1. Community Memorial Foundation Together for Health: The Impact of 3 2016 Board and Staff Leadership Workshops and Challenge Grant Opportunity March 14, 2016

2. Jerry W. Henry Together for Health: The Impact of 3 2016 Board and Staff Leadership Workshops and Challenge Grant Opportunity hip & Management Nonprofit Moving from Galas to Coffees… Strengthening Relationships and Developing Major Gifts & Planned Giving March 14, 2016

4. “Moving from Galas to Coffees….” Recap of last session Levels of giving for Major Gifts Importance of Your Development Plan “Mix” and Segmenting Donors Events – special or not? Major Gifts & Building Relationships Planned Giving Answer your Questions

5. CULTURE OF PHILANTHROPY “Every constituency understands, embraces, believes in and acts on his or her collective and individual roles and responsibilities in philanthropy in a collaborative and donor-focused manner.” -Karen Osborne, quoted in CASE Currents, April 2013 SUMMARY FROM LAST SESSION

6. Culture of Philanthropy Everyone’s involved in raising funds It’s about relationships, not just $ It’s about retaining donors you have Fund development linked closely to everything the organization does. SUMMARY FROM LAST SESSION

7. 7 “Sins” That Will Keep You from Having a Culture of Philanthropy 1.Asking for $ without engaging the donor first 2.Treating every donor just alike 3.Thinking that donors to other organizations will automatically give to yours 4.Spending too much time acquiring new donors while failing to retain your current donors 5.Not saying “thank you” in a timely manner…and not enough 6.Failing to deliver news or info that donors care about 7.Board members aren’t raising funds or interacting with donors on a regular basis.

9. CASE STRATEGY LEADERSHIP $ $ Involved Board Strong Annual Fund Major Gifts History Access to Philanthropic Leaders CEO’s Involvement Prospect Research Donor Records BUDGET Long-range Plan Stewardship On-going Cultivation Strong Development Staff Prospects

10. Pyramid of Giving $$ Ultimate gifts (assets and estate) Ultimate gifts (assets and estate) CONSTITUENCY Prospects Annual Gifts (income) Major Gifts (from assets)

11. SourceUnrestricted /Restricted annual Small giftcurrent $25-$999$1,000-$5,000 income Major giftincome / $1,000-$25,000$25,000-1,000,000 accumulated assets Mega giftassets / $50,000+ $1,000,000+ estate Gift Grid

12. Major giftpast donorsestablishedface-to-facepeerevery 3-5 yr.sInstitution/ suspects relationship presidentDonor executive dir. dev. officer board member volunteer IdentificationInvolvementSolicitationSolicitationSolicitationDriven by MethodRelationshipFrequency Small giftin-house fileminimalmail impersonal yearly or moreInstitution acquisition listphone event Mega gift- past donors- personal personalone who oncedonor relationship evolvesdonor trustsdesire for - life event - strong over timeadmires,change inheritance feelings stewardship believes in“pay-back” sale- specific recognition interest Gift Grid

13. YOUR DEVELOPMENT PLAN – WHAT’S THE MIX?

14. Fundraising Effectiveness Project - AFP Supplement to the 2015 Study on Donor Retention Increasingly larger proportion of revenue is coming from an increasingly smaller pool of donors Donors who give more tend to be more loyal “Sweet spot” for retention is $250 Overall donor retention is 46% Retention for new donors – having given just once in the previous year – is only 25.4% For repeat donors – those giving at least 2 years in a row – the retention rate is 64.8% http://afpfep.org/reports/

15. EVENTS: Special or Not?

16. LEARNING MORE ABOUT YOU 1.How many fundraising events does the organization you represent conduct annually? 1.What is the gross revenue amount you receive from your largest event?

