THE NUTS & BOLTS OF MAJOR GIFTS AND PLANNED GIVING WEBINAR: THE NUTS & BOLTS OF MAJOR GIFTS AND PLANNED GIVING Jerry W. Henry

WHAT WE’LL COVER TODAY… Your Questions Major Gift Readiness Identifying & Researching prospects Case Study Establishing Momentum - Creating structure, process, accountability Planned Giving Summary

POLL: WHO’S ONLINE TODAY? Board Member Executive Director/CEO Development Director Other Staff Member

Tool Kit Donor Bill of Rights 7 “Sins” That Keep You from Having a Culture of Philanthropy Philanthropic Profile Assessment Checklist of Board Roles & Responsibilities Board Member “Thank You” log Board Solicitation Plan Top 10 Responsibilities of a Board Board of Trustees Individual Development Work Plan Sample Major Gifts Plan Best Practices for Major Gift Officers Major Gifts Prospect Management Flow Chart Top 10 Metrics for Major Gift Fundraising Success Gift Grid Connectivity Matrix 12 Questions to Gain Deeper Perspective on Major Donors

WHY ALL THE FUSS ABOUT MAJOR GIFTS? 95/5 is not sustainable Neither is depending upon older aged donors Fundraising profession is changing We have great opportunities  

Blackbaud Charitable Giving Report – 2015 Giving grew 1.6% Online giving grew 9.2% #GivingTuesday online donations were up 52% Nearly 14% of online donations are made on mobile devices

Blackbaud Charitable Giving Report – 2015 Smaller orgs. saw greatest increase (5.5%) Medium orgs. decreased .7% Large orgs. increased 1.4%

Blackbaud Charitable Giving Report – 2015 Human Services – down 2.8% Healthcare – up 1.9% Public Society Benefit – down .9%

Blackbaud Charitable Giving Report – 2015 Largest Giving by months: December 17.4% June 10.2% October 8.2% May 8.0%

$ CASE STRATEGY LEADERSHIP Elements for Major Gift Success

Targeted Cases, Constituents, and Methods CRITICAL FACTORS FOR A PHILANTHROPIC MAJOR GIFT FUND- RAISING ENVIRONMENT Donor- focused Research Targeted Cases, Constituents, and Methods Strategic Communication Stewardship

Major Gift Readiness INTERNAL Staff Database Moves Management Development Plan Major Gift Materials EXTERNAL Leadership Prospects Additional Constituents

MAJOR GIFT PROCESS Research Stewardship Identification Closure Solicitation Cultivation Research

From Suspect to Donor Suspects-community members; little or no involvement with organization Research to find interest and capacity Define strategy to engage Prospects – current donors, past Board members, event attendees Qualify area of interest and capacity Rank by outcome: campaign, annual fund, membership Donors - Cultivate and solicit new and renewed gifts Prospects for CEO and Board members should be high level, personal Development staff to solicit larger groups through personal, mail, email

Basic Prospect Research What research tools do you use in your organization? [Send your response now using Question/Chat window]

Internal Research Who is in Your Database? Segmented? Board Members Advisory Boards and Committees Donors (annual, capital, etc.) Prospects Suspects Special Event Attendees Publication Recipients Local Businesses and Foundations Other?

Internal Research Simple internal research: Track consistency of giving. Track size of gift. Track gifts of time. Track geographic distribution of file. Track history of personal contact.

Internal Research Sampling of Helpful Tools: Target Analytics [ Blackbaud.com/Analytics ] WealthEngine.com IWave.com DonorSearch.net NOZASearch.com (charitable donations) Zillow.com (real estate values) GuideStar.org (foundations)

Other Research Internet Peer Review Other? [Send in using Questions Chat box]

Managing the Information SET REALISTIC GOALS! Evaluate which sites work best for you. Only visit those top sites. Only research a reasonable number a people per week. Know when to stop searching. Don’t research people you already know about!

