Donor Centered Fundraising

Child and Family Services

Of Northwestern Michigan

Prepared by: Kathy Lievense, CFRE

The Summit Group, Consultants in Philanthropy

$306.3 BillionContributed in 2007

Individual Giving

$252 Billion

82.3% of all Gifts

Individuals $229 Billion

Bequests $ 23 Billion

Corporate Giving

$15.6 Billion5.1% of all Gifts

Foundation Giving$38.5 Billion12.6% of all Gifts

Who is Receiving the Contributions We Make?

Religion 33.4%

Education 12.1%

Human Services 9.7% The number of

Foundations 9.1% 501©3 organizations

Unallocated Giving 7.7% stands at an all time

Health 7.6% high of 1,126,367

Public Society (UW) 7.4%

Arts & Culture 4.5%

International Affairs 4.3%

Environment & Animals 2.3%

The largest increase in 2007 was to international affairs (16.1%). Human services showed an increase of 8.4%.

Pyramid of Giving – The Five I’s

IDENTIFICATION

INFORMATION

INTEREST

INVOLVEMENT

INVESTMENT

The Ladder of Effectiveness

• Direct Mail

• Media Use

• Special Events

• Phone-a-Thons

• Grants

• Personal telephone without letter follow-up

• Personal telephone call by a peer with a letter follow-up

• Solicitation by personal letter without a follow-up telephone call

• Solicitation by a personal letter with a follow-up telephone call

• Personal visit by one person

• Personal visit by a team

Moves ManagementThe most empowering

strategies for all major gift fundraisers!

Moves Management Program

1. Select 20-25 of your best prospects

2. Create a file on each person

3. Identify “natural partners”

4. Consult with natural partners

5. Select a primary player6. Develop a strategy for

each prospect

7. Plan your next 5-10 moves and establish gift objectives

8. Record and review9. Refine strategy10.Review, refine, review,

refine, etc.

Plan one move per month for your best prospects!

90/10 Rule!

•

Donor-Centered Fund RaisingFocuses not on Money, but on the People Behind the Money

Since the fundraising industry has put such a strong emphasis on planned giving, why is performance in this area not

showing improvement?

Why is 50% renewal rate after the first gift considered to be the “industry standard”?

If people made an effort to support a charity in the first place, then what is happening in fundraising that causes half of

them to say “no” the very next time they are asked to give?

Why do almost 90% of donors disappear within five renewal campaigns?

Where are these donors going?

A cycle ensues: giving, seeking but not finding satisfaction, moving on to another charity.

Solution… We must foster all relationships effectively!

How to Build Donor Loyalty

“Garbage In, Garbage out”

Give highest priority to securing a second gift from first-time donor

(bonding “window” is 1-3 months)

Basic rule of economics: Investmore in cultivation and retaining higher

value donors

Identify and specifically address likely defectors

Reconsider how to tell your success story to existing donors

Introduce your “leader” in person to donors

Treat online donors as your most valuable members

Monitor both your traditional and emergent competition

How do you communicate how you are different from other organizations?

Respond and resolve all donor inquiries

Let’s Focus on a New Generation!

Who are the Millinias?

Born since 1968

They work collaboratively

They believe they can makethe world a better place

They live immersed in causes

Their signature is digital fluency

They ask “How do we begin?”

Often feel under-appreciated within organizations

Talk on-line in venues that support open, free-flowing conversations and opinions

What Do We Ask Ourselves?

Why do we want to connect to the Millennias?

What conversations do we want to have with them?

How open are we to listening to them?

What will we allow them to do that we don’t feel we have to control?

Today’s younger generation are the philanthropists of tomorrow!

Characteristics of a Major Gift Prospect

Has the capacity to give, as might be recognized by past giving, lifestyle, or knowledge of family circumstances

ORIs philanthropic, a regular donor to other organizations

ORHas a philanthropic interest in foster care or adoption

ORHas an affiliation with CFS, such as a volunteer, parent,

relative or friend AND

Is Accessible

Making the Call!

“Every gift involves a bit of the donor’s self. Giving moneyis the most personal expression of a person’s values.”

REMEMBER:REMEMBER:

We are not seekers of money. We are engaged in empowering people to share!

We must have commitment, knowledge, skill & practice

The foundation of the solicitation is built on the Case Statement

People Give to People!

Making the Call!Be proud you’re inviting others to join you in helping others

Tell who will be helped

Give donors a choice

Ask donors what THEY want

Lay the foundation, plan for the long term, end the hard sell

Encourage feedback – comments, questions, complaints

Thank the donor, Thank the donor, Thank the donor

Be a donor yourself!

Additional Suggestions for Making the Call

• Remind the donor that his/her gift may be matched

• Offer monthly, quarterly or annual installments

• Put a smile on your face• Listen to your donors;

switch from monologue to dialog. Successful fundraisers listen 80% of the time

Additional Suggestions for Making the Call

• Be positive

• Think like a donor

• Offer donors the opportunity to become involved

• Invite donors to “see for themselves”

• Communicate with passion

• Tell stories, use photographs, use words wisely

• Explain reality

Standards of Giving Necessaryfor a $50,000 Campaign

This gift chart indicates that: 80% of the money will be contributed by 20% of the donors and 20% of the money will be contributed by 80% of the donors.

$ 5,000 4 1 $ 5,000

$ 2,500 8 2 $ 5,000

$ 2,000 16 4 $ 8,000

$ 1,000 32 8 $ 8,000

$ 500 64 16 $ 8,000

$ 250 100 25 $ 6,250

$ 150 120 30 $ 4,500

$ 100 160 40 $ 4,000

Less than $100 600 154 $ 1,250

TOTAL 1,104 280 $ 50,000

Donor Centered Gift Recognition

• Hold open houses where children are present

• Recognize program support through press releases

• Plaques – 53% of corporate donors will display them; 5% of individual donors will display them

• Present framed pictures drawn by a child

• Have the “right”person thank the donor• Host a “thank-a-thon”• For every one time a person makes a

gift, contact them two other times without asking for money.

• Take pictures. 86% of corporations & 65% of individuals love it!

• Remember donors when they are ill or celebrating a special day

PLAN! PLAN! PLAN!

• Goals’ Objectives & Strategies• Gift Acceptance Policies• Annual Calendar• Conflict of Interest Guidelines• Marketing/Public Relations Plan in Coordination with

Fundraising Plan• Job Descriptions (staff, volunteers, committees & board

members)• Publications• Coordination of annual fund, major gift program and

planned giving program – DONOR CENTERED!

Philanthropy in the NewEconomy

Challenges

Focus on the positive rather than the negativeRaise awareness of opportunities

Build infrastructureCreate a more philanthropic cultureEducate the board about their role in

philanthropyCommunicate often with donors without a

financial request

STRATEGIES

Going green and using more email

More efficient use of the website

Asking board members to make cultivation calls rather than solicitation calls

Inviting major gift donors to share why they made gifts

Asking the Executive Director to call and thank donors

Looking to make best use of social media

Encouraging younger people to be involved on committees

Key Advice for Philanthropy in the New Economy

Your case is a terrific cultivation and fundraising tool

Make more personal contactsDonors want to see ROI

“Philanthropy is voluntary action for the public good through voluntary action, voluntary association and voluntary giving.” Payton, 1988

Through the centuries, it has been clearly established that people want and have a need to

give. People want to give to causes that serve human and societal needs. They will give when

they are assured the organizations they contribute money to are worthy, and accountable

in using the gifts they have received.

Through communication, cooperation, and coordination, we can enable all people to

experience the joy of giving!

Questions &

Answers