From Cultivation to From Cultivation to Stewardship:Stewardship:Building Long Term Building Long Term Major Giving Major Giving RelationshipsRelationships

PBS Development ConferencePBS Development ConferenceSaturday, October 8 Saturday, October 8 1 – 4:30 p.m.1 – 4:30 p.m.Kay Sprinkel Grace, FacilitatorKay Sprinkel Grace, Facilitator

Special Thanks to the Special Thanks to the Workshop TeamWorkshop Team

Georgi Kelly, KQEDGeorgi Kelly, KQED

Cheryl Ikemiya, OPBCheryl Ikemiya, OPB

Michele Ripley, KETMichele Ripley, KET

AgendaAgenda Welcome and introductionsWelcome and introductions Overview of this “hands on” sessionOverview of this “hands on” session Defining and developing a donor-centered fund Defining and developing a donor-centered fund

raising program (cultivation, solicitation and raising program (cultivation, solicitation and stewardship)stewardship)

Creating a plan to sustain a relationship-based Creating a plan to sustain a relationship-based major giving program at your stationmajor giving program at your station

Maintaining an investor relationship with donorsMaintaining an investor relationship with donors Creating and sustaining a culture of Creating and sustaining a culture of

philanthropyphilanthropy

Overview of SessionOverview of Session Intended to be “hands up” (please interrupt Intended to be “hands up” (please interrupt

with questions) as well as “hands on” – a with questions) as well as “hands on” – a working session based on presentation of working session based on presentation of materialmaterial

Three major giving officers from stations Three major giving officers from stations are here as a team with the facilitator – are here as a team with the facilitator – they will each present some ideas and they will each present some ideas and material, but they are also here to help material, but they are also here to help facilitate and be a resourcefacilitate and be a resource

Information balanced with interaction in Information balanced with interaction in small groupssmall groups

Two opportunities to plan; lots of Two opportunities to plan; lots of opportunities to think and talkopportunities to think and talk

Participant Expectations Participant Expectations and Issues at Your and Issues at Your Stations: DiscussionStations: Discussion

What did you come here to learn?What did you come here to learn? What issues are you confronting at your What issues are you confronting at your

station in major giving?station in major giving? What challenges would you like to have the What challenges would you like to have the

skills to overcome?skills to overcome? Are there “givens” that you will have to work Are there “givens” that you will have to work

with and you want to learn “coping skills?”with and you want to learn “coping skills?” What would be the best outcome of the What would be the best outcome of the

session for you?session for you?

Defining and Defining and Developing a Donor-Developing a Donor-Centered Fund Raising Centered Fund Raising ProgramProgram

Basis for a successful major Basis for a successful major giving programgiving program

What We Know About What We Know About Our DonorsOur Donors

““Show me that you know me.”Show me that you know me.” How much do you know about yours?How much do you know about yours? What would your major donors say What would your major donors say

motivates them to give?motivates them to give?

Georgi Kelly on the KQED major donor Georgi Kelly on the KQED major donor focus groups and their findingsfocus groups and their findings– PresentationPresentation– DiscussionDiscussion

KQED Producer’s Circle KQED Producer’s Circle Focus GroupsFocus Groups Our Goal: Through the focus Our Goal: Through the focus

groups we sought to better groups we sought to better understand why donors understand why donors increase their support of KQED increase their support of KQED and how they view us vis-à-vis and how they view us vis-à-vis other cultural institutions in the other cultural institutions in the Bay Area.Bay Area.

KQED Producer’s Circle KQED Producer’s Circle Focus GroupsFocus Groups Our Process - Step by StepOur Process - Step by Step

1. Co-Chairs of the Producer’s Circle, key 1. Co-Chairs of the Producer’s Circle, key staff and the consultant met three staff and the consultant met three times to define the project and times to define the project and identify what we hoped to learn.identify what we hoped to learn.

2. Identified the number and types of 2. Identified the number and types of groups we wanted to conduct, where groups we wanted to conduct, where we would have them and who we we would have them and who we would invite. Invited participants by would invite. Invited participants by letter with phone follow up.letter with phone follow up.

KQED Producer’s Circle KQED Producer’s Circle Focus GroupsFocus Groups Our process, step by step, cont.Our process, step by step, cont.

