Securing Major Gifts Presented by: Jennifer Stewart, CFRE Vice President, Foundation & CDO Providence Healthcare Foundation Date: December 2, 2005 Six Pillars for Major Gift Relationship Building Research Prospects Qualify Prospects Cultivate Prospects Involve Prospects Ask for Gift Acknowledge Transparency E-1 Research Prospects Did everyone read handout E1? “Prospect Research: A Tool for Professionalism in Fundraising” Question: What is the importance of good research? Identify how much & what to ask for Match donor‟s giving ability & interests Enable solicitor to make reasonable and successful ask Avoid embarrassing situations for both prospect & solicitor Example ~ Scotiabank Transparency E-1 Purpose of Research 1) Identify strong prospects (e.g. Dr. Scholl Foundation) 2) Avoid wasting donor or staff time (e.g. Canadian Tire) 3) Identify new sources of leadership & support (e.g. Macri) 4) Greater financial security for org. (e.g. Scotiabank) 5) Involves current leadership in meaningful way (e.g. RBC) Transparency E-1 Sources for Major Gift Prospect Lists Current donors Lapsed donors Outside lists: Other not-for-profit mailing lists Trade, professional, civic City directories Referrals of board, staff, donors Commercial lists Rosso‟s Concentric Circles Major Donors Board Management Staff Transparency E-3 Sources of Information Best Major Gifts prospects: Your current database (e.g. Clive) The Community (e.g. ISE) Personal friends (e.g. Clementi) Business associates (e.g. Kilty) Webbing Worksheet (Handout E3) Administer during Committee or Board Meeting Purpose ~ to elicit prospect names CONFIDENTIAL info, used only with permission Research Tools Researching for: Biographic, demographic & financial information In-house files & database records Donor records/patterns Educational Institutions: (Alumni, volunteers & students) Healthcare: (Past & current patients, NOK, & volunteers) Internet Volunteers Research Ethics Donor‟s right to privacy APRA = Association of Professional Researchers APRA Ethics Statement (Handout E5) Helps charities deal with “ethical dilemmas arising in the course of their work” APRA Code of Ethics: Fundamental Principles Confidentiality Accuracy Relevance Accountability Honesty APRA Code of Ethics: Procedures Lawful collection of verified information Record & maintain information securely Lawful use & limited distribution of information Board Policy created for prospect research Qualifying Major Gift Prospects Determine the prospect‟s potential for giving Conduct leadership volunteer and board reviews To qualify interest & identify connections Place the prospect appropriately in your gift range chart Qualify Prospects Interest (e.g. St. Georges Society) Potential (e.g. Scotiabank) Motivations (e.g. Macri) Matching Interests Example ~ TD Financial Group Match donor interest to organization‟s programs Match cultivation strategies with donor Match solicitation team to donor‟s interests Match recognition strategies to donor preferences Successful Cultivation Organizational Behavior & Donor Consequences Major gift or upgraded gift • Frequent calls, letters, invitations • Involvement in volunteer activities • Invitations to meetings Reduced or no gift • Little or no communication • No invitations to participate • No board or volunteer connections Transparency E-5 Formal Methods: Planned and scheduled prospect contact: Personal mail (no form letters!) Telephone contact Organization Meetings (e.g. Lunch & Learn) Newsletters/Recognition (e.g.Connecting /Bulletin) Annual Reports Informal Methods Less formal or unplanned external contact with prospects: Social, business, political affairs Conferences, seminars, workshops Charity events Sporting events/activities Personal associations and acquaintances Cultivation Communication Sincere and accurate Frequent and personal Inspires donors Recognizes donors Motivates donors Informs donors: programs, testimonials, giving options, missions and goals of organization, uses of donor funds, involvement opportunities Involving Donors CRUTIAL to successful MG ask Every major gift prospect is different… Some want active involvement Some want background involvement All want assurances that their money is being used wisely and as promised! Ways to Involve Major Donors Social gatherings Hold meetings with success Orientations stories Send publicity Ask them to be on the board clippings or a committee Special events Invite them to lecture Ask them for advice Invite them to be on a panel Ask them to volunteer Call them regularly to provide updates Transparency E-6 Making the „Ask‟… Preparing for the call Making the appointment Rehearsing the „ask‟ Making the „ask‟ Follow-up activities Why Major Donors Give To experience the joy and happiness of giving Because the asker does not twist arms, but offers an opportunity to meet certain needs Because they are asked Because of relationship between donor and organization To make a difference; to change the world Transparency E-7 Fear of Asking… Preparation Practice Perseverance Question: What’s the worst that could happen??? 1) “NO” … is the first step to “yes”! 