Seven Faces of Philanthropy: A New Approach to Cultivating Major Donors Russ Alan Prince Karen Maru File Publisher: Jossey-Bass

43 The Research Major Donors are Philanthropically motivated Donors of $50,000 or more Assets of $1 million or more Men and women

44 The Results Subcultures of philanthropy Seven motivation groups Based upon what people seek The values behind their giving

45 Always be aware of the 80/20 Rule At least 80% of ALL giving in the US comes from INDIVIDUALS

46 And with this in mind The 7 Faces of Philanthropy Investor (15%) Devout (21%) Socialites (11%) Repayers (10%) Dynasts (8%) Communitarian (26%)

47 The Communitarian (26%) Doing good makes good sense Want to give back Why they give Believe non-profits are more effective than government Believe wealthy donors give because they want to (not because they re obligated) Success tied to success of the community Philanthropy is exchange like their business Use advisors when making philanthropic decisions And after the gift, they Want to influence how donations are used Want to be recognized - publicly Want their needs addressed

48 The Devout (21%) Doing good is God s will. Why they give Giving is a religious act and a moral obligation Because giving is selfless Because the government does not support religious causes They give based on trust, typically don t seek advice And after the gift, they Typically do not want to influence how donations are used Want the non-profit to reflect their religious values Expect the non-profit to look out for them

49 The Investor (15%) Doing good is good business. Why/How they give They give the way they invest, and plan methodically They structure giving for tax advantages, ROI They don t believe being affluent obligates one to give They are results-oriented and define philanthropy the same way And after the gift, they Typically do not seek influence on how donations are used Expect non-profits to understand their business concerns Expect the non-profit to look out for their interests, and expect to be treated as customers Want public recognition, but don t over-do it

50 The Socialite (11%) Doing good is fun. Why/How they give They enjoy creating ways for others to give They are charitable at heart and happen to have money Can feel defensive about their socially-oriented way of giving Philanthropy is successful based on what it accomplishes Choose based on approval of their social network Often seek advice And after the gift, they Demand individual attention this means reflecting back to them the reasons for their giving Don t worry much about the use of the funds Desire formal recognition for their activities

51 The Repayer(10%) Doing good in return. Why/How they give Out of gratitude (many were the constituents of philanthropy lifechanging experiences make them the giver) Believe the wealthy have a responsibility to give Because good results follow Because non-profits are more helpful than government Insist on effectiveness and rarely rely on advisors And after the gift, they Want the non-profit to focus on the constituents, not donors Do not want individual attention Want their motives to be understood Don t need to be involved in the operations Do not seek formal recognition

52 The Altruist(9%) Doing good feels right. Why/How they give Give in order to grow spiritually Believe giving is a moral imperative Believe they are the only true philanthropists Believe non-profits are morally superior to government Select based on people/trust, and rarely seek advice And after the gift, they Want acknowledgement of their altruism that they give from the heart Want personal attention, caring and respect Resent ignorance of their needs Don t need to be involved with operations Don t need formal recognition

53 The Dynast (8%) Doing good is a family tradition. Why/How they give Because their family taught them it s important Because it s part of their self-concept/identity Believe philanthropy is everyone s responsibility Private philanthropy is more effective than government Like professional advice to influence their giving And after the gift, they Expect the non-profits to understand their motivation for giving Expect the non-profit to stay true to its mission rather than cater to major donors Most don t want involvement

54 Applying the Seven Faces Look for and pay attention to tell-tale signs of the Faces In planning, identify each donor s Face Ask, and LISTEN Consider the Faces of cultivators

55 Applying the Seven Faces Personalize the discovery process for each donor learning about your organization Adapt your materials to the Face of each prospects Base your ask on donor interests

56 What about corporations? Corporate partners as major donors

57 Gaining access to corporate sponsors Board member Participation Special Projects Annual Sponsorship The Seven Faces apply here, too.

58 Fear Factor Making the ASK.

59 Understand the distribution of individual wealth

60 Plan the details Time morning, noon, night? Place home or office? People Who can this donor not say no to? Materials Customize the package based on the face

61 Set up the call No sneak attacks they should know why you re coming No delays Set specific time

62 Prepare for the visit Review/Confirm specific goal Review research Review the case Plan choreography and plan who will ask

63 The Visit Warm up Present the case Include open-ended questions and LISTEN Deep breath and ASK.

64 The Visit, continued Address the philanthropic face Beware of language Focus on assets, not cash flow (gifts over multiple years)

65 The Ask Would you consider supporting with a gift of $ And then BE QUIET. Count your teeth with your tongue Bring a bottle of water and take a drink This WILL feel like an eternity But they must process your request Negotiate the close If time is needed, set follow-up date Be prepared to get it in writing

66 Rejections & Objections It s not personal It s priorities Identify objections Listen carefully to issues raised They are telling you how to ask for your next gift NEVER be defensive

67 Closing Clarify next steps Outline process for transfer of assets Establish the timeframe for action As soon as you re back at your desk whether they give or not, write a personal THANK YOU

68 Recognition & Stewardship Creating the culture of philanthropy Accurate accounting of the gift use Ongoing follow-up is KEY to further establishing the relationship The Long Story

69 Regardless of gift size Express your gratitude Prospects/Donors ALWAYS have other options.

70 Thank you for having us! Comment/Questions?