– 3. Developed discussion guides and collected 3. Developed discussion guides and collected “stimuli”.“stimuli”.

– 4. Conducted the events:4. Conducted the events:– Served dinner and, even some wine…Served dinner and, even some wine…– Recorded the event (promised anonymity, but not Recorded the event (promised anonymity, but not

confidentiality)confidentiality)– No staff were allowed to participateNo staff were allowed to participate

– 5. The consultant transcribed the recordings, 5. The consultant transcribed the recordings, provided a literal (coded) transcript, a full analysis provided a literal (coded) transcript, a full analysis and report and an executive summary—and made and report and an executive summary—and made a full presentation to the Producer’s Circle a full presentation to the Producer’s Circle Committee.Committee.

KQED Producer’s Circle KQED Producer’s Circle Focus GroupsFocus Groups Changes we have made in Changes we have made in

response to the feedback we response to the feedback we received.received.– Case statement: increased focus on Case statement: increased focus on

interest areas (e.g. arts and science).interest areas (e.g. arts and science).– ““How-to” events.How-to” events.– Increased program specific mailings Increased program specific mailings

(e.g. tune-in cards, but decreased (e.g. tune-in cards, but decreased frequency of our newsletter).frequency of our newsletter).

KQED Producer’s Circle KQED Producer’s Circle Focus GroupsFocus Groups Final Observations:Final Observations:

– How we fit against the “competition”.How we fit against the “competition”.– Great way to involve volunteers and Great way to involve volunteers and

Board members.Board members.– A form of high level stewardship for A form of high level stewardship for

the participants.the participants.– ““Prove” (or “dis-prove”) your Prove” (or “dis-prove”) your

hypotheses!hypotheses!

What We Know About What We Know About Major GiftsMajor Gifts Their size is relevant: what is major to some Their size is relevant: what is major to some

stations/organizations is not major to anotherstations/organizations is not major to another We should not gauge their value by their size, We should not gauge their value by their size,

but by the commitment the gift symbolizesbut by the commitment the gift symbolizes Not all “major donors” make major giftsNot all “major donors” make major gifts They can be restricted or unrestricted, annual They can be restricted or unrestricted, annual

or capital, planned/deferred or simply or capital, planned/deferred or simply occasionaloccasional

Your station, no matter its size, is “eligible” for Your station, no matter its size, is “eligible” for major investment if you build relationships major investment if you build relationships

Major gifts are growing faster than any other Major gifts are growing faster than any other kindkind

Realities of Major Realities of Major GivingGiving Major giving cannot be compartmentalized from the Major giving cannot be compartmentalized from the

rest of your giving programs – including special rest of your giving programs – including special events, pledge and direct marketing/membership events, pledge and direct marketing/membership programs – at some point all giving is part of a programs – at some point all giving is part of a continuum (point of entry to point of exit)continuum (point of entry to point of exit)

Major giving doesn’t work without volunteersMajor giving doesn’t work without volunteers What happens in other giving programs influences What happens in other giving programs influences

the success of attracting and retaining major the success of attracting and retaining major donorsdonors

From the earliest point of the relationship, there is a From the earliest point of the relationship, there is a critical need to start building a relationship with the critical need to start building a relationship with the donor – to become donor-centereddonor – to become donor-centered– How are you doing on this at your station?How are you doing on this at your station?

Ingredients of a Successful Ingredients of a Successful Major Giving ProgramMajor Giving Program

A compelling case for support based on A compelling case for support based on mission, vision and values of the mission, vision and values of the organization, shared with the community organization, shared with the community through outreach, programs and projectsthrough outreach, programs and projects

Staff vision for what is possible for the Staff vision for what is possible for the organization, but also for the giving organization, but also for the giving program: a solid planprogram: a solid plan

Qualified prospects (connection, concern, Qualified prospects (connection, concern, capacity) and a belief in relationship-based capacity) and a belief in relationship-based engagementengagement

Willing volunteers (Ambassadors, Willing volunteers (Ambassadors, Advocates, Askers) Advocates, Askers)

Ingredients of a Ingredients of a Successful Major Giving Successful Major Giving Program - 2Program - 2 Commitment to strategic cultivation and on-Commitment to strategic cultivation and on-

going donor stewardshipgoing donor stewardship Understanding of donor motivation (more on Understanding of donor motivation (more on

this later)this later) Recognition that major gifts are social Recognition that major gifts are social

investments made by social investorsinvestments made by social investors Organizational focus on communicating the Organizational focus on communicating the

impact of major gifts on the community and impact of major gifts on the community and the organizationthe organization– How do you evaluate your station on these points?How do you evaluate your station on these points?

