The Wrong Way to Do Everything an unconventional look at Major Gift Solicitation in 2016 Katy Prebble President, Academy of the Holy Cross Kensington, MD & Bill Acton Senior Partner, Advancement Partners Columbus, OH + Chicago, IL October 2016

The Reality of Advancement in 2016 “People are working harder than ever, but because they lack clarity and vision, they aren’t getting very far. They, in essence, are pushing a rope … with all of their might.” Stephen R. Covey

Three Key Realities: 1. People are giving more money to charities than ever before. 2. On average, people are giving to fewer charities. 3. The average gift to charity is larger than it has ever been. Major Gifts (annual gifts of $5,000+, pledged gifts of $25,000+) are more critically important than ever.

From the Bingo Director: “Every time a hearse goes by, there goes another loyal customer.” - director of a Catholic organization’s bingo operations… as stated to Bill Acton in 2009

The Future of Our Catholic Organizations Depends on Our Success with… Major Gifts Philanthropy Investments Ingrid Bergman understood this in 1945

One Commitment Can Transform Your Mission Two Case Studies: Lead Donors & Their Impact The Bells of St. Mary’s: Mr. Bogardus as a one-man campaign The Time is Now A Campaign for Bishop O’Connell High School: The transformative power of a $3 million gift

The cost to raise $1 Events (auctions, walks, raffles, etc.) $.50 to $.60 Direct mail/phone/email combo efforts $.20 to $.33 Go Fund Me $.09 to $.11 Major Gifts/Campaign $.03 to $.08

How to Go About Major Gifts There are multiple wrong ways… And we have done most of them

Wrong Way #1: Prep “Don’t start a major gift program/campaign/initiative until you have a robust annual fund or special event activities in place.”

Wrong Way #2: Prep “Don’t invest in electronic prospect research – all you get back is bad data, and it’s so invasive.”

Wrong Way #3: Prep Cards, premiums Invitations to events, coffees “Spend lots of time cultivating prospects before soliciting them. Take your time!” Cards, premiums Invitations to events, coffees More cards and flowers Old Paradigm: cultivation New Paradigm: ENGAGEMENT

Wrong Way #4: Prep “Be sure to have every “i” dotted and “t” crossed on each prospect before you schedule an appointment with him or her. It is important that you know every detail you can about your prospects before you solicit them.”

Wrong Way #5: Prep “You can’t solicit someone for a capital gift until you have budgets finalized, construction timelines nailed down and drawings complete.”

Get Organized Excel/Access File for tracking Hard copy files Investor Solicitation Get Organized Excel/Access File for tracking Hard copy files Prospect Pool – by hierarchy Gameplan: Steering committee In-town/ out-of town

Wrong Way #6: Appointment Setting “In this day and age, face-to-face meetings are over-rated.”

Wrong Way #7: Appointment Setting “In scheduling appointments, be careful not to call or email more than once or twice – you don’t want to be a pest, and if they don’t call back, they don’t want to give – or maybe they are just rude.

Wrong Way #8: Appointment Setting “Do not try to schedule someone by… Texting them Calling them at work Asking them at another event

Face to Face Visit Do not cold call prospects. Investor Solicitation Face to Face Visit Do not cold call prospects. “Push” prospects into a solicitation “pipeline” in a controlled manner Schedule after a pre-call activity Consider: Pre-call event Pre-call mailing

Investor Event “Out of the box” approach Set the tone and the stage Investor Solicitation Investor Event “Out of the box” approach Set the tone and the stage Make people feel they are “in the right room.” Let them now exactly what will happen next.

Sample Agenda Reception, wine and cheese, etc. (30 min) Investor Solicitation Sample Agenda Reception, wine and cheese, etc. (30 min) Welcome/purpose of the evening (2 min) Video presentation (8 min) Case for support by CEO (5 min) Testimonial by key stakeholder (5 min) Call to action by stakeholder (5 min) Next steps – CEO (5 min) Reception continues – private Q&A

Professional, but persistent! Bring a sense of urgency Investor Solicitation The Next Day… Call each attendee Reference the event Ask for 30-40 minutes Be flexible re: location Call back every other day. Use email to offset calling. Send handwritten note if calls aren’t connecting! Professional, but persistent! Bring a sense of urgency

Wrong Way #9: On the visit “Be sure to use volunteers as your primary solicitors.”

Wrong Way #10: On the visit “Be sure to spend lots of time breaking the ice with small talk.” The weather Last night’s game Traffic The paintings in the lobby.

Wrong Way #11: On the Visit “Spend lots of time talking and telling them every detail of your plan, priorities, mission, etc. After all, they need to know!”

Wrong Way #12: On the Visit “Don’t ask for a specific amount. It’s not appropriate – and what if you ask too low/high?”

Wrong Way #13 Better still… “After they say ‘Yes!” keep talking.” “After you ask…KEEP TALKING.” Better still… “After they say ‘Yes!” keep talking.”

Investor Solicitation Open “What did you think of the event?” “How did you like the video?” “What do you think of our plans?” ASK…LISTEN…OBSERVE…

Engage Use a one-minute case for support. Investor Solicitation Engage Use a one-minute case for support. Show plans, timeline, pyramid & progress. Use the sales materials. ASK for reactions, input, etc. Handle challenges or concerns. Two ears, one mouth!!

STOP…LISTEN…Then respond. Investor Solicitation Ask “We have a proposal we’d like to share with you.” “Would you consider… …naming one of the new labs?” …stretching to the “leadership level” over a five-year pledge period?” A commitment in the range of $25,000 to $50,000 STOP…LISTEN…Then respond.

Close “I’m not sure what we can do.” Investor Solicitation Close “I’m not sure what we can do.” “We already have two big pledges going.” “Science doesn’t interest me.” “That was more than I was thinking.” “You really should be talking to the older (or younger) alums; they have the money.” Bring urgency – request LOI and why it is critical

What Works Patience… Dual-team approach… Clear and concise request… Investor Solicitation What Works Patience… Dual-team approach… Clear and concise request… Listening… Responding… Leading…challenging

Follow-up Complete a call report Investor Solicitation Follow-up Complete a call report Send written follow-up (proposal?) and a hand-written thank you card DO what you said you would do… Call to close as scheduled Send quarterly updates Provide ongoing stewardship opportunities Visit annually in person to update

Stop me if you’ve heard (or said!) this before… “We need more events/activities in order to get more giving participation.” “That person isn’t ready to be solicited. She needs more cultivation.” “Cultivation activities are critical to advancement!” “Our board should be out asking for money.” “Prospect research is too expensive – it’s not in the budget.” “We have to hire an events person before we hire a major gifts person.”

Wrong!

Best Practices Stay Focused – major gifts, revenue, building the “right” relationships and connections. Stewardship! Execute! Don’t wait for perfection; it never arrives.

Prep and Solicitation: The Five “I’s” of Major Gifts Identify Inform Involve Inspire Ask for the Investment