Asking for Money

Perry T. Hammock, CFREExec. Dir. DevelopmentIvy Tech Community College of Indiana

© Perry Hammock, 2011

Americans gave $300 billion dollars philanthropically in 2010.

$40 billion went to education.

Money is NOT the issue.

ASKING IS

Givens About Asking

Actually It’s Easy – Very Few AH’s are big

donors Committed people love

to give others the same opportunity to feel good

It is just as easy ask for $50k as a $1k.

Philanthropists vs. donors

IS ASKING COMPLICATED?

Nah – it’s only 30 seconds different.

It is both a science and an art.

Send the right person to ask for the right amount for the right cause.

EVERYONE HAS TO ASK FOR THE ORDER! With Vigor, with Passion, with Commitment You can’t ask if you don’t give

That goes for volunteers, staff, faculty – no exceptions Giving is a top-down model – you gotta start at the top

(a little secret - It’s a lot like pyramid sales) It’s all about “proportional, sacrificial giving”, not

“let’s get everyone to give $1,000.”

How Do I Get My Board to Ask?

Set the culture early Be sure they are sufficiently inculcated so they are

passionate Get them thanking first Make sure the assignments fit Tag team them Pick cherries – and low hanging fruit Take them through some training

How About My President?

Remember the 30 second difference Answer Q’s before asked Focus, Focus, Focus Early success Calendar far in advance Never cancel Report to the Board Have them “sit in” on training

Bottom Line: If We Don’t Ask

We are meeting the mandates of our mission We are on the cutting edge of technology,

pedagogy and service No students are turned away All faculty are fully supported No new programming is necessary Excellence is rampant We don’t need any more money We fall off the philanthropic radar

Key Predictors of Success

The Fund Raising Cycle

Inner Circle

Family

Major Donors

Community

Influence

Lead Donors

The Giving Pyramid:Hammock’s Razor

Approach Fits Donor Motivations Communitarians – 21%

Makes sense to give Helps Community prosper

Investors – 15% Evaluates potential Tax advantages make difference

Socialites – 11% Less Interested in operations Change the world and have fun doing it

Repayers – 10% First Constituents, then donors Personally benefited, giving back

Altruists – 9% Selfless – anonymous often Moral imperative – human growth

Dynasts – 8% Family tradition to give Often inherited wealth

Why Gifts Are Made

Belief in mission Knowledge of Organization Dynamic leadership Financial Solidity Clear, focused presentation Right Person asked Empathy, Energy, Enthusiasm

Why Gifts Are Not Made

No relationship Wrong Interest area Wrong person asked Wrong Amount Timing Lack of Persistence

What are you Selling?

Maybe they aren’t Buying what we are

Selling here!

Projects and proposals have to be Visionary, Compelling, Lasting, Nicely Packaged, and Show Measurable Community Benefits! PRIMA FACIE!

Big Donors Don’t Fund

Existing Programs Incremental Improvement Things In Which They

Have No Interest Things with Passion that

do Not Make Sense

Whom Do We Ask them to Ask? The 20% that can do the 80% Philanthropists Leaders of opinion, movement, action Snakes – detractors NOT small gifters, donors, annual funders

How Do We Strategize?

The I and E Session for Prospective Major Donors

Current Donors and Prospects LAI – Ability, Linkage, Interest Not what they might give, but what they COULD

give should they be moved by our case, team, presentation

Strategy – team, timing, project Confidential Group Discussion Lets team take ownership

Forensic Research Fleshes Out… Linkage Ability – Capacity Interest Knowledge Networks Obligations History

“First, They Do an On-line Search.”

But, Donors Care That-

The RIGHT person asks The CAUSE is valid The INSTITUTION -and its

CEO- is trusted The CASE is visionary The caller is

knowledgeable, considerate, and PASSIONATE

Etiquette of Asking. We… are asking for a project to

change lives can “dollarize” the value of the

project are committed and passionate pledged already won the campaign on paper did our homework – on you offer opportunity to be part of

something transformational

It’s Showtime, Folks!!!

Getting the Meeting

85% of Success Letter of Intent Make the Call Suggest times 30 minutes T - TH Business – not food “Knew you’d want to hear

more…”

“No Thursday’s out. How

about never. Is never good?”