Three Core Steps in Three Core Steps in the Development the Development ProcessProcess CultivationCultivation

– Strategic (not “events for the sake of events”)Strategic (not “events for the sake of events”)– ““Horizontal” and “vertical”Horizontal” and “vertical”– More than “random acts of kindness”More than “random acts of kindness”– Personal and communications outreachPersonal and communications outreach

SolicitationSolicitation– Based on donor’s interests and needsBased on donor’s interests and needs– Focus on relationships and values, not just $Focus on relationships and values, not just $

StewardshipStewardship– What the donor wants in terms of a continuing What the donor wants in terms of a continuing

relationshiprelationship

Ten Principles to Ten Principles to Guide Donor-Guide Donor-Centered Giving Centered Giving

Understanding motivation is Understanding motivation is the key to building the key to building relationships and keeping relationships and keeping your donors loyalyour donors loyal

1.1. Rethink Old Rethink Old Generalizations Generalizations About MotivationAbout Motivation

Younger generations, women, people off the Younger generations, women, people off the social circuit and people of color are not social circuit and people of color are not always motivated by the old “carrots” – always motivated by the old “carrots” – recognition, peer pressure, guilt, quest for recognition, peer pressure, guilt, quest for immortalityimmortality

They are cause-drawn and outcome-They are cause-drawn and outcome-motivatedmotivated

They are also keen on accountability and They are also keen on accountability and transparencytransparency

Its not your father’s philanthropy: like your Its not your father’s philanthropy: like your mother’s, newer donors are looking for mother’s, newer donors are looking for involvement before and after they giveinvolvement before and after they give

2. Motivation Grows 2. Motivation Grows Out of ValuesOut of Values

Match the donor’s values (e.g., your focus Match the donor’s values (e.g., your focus on program/outreach issues – health, aging, on program/outreach issues – health, aging, domestic violence – matches his/her values domestic violence – matches his/her values and your delivery of those messages is and your delivery of those messages is having a community impact)having a community impact)

Convey values by linking prospects with Convey values by linking prospects with projects and people: words alone don’t do itprojects and people: words alone don’t do it

Motivate donor-investors by connecting Motivate donor-investors by connecting them with the values impact of your them with the values impact of your projects; involving donors with cultivation of projects; involving donors with cultivation of new donors also works wonders (create new donors also works wonders (create “donor champions” through your “donor champions” through your stewardship)stewardship)

3. Remember the Three 3. Remember the Three Basic Motivations for Basic Motivations for GivingGiving Connection (linkage)Connection (linkage)

– Knows someone on staff or boardKnows someone on staff or board– Is passionate about public broadcastingIs passionate about public broadcasting

Concern (interest)Concern (interest)– Issues you address are relevant to themIssues you address are relevant to them

Capacity (ability)Capacity (ability)– Relative and absoluteRelative and absolute– The least important motivation in givingThe least important motivation in giving

4. Motivation is Ignited 4. Motivation is Ignited by Passion for the by Passion for the MissionMission The age of passive philanthropy is ending (one of The age of passive philanthropy is ending (one of

the reasons we struggle with membership decline); the reasons we struggle with membership decline); as the face of philanthropy changes, so does its as the face of philanthropy changes, so does its quest.quest.

A heightened interest in outcomes is replacing a A heightened interest in outcomes is replacing a need for rewards (and premiums)need for rewards (and premiums)

Recognition must be increasingly mission-Recognition must be increasingly mission-connectedconnected

Passion is fueled by involvement (previews, Passion is fueled by involvement (previews, production opportunities, time with teachers)production opportunities, time with teachers)

All meetings involving donors and volunteers need All meetings involving donors and volunteers need to have a “mission moment” with a direct message to have a “mission moment” with a direct message from those who benefit from what you dofrom those who benefit from what you do

5. Research Can Give Clues 5. Research Can Give Clues About Motivation, but the About Motivation, but the Donor Knows Best!Donor Knows Best! Get to know your major prospects and donors Get to know your major prospects and donors

