The Philosophy of Development The Major Gift Cycle A Creative Way

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The Philosophy of Development The Major Gift Cycle A Creative Way Powered By Docstoc
					Whither Private Fund Raising & Development?
                    or
  Nobody Told Me I’d Be Raising Money!
As A Leader For My
Department, I Expected to:
   Recruit the Best Students
   Hire and Retain the Best Faculty
   Encourage Junior Faculty
   Cajole Senior Faculty
   Worry About Ratings
   Agonize Over Threatened Budgets
   Play Politics With My Dean

                Don Gray, UW Foundation
But Nobody Told Me I’d Have to
Raise the Money for All This Stuff
   $   Recruit the Best Students
   $   Hire and Retain the Best Faculty
   $   Encourage Junior Faculty
   $   Cajole Senior Faculty
   $   Worry About Ratings
   $   Agonize Over Threatened Budgets
   $   Play Politics With My Dean

                   Don Gray, UW Foundation
So How Can I
   Have  the right attitude towards raising this
    money?
   Understand what it’s all about?
   Internalize how to do it?
   Motivate others to help me?
   Learn to like doing it?




                 Don Gray, UW Foundation
So How Can I
   Have the   right attitude towards raising
    this money?
   Understand what it’s all about?
   Internalize how to do it?
   Motivate others to help me?
   Learn to like doing it?




                Don Gray, UW Foundation
“You want to compose a good world. It is
                       an honorable
                          and noble
                            profession.”
                                               - Maya Angelou




               Don Gray, UW Foundation
                                         Don Gray, UW Foundation
Gifts and Donations

A GIFT is a tangible symbol of feelings between
people


A DONATION is a tangible symbol of support to a
cause




                   Don Gray, UW Foundation
Development and Fund Raising

           A GIFT is to DEVELOPMENT
                                 as
        A DONATION is to FUND RAISING


Minor Point (or is it?):
       a person making a gift is a giver
       a person making a donation is a donor
                           Don Gray, UW Foundation
Inappropriate Terms
   hitup
   put the arm on …
   squeeze
   loaded
   … should give
   … ought to give
   … owes us
   pass the hat
   get into his/her pockets
                 Don Gray, UW Foundation
So How Can I
   Have  the right attitude towards raising this
    money?
   Understand what it’s all about?
   Internalize how to do it?
   Motivate others to help me?
   Learn to like doing it?




                 Don Gray, UW Foundation
ANNUAL FUND DONATIONS
  Frequently Given and Asked For
  From Discretionary Income; Little Decision
   Making; Decision is Immediate; Spouse
   Often Not Involved
  2-5% of Annual Gross Income (To All)
  Sustaining/Operational Fund
  Direct Mail/Events/Telethon
  90% of gifts; 10% of dollars
  Most major gifts come from annual fund
   donors
                Don Gray, UW Foundation
Importance of Annual Fund in
Major Gift Activity
   For  all givers to universities who make a
    first “major gift” of $25,000 or more,
    – 75% made a first donation to the university of
      $250 or less in response to the annual fund
    – 83% have made smaller level donations
      (annual fund donations) for at least 5 years;
      almost 60% for at least 11 years
          of Annual Fund as Living
   Concept
    Endowment ($100K annually equates to an
    endowment of $2 million)
                  Don Gray, UW Foundation
MAJOR GIFTS
   Infrequently Given and Asked For
   Made from Assets; Stop/Think Gift; Longer
    for Decision; Spouse Involved
   Requires Development of Relationship
   Special, Targeted Projects
   10-20x Annual Gift or 2-4% of Net
    Income- Producing Assets
   10% of gifts; 90% of dollars
                   Don Gray, UW Foundation
Accounting Department
Advantages in Major Gift Work
   Accountants   understand giving
   Accountants seldom give to any place
    within a university other than to their
    accounting departments
   Accounting firms tend to have matching
    gift programs
   All partners are capable of major giving
   Accounting firms need your graduates as
    employees
   Many accountants end up as CEO’s or
    CFO’s         Don Gray, UW Foundation
Top Three Reasons People Give
Major Gifts
   Beliefin Mission and Stability of the
    Organization
   Sense of Civic Responsibility
   High Regard for Staff and Volunteer
    Leadership




                 Don Gray, UW Foundation
“Charitable giving isn’t the ultimate test of
   one’s humanity but it gives us some
          numbers to play with.”
Bottom Three Reasons People
Give Major Gifts
   Guilt and Obligation
   Promotional Materials and Proposals
   Tax Considerations (probably more
    important for accountants than others)




                 Don Gray, UW Foundation
So How Can I
   Have the right attitude towards raising this
    money?
   Understand what it’s all about?
   Internalize how to do it?
   Motivate others to help me?
   Learn to like doing it?




