Major Gifts Fundraising

MAJOR GIFTS MAJOR GIFTS FUNDRAISINGFUNDRAISING

A Strategic ApproachA Strategic Approach

April 17, 2012April 17, 2012

Presented byPresented by

Mary Saionz, CFREMary Saionz, CFRE

A Strategic PerspectiveA Strategic Perspective

Q. What is a Major Gift?Q. What is a Major Gift?

A. A gift that has a lasting and A. A gift that has a lasting and significant impact on improving the significant impact on improving the well-being and quality of life of our well-being and quality of life of our community and helping to build a community and helping to build a better world. Depending on your better world. Depending on your institution, it could be an investment institution, it could be an investment in the future of anything from in the future of anything from $5,000 to $500 million—or more.$5,000 to $500 million—or more.


Q. How is major gifts fundraising Q. How is major gifts fundraising different from fundraising through a different from fundraising through a challenge, direct mail or events?challenge, direct mail or events?

A. It is fundraising that is planned and A. It is fundraising that is planned and executed one donor at a time (not executed one donor at a time (not fundraising through group appeals).fundraising through group appeals).


Q. Why is major gift fundraising Q. Why is major gift fundraising important to your institution?important to your institution?

A. 80% or more of all the dollars that A. 80% or more of all the dollars that Americans give to charity are Americans give to charity are contributed by 20% or less of the contributed by 20% or less of the population in gifts of $5,000+. To population in gifts of $5,000+. To achieve your organization’s fundraising achieve your organization’s fundraising potential, you must identify your 20% potential, you must identify your 20% and seek their support. Here’s how:and seek their support. Here’s how:


““Fundraising is really the process of Fundraising is really the process of asking people to share a dream or a asking people to share a dream or a vision. We ask our donors to consider vision. We ask our donors to consider the possibilities of a better world—to the possibilities of a better world—to help us leave the world a bit better help us leave the world a bit better than when we came into it. We ask than when we came into it. We ask others to dream with us, to share our others to dream with us, to share our ideals and to help make what was ideals and to help make what was once only a thought become reality.”once only a thought become reality.”


““In good times and bad, we know that In good times and bad, we know that people give because you meet needs, people give because you meet needs, not because you have needs.” not because you have needs.”

““Feeling gratitude and not expressing Feeling gratitude and not expressing it is like wrapping a gift and not it is like wrapping a gift and not giving it.”giving it.”


““Money is like manure. If you spread Money is like manure. If you spread it around, it does a lot of good; but if it around, it does a lot of good; but if you pile it in one place, it stinks like you pile it in one place, it stinks like hell.”hell.”

How can Giving Partner, AF How can Giving Partner, AF and events lead to MG’s--and events lead to MG’s--

ProspectingProspecting• Review gifts daily. Look for patterns—Review gifts daily. Look for patterns—

longtime giving or a sudden jump in gift longtime giving or a sudden jump in gift size.size.

• Consistently call your smaller donors to Consistently call your smaller donors to thank them personally and LISTEN to their thank them personally and LISTEN to their insights. (Would 10 calls a week be insights. (Would 10 calls a week be realistic for you?)realistic for you?)

• Wealth-screen consistent and involved Wealth-screen consistent and involved annual givers to ascertain who, properly annual givers to ascertain who, properly stewarded, might be capable of doing more.stewarded, might be capable of doing more.

ProspectingProspecting

• Pull a list of donors who’ve been Pull a list of donors who’ve been supporting you for 5+ consecutive supporting you for 5+ consecutive years. These are good Planned years. These are good Planned Giving Prospects.Giving Prospects.

• If you are fundraising for a If you are fundraising for a particular subset of your particular subset of your organization, pull a list of donors organization, pull a list of donors who have supported that area in the who have supported that area in the past.past.


• Build on your Board’s connectionsBuild on your Board’s connections• Ask them to review lists of capable Ask them to review lists of capable

donors/prospects you haven’t been able to donors/prospects you haven’t been able to get close toget close to

• Pull lists of people in your database that live Pull lists of people in your database that live in your Board members’ apartment in your Board members’ apartment buildings and ask them to review.buildings and ask them to review.

• Ask Board members about people they know Ask Board members about people they know who may be interested in being introduced who may be interested in being introduced to your organization. How would they feel to your organization. How would they feel comfortable getting this to happen?comfortable getting this to happen?


• Capture names at events, wealth Capture names at events, wealth screen and look for wealth indicatorsscreen and look for wealth indicators

• If appropriate, wealth screen lists of If appropriate, wealth screen lists of the people you serve and see who the people you serve and see who comes to the topcomes to the top

• In my view, buying lists is a last In my view, buying lists is a last resort—costly and inefficient.resort—costly and inefficient.

