NP-3 Seizing Opportunities in Not-for-Profit Resource Development

October 7-10, 2007, Boston, MAMonday October 8 10:30 am – 12:30 p.m.

Charles M. Hiatt, Ph.D. Executive Director

The Evangelical Lutheran Good Samaritan Foundation

Contact Information

The Evangelical Lutheran Good Samaritan Foundation

Charles M. Hiatt, Ph.D.Executive Director4800 W 57th Street

Sioux Falls, SD 57108

Phone: (605)-362-3895chiatt@good-sam.comwww.good-sam.com

GSS MAP240 Campuses – 24/25 States

Learning Objectives

1. Understand the potential that exists for fund-raising in the 21st Century.

2. Develop a checklist of "to do" items in order to launch a fund-raising effort

3. List three new opportunities that a local campus could begin to increase their fund-raising in the next

year.4. Brainstorm strategic partners in the community that

could help provide planned giving assistance to the donors connected to a long term care campus.

5. Learn how to calculate return on investment for resource development dollars spent.

Source: Giving USA FoundationSource: Giving USA Foundation™™ / / Giving USA 2006Giving USA 2006

Individuals$199.07 76.5%

FoundationsFoundations$30.00$30.00 11.5% 11.5%

BequestsBequests$17.44 $17.44 6.7% 6.7%

CorporationsCorporations$13.77$13.775.3%5.3%

2005 CONTRIBUTIONS: $260.28 BILLION 2005 CONTRIBUTIONS: $260.28 BILLION BY SOURCE OF CONTRIBUTIONBY SOURCE OF CONTRIBUTION

Transfer of Wealth

• $41,000,000,000,000• 1998-2052 • Boomers Receive!

• Boomers Give?• Cattle on a Thousand

Hills

Connectedness

10

101

Mortensen Model

The “Olde Fashioned” Way Still Works

Memorial Gifts

Annual Gifts

Capital Gifts

Endowment/ Planned Gifts

TO DO: A Twelve Step Program1. Discover top 12 donors

2. Visit face-to-face to say thank you

3. Take a Board member along if possible

A Twelve Step Program (con’t)

4. Dream big –create a vision worthy of funding by inviting your department heads and Board members to dream about a preferred future for your campus

5. Create “wish list” ranging from $100 to $50,000

6. Plan two direct mail appeals:– Spring – Mother’s Day or Memorial Day – October to December – an end-of-the-year appeal

A Twelve Step Program (con’t)

7. Identify 7-12 donor prospects that you can touch once per month for the next year to cultivate a major gift toward your vision.

8. Make the visiting of these prospects a priority that is both important and urgent

9. Believe these people will delight in helping advance your mission and vision.

A Twelve Step Program (con’t)

10.ASK ASK ASK.

11.THANK THANK THANK.

12.Repeat all 12 steps annually.

How to Dream

• Scenario with Department Heads

• Bad News - Aunt Harriett died

• Good news - She left $250,000

• Per year for 4 years!!!

• If you had a million over 4 years . . .

• Let’s dream

Try Some Baby Steps

• Highly Desired Program

• $25,000 level may fit better than 250,000

• Get Some Donors Started

Three Opportunities

1. Converting Dream to Reality

2. Start a $1,000 Club

3. Design a Simply Powerful Campaign

1. Converting Dream to Reality

• Good News – Aunt Harriett did not die

• Bad news – no easy $250,000

• Get it the old fashioned way

• Raise it from friends of/on your campus

• Staff will help because they want their dreams

Unlikely Options

• Two pennies from 12,500,000 people

• Two pennies doubled for 25 days

• $1.00 wrist bands to 250,000 people

• Mrs. I. M. Rich for a single gift

Double Two Pennies

Day 1 - .02Day 2 - .04Day 3 - .08Day 4 - .16Day 5 - .32Day 6 - .64Day 7 - 1.28Day 8 - 2.56

Day 17 - $1.311 18 - 2,621 19 - 5,243 20 - 10,486 21 - 20,972

22 - 41,94323 - 88,88624 -167,77225 -335,544

More Likely Option

• Simple Campaign

• with a Structured Gift Pattern aimed at

– Donors of Record (see 12 Step Program)

– or Friends Waiting to be Asked

2. Start a $1,000 Club it’s “magic”

• President’s Circle

• Friends of . . .

• Compassion Circle for Benevolent Care

• Staff Scholarship Program

• Gift Options$1,000 per year for 5 years 5,000 per year for 5 years 15,000 per year for 5 years

3. Design a Simply Powerful Campaign

• Mission +Vision + Values = Power

• Seek Help of Board Members

• A Compelling Case for Support– Why would anyone care - Mission– Why would they give – Vision (not needs)– What are the benefits to residents –Values

• QR + CA = MG

Gift Pattern for $25,000• 1 @5000 5,000 • 2 @3000 6,000 • 3 @1000 3,000

14,000 56%• 10 @500 5,000 • 12 @300 3,600 • 15 @100 1,500 • 20 @ 50 1,000 • 63 25,000 or more

Gift Pattern for $250,0001 @25,000 25,000

3 @15,000 45,000

6 @10,000 60,000

130,000 52%

10 @5,000 50,000

12 @3,000 36,000

15 @1,000 15,000

20 @ 500 10,000

50 @ 300 15,000

117 gifts totaling 250,000 or more

Who You Gonna Call (ask)?

• That really smart, good looking person you see in the mirror every morning– Ask not before you

giveth– Empowering Act

• Board Members• Key Staff• Friends• Donors• Mainstreet

– Your Town– Celebrate Economic

Impact– Salaries x 7 = ???

Planned Giving 101

• Wills or Bequests – pleasant positive surprises

• Somebody Did the Work

• Charitable Gift Annuity

• Will Designations

• Life Insurance Gifts

• Who Can Help You Do This?

Planned Giving Help

• Community Foundation

• Some Attorneys

• Most Financial Planners

• Board Members via personal or professional experience

Cost-to-Raise-a-Dollar

• Benchmarks in Industry

• BBB

• American Institute of Philanthropy

• What is the magic number for you?

Do the Math

• I = income of 142,000

• E = expense of 42,600

• E ÷ I = Cost-to-raise-a-dollar of ___ cents

• Brainstorm 3 strategies to lower this cost

• Ask this Baptist pastor working for the Lutherans to tell his bar room benchmark!!!

Questions and Answers

NP-3 Seizing Opportunities in Not-for-Profit Resource Development

Pack Your Suitcase 3 __________

X 90 __________

= 50% __________