19. Cost per Dollar Raised by Event Type Cost per $1 raised Percentage of Respondents GalaAuction Sport TournamentA-thon Reception, dinner Music or lecture series Meeting with organization leaders Conference/ think tank Less than $0.2013%15%13%14%16%7%9%5% $0.20 - $0.3918%3%9%5%10%4%2% $0.40 - $0.5915%7%6%3%4%0% 2% $0.60 - $0.794%1%4%2%3%1%0%1% $0.80 - $0.993%2%1% 2%0% More than $1.001%2% 0%2%1%0% Don't know21%20%21%22% 31%30%33% NO ANSWER26%50%45%53%42%56%59%57% Source: Advancing Philanthropy, Summer 2014, "What Should You Expect From Events?"

20. 3 Questions to Answer About Every Event ①Why am I holding this event? ②Who is my target audience? ③What are the results of a cost-benefit analysis?

21. HOW TO EVALUATE EVENTS? - Kent Stroman, CFRE Webinar on Bloomerang.com Financial – Financial Summary – Revenue Details – Direct Expenses – Indirect Expenses – Overall Assessment Non-Financial – Image – Reputation – Publicity – Mission Awareness – Other? Bottom Line: Is the Event Worth the Effort? Should it be repeated?

22. TIPS ON EVENTS 1.Use volunteers – but don’t exhaust them 2.Events are about making connections 3.Use caution with potential major donors 4.Debrief the event THE NEXT DAY 5.Follow up with top prospects ASAP 6.Be open to critiquing the culture of the event: “Is it just fun or is it fundraising!” (REMEMBER, IT’S ALL DEVELOPMENT)

23. MAJOR GIFTS

24. What We Know About Major Gifts Size is relevant: what is major to some may not be major to others Value is not necessarily the size, but the commitment the gift symbolizes Not all “major donors” make major gifts

25. What We Know About Major Gifts Come in different shapes: restricted, unrestricted, annual or capital, planned or deferred, or simply occasional This area of the profession is growing You can attract them if you build RELATIONSHIPS!

26. THE BIG SECRET: Giving is NOT a financial transaction. It’s highly personal and emotional!

27. MAJOR GIFT STEPS I.Identification II.Research and rate III.Cultivate: Discovery calls, exploratory meetings, etc. IV.Determine When to Ask? V.ASK! VI.Stewardship

28. Major Gifts Process

29. Major Gifts Prospect Management Flow Chart

30. Defines Goals and Objective Outlines Sources of Potential Funding for the Goals Individual Giving Grants Events Other Income For Planning: Major Gifts Plan For Planning: Major Gifts Plan

31. MAJOR GIFTS PLAN The term “major donor” refers to individuals who give considerably more than the average. For ORGANIZATION ABC, the amount that makes a person a major donor is a minimum of $x,xxx, but all major donors should eventually give at the $xx,xxx or greater level. Goals: To raise a total of $xxx,xxx in unrestricted dollars from gifts of $x,xxx+ Reviewing the database, identify donors who have given at the $x,xxx+ level during the past 3 years Rank donors by dollar amounts and group them according to donative intent (unrestricted gift, special event sponsorship or tickets, etc.) Provide major donor prospects with a variety of opportunities to give, including planned giving Move major donors up the “giving pyramid” by increasing the median major gift each year.

32. Tool used by Development Committee members Focuses on  Personal Financial Commitment  Donor Development Activities  Major Donor Cultivation/Solicitation  Events  Other Ways of Supporting the organization Personal visit to each Board member for discussion For Board Members: Individual Development Work Plan For Board Members: Individual Development Work Plan

33. Planning Preparation Performance For Staff Members: Selected Best Practices for MG Officers For Staff Members: Selected Best Practices for MG Officers

34. SELECTED BEST PRACTICES FOR MAJOR GIFT SOLICITATION PLANNING Review the prospect pool annually : a) those who will be solicited within this year; b) those who should, with proper work this year, (others for later or for next year); c) those who are in early cultivation or discovery phase. For this year’s prospects, determine: a) the anticipated project; b) the anticipated amount; c) the anticipated month for the solicitation; d) the anticipated solicitation team. Review the appropriate calendars Complete details for solicitation (time, place, materials, etc.)