Major Gifts CultivationMajor Gifts Cultivation

• The experts say it can take 18-24 moves The experts say it can take 18-24 moves to cultivate and solicit a major gift. to cultivate and solicit a major gift.

• What the major gifts officer does over What the major gifts officer does over the course of these 12-18 moves is to the course of these 12-18 moves is to build a donor-centered relationship build a donor-centered relationship between the donor and your institution between the donor and your institution so that you come to understand the so that you come to understand the donor as an individual and you can donor as an individual and you can respond to his/her motivations and respond to his/her motivations and needs. Specifically:needs. Specifically:


• Things you should know about the donor Things you should know about the donor before soliciting a gift include:before soliciting a gift include:

• Passions and prioritiesPassions and priorities. What were her . What were her formative experiences and what does she formative experiences and what does she care deeply about, especially as relates to care deeply about, especially as relates to your institution’s mission.your institution’s mission.

• Capacity Capacity Does this person have the Does this person have the means to make a transformative gift?means to make a transformative gift?

• AffinityAffinity What is this person’s assessment What is this person’s assessment of and commitment to your institution?of and commitment to your institution?

Major Gifts Cultivation-Major Gifts Cultivation-More things to knowMore things to know

• Does he have a philanthropic mindset?Does he have a philanthropic mindset? Were his parents philanthropic? Has Were his parents philanthropic? Has he made significant gifts elsewhere?he made significant gifts elsewhere?

• What are her objections and concerns?What are her objections and concerns?• What should you ask him to support?What should you ask him to support?• How much should you request?How much should you request?• Who should be involved in the Who should be involved in the

cultivation and solicitation?cultivation and solicitation?


• Moves Management: Moves Management: A system for A system for moving your 150-250 person moving your 150-250 person portfolio of donors forward through portfolio of donors forward through this information-gathering and this information-gathering and relationship-building process:relationship-building process:

• Review your prospect list once a Review your prospect list once a month in light of the questions month in light of the questions above. What do you know and what above. What do you know and what do you need to know? do you need to know?


Reach out to each individual in a Reach out to each individual in a personalized way. Whatever move personalized way. Whatever move you make it must be appropriate to you make it must be appropriate to the donor and your current the donor and your current relationship and be about some point relationship and be about some point of overlap between the donor and of overlap between the donor and your institution. Meetings, tours, your institution. Meetings, tours, notes, calls, articles etc.notes, calls, articles etc.


• Establish a development goal for Establish a development goal for each encounter. Goals can include:each encounter. Goals can include:

• --Building a feeling of good-will and --Building a feeling of good-will and trust (this is a goal every time).trust (this is a goal every time).

• --Incrementally increasing the --Incrementally increasing the donor’s exposure to your institutiondonor’s exposure to your institution

•

Major Gifts Cultivation-Major Gifts Cultivation-More goalsMore goals

• --Listening People sometimes think --Listening People sometimes think that effective fundraisers talk, when that effective fundraisers talk, when it’s much more important that we it’s much more important that we know how to listen. We find out know how to listen. We find out what we need to know about our what we need to know about our donors by gradually and gently donors by gradually and gently posing open-ended questions and posing open-ended questions and listening to the answers. (See listening to the answers. (See listening test.) listening test.)


• --Before completing each encounter, --Before completing each encounter, try to articulate an appropriate next try to articulate an appropriate next step and ask the donor’s permission step and ask the donor’s permission to do it.to do it.

• --Tickle the next step on your --Tickle the next step on your calendar and follow through by doing calendar and follow through by doing what you said you would dowhat you said you would do

• --Record what you learned about your --Record what you learned about your donor in your database and review it donor in your database and review it before you meet againbefore you meet again

Asking for the GiftAsking for the Gift

Before you can solicit a major gift, you Before you can solicit a major gift, you must know the following specifics:must know the following specifics:

• What project will you seek support for?What project will you seek support for?• How much money will you ask for?How much money will you ask for?• What VIP’(s) should be in the meeting?What VIP’(s) should be in the meeting?• Do family members/advisors need to be Do family members/advisors need to be

involved?involved?• Where should the meeting take place?Where should the meeting take place?


• Get the meeting on everyone’s Get the meeting on everyone’s calendars and arrange for a room calendars and arrange for a room and light refreshment and light refreshment

• Prepare an agenda and assign Prepare an agenda and assign everyone the points they will cover. everyone the points they will cover. A generic example could be:A generic example could be:

Asking for the Gift-Asking for the Gift-AgendaAgenda

• Pleasantries Pleasantries • Thank donor specifically for past givingThank donor specifically for past giving• Brief, pithy description of the project you a Brief, pithy description of the project you a

re currently seeking support for and its re currently seeking support for and its significance. (None of this should be news significance. (None of this should be news to the donor.)to the donor.)