Gift Grid Identification Involvement Solicitation Solicitation Solicitation Driven by Method Relationship Frequency Small gift in-house file minimal mail impersonal yearly or more Institution acquisition list phone event Major gift past donors established face-to-face peer every 3-5 yr.s Institution/ suspects relationship president Donor executive dir. dev. officer board member volunteer Mega gift - past donors - personal personal one who once donor relationship evolves donor trusts desire for - life event - strong over time admires, change inheritance feelings stewardship believes in “pay-back” sale - specific recognition interest

Created by Alexander Haas Martin & Partners, Inc. 2005 CONNECTIVITY MATRIX High MAJOR GIFTS ANNUAL FUND PLANNED GIFTS Low Passion for Cause Low High Created by Alexander Haas Martin & Partners, Inc. 2005

Major Gift Donor Prospect Engagement Grid B Suggested Next Step: ADVANCED BRIEFING Organization “insiders” Need to define ask Determine volunteer solicitor D SMALL GROUP CULTIVATION “Emerging donors” = Friends rated prospects A ASK FOR MAJOR GIFT Current donor (upper level) Assigned to volunteer solicitor Ask amount defined C INTRO BRIEFING – ONE-TO-ONE Highly rated or identified by volunteer at high level but low/no gift history LOW HIGH ENGAGEMENT AND READINESS Gift Frequency? Assigned to solicitor? Current upper level annual donor? C A P A C I T Y

Strategic Process of Major Gift Solicitation Match motivation with gift Endowments Facilities Planned gifts Gifts for investment Gifts for immediate impact Gifts that convey importance Consider role of recognition Naming Opportunities Gift clubs Anonymous gifts.

CASE STUDY

CURE’s Mission Statement: CURE Childhood Cancer is dedicated to conquering childhood cancer through funding targeted research and through support of patients and their families. CURE’s Vision: CURE Childhood Cancer believes that childhood cancer can be cured in our lifetime.

ASSESSMENT RECOMMENDATIONS WORKSHEET – page 1 ASSIGNED TO TIMEFRAME NOTES Develop core list of potential Board Members Comm. on Board   Continue individual work plans Review Bylaws Implement term limits Develop leadership succession plan Re-engage former leaders Comm. on Board; Dev. Comm. Develop mentoring plan Conduct Board Retreat 100% Board Giving Dev. Comm.; Comm. on Board Fill vacancies strategically Designate Finance Committee Board approve actions of Exec. Committee Create Development Plan Development Comm. Review “case for support” Emphasize major gifts Focus on sequential fundraising Consider challenge gift Assess special events Emphasize face-to-face Conduct monthly mtgs of Development Comm. Weekly Exec. Dir. Mtgs with Dev. & Operations Ass’t. Staff

ASSESSMENT RECOMMENDATIONS WORKSHEET – page 2 ASSIGNED TO TIMEFRAME NOTES Develop Sponsorship pkg. Staff/Dev. Comm.   Conduct electronic screening of database Executive Director/Dev. Comm./Board (budget) Conduct acquisition mailing Engage mail-phone vendor to upgrade donors Employ Director of Development Executive Director/Board (budget) Review job descriptions Executive Director Conduct weekly staff mtgs. ED cultivates/solicits donors Review Donor giving levels Staff/Counsel/Dev. Comm. Develop leadership giving society Establish cumulative giving levels Review gift acknowledgment procedures Clean-up database Staff Draft special events policies Draft Planned giving policy Complete Gift Acceptance policy

Questions?

Managing Your Prospects Moves management - process of systematically and continuously identifying, qualifying, cultivating, soliciting, and closing gifts. “Moves” are intentional and purposeful, specific to the prospect, and time-limited. Moves require action steps.  

Managing Your Prospects For each active prospect, there should be a last action (status closed, when it is completed) and a next step (status open, with a deadline set in the future).   For a new prospect, one at the identification/qualification stage, there will be a next step (marked open, with a deadline set in the future).

TRACKING Elements of Action Items Report Prospect Name Projected Ask Amount Assigned Solicitor and staff back-up Potential Project or Purpose Last Action and Date Next Step and Date.