                 Don Gray, UW Foundation
Successful Development

         THE MYSTICAL MINGLING
                         OF

           A JOYFUL GIVER
           AN ARTFUL ASKER
         A GRATEFUL RECIPIENT


            Don Gray, UW Foundation
            The Cycle of Successful Development


Initial Contact                         Creating the            Attention
                                        Joyful Giver
                                                                            Interest

                                                                               Desire
                   Additional Gift Interest
Identification




                                                                                 Action

                                                                    Making the
                 Show                                               Artful Ask
                 Creativity
                                                                  yes
                                      Invoking the
                                      Grateful Recipient
                                                                  acknowledge      no,no,no


                                      Don Gray, UW Foundation
So How Can I
   Have  the right attitude towards raising this
    money?
   Understand what it’s all about?
   Internalize how to do it?
   Motivate others to help me?
   Learn to like doing it?




                 Don Gray, UW Foundation
Enlisting Support to Help
   Educate  your faculty on benefits of a
    successful program
   Choose your external advisory board
    carefully, looking for the 5 W’s
   Convince your dean that your success is
    his/her success
   Be successful


                Don Gray, UW Foundation
The Five W’s of Being an Effective Advisory Board
                    Member

         Work                                Wisdom


Wow                 Advisory Board



                                                Wealth
                     Wallop

                   Don Gray, UW Foundation
So How Can I
   Have  the right attitude towards raising this
    money?
   Understand what it’s all about?
   Internalize how to do it?
   Motivate others to help me?
   Learn to like doing it?




                 Don Gray, UW Foundation
Learning to Enjoy Development
   Realize  that everyone “out there” loves you
   You make great friends
   You make alumni/friends feel good
   You take your department to a new level
   You truly do “compose a good world” by
    attracting the funds that can your
    department responsive to student, faculty,
    and program needs.
   It is indeed noble work
                 Don Gray, UW Foundation
                  February 5, 2001
                   Donald R. Gray
University of Wisconsin Foundation
            The Cycle of Successful Development


Initial Contact                         Creating the             Attention
                                        Joyful Giver
                                                                             Interest

                                                                                Desire
                   Additional Gift Interest
Identification




                                                                                  Action

                                                                     Making the
                 Show                                                Artful Ask
                 Creativity
                                                                   yes
                                      Invoking the
                                      Grateful Recipient
                                                                   acknowledge      no,no,no


                                       Don Gray, UW Foundation
Major Issues in Asking
   When is the timing right?
   How much do you ask for?
   Who makes   the ask?
   Where is the best location to make an ask?
   How do you make an artful ask?
   Common pitfalls in making an ask?
   How do you respond to objection?
   How do you follow up?
   What do you do if the answer is “no”?
   What do you do if the answer is “yes”?
                Don Gray, UW Foundation
When is the timing right?
                   Should  be a natural flow in
                    the process (cycle)
                   Listen for signals: Listen,
                    Listen, Listen
                   Develop a “touch” for
                    knowing
                   Remember: this is an art, not
                    a science


             Don Gray, UW Foundation
How much do you ask for?
                                               I haven’t got a
 Ifyou’ve had good prior                      clue!

  contact, you’ll have a good idea
 Ask for somewhat more than
  you expect
 Ask specific amount or list of
  levels
 Expect to discuss
 Form of gift (payment period;
  endowment or annual; combo
  with planned gift; etc.)
                     Don Gray, UW Foundation
Who makes the ask?
                                              Whoever   is most
                                               appropriate
 Let’s see, now, who gets
 this assignment?                             Consider team
                                               approach
                                              Caution when using
                                               volunteers:
                                                  – need training
                                                  – often are
                                                    uncomfortable

                            Don Gray, UW Foundation
Where is the ask made?
 Wherever   the potential                       home
  giver is most comfortable                          office
                                               campus
 Avoid noisy restaurants
 Best places: donor’s                                  restaurant

  home, with spouse; office;                     ?
  club; dean’s or president’s
  office; favorite place on
  campus
 Pay attention to setting;
  make it classy
                     Don Gray, UW Foundation
How do you make an Artful Ask




            Don Gray, UW Foundation
Making the
Artful Ask


Attitude is
Everything
How do you make an Artful Ask
 bestow  honor/praise on potential giver
 show your organizational pride (knowledge,
  commitment, passion)
 be considerate; ask for consideration
 state specific amount
 state specific purpose
 shut up




                    Don Gray, UW Foundation
Is This an Artful Ask?
 bestow  honor/praise                   Joe, we know you have a lot
                                          of money. Your career as a
 show organizational                     successful accountant is
  pride                                   because of the education you
                                          received at good ol’ State U.
 be considerate; ask for                 We need your money because
  consideration                           our accounting curriculum is
                                          in disrepair. We think you
 state specific amount                   should establish a
                                          professorship in accounting.
 state specific purpose                  You get a whopping tax
 shut up                                 deduction, and all of us can
                                          use that, can’t we? By the
                                          way, how’s your golf game?

