Overview of Effective Philanthropic Strategies Executive Fund Development Leadership Program 2012 Overview of Effective Philanthropic Strategies Drew Buscareno Assistant Vice President, Office of University Relations Monday, October 22, 2012

Agenda Operating Environment Art and Science of Fundraising Components of a Development Program Core Building Blocks of a Relational and Data Driven Program The Art of Solicitation

Operating Environment Regional Economic Data – St. Joseph County, IN Labor Force, 2011 Number Indiana Total Resident Labor Force 128,868 3,188,260 Employed 115,815 2,901,084 Unemployed 13,053 287,176 Per Capita Personal Income (annual) in 2010 $33,322 33,981 Median Household Income in 2010 $42,316 $44,616 Annual Unemployment Rate 10.1 9.0 August 2012 Unemployment Rate 9.2 8.0

Recent Major Campaigns St. Joseph’s High School Kroc Center St. Pius Parish and School Holy Cross School South Bend Civic Theater WNIT Source for United Way Data: http://www.thenonprofittimes.com/article/detail/united-way-fundraising-up-but-trails-inflation-4928 “United Way affiliates raised roughly 1.8 percent more public support last year or $3.927 billion -- an increase of $69 million compared to 2010. It’s the second consecutive year public support is up after two years of declines, though it trails the rate of inflation in 2011 (3 percent) and early estimates of U.S. charitable giving last year (4 percent, 0.9 percent inflation-adjusted).”

Fundraising as Art & Science Why do people give? Why do you give? What is the most memorable charitable gift you have given? What is the most memorable gift you have received?

Engaging the Heart and Mind INTERESTS PASSION INVOLVEMENT IDEAS IMPACT Interests – finding the intersection of donor interests and organizational priorities Passion – attitudes, values and behavior Ideas – what do people think about your organizational mission and programs; what do donors think you are doing well and can do better (with their support) Involvement – how can they become a part of what you do Impact – what can be accomplished with their gift and investment in your mission? SMART impact(specific, measurable, achievable, realistic, time sensitive)

The Art of Fundraising Building enduring relationships that generate meaning, joy and real value to individuals and organizations

Fundraising as Art & Science Transactional Vs. Relational Dollars Now Long-term Growth Benefits Focused Donor Experience Fundraising Events Donor Stewardship

The Science of Fundraising Donor database Building a gift pyramid (now and future) Donor Retention Donor Acquisition Donor Research Fundraising metrics (inputs and outputs)

Relationship Lifecycle Identification Engagement/ Involvement Solicitation Stewardship Identification Engagement/Involvement Solicitation Stewardship

Gift Pyramid $100K + $10K + $1K + $1-999

Calculating Annual Fundraising Goals

Components of a Development Program Major and Leadership Gifts Annual Fund Planned Gifts Corporate and Foundation Relations Development Stewardship Development Research

Major/Leadership Gifts Disproportionate focus on 5, 6, and 7 figure donors and prospects Primary focus of executive director, board members and development director Leverage existing networks among donors Establish concrete funding priorities with associated naming Identify meaningful opportunities for leadership and engagement Customize stewardship approach

Leadership Councils Advisory/Auxiliary groups that are developed to involve leadership donors in a more meaningful and formal organizational role

Annual Fund Direct mail Telephone On-line Emotional, story based, impact oriented, concrete levels of support Telephone Engage staff and volunteers once a month; recognize high-producers Highly effective at acquisition and upgrading donors On-line Need web page with giving option Electronic newsletters excellent form of communications

Annual Giving Societies Establish at the $1,000 level Organize an annual event/activity for the group Recruit a strong chairperson Communicate with on a regular basis

Planned Giving Bequest Expectancies (wills/estate planning) Donor Advised Funds Charitable Gift Annuities Charitable Trusts Gifts of Real Estate - Highlight in marketing and communications - Discuss with leadership donors

Corporate and Foundation Relations Focus on personal relationships with key contacts Corporations are an excellent source for event sponsorships and volunteers; public recognition is important Foundations focus funding around specific priorities and/or geographic regions

Development Stewardship Genuine, timely acknowledgements of all gifts Hand-written notes for all gifts above X$ amount Call and thank all first-time donors Organize engagement events for new donors to learn about who you are and what you do Organize stewardship events to thank and recognize your leadership and annual giving society donors (fun, unique, engaging)

Development Research Organize confidential screening of donor lists to identify donor interests, potential, and personal networks of current leadership donors Utilize various wealth screening tools every 1-3 years

Building A Relationship Based Development Program Commit personal time to cultivating X # of existing leadership and prospective leadership donors; Assign small pool of donors to key staff and/or board as well; Develop individual cultivation and plans for solicitation; Develop leadership councils and board structure to establish formal opportunities for involvement; Create regular opportunities for leadership donors to associate with one another in the name of your organization (privately hosted receptions/dinners; unique stewardship events)

Building Your Fundraising Dashboard Identify number of leadership donor phone calls per day and MEASURE Identify number of leadership donor visits per week and MEASURE Establish a donor retention goal by gift pyramid level and MEASURE every month Identify donor acquisition goals by gift pyramid level and MEASURE every month

Notre Dame Dashboard Comprehensive Giving Cash Receipts Unrestricted Giving Alumni Participation

Make it Personal and Data Driven Core Building Blocks Increase focus on leadership gifts Develop a leadership council Establish an annual giving society Shift from fundraising events to stewardship experiences Measure donor retention and acquisition Make it Personal and Data Driven

Volunteer Leaders Emotionally invested Philanthropic capacity Strong network Refuse to fail

Art of Solicitation at Leadership Level Purpose of solicitation aligns with interests, needs, values and motivations of donor Solicitation expresses urgency Solicitor is “most difficult” person to say “no” to Solicitation at the leadership level builds on a “pattern of involvement” or a series of “yes” responses over time