(“Show me that you know me”)(“Show me that you know me”) Use research (Wealth ID, PIN, in-house) to Use research (Wealth ID, PIN, in-house) to

provide a platform for exploration but rely on provide a platform for exploration but rely on personal interaction and mission exposure to personal interaction and mission exposure to learn more about “psychographics”learn more about “psychographics”

HOWEVER: many “new” donors are either not on HOWEVER: many “new” donors are either not on our radar screens OR not known to us at all (they our radar screens OR not known to us at all (they may be looking at us because of the issues we may be looking at us because of the issues we are dealing with)are dealing with)

We focus on motivation to get the gift, but often We focus on motivation to get the gift, but often fail at keeping that motivation alive once the gift fail at keeping that motivation alive once the gift is received (transactional –vs- transformational is received (transactional –vs- transformational approach)approach)

How Do We Use Research How Do We Use Research to Find Out More About to Find Out More About Donors?Donors? What does research tell you?What does research tell you? What does it not tell you?What does it not tell you? How do you handle research in your station?How do you handle research in your station? How OPB is going to manage their prospect How OPB is going to manage their prospect

information from wealth screening (policies, information from wealth screening (policies, procedures, practices)procedures, practices)– Cheryl IkemiyaCheryl Ikemiya– Discussion: how would you use this Discussion: how would you use this

information?information?

Prospect Research at Prospect Research at OPB:OPB:Before we got startedBefore we got started What makes a screening What makes a screening

successful?successful?– Clear expectations of the screening Clear expectations of the screening

results and of roles/responsibilities for results and of roles/responsibilities for everyone involvedeveryone involved

– Good housekeeping—accuracy of Good housekeeping—accuracy of records, policies and proceduresrecords, policies and procedures

– Didn’t press “SEND” until we had an Didn’t press “SEND” until we had an implementation planimplementation plan

– Keep goals realistic, timeframes short Keep goals realistic, timeframes short

From Prospect Research From Prospect Research to Prospect to Prospect Management: Management: Implementation PlanImplementation Plan Identify an administrator for the screening Identify an administrator for the screening

project and ongoing prospect project and ongoing prospect management programmanagement program

Assess needs for skill building and plan Assess needs for skill building and plan appropriate training for everyone involvedappropriate training for everyone involved

Document Prospect Management Practices Document Prospect Management Practices for the full Development Team (staff and for the full Development Team (staff and volunteers) – roles/responsibilities, volunteers) – roles/responsibilities, confidentiality, ID & qualification, confidentiality, ID & qualification, assignment, tracking & reportingassignment, tracking & reporting

From Prospect Research From Prospect Research to Prospect to Prospect Management: Management: Implementation Plan - 2Implementation Plan - 2 Set up systems in donor database Set up systems in donor database

to support prospect managementto support prospect management Decide what research results to Decide what research results to

upload into the donor databaseupload into the donor database Decide how many “good Decide how many “good

prospects” needed to meet goals prospects” needed to meet goals

From Prospect Research From Prospect Research to Prospect to Prospect Management: Management: Implementation Plan - 3Implementation Plan - 3 Portfolio Analysis:Portfolio Analysis:

– Category 1 – Highly rated by the screening Category 1 – Highly rated by the screening and currently under management by OPB and currently under management by OPB development officersdevelopment officers

– Category 2 – Not rated as good prospects Category 2 – Not rated as good prospects by the screening but have been under by the screening but have been under managementmanagement

– Category 3 – Highly rated by the screening Category 3 – Highly rated by the screening and not on our radarand not on our radar

From Prospect Research From Prospect Research to Prospect to Prospect Management: Management: Implementation Plan - 4Implementation Plan - 4 Verify prospects in Category 2 and 3Verify prospects in Category 2 and 3 Establish exploratory strategies for Establish exploratory strategies for

Category 3 prospects (highly rated but not Category 3 prospects (highly rated but not on radar), group strategy and assignmenton radar), group strategy and assignment

Determine specific roles for key volunteers Determine specific roles for key volunteers in prospect management processin prospect management process

Placeholder strategiesPlaceholder strategies Calendar progress reporting and process Calendar progress reporting and process

evaluation meetingsevaluation meetings

Research ResourcesResearch Resources

Enlisting the Board of Directors Enlisting the Board of Directors and other volunteersand other volunteers