                    Don Gray, UW Foundation
Is This An Artful Ask?
   bestow  honor/praise               Joe, you are one of the most
                                        successful and most highly
   show organizational                 respected professionals in the
    pride                               field of accounting, and you
                                        bring honor to State U in so
   be considerate; ask for             many ways. It would be a
                                        distinct privilege for State to
    consideration                       have your name and
   state specific amount               reputation forever imprinted
                                        on our outstanding and
   state specific purpose              growing accounting
                                        department. Would you
   shut up
                                        consider a gift of $250,000 to
                                        establish the Joe Goodfellow
                                        Professorship in Accounting?
                  Don Gray, UW Foundation
Would you hire
Snoopy’s brother Spike
as your development
director?
What are the common pitfalls in
asking?
 We  talk too much
 Ask sounds cold or                          Hee Haw
  inconsiderate
 We use words like “should”
  and “ought”
 We ask apologetically and
  are embarrassed
 Eye contact breaks down
 The ask is rushed
 We break the silence too
  soon after ask is made
                    Don Gray, UW Foundation
How do you respond to objections?
   “I’m  a bit strapped right now. You know,
    kids in college, building a new house, the
    divorce is killing me, etc.”
   “I give to so many different causes, I don’t
    know how I can expand to include the
    university”
   “Oh my goodness, I don’t have that kind of
    money?”
   “The last time I gave to your institution I
    didn’t even get a thank you letter!”
   “What possible impact can my modest gift
    make?”         Don Gray, UW Foundation
How do you follow up?
 Seldom   will you close a major
  gift on the asking call
 Plan ahead for following up
 Before the meeting ends,
  make sure the potential giver
  knows the next step: who will
  contact whom; when;
  contingencies


                      Don Gray, UW Foundation
What do you do if the answer is “no”?
          Realize     there are many reasons for a
           “no”:
            –   timing is bad
            –   project is wrong
Ugh         –   amount of ask is wrong
            –   wrong person asked
            –   not enough time “creating joyful giver”
          Three “no’s” is halfway to a “yes”
          Be considerate, thank the person,
           continue contact, listen for signals
                Don Gray, UW Foundation
What do you do if the answer is “yes”?
  Make   sure all appropriate
   people say “thank you”                       Yippee
  Design a creative plan to
   continue saying “thanks”
  Continue visiting the giver and
   listening for next opportunity
  Keep working the Cycle!!!!!




                      Don Gray, UW Foundation
Conclusion
   Forsuccessful development at your
    department, you are
    – the catalyst
    – the cheerleader
    – the visionary
   It’s yourvision, your knowledge, your
    passion, and your enthusiasm that will
    make it succeed
   Good luck and go forth joyfully, artfully,
    and gratefully. It is noble work!
                  Don Gray, UW Foundation
But Be Careful: Different Strokes
                        prior to WWII)
   Traditionalists (born
   Boomers (born 1945 - 1965)
   X (Next) Gens (born 1966-1988)
   Echo Boomers (young-uns)


  Each of these groups thinks differently and
    requires special understanding

                 Don Gray, UW Foundation
Traditionalists
    Major life events forming their values and
     thought patterns:
     – The Depression
     – World War II
     – The Atom Bomb
    Attitudes   toward giving
     –   Sense of “giving something back”
     –   Great loyalty to institutions they love
     –   Quid pro Quo less important
     –   Understand philanthropy
                     Don Gray, UW Foundation
Boomers
   Major life events forming their values and
    thought patterns:
    –   Assassinations
    –   Vietnam
    –   Watergate
    –   Questioning of Institutional Values
   Attitudes   toward giving
    – Show me why I should give
    – What’s in it for me?
    – Think social investment
                    Don Gray, UW Foundation
X (Next) Generation
   Major life events forming their values and
    thought patterns:
    – Computers and Technology
    – Economic Boom (never seen a bear market)
    – Impatient Society
   Attitudes    toward giving
    –   Not yet sure, but
    –   Will probably involve technology
    –   Will inherit trillion
    –   Think venture capital for social improvement
                     Don Gray, UW Foundation

				
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