PowerPoint Presentation - Association of Fundraising Professionals

							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


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                   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
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                   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)



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    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




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   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

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             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




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    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



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             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…
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         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.



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                    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!