Helpful web sitesHelpful web sites Research firmsResearch firms

6. Motivation is 6. Motivation is InternalInternal: : You Provide You Provide External External Messages that Connect with Messages that Connect with Existing MotivationsExisting Motivations

You cannot motivate people: they are already You cannot motivate people: they are already motivated – your job is to find out what motivated – your job is to find out what motivates them and give the messages and motivates them and give the messages and create the environment for involvement that create the environment for involvement that will help their motivation flourish and engage will help their motivation flourish and engage them with youthem with you

Listen (two ears, one mouth ratio) to what Listen (two ears, one mouth ratio) to what donors say and ask; observe who they donors say and ask; observe who they gravitate towards at eventsgravitate towards at events

Most of all, listen for the nearly audible “click” Most of all, listen for the nearly audible “click” when your station’s values combine with theirswhen your station’s values combine with theirs

Incorporating Issues and Incorporating Issues and Values in Membership Values in Membership and Major Givingand Major Giving Is your case compelling?Is your case compelling? Does it focus on issues that will draw Does it focus on issues that will draw

out the values of your members and out the values of your members and donors?donors?

Are you consistent across all programs Are you consistent across all programs and platforms with your messaging?and platforms with your messaging?

How KET’s fund raising programs (even How KET’s fund raising programs (even pledge programs) convey the values of pledge programs) convey the values of the stationthe station– Michele Ripley, KETMichele Ripley, KET– Discussion – how do yours measure up?Discussion – how do yours measure up?

KET: Kentucky KET: Kentucky Educational TelevisionEducational Television ““Across Kentucky, I saw the heroic Across Kentucky, I saw the heroic

struggle to provide equal education struggle to provide equal education thwarted by the barrier to unequal thwarted by the barrier to unequal resources. It was essential that we resources. It was essential that we harness the power of television to assure harness the power of television to assure the education and enrichment of our the education and enrichment of our people so they would have every possible people so they would have every possible opportunity. We could not afford to opportunity. We could not afford to accept less.”accept less.”

KET Founder O. Leonard PressKET Founder O. Leonard Press

KET: Changing KET: Changing philanthropy demands philanthropy demands case that merits case that merits supportsupport

A majority of giving has shifted to restricted and A majority of giving has shifted to restricted and special interest projects.special interest projects.

Repositioned KET not as a television station Repositioned KET not as a television station (operational?), but rather as the state’s largest (operational?), but rather as the state’s largest educational institution.educational institution.

Added new opportunities for major, restricted giftsAdded new opportunities for major, restricted gifts Case Statement: compelling, donor-centric, Case Statement: compelling, donor-centric,

reinforces impact on external needs, reflects reinforces impact on external needs, reflects significance of ask, reassures transformational significance of ask, reassures transformational decision, stands-out in competitive environment.decision, stands-out in competitive environment.

Basis for new values messaging across all Basis for new values messaging across all platforms.platforms.

KET: The resultsKET: The results

Individual and Foundation major gifts Individual and Foundation major gifts have exceeded 30% each of the past have exceeded 30% each of the past three years (system average: 6%).three years (system average: 6%).

153% net fund-raising growth since 153% net fund-raising growth since 2002.2002.

7. Giving and Renewing is a 7. Giving and Renewing is a Matter of Connecting to the Matter of Connecting to the Vision and Seeing it UnfoldVision and Seeing it Unfold

People buy in to a vision: if you want BIG People buy in to a vision: if you want BIG gifts, make it BIGgifts, make it BIG

Cultivation is based on enrolling prospects Cultivation is based on enrolling prospects in a vision.in a vision.

Solicitation is based on engaging a Solicitation is based on engaging a prospect to become an investor in the prospect to become an investor in the vision while acting on his/her values.vision while acting on his/her values.

Stewardship is based on the progress Stewardship is based on the progress towards vision, and how the donor’s towards vision, and how the donor’s investment is helping advance that vision. investment is helping advance that vision.