2) Give less … is the first step to more later! “No Fear” Fundraising (Handout E6) The key is … continual PRACTICE!! Discipline … get in front of real prospects, often Practice overcoming objections Be natural … your comfort will put prospects at ease K.I.S.S. Develop your own style Getting a “yes” is simply addictive! Preparing for the Call Review prospect profile Determine amount of the „ask‟ Prepare package of info on your organization Financial Accountability (ex. Annual Report) Program successes Quality & competence of Senior Mgmt. Clear proposal Case Statement Newsletters & testimonials Making the Appointment Don’t forget … person making the ask should be a peer! Set a pleasant tone in the conversation – keep it short Don‟t state your case/ask on the phone Arrange a place suitable/comfortable for the prospect Emphasize your appreciation of their time Suggest a few times (pre-approved by other „askees‟) Set a reasonable time for the meeting, and stick to it! Group Exercise Making the Appointment Role Play: Select a partner Review the two “making the appointment” scenarios See participant‟s manual for scenarios Both can do same scenario, or each do different one You have 3 minutes each to make the appointment Questions? 1) What worked & what didn’t? 2) Anyone have any read-life scenarios to share? Rehearsing the „Ask‟ (Remember …. Only 2 people should visit the prospect) 1) Begin with brief small-talk of things in common 2) Add a few more info gathering questions 3) Demonstrate strong faith in your organization 4) Bring specific knowledge of the project 5) Impact of giving a gift to your cause Continued… Rehearsing the „Ask‟ … con‟t 6) How their gift can influence others 7) Focus discussion on interests of your prospect 8) Be a good listener 9) Ask for a specific amount – aim high (flatters prospect) 10) SHUT UP … and wait for their response 11) Always be positive, even if they say no Group Exercise: Making the „Ask‟ Go into groups of 3 (1 is prospect & 2 are solicitors) Select one of the two scenarios in your handbook Solicitors: Make list of strategies prior to making ask You have 15 minutes to make the ask… Questions? 1) Prospects ~ report on: Strength of the case presented to you Conviction from your solicitors Did they listen? Answer questions? Meet your wishes? What did they do to make you feel good about giving? Anyone have any real-life scenarios to share? Major Errors in Solicitation (Handout E7) 1) Not asking for the gift 2) Not asking for enough 3) Not listening .. talking too much 4) Not establishing common ground/interests 5) Talking about the “what” and not the “who” 6) Don‟t make it sound like a canned pitch 7) Failure to rehearse beforehand 8) Ignoring honest objections Continued… Major Errors in Solicitation (Handout E7) Con‟t 9) Forgetting to summarize before beginning solicitation 10) Poor body language 11) Asking too soon 12) Lack of flexibility or alternatives (what is Plan B?) 13) Settling on first offer from prospect 14) Forgetting to SHUT UP and wait for their answer 15) Not asking what your charity can do to help the prospect reach their goals or dreams Follow-up Activities After your face-to-face solicitation… 1) Record the results of your meeting 2) Schedule the follow-up meeting 3) Return to prospect with answers to questions 4) Report the pledge through proper channels Selecting Volunteer Solicitors Select right volunteer(s) for a particular ask (e.g. J.C.) On same or higher social & economic level as prospect Personally acquainted with prospect (e.g. B.S.) Training Volunteer Solicitors Use role play and “what if” situations Arm them with relevant, concise info on your charity Supply with knowledge of prospect‟s areas of interest Practice the „ask‟ with other volunteers Give articles and booklets on training (e.g. Nick) Consider videotapes and other relevant training tools See handout E8: “Advice to the Volunteer of Staff Solicitor” Acknowledgement & Recognition Acknowledgement: Refers to a formal receipt or acceptance of a gift, such as a thank you letter. Should be timely! Recognition: Refers to public recognition of a donation, such as a list of donors in a newsletter or membership in the “Gold Circle Club”. (Handout D12 Sample Donor Recognition Chart) Whether they admit it or not, most everyone wants recognition! Donor Recognition Formal gift recognition policy a must! Seek opinions of Board or donors to develop policy Be mindful of donor recognition wants (ask them) Understand donors‟ giving motives (e.g. George) Planned Giving Include major gifts, life income gifts, and estate gifts Just another vehicle for making a major gift (e.g. $100k bequest) Benefits: Current income tax deduction Avoid/lessen capital gains Opportunity for fixed or variable income Increased income (or cash flow) Management of assets It makes donor feel good Planned Giving Tools Bequests: Provision in a donor‟s will Charitable Gift Annuity: Donation of asset for agreed upon lifetime income for donor Charitable Remainder Trust: Donor transfers assets to a trust, and receives income from trust for lifetime. Assets distributed to charity upon death of last income beneficiary. Life Estate Contract: Agreement to transfer deed of property upon death, but used in donor‟s lifetime. Continued… Transparency E-8 Planned Giving Tools …. Con‟t Charitable Lead Trust: Donor transfers assets to charity for a specified period of time. At end of period, trust assets revert back to donor or donor designate Life Insurance Policies: 1) Donor transfers existing paid policy to charity 2) Donor purchases new policy, naming charity as beneficiary Pooled Income Funds: A common trust to which many donors make contributions and retains a pro-rata share of the funds earnings each year. Transparency E-8 Summary… Know your… 1) Six steps to major gift relationship building 2) Contents of a prospect profile 3) Prospect information confidentiality rules 4) Cultivation methods for major donors 5) Asking for the gifts … practice!! 6) Major donor acknowledgement & recognition Any Questions??? Thank you for your time!
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