35. PREPARATION – 5 “Knows” 1.Know the case, projects, programs and future needs 2.Know the key leaders within the organization 3.Know the prospect/suspect 4.Know the location of your meeting 5.Know yourself SELECTED BEST PRACTICES FOR MAJOR GIFT SOLICITATION

36. Performance Recognize where you are in the cultivation process and what you need to do to move the donor one more step closer to the gift. Focus on the prospect, not your “product.” Be professional— but not stiff Keep your promises. Follow-up immediately - whatever is needed and appropriate. SELECTED BEST PRACTICES FOR MAJOR GIFT SOLICITATION

37. Performance Look for ways to legitimately connect with the prospect in times between visits Offer thanks profusely Write contact reports within 48 hours Treat the prospect like a real, whole person—not simply a walking checkbook or ATM! SELECTED BEST PRACTICES FOR MAJOR GIFT SOLICITATION

38. Top Ten Metrics for Fundraising Success Top Ten Metrics for Fundraising Success

39. PERSONAL METRICS ONE Do you have a specific portfolio of prospective donors for solicitation in next 12-18 months? For CEO: top 25 prospects, plus any Board members not in top 25 For Director of Development: 50-75 prospects, and former Board members not among top prospects (may overlap with CEO on some prospects) For a Full-time Development Officer: 100-125 prospects (includes at least 1/3 whose interests will need to be qualified through personal contact) TWO How many personal solicitations have you made? At what gift levels? Regular review of number of asks and ask amounts per solicitation Development staff member should review each week Manager and CEO should review each month Board should review each quarter Everyone should review at end of each and every year THREE How much did these personal solicitations yield? Regular review of number and amount of gifts and pledges For each week, each month, each quarter, and at end of every year

43. LEARNING MORE ABOUT YOU 1.What do you consider to be the beginning level of a “major gift” in your organization? 1.How did your organization determine that level?

45. Based on analysis, using upper percentile, strategic process to decide (14) Based on past giving history, looking at upper levels (10) Mgt. team sets it or CEO/Development Comm. (3) Average gift level to arrive at starting point for MG (2) Don’t know (2) “Setting the level at $5k gives us a manageable # of prospects…” How Did Your Organization Determine That Level?

46. IDENTIFY PROSPECTS

47. Research/evaluate prospects –Are they a past donor? –Which programs/projects have they supported? –How much? –Are they a consistent donor? Get a feel for “quality” of prospect’s relationship Focus on the donor’s interests rather than your organization’s need. IDENTIFY PROSPECTS

48. Has a long gift history Made a major gift in past year Made an annual gift last year Made small gift in the past/Attended event No gift history Clearly involved with Organization Highly committed (Board member; long relationship) Above average commitment (volunteer) Some involvement (occasional volunteer) No involvement Experience with Organization Receive personal benefit Family member received benefit Friend received benefit No relationship Strong interest in Organization Has expressed a potential interest Known reason to be interested Someone you know has influence with this prospect No apparent interest in Organization Board/staff has close contacts or influence with potential donor Board/staff has very high degree of influence or knowledge Board/staff has somewhat strong degree of influence or knowledge Board/staff has some influence or knowledge Board/staff has no influence or knowledge Evaluating Major Gifts Prospects STRONG PROSPECT WEAK PROSPECT ABCDEABCDE

49. CONNECTIVITY MATRIX Low Passion for Your Organization High LowHigh Major Gifts Created by Alexander Haas

50. YOUR ORGANIZATION Prospect Evaluation Worksheet Passion for your Museum LowHigh Potential Prospects ENGAGEMENT AND READINESS $1,000 + $100,000+ ESTIMATED ASKESTIMATED ASK LOW HIGH