7. Giving and Renewing is a 7. Giving and Renewing is a Matter of Connecting to the Matter of Connecting to the Vision and Seeing it Unfold Vision and Seeing it Unfold (continued)(continued)

Vision is not just for your station: it is for Vision is not just for your station: it is for the community if your vision is fulfilledthe community if your vision is fulfilled

Vision is another source that fuels passion: Vision is another source that fuels passion: with the feeling of powerlessness in the with the feeling of powerlessness in the face of national and world events that face of national and world events that many people have experienced recently, many people have experienced recently, engaging in your vision may be the most engaging in your vision may be the most empowering thing they can doempowering thing they can do

How Changing the Way We How Changing the Way We Approach Cultivation, Approach Cultivation, Solicitation and Stewardship Solicitation and Stewardship Can Inspire Donor Can Inspire Donor EngagementEngagement

From From High Impact High Impact PhilanthropyPhilanthropy

Kay Sprinkel Grace & Kay Sprinkel Grace &

Alan Wendroff (Wiley, 2000)Alan Wendroff (Wiley, 2000)

Transactional Giving:Transactional Giving:The Bell CurveThe Bell Curve

High Impact PhilanthropyKay Sprinkel Grace, Alan Wendroff

Transformational Transformational Giving: Giving: The Infinity LoopThe Infinity Loop

High Impact PhilanthropyKay Sprinkel Grace, Alan Wendroff

8.8. The Goal of Good The Goal of Good Stewardship is to Keep the Stewardship is to Keep the Donor Donor Relationship StrongRelationship Strong

Stewardship: the ongoing relationship with a Stewardship: the ongoing relationship with a donor based on mutual respect for both the donor based on mutual respect for both the source and impact of the gift (source and impact of the gift (Beyond Fund Beyond Fund Raising,Raising, Grace, 1997; Grace, 1997; Beyond Fundraising, Beyond Fundraising, Second Edition, 2005)Second Edition, 2005)

A key ingredient in effective stewardship is the A key ingredient in effective stewardship is the ability to communicate progress towards visionability to communicate progress towards vision

We retain our donor-investors through We retain our donor-investors through stewardship: their commitment to us motivates stewardship: their commitment to us motivates them to become ambassadors, advocates and them to become ambassadors, advocates and askers – in short, our champions – and helps us askers – in short, our champions – and helps us bring in new prospects and donors who share bring in new prospects and donors who share our values and visionour values and vision

9. Motivated Donors 9. Motivated Donors Should be Linked with Should be Linked with Motivated VolunteersMotivated Volunteers Staff-only soliciting is not a good trend: it may be Staff-only soliciting is not a good trend: it may be

more efficient and in some cases more effective, more efficient and in some cases more effective, but volunteers represent the community, evidence but volunteers represent the community, evidence commitment to the station and may link better commitment to the station and may link better with the prospect’s experience and values. They with the prospect’s experience and values. They are critical to relationship-based social investment.are critical to relationship-based social investment.

The peer ask is still the most effective and most The peer ask is still the most effective and most motivating in most major gifts programs: motivating in most major gifts programs: volunteers can also learn the “cues and clues” for volunteers can also learn the “cues and clues” for having a conversation about planned givinghaving a conversation about planned giving

The best approach is to have trained and The best approach is to have trained and knowledgeable staff working with motivated and knowledgeable staff working with motivated and committed volunteerscommitted volunteers

10. The Self Solicit10. The Self Solicit Ultimately, if you do your job right and Ultimately, if you do your job right and

build relationships, the most motivated build relationships, the most motivated major donors will “self-solicit” (the late Bill major donors will “self-solicit” (the late Bill Kimball, former Chair, Stanford University Kimball, former Chair, Stanford University Board of Trustees and a great major gifts Board of Trustees and a great major gifts volunteer)volunteer)

A motivation-stimulating environment, A motivation-stimulating environment, connection with the programs and people connection with the programs and people that “click” with a prospect’s values and that “click” with a prospect’s values and connection with volunteers who also care connection with volunteers who also care will lead to an internal dialogue resulting in will lead to an internal dialogue resulting in the “self-solicit”the “self-solicit”

It also works for well-stewarded donor-It also works for well-stewarded donor-investorsinvestors

2121stst Century Donor- Century Donor-InvestorsInvestorsWhat’s the Basis for the What’s the Basis for the Relationship?Relationship?

What Makes Them Tick?What Makes Them Tick?