S.T.E.P.S. Strategies Toward Effective Prospect Solicitation # PROSPECT BACKGROUND LONG-TERM GOAL/STRATEGY NEXT STEP/RESPONSIBILITY 1   2 3 4 5 6  

Assigned to (Solicitor) Projected Request Amount Prospect Name Assigned to (Solicitor) Projected Request Amount Potential Project/Purpose Last Action Last Action Date Next Step Next Steps Deadline Jack Smith Judy Jones (DOD) $500,000 Leadership level commitment as part of Major Gift focus. Projects of possible interest: New Program Fund for Special Needs Judy and Cal Moore [volunteer] met with Jack to discuss the new program highlights. 8.15.08 Judy to send Jack invitation to the special lecture in October 2008. Cal to follow up with Jack after lecture; include Jack's wife Maria. Judy to send invite by 9.15.08 and followup on rsvp. Let Cal know if they are attending.   Jack wanted to know how the new program would benefit the organization, since he feels the staff is overworked with current programming.

SUMMARY Practice intentional contacts: cultivation, solicitation, closing When you close one action, open another Meet regularly—and use tools between meetings (email, voicemail) Stay focused!

Questions?

POLL: What is the most challenging part of the Major Gift process? Making the actual ask. 
 Dealing with objections or deflections. 
 Knowing how much to ask for. 
 Identifying qualified donors. Setting up the initial visit. Other? (Please use Questions to list)

Challenges New or inexperienced staff Reluctant leadership Burnt out volunteers (or staff) No sense of urgency No ending to look forward to No vision or compelling project No cultivated prospect pool Crisis of the moment

SUMMARY Agree to make Major Gifts a priority Define your “Major Gift” Relationship Building S.T.E.P.S.

“Where there’s a will…. you want to be in it!”

NUTS & BOLTS OF PLANNED GIVING Internal Readiness Planned Giving Options Marketing Planned Gifts Prospect Identification

INTERNAL READINESS Organization & Staffing Board Planned Giving INTERNAL READINESS Organization & Staffing Board Use of Planned Giving Professionals Policies/Guidelines

Planned Giving OPTIONS Outright Gifts Stock Real Estate

OPTIONS Charitable Lead Trust Expectancies Deferred Gifts Bequests Planned Giving OPTIONS Charitable Lead Trust Expectancies Bequests Retirement Plans/IRAs Life Insurance Deferred Gifts Charitable Gift Annuity Charitable Remainder Trusts CRAT CRUT

MARKETING Print materials Integration with Annual appeals Planned Giving MARKETING Print materials Integration with Annual appeals Stand-along mailings/email Seminars Personal Visits Recognition society

PROSPECT IDENTIFICATION Planned Giving PROSPECT IDENTIFICATION Current Planned Giving donors Annual fund donors Board, volunteers, staff Professional Financial Advisors Planned Giving Committee

RESOURCES Firms with free resources: Crescendointeractive.com Planned Giving RESOURCES Firms with free resources: Crescendointeractive.com Sharpenet.com Stelter.com DonorSearch tool: DSGiving.com

What Characterizes Successful Planned Giving Programs? Significant investment in cultivation of donors Proactive and strategic professional staff Executive tutored, skilled, and connected Active volunteer-staff partnerships Case exhibits three particular values: core mission and values “customer” oriented donor-focused Visits happen every week.

Questions?

POLL: What is the biggest challenge you’re experiencing with the CMF Challenge? Getting my Board members to participate. Articulating how the match works. Finding enough real prospects to contribute. Other? (Please use Questions to list)

SUMMARY

SUMMARY Don’t let difficult times become an excuse to do nothing. Take time to reaffirm your mission. Develop relationships with donors based on their needs.

SUMMARY Focus on quality not quantity. Determine the most effective ongoing cultivation activities. Engage people in your organization; don’t just involve them.

SUMMARY Build and cross bridges wherever possible. Exhibit proactive accountability. Inform donors about how they can help your organization.

SUMMARY Inform donors about how you can help them. Avoid “analysis paralysis.” Remember, the best cultivation is often the ask.

The harder you work, the luckier you get with major gifts! I’m a great believer in luck, and I find the harder I work, the more I have of it. --attributed to Thomas Jefferson (as well as to Mark Twain, Samuel Goldwyn, “Old Amish Saying,” and a host of others!) The harder you work, the luckier you get with major gifts!

Questions?

THANK YOU!