• Ask for a specific amount to support it. Ask for a specific amount to support it. Mention that the gift could be paid over as Mention that the gift could be paid over as many as five years with cash, securities etc, many as five years with cash, securities etc, with possibly a deferred component. with possibly a deferred component. Mention how meaningful and important Mention how meaningful and important their involvement would be. (None of this their involvement would be. (None of this should be news to the donor.)should be news to the donor.)

Asking for the Gift-More Asking for the Gift-More AgendaAgenda

• Stop talking and LISTEN to the Stop talking and LISTEN to the donordonor

• Address objectionsAddress objections• Define a next stepDefine a next step• PleasantriesPleasantries


• Meet with VIP solicitor(s)Meet with VIP solicitor(s)• Review the agendaReview the agenda• Ask the solicitor which points he/she Ask the solicitor which points he/she

would like to coverwould like to cover• Reiterate that LISTENING to the donor is Reiterate that LISTENING to the donor is

essentialessential• Anticipate the donors objections and talk Anticipate the donors objections and talk

through possible responsesthrough possible responses• Give the VIP a pep talkGive the VIP a pep talk


• Meeting with the DonorMeeting with the Donor• Confirm everyone the day before and Confirm everyone the day before and

briefly review the VIP’s role and briefly review the VIP’s role and listen to concerns. Give another pep listen to concerns. Give another pep talk.talk.

• Be early, relaxed and readyBe early, relaxed and ready• Follow your agendaFollow your agenda


After the meeting:After the meeting:• Send a thank you note to the donor and Send a thank you note to the donor and

the VIP solicitorthe VIP solicitor• Note what happened in the meeting in Note what happened in the meeting in

your databaseyour database• Do whatever was promised as a next stepDo whatever was promised as a next step• Stay in touch with the donor regularly Stay in touch with the donor regularly

until the matter is resolved one way or until the matter is resolved one way or another.another.

StewardshipStewardship• ThankThank• In letters, calls and in person. (Some say to thank In letters, calls and in person. (Some say to thank

donors 7 times before re-soliciting.) Tell what their donors 7 times before re-soliciting.) Tell what their gift accomplished.gift accomplished.

• Acknowledge gifts with appropriate tax language Acknowledge gifts with appropriate tax language within 48 hourswithin 48 hours

• Update acknowledgement letters annually and Update acknowledgement letters annually and specifically enumerate what has been accomplished specifically enumerate what has been accomplished with their helpwith their help

• Create slight variations of your acknowledgement Create slight variations of your acknowledgement letter for different sub-groups of donorsletter for different sub-groups of donors

• Establish gift clubs or levels to recognize donors for Establish gift clubs or levels to recognize donors for cumulative givingcumulative giving

StewardshipStewardship

• Recognize.Recognize. Some ways include: Some ways include:– Naming opportunitiesNaming opportunities– Plaques and donor wallsPlaques and donor walls– Publications, including annual reportPublications, including annual report– Web siteWeb site– Ribbon cutting ceremonyRibbon cutting ceremony

StewardshipStewardship

• InvolveInvolve• Let donors know what their gifts are Let donors know what their gifts are

accomplishingaccomplishing• Stay in contact with donors when you’re not Stay in contact with donors when you’re not

asking money in ways that can include calls, asking money in ways that can include calls, notes, newsletters, e-formation etc. notes, newsletters, e-formation etc.

• When you get a corporate or foundation gift, When you get a corporate or foundation gift, tickle the report due date right away and submit tickle the report due date right away and submit it when it is due. it when it is due.

• Identify volunteer opportunities that are good fitsIdentify volunteer opportunities that are good fits• Ask donors for input and advice Ask donors for input and advice

Goal SettingGoal Setting

• See handouts for tools for evaluating See handouts for tools for evaluating your effectivenessyour effectiveness

Observations and Q&AObservations and Q&A

• Please share one thought sparked by Please share one thought sparked by our discussion today about Major our discussion today about Major Gifts Fundraising.Gifts Fundraising.

• Questions?Questions?

NotesNotes________________________________________________________________________________

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Contact Contact InformationInformation

Mary Saionz, CFREMary Saionz, CFREDirector of Major GiftsDirector of Major GiftsSarasota Memorial Healthcare Sarasota Memorial Healthcare

Foundation, Inc.Foundation, Inc.1515 South Osprey Avenue, Suite B-41515 South Osprey Avenue, Suite B-4Sarasota, FL 34239Sarasota, FL 34239(941)917-1286(941)917-1286(941)917-2270 Fax(941)917-2270 [email protected]@smh.com

Education

Major Gifts Fundraising