From Interviews for From Interviews for High High Impact PhilanthropyImpact Philanthropy (Kay (Kay Sprinkel Grace and Alan Sprinkel Grace and Alan Wendroff, 2001)Wendroff, 2001)

Five “I”s of 21Five “I”s of 21stst Century Century Donor MotivationDonor Motivation

To make relevant social To make relevant social investmentinvestment, not just a , not just a giftgift

To see and know true To see and know true impact impact -- The focus -- The focus groups with major donors at KQED revealed their groups with major donors at KQED revealed their interest in the impact of their gift on the interest in the impact of their gift on the capacity of KQED public broadcasting to fulfill its capacity of KQED public broadcasting to fulfill its missionmission

To fund To fund issues issues that reflect their values and that reflect their values and desiresdesires

To fund new To fund new ideas ideas that effectively address needs that effectively address needs or problems whether they are old or emergentor problems whether they are old or emergent

To respond to opportunities for appropriate To respond to opportunities for appropriate involvement involvement (stewardship and the market of (stewardship and the market of one)one)

From the Workshop From the Workshop TeamTeam

How is all of this working at your How is all of this working at your station?station?

What would you challenge?What would you challenge? What would you endorse?What would you endorse? What are some of the relationship-What are some of the relationship-

based successes you have had?based successes you have had? Discussion and questionsDiscussion and questions

Culture of Culture of PhilanthropyPhilanthropy Everyone on staff is willing to be part of Everyone on staff is willing to be part of

the “development” (relationship creating the “development” (relationship creating and nurturing) teamand nurturing) team

Everyone on the board takes a motivating Everyone on the board takes a motivating role (Ambassador, Asker, Advocate)role (Ambassador, Asker, Advocate)

From the “top down” there is a From the “top down” there is a commitment to the importance of commitment to the importance of philanthropyphilanthropy– What can you do to increase that culture in What can you do to increase that culture in

your station? (Georgi, Cheryl, Michele with your station? (Georgi, Cheryl, Michele with small groups)small groups)

Adequate ResourcesAdequate Resources

It takes money to raise moneyIt takes money to raise money Cultivation and stewardship are not Cultivation and stewardship are not

immediate revenue-producing immediate revenue-producing activities – neither are they “travel and activities – neither are they “travel and entertainment”entertainment”

There is a break-point with staffing There is a break-point with staffing (and a breakdown-point with staffers! – (and a breakdown-point with staffers! – learn one, and avoid the other)learn one, and avoid the other)

Making your case with financeMaking your case with finance– Discussion with workshop team inputDiscussion with workshop team input

Focus on the Person, Focus on the Person, Not Their WalletNot Their Wallet Fund raisers are sometimes described as Fund raisers are sometimes described as

“pick pockets”“pick pockets” We need to put the relationship and the We need to put the relationship and the

individual ahead of the moneyindividual ahead of the money We need to maintain stewardship with We need to maintain stewardship with

donors even in “off giving” years (invite donors even in “off giving” years (invite them, write them, excite them)them, write them, excite them)

It is the strongest indication of our true It is the strongest indication of our true attitude towards our donors (and one of the attitude towards our donors (and one of the problems we face in membership because of problems we face in membership because of the sheer numbers involved)the sheer numbers involved)– What is your assessment of your station in this key What is your assessment of your station in this key

relationship area?relationship area?

Creating a Plan for Creating a Plan for Major GivingMajor Giving

Relationship building for Relationship building for successsuccess

Developing a Major Developing a Major Giving PlanGiving Plan Must be part of the larger Must be part of the larger

Development Plan, which is part of Development Plan, which is part of the larger institutional strategic or the larger institutional strategic or long range planlong range plan

There need to be adequate resources There need to be adequate resources in place (staff and/or volunteers and in place (staff and/or volunteers and money) to support the programmoney) to support the program

If it is to be a priority, what existing If it is to be a priority, what existing priority will it usurp as your attention priority will it usurp as your attention turns to major giving?turns to major giving?