Before the Visit Do your Pre-Planning Make your gift first Assign the team Ride together to the visit Have a plan for the meeting

Best Possible Outcome Alternative Offer Minimum Acceptable Outcome An Exit Strategy

Nerves Are Good!

A little adrenaline Sharpens the senses Sounds like passion

Too much-not so good Lose focus, strategy

Why be too nervous? Lack of preparation, strategy, team, project. You will survive this half-hour

Opening the Meeting Business first – small talk later Build rapport then get on with it – 30 min. Testimony We have an exciting project, one we know you

will find compelling Not here to ask for money (if appropriate)

I will be back to ask for money, but not today Ask series of knowledge Qs

Listen for the Gift 75% of meeting should be listening Panas Says 11 minutes is the max to explain

the project Hear their passions, motivations Ask them what they think about the project Probe for concerns – turn objections into

shared objectives

Is Our Timing Right? Assess readiness – pick path If time is truly not right – go to least

acceptable outcome plan

Close the meeting This has been a great visit, I am so pleased

that you’re interested in this project. Let’s get a date for our next visit – how is next Tuesday at 3?

You may get another visit, or may get moved to the ask but…

You are ready for either occurrence Let’s assume “What do you want me to

do?”

The Moment of Truth Case has been built – in their terms Stress relevancy, drama, urgency Tell story, don’t cite statistics Tell how important their leadership or

participation is Would you to consider (can we count on

you for) an investment of $$ in this project?

After the Ask SHUT UP!

Be comfortable with silence You can only oversell at this point Maintain eye contact, interest Whoever speaks next, loses

After the Silence is Broken

Answer questions - reinforce positives Talk about pledge periods May need to mention other lead donors

but not amounts Thank them deeply, if they say “YES!” Make the small talk (you’ll still have time) Take your leave

The Objection Phase How to turn objections around “I pay taxes”, “I heard the school is

changing missions”, “Why build another building, there are empty ones all over town”, “Get the State to give you $$.”

Feel, Felt, Found Restate strengths of case, importance,

urgency, relevance

But, If They Say…

“Boy, I have to think it over – I’m not sure about this.” You say,

“Of course You should – I’ve asked for a significant investment.” Return to objectives, set next meeting.

But, if “NO” - “Let me ask…was it the..Amount?” Institution?”Project?” Timing?”

Leaving the Meeting Arrange a date for follow up – or to meet

w/ the spouse or advisor. Have your calendar handy (not your laptop or PDA)

Don’t leave a card Send a confirmation letter

Death Phrases of the Worst Askers

“Since you gave to X we thought you would do the same for us”

“What is it you do?” “Whatever you can do is great” “I’ll have my secretary follow up” “Would you consider membership in this

giving club?”

The Best Askers Are Organized Call on Decision Makers Plan all calls – in detail Have a specific objective Listen, empathize, excite Encourage objections Spell out the ROI to the Donor ASK FOR THE COMMITMENT

The campaign chair seems to have a better feel for what I’m worth than my broker does!

What about those No’s??

Build strong egos 8 ways

Process, not event

No money without Relationship

3 to 7 No’s to Get to YES

FOR THE 100TH TIME IN AS MANY DAYS!…I DO NOT HAVE A QUARTER!!

Build Strong Egos It’s amazing that if you ask, you will receive

Many benefits (think of 8) New student referrals Placement opportunities Volunteer potential Feedback on marketing efforts success Stories on connections, interests Things to address

JUST REMEMBER…

Big Gifts Beget Big Gifts – Hammock’s Rule of 3s

It takes same amount of work to ask for $50,000 or $5,000

NO Means NOT YET! Asking is fun, rewarding,

and exciting

We’re reviewingyour case. You still have a long way togo on that pledge.

Make a list of 5 prospects or under represented donors, rank order by L+I+A

Pre-Plan with volunteers Match the top 3 with projects Develop Strategies Solicit Evaluate

Your Homework

Required Reading

And thanks to: Jerold Panas, for

“Asking”

Jeffrey Fox, for “How to Be a Rainmaker”

This is the best class ever!

Questions?

Mr. Hammock, My Brain hurts.