51. Donor Segmentation High acquisition costs High potential return Moderate acquisition costs High potential return Low acquisition costs Low potential return Money bag size = Possible amount of donation IDENTIFY NETWORKING OPPORTUNITY MASS MARKETING (Email, Phone, Mail) ONE-ON-ONE ASKLEVERAGE MEMBERSHIP BASE Low Acquisition Effort Commitment to Mission High LowHigh General PublicVolunteers People with wealth Corporations and Businesses Foundations High acquisition costs Low potential return

52. Execution Strategies Donor Segmentation High acquisition costs High potential return Moderate acquisition costs High potential return Low acquisition costs Low potential return Money bag size = Possible amount of donation IDENTIFY NETWORKING OPPORTUNITY MASS MARKETING (Email, Phone, Mail) ONE-ON-ONE ASKLEVERAGE MEMBERSHIP BASE Low ACQUISITION EFFORT COMMITMENT TO MISSION High LowHigh General PublicVolunteers People with wealth Those owe us a favor Pledgers Corporations and Businesses Foundations High acquisition costs Low potential return

53. YOUR ORGANIZATION Donor Engagement Strategies Screening returned 175 good prospects for annual and campaign giving Passion for your Museum Suggested Next Step SMALL GROUP CULTIVATION Emerging donors = Friends Rated prospects Suggested Next Step BRIEFING – ASK FOR CAMPAIGN Insiders = current upper level giving prospects Need to define ask amount and assign volunteer solicitor Suggested Next Step ASK FOR CAMPAIGN Last campaign donor and current givers Assigned to volunteer solicitor Ask amount defined Suggested Next Step INTRO BRIEFING – ONE TO ONE Highly rated or identified by volunteer at high level but low/no gift history EstimatedAskAmount$25,000 $2 M+ ENGAGEMENT AND READINESS Past gift history? Assigned to solicitor? Current upper level annual donor? CAPACITYCAPACITY

54. Donor Engagement Strategies Suggested Next Step: BRIEFING – ASK FOR CAMPAIGN “insiders” = current Platinum Circle prospects Need to define ask and volunteer solicitor Suggested Next Step: SMALL GROUP CULTIVATION “Emerging donors” = Friends rated prospects Suggested Nest Step: ASK FOR CAMPAIGN Last campaign donor and current givers (upper level) Assigned to volunteer solicitor Ask amount defined Suggested Next Step: INTRO BRIEFING – ONE-TO-ONE Highly rated or identified by volunteer at high level but low/no gift history EstimatedAskAmount$100,000VIP Passion for your Museum $10 Million + LowHigh ENGAGEMENT AND READINESS Gift to last campaign? Assigned to solicitor? Current upper level annual donor? CAPACITYCAPACITY

55. DONOR ENGAGEMENT GRID B Suggested Next Step: BRIEFING – ASK FOR CAMPAIGN Organization “insiders” Need to define ask and volunteer solicitor D Suggested Next Step: SMALL GROUP CULTIVATION “Emerging donors” = Friends rated prospects A Suggested Next Step: ASK FOR CAMPAIGN Last campaign donor and current givers (upper level) Assigned to volunteer solicitor Ask amount defined C Suggested Next Step: 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 to last campaign? Assigned to solicitor? Current upper level annual donor? CAPACITYCAPACITY

56. CULTIVATION

57. Opportunity to –Educate –Build loyalty and commitment –Explore common interests Often means the difference between getting a gift and getting a major gift.

58. COFFEE CHATS (Perspective Visits) 1.Setting the meeting – “I’d like to get your perspective…” – Ask for a short meeting 2.Be prepared and upbeat 3.Get your prospect talking - you listening… 4.Respect time 5.Thanks and establish next step.