AssignmentAssignment

Work in teams for 30 minutes on Work in teams for 30 minutes on the scenario provided in the the scenario provided in the handouthandout

Appoint a facilitator and a note Appoint a facilitator and a note taker for your group (one of taker for your group (one of whom may also be the reporter whom may also be the reporter back to the rest of the group)back to the rest of the group)

FeedbackFeedback

Developing a Developing a Prospect PlanProspect Plan

Work individuallyWork individually

Your AssignmentYour Assignment

For the next 20 minutes, work on a prospect For the next 20 minutes, work on a prospect plan that includes the following (use the plan that includes the following (use the worksheet provided):worksheet provided):– Identification of a major giving prospect (you don’t Identification of a major giving prospect (you don’t

need to provide the name)need to provide the name)– What strategy you will use to cultivateWhat strategy you will use to cultivate– Who will be involved in the solicitationWho will be involved in the solicitation– What will you ask for and how will you ask (draw on What will you ask for and how will you ask (draw on

the points of the solicitation)the points of the solicitation)– What objections do you anticipate and the What objections do you anticipate and the

responseresponse– How you will handle “no” or “maybe” (or “yes”)How you will handle “no” or “maybe” (or “yes”)– Stewardship plans to keep the prospect engaged Stewardship plans to keep the prospect engaged

as an investoras an investor

DiscussionDiscussion

What more did you need to know What more did you need to know about the prospect?about the prospect?

What more did you need to know What more did you need to know about the program or other focus of about the program or other focus of the ask you are making?the ask you are making?

Who else do you need to involve?Who else do you need to involve? What aspects of your plan will predict What aspects of your plan will predict

its success? Failure?its success? Failure? General commentsGeneral comments

Trends for the 21Trends for the 21stst CenturyCentury

Keeping relationship-based Keeping relationship-based major giving on track in a major giving on track in a changing environmentchanging environment

Rise in Disposable Rise in Disposable WealthWealth

Again, and at lastAgain, and at last Dealing with the remnants of psychic povertyDealing with the remnants of psychic poverty ““Filling in the middle” – moving back to the Filling in the middle” – moving back to the

donor pyramid from the donor “hourglass”donor pyramid from the donor “hourglass” Looking at investor sense of belonging that Looking at investor sense of belonging that

transcends annual giving or membershiptranscends annual giving or membership Realizing that baby boomers (at last) are Realizing that baby boomers (at last) are

givinggiving Growing planned giving so that the Growing planned giving so that the

intergenerational transfer of wealth does not intergenerational transfer of wealth does not pass you bypass you by

Changes in Profiles of Changes in Profiles of PhilanthropistsPhilanthropists

– The world of philanthropy has opened The world of philanthropy has opened wider than ever before – is your wider than ever before – is your outreach, cultivation and development outreach, cultivation and development marketing keeping pace? Will you attract marketing keeping pace? Will you attract major donors?major donors?

– If a donor tests you with a small gift, do If a donor tests you with a small gift, do you withstand the test?you withstand the test?

– Do you know how to build relationships Do you know how to build relationships with the emerging philanthropists?with the emerging philanthropists? DiscussionDiscussion

A Thought Before A Thought Before Closing….Closing….

“ “The vineyards of philanthropy are The vineyards of philanthropy are pleasant places, and I would hope good pleasant places, and I would hope good men and women will be drawn there. men and women will be drawn there. Most of all, I would hope it will be better Most of all, I would hope it will be better understood that if these vineyards are understood that if these vineyards are to thrive and bear their best fruit, they to thrive and bear their best fruit, they must always have first-class attention.” must always have first-class attention.”

Harold J. “Si” Seymour, Harold J. “Si” Seymour, Designs for FundraisingDesigns for Fundraising

First Class Attention First Class Attention for Your Major Donorsfor Your Major Donors

Keep them connected with your mission, Keep them connected with your mission, vision, values, of course!vision, values, of course!

Be donor-centered and invest the money Be donor-centered and invest the money and people it takes to nurture relationshipsand people it takes to nurture relationships

Engage them in ways that Engage them in ways that show them that show them that you know themyou know them: let their outreach to : let their outreach to others help you keep the pipeline full of others help you keep the pipeline full of people who want a relationship with your people who want a relationship with your station!station!

From Cultivation to From Cultivation to StewardshipStewardship

Kay Sprinkel Grace & TeamKay Sprinkel Grace & TeamPBS DevCon 2005PBS DevCon 2005kaysprinkelgrace@aol.comkaysprinkelgrace@aol.comwww.transforming-philanthropy.orwww.transforming-philanthropy.orgg