April 23, 2014 Managing Major Gift Programs For Maximum Effectiveness Presented by: Richard Perry and Jeff Schreifels

How To Think About This 1.Problem/Opportunity 2.Three Operating Principles 3.Seven Pillars of a Major Gift Program

There is a problem… Value Attrition Benchmarks of 33 National Organizations

Example of Value Attrition

Three Operating Principles - #1 Treat donors as partners vs. sources of cash.

Three Operating Principles - #2 Donors Have Life

Three Operating Principles - #3 The role of money in society is to transfer value

Money is a result – NOT an objective. Matching the donor’s interests and passions to the needs of the organization brings true donor fulfillment and joy. – AND it brings the money

Before You Start… Do you have the right organization?

Effective FR Organization

The Pillars

Pillar #1- The Right Caseload Build the Caseload : Determine Criteria for Pool Qualifying Donors Tier Donors (A-25, B-50, C- 75) Develop process to bring people on and off caseload

Pillar #1 – The Right Caseload Understand: How a caseload grows over time.

Pillar #1 – The Right Caseload Understand: The right composition for a caseload.

Pillar #2 - Create Goals Goals create focus and drive planning Not meant as a way to punish but something to attain Must be realistic and based on actual behavior and capacity Must be cash-flowed

Pillar #3 – The Right Plan A Plan For Every Donor A plan for every donor is required if you are to meet your goals Plan at least one “touch” per month, per donor – sometimes more Create a healthy mix of reporting back, personal touches, asks

Pillar #3 – The Right Plan Elements of the Right Plan: A good Donor Moves-Management Plan includes:  I.D of donor passion and interest.  Figure out donor communication preference.  A financial goal for the donor.  A stream of frequent “Touches” that: Tell the donor she made a difference through her giving. Give the donor an insiders view of the organization Sets up an ask.

Pillar #3 – The Right Plan Two Moves Management Tracks

Pillar #3 – The Right Plan Project Support Portfolio A system for packaging program 1. Total organizational budget allocated to major program categories of the organization. 2. Program activity reported in pre-determined categories. 3. Program needs communicated in a donor focused process. 4. Total actual costs, activity and outcome statistics of the program category shown to donor. 5. Allows non-profit to communicate with donors in a way that suits them and causes them to respond and fund total budget needs Program To Sell

Pillar #3 – The Right Plan Three Elements Of An Offer

Pillar #4 – Ask For Support Know your donor Know your program Make a perfect match of program to donor Compose the ask Practice the ask Make the ask

Pillar #4 – Ask For Support Common mistakes about asking: 1. No match to donor passion and interest. 2. Relationship of trust not built. 3. Not enough feedback given prior giving…

Pillar #4 – Ask For Support 4. Ask not put into the context of a larger vision 5. MGO is more interested in getting the money than fulfilling donor interests. 6. Ask is too low. 7. MGO is not prepared to offer “terms” in payment of pledge. 8. Ask is packaged too intellectually and philosophically – void of emotion and passion. 9. MGO is not prepared to handle objections.

Pillar #5 – Thank Donors Call within 3 days of receiving a gift Receipt and thank you letter within one week Call from CEO or board member “Surprise” thank you calls or notes throughout the year.

Pillar #6 – Report Back Invest in it Evaluate all that you do More than once per year Use social media Surprise your donor-make it personal

Donors want to make a difference... You made me aware. You asked me to help. Said it would make a difference. I believed you. Gave what I could. You told me my gift made a difference. So I want to help again. You didn’t tell me I made a difference…so I gave somewhere else to make a difference.

Pillar #7 – Love Accountability Measure :  How the same donors last year are performing this year.  How the donors are performing against individual goals.  How many visits, contacts and asks the MGO is making.  Report on unusual gains and losses for any donor on the caseload to make sure other numbers are not being skewed.  MGO performance review.

One Gift Hides Poor Performance

How New Money Covers Loss Need to make sure there is a focus on donors first then dollars and avoid an incorrect assessment of your situation.

1. Passionate Giving Blog 2. White Papers from Veritus Group  Packaging Your Budget For Donors  Seven Pillars of a Major Gift Program  Building a Culture of Philanthropy  Six Secrets to Becoming an Extraordinary Major Gift Officer  Qualifying Donors for Major Gift Caseloads  Social Networking and Major Gifts  Transporting Your Donor To The Scene 3. Marketing Impact Chart Template Three Resources

It’s not only about the money… Veritusgroup.com t.

A Look At Our Work For Others…. Two Cases….

Case #1 Social Service Organization Situation and Challenges: 1. Large unmanaged caseloads with unqualified donors in a major gift program that was not growing. 2. More major donors on file than labor to manage them. 3. No management of MGOs to provide accountability, focus and results. 4. No 6 & 7 figure asks/gifts although organization needed the funds.

Case #1 Social Service Organization What We Did: 1. Provided management structure and accountability which resulted in focus, results, donor retention and management reporting to show all activity. 2. Modified caseloads so that only qualified donors were on them resulting in better use of labor. 3. Added major gift talent to service available donors. 4. Provided moves management strategy to secure better results including upgrading, retention and 6 & 7 figure gifts. 5. Turned failing MGO around. 6. Hired new MGOs. 7. Provided steady operational growth PLUS additional funds for capital project.

Case #1 Social Service Organization Results 1. Period growth of 81.46% in operating revenue for a total of $22,013, Period growth of % in TOTAL revenue for a total of $25,388, Seamless movement from departing MGO (D) to new MGO (E) with increase in revenue. 4. Successful turnaround of failing MGO (C) in Yr Raised $3.375 million for a capital project with minimal effect on operating. 6. Secured multiple 6 & 7 figure gifts. 7. New MGO already at $1.2 million in caseload value with only 18 months on the job!

Case #1 Social Service Organization

Case #2 International Relief & Development Organization Situation and Challenges 1. Very large caseloads with many unqualified donors and wasted MGO labor. 2. Very little individual donor planning and no goal setting for each donor. 3. More major donors on file than labor to manage them resulting in needed funds being “left on the table”. 4. Few management and performance systems and reports.

Case #2 International Relief & Development Organization What We Did 1. Reduced all caseloads to qualified donors with high inclination and high capacity. 2. Re-organized caseloads into 3 tiers reflecting donor value. 3. Created goals and plans for each donor. 4. Assisted in developing strategies and approaches to donors. 5. Introduced additional management systems and reports, including YTD actual against goal by donor, tracking moves by donor and MGO performance reports. 6. Recommended hiring 1 additional MGO in the year and another one in the next year.

Case #2 International Relief & Development Organization Results 1. Surpassed goal of $22.8 million by $3 million or 13%. 2. Did this at an ROI of 1: Maintained very high value caseloads – each one over $1 million. 4. Ramped up MGO to over $1.2 million in one year. 5. Created case to successfully add a new MGO in next year. 6. Secured multiple 6 & 7 figure gifts. 7. Current year revenue at: $26.3 million.

Case #2 International Relief & Development Organization