The “Ask” You can do it! Presented By: Mark C. Germano Creating Solutions 847-624-5142 mark.c.germano@gmail.com

The Environment

Philanthropy is Huge in U.S. Philanthropic giving by Americans is larger than: Google, Facebook, and Amazon Combined It is over $200,000,000,000 a year – That’s a lot of money!

Where Does the $ Come From? 90% of philanthropy in the United States comes from individuals, families, and family foundations Corporations give ~5% Foundations make up another 5% These %s have been consistent for 40 YEARS!

Data To Track for Philanthropy S&P 500 Index – Every 100 point sustained gain usually means $1,000,000,000 more to U. S. not-for-profits Unemployment Rate Gross Domestic Product Consumer Price Index Philanthropy is a LAGGING economic indicator

Key Data About Donors 68% of American Households (HH) report making a charitable gift 50,000,000 itemized their returns 3% came from households (HH) with $200,000+ income 10.5% HH income $100,000 - $199,000 Over 70% of the $$$’s given come from these HHs Use www.census.gov to understand your donor base

What About St. Joseph’s County? What would is your guess on the number of Households with Income of $100,000 or more? $100,000 - $149,999 = 1,651 $150,000 – 199,999 = 478 $200,000+ = 557 TOTAL = 2,686 Source: NonProfit Times, October 30, 2006 Study by Center on Philanthropy, Indiana University Funded by Bank of America

Motivations for Giving Meeting Critical Needs – 86.3% Giving Back to Society - 82.6% Those with More Should Give to Those with Less -81.5% Leaving A Legacy - 26.1% Limiting Fund to Heirs – 8%

Correlation: Time and Dollars Myth: Wealthy “write a check to discharge moral obligation” Volunteer Hours Average Donation 1 – 50 Hours $31,092 51 – 100 Hours $92,717 101 – 200 Hours $104,691 Over 201 Hours $132,086

Ten Reasons Why People Give Belief in the institution and its purposes Belief that current needs are important Sense of loyalty, gratitude, affection Tax considerations Friendship and respect for solicitor

Ten Reasons Why People Give Honoring the past Funding the future – not the past Involvement with peers Recognition Identification

Why do Wealthy Donors Stop Giving? The top 3 reasons why donors stopped giving to a particular charity include: “No longer feel connected to the organization.” “Decided to support other causes.” “Feel I am being solicited too often.”

Create Your Agency’s Story Themes Imagine your audience How we began/who influenced us/founders/family/ board Obstacles faced and problems solved On-going benefits given Examples-specific people Values in action Before we came on the scene/after we did our thing Accomplishments/victories, feeling good

Elements of a Good Story Pathos – Emotion Logos – Reason or Logic Ethos – Guiding Belief

Speech Structure Hi! My name is_____________________ and I work with… organization You know how… problem Well, what we do is… feature So that… benefit We’re kind of like the… metaphor

What Must Be in Place Within The Organization for Success? Unifying Vision 3 – 5 Key Message Points Strategic Plan (Values/Vision/Mission) Outcome Measures/Ability to Articulate

What Must Be in Place Within The Donor to Prompt a Significant Gift Alignment with Values Ability to Self Select through Engagement Strategy Feeling of Stewardship Perception that their Gift is Truly Important Perception of Legacy with Lasting Impact Philanthropic Reciprocity

Engagement Continuum DONOR I N S P I R E D MONEY TIME Invest Involve Interest Inform Invite Identify TIME

Consistent financial support Asking for Support: Building Relationships Stewardship JZ

Using Your Data to Build Success Identify at least 3 strengths in the Individual Giving data Identify at least 3 challenges or concerns Create an Action Plan that identifies Targets for upcoming fiscal year Tactics that you would use for certain donor groups

Prospect Rating System Capability: A qualitative estimate of what is thought to be the prospect’s financial capability to make a gift, usually expressed in a dollar range.

Prospect Rating System Inclination: A subjective assessment of what is thought to be the prospect’s likelihood to give, or make a gift at the rated capability level.

Prospect Rating System Readiness: A subjective assessment of when, or how soon, the prospect is likely to make a gift or gift commitment/pledge.

Major Gifts Lead to Major Engagement Individuals that reported giving away $50,000 or more per year want deep & meaningful engagement with the institution 76% want to direct the funds within the organization 72% want to be ‘highly involved’ with the organization Source: 2007 Prince & Associates Wealth Management research report

Donor Solicitation Strategies Select the right person to ask the right person at the right time for the right amount in the right way for the right reason.

Let’s Practice

Asking for Major Gifts Six Phases of a Solicitation Call Opening Questioning Listening Presenting Overcoming Objections Closing

Four Rules of Persuasion Reciprocity Scarcity Authority Consistency

Reciprocity People try to repay, in kind, what another person has provided them Reciprocity’s power stems from the fact that a person can trigger a feeling of indebtedness by doing an uninvited favor The rule can be put in use by pointing out the services, benefits, and advantages that have already been realized

Scarcity Opportunities seem more valuable when they are less available Uncommon or unique features or benefits that can not be found elsewhere

Authority Knowledge and trustworthiness Uncover and communicate organizations expertise

Consistency Once people make a choice, personal and external pressure exists to behave with the commitment One sale leads to another Rippling impact of past behavior on future behavior

Closing Techniques Primary Objective: Showing the donor how to best satisfy needs, solve problems or gain desirable benefits by supporting the organization. Verbal Signals Non-Verbal Signals

Board Member’s Role In Development Make Your Gift First Actively Participate in Stewardship (Use the Personal Touch) Be an Advocate Focus on Top Donors First, Then Next Level, Then Next Level, etc. 34

Board Member’s Role In Development Ask Donors for Feedback – Online Survey’s Are Inexpensive and Easy To Do Host Cultivation Event(s) Invite Donors to Visit Your Agency Get Comfortable Making the “Ask” 35

Successful Communications 57% Visual 37% Vocal 6% Content

Alignment What needs to be in place in the organization? What is the donor experiencing? What aligns between the two? What does research tell us?

Thank You Make a commitment to change Expect what you inspect Celebrate successes publicly Critique privately Believe in your mission

The More You Create Meaningful Engagement, The More You Improve Your Organization