59. INFORMATIONAL INTERVIEW What you’ll get: -Possible interest in organization or project….or not -Leads (“I’m not the right person you need to talk with but let me put you in touch with ….”) -Help

60. 12 Questions to Gain Deeper Perspective on Major Donors

62. 7.Which would you say are your top philanthropic priorities? 8.What would it take for our organization to be higher on your priority list? 9.How would you describe the impact that you are looking to make through your charitable giving? 10.What is most important to you when you look at organizations that you might consider supporting through your giving? 11.What are your impressions of our development program and how we go about raising funds to support our mission? 12.What is something you would suggest to our organization – or to any organization – to improve your experience as a donor and a supporter of its mission?

63. Imagine you have been able to arrange a face to face meeting with a minimally involved donor whom you’ve researched and found to be a major donor to an organization that has a mission similar to yours? Come up with 2 questions you would ask this individual to determine more about supporting you at a higher level. WHAT WOULD YOU ASK?

64. What motivates you to be involved with us? OR What is it about our work that moves you? (6) What is your relationship with [organization] and how do you feel about working with them? OR I understand you support [other organization].What is it about their mission that compels you to support them? (3) What appeals to you when thinking about an organization?...What do you look for in an organization? (3) When have you felt you’ve had the greatest impact? What gifts have you made…to other organizations that has given you great joy? (2) What would need to happen for you to consider a major gift to support us? OR What could we be doing better to encourage your additional support? (2) WHAT WOULD YOU ASK?

65. What factors are most important to you when you’re considering your philanthropic investment? Why did you first give to our organization? What kind of engagement would they like to see from our organization? Are you getting adequate feedback…? What are you most passionate about? Do you feel your funds have been spent wisely? WHAT WOULD YOU ASK?

67. SOLICITATION

68. LEARNING MORE ABOUT YOU Rate your comfort level of asking personally for a Major Gift using a scale of 1 – 5, with 1 being “extremely uncomfortable” and 5 being “extremely comfortable.”

70. Asking for the Major Gift 1)Opening 2)Discussion of involvement 3)Presentation of case 4)The specific Ask 5)BE QUIET 6)Close or establish follow-up step 7)Thank

71. STEWARDSHIP

72. What happens when you receive a major gift? – Phone call of thanks? From whom? – Letter within 24 hours? – Board member call? – What do you know about how the donor would like to be thanked? What are other “touch points” you plan for the donor going forward? STEWARDING MAJOR GIFTS

73. ULTIMATE GIFT: Planned or Estate Gifts

74. MANY DEFINITIONS Process of charitable, legal, financial and tax planning that enhances a donor’s philanthropy and enables the donor to address financial and estate planning issues while making a gift. Strategies for making a gift based on a donor’s personal, financial and estate planning decisions; and Any major gift, made in lifetime or at death, as part of a donor’s overall financial and/or estate planning. -NC CENTER FOR NONPROFITS 2013 STATEWIDE CONFERENCE What Are Other Terms Used For “Planned Giving?” PLANNED GIVING

75. Why is Planned Giving Important? Remember, it represents roughly 8% of total charitable giving in the US Research shows that annual donors who make a planned gift often increase their annual giving

76. Assessing Organizational Readiness Is your organization established and stable? Do you have a recognized track record of success? Is there sufficient staff and volunteer support? Is there an existing donor base? Do you know these donors? Do your donors know you?

77. Launching a Planned Giving Initiative 1)Engage Board & Other Leadership 2)Develop a compelling Case Statement 3)Identify Prospects 4)Meet with Donors 5)Recognize donors who make planned gifts 6)Continue to promote PG and its impact

78. Promoting Planned Giving Website – General info (e.g. language for bequests) – Legacy Society enrollment form Annual fund mailings – Communicate how planned giving makes a difference – Planned giving opportunities Newsletter – Testimonials of donors who’ve made a gift – Link of specific receipt of planned gift to impact on the organization – List new Legacy Society donors

80. Community Memorial Foundation WEBINAR: THE NUTS & BOLTS OF MAJOR GIFTS AND PLANNED GIVING March 23, 2016 10 AM – 12:30 PM https://www.surveymonkey.com/r/Webinar3Questions