1. Donor Centered Fundraising Child and Family Services Of Northwestern Michigan Prepared by: Kathy Lievense, CFRE The Summit Group, Consultants in Philanthropy

2. $306.3 Billion Contributed in 2007 Individual Giving $252 Billion 82.3% of all Gifts Individuals $229 Billion Bequests $ 23 Billion Corporate Giving $15.6 Billion 5.1% of all Gifts Foundation Giving $38.5 Billion 12.6% of all Gifts

3. Who is Receiving the Contributions We Make? Religion33.4% Education12.1% Human Services 9.7%The number of Foundations 9.1%501©3 organizations Unallocated Giving7.7%stands at an all time Health7.6%high of 1,126,367 Public Society (UW)7.4% Arts & Culture4.5% International Affairs4.3% Environment & Animals2.3% The largest increase in 2007 was to international affairs (16.1%). Human services showed an increase of 8.4%.

4. Pyramid of Giving – The Five I’s IDENTIFICATION INFORMATION INTEREST INVOLVEMENT INVESTMENT

5. The Ladder of Effectiveness Direct Mail Media Use Special Events Phone-a-Thons Grants Personal telephone without letter follow-up Personal telephone call by a peer with a letter follow-up Solicitation by personal letter without a follow-up telephone call Solicitation by a personal letter with a follow-up telephone call Personal visit by one person Personal visit by a team

6. Moves Management The most empowering strategies for all major gift fundraisers!

7. Moves Management Program 1.Select 20-25 of your best prospects 2.Create a file on each person 3.Identify “natural partners” 4.Consult with natural partners 5.Select a primary player 6.Develop a strategy for each prospect 7. Plan your next 5-10 moves and establish gift objectives 8. Record and review 9. Refine strategy 10.Review, refine, review, refine, etc. Plan one move per month for your best prospects! 90/10 Rule!

8. Donor-Centered Fund Raising Focuses not on Money, but on the People Behind the Money Since the fundraising industry has put such a strong emphasis on planned giving, why is performance in this area not showing improvement? Why is 50% renewal rate after the first gift considered to be the “industry standard”? If people made an effort to support a charity in the first place, then what is happening in fundraising that causes half of them to say “no” the very next time they are asked to give?

9. Why do almost 90% of donors disappear within five renewal campaigns? Where are these donors going? A cycle ensues: giving, seeking but not finding satisfaction, moving on to another charity. Solution… We must foster all relationships effectively!

10. How to Build Donor Loyalty “Garbage In, Garbage out” Give highest priority to securing a second gift from first-time donor (bonding “window” is 1-3 months) Basic rule of economics: Invest more in cultivation and retaining higher value donors

11. Identify and specifically address likely defectors Reconsider how to tell your success story to existing donors Introduce your “leader” in person to donors Treat online donors as your most valuable members Monitor both your traditional and emergent competition How do you communicate how you are different from other organizations? Respond and resolve all donor inquiries

12. Let’s Focus on a New Generation! Who are the Millinias? Born since 1968 They work collaboratively They believe they can make the world a better place They live immersed in causes

13. Their signature is digital fluency They ask “How do we begin?” Often feel under-appreciated within organizations Talk on-line in venues that support open, free- flowing conversations and opinions

14. What Do We Ask Ourselves? Why do we want to connect to the Millennias? What conversations do we want to have with them? How open are we to listening to them? What will we allow them to do that we don’t feel we have to control? Today’s younger generation are the philanthropists of tomorrow!

15. Characteristics of a Major Gift Prospect Has the capacity to give, as might be recognized by past giving, lifestyle, or knowledge of family circumstances OR Is philanthropic, a regular donor to other organizations OR Has a philanthropic interest in foster care or adoption OR Has an affiliation with CFS, such as a volunteer, parent, relative or friend AND Is Accessible

17. Making the Call!  Be proud you’re inviting others to join you in helping others  Tell who will be helped  Give donors a choice  Ask donors what THEY want  Lay the foundation, plan for the long term, end the hard sell  Encourage feedback – comments, questions, complaints  Thank the donor, Thank the donor, Thank the donor  Be a donor yourself!

18. Additional Suggestions for Making the Call Remind the donor that his/her gift may be matched Offer monthly, quarterly or annual installments Put a smile on your face Listen to your donors; switch from monologue to dialog. Successful fundraisers listen 80% of the time

19. Additional Suggestions for Making the Call Be positive Think like a donor Offer donors the opportunity to become involved Invite donors to “see for themselves” Communicate with passion Tell stories, use photographs, use words wisely Explain reality

20. Standards of Giving Necessary for a $50,000 Campaign This gift chart indicates that: 80% of the money will be contributed by 20% of the donors and 20% of the money will be contributed by 80% of the donors. $ 5,000 4 1 $ 2,500 8 2$ 5,000 $ 2,000 16 4$ 8,000 $ 1,000 32 8$ 8,000 $ 500 64 16$ 8,000 $ 250 100 25$ 6,250 $ 150 120 30$ 4,500 $ 100 160 40$ 4,000 Less than $100 600 154$ 1,250 TOTAL1,104 280$ 50,000

21. Donor Centered Gift Recognition Hold open houses where children are present Recognize program support through press releases Plaques – 53% of corporate donors will display them; 5% of individual donors will display them Present framed pictures drawn by a child Have the “right”person thank the donor Host a “thank-a-thon” For every one time a person makes a gift, contact them two other times without asking for money. Take pictures. 86% of corporations & 65% of individuals love it! Remember donors when they are ill or celebrating a special day

22. PLAN! PLAN! PLAN! Goals’ Objectives & Strategies Gift Acceptance Policies Annual Calendar Conflict of Interest Guidelines Marketing/Public Relations Plan in Coordination with Fundraising Plan Job Descriptions (staff, volunteers, committees & board members) Publications Coordination of annual fund, major gift program and planned giving program – DONOR CENTERED!

23.  Philanthropy in the New Economy Challenges Focus on the positive rather than the negative Raise awareness of opportunities Build infrastructure Create a more philanthropic culture Educate the board about their role in philanthropy Communicate often with donors without a financial request

24. STRATEGIES Going green and using more email More efficient use of the website Asking board members to make cultivation calls rather than solicitation calls Inviting major gift donors to share why they made gifts Asking the Executive Director to call and thank donors Looking to make best use of social media Encouraging younger people to be involved on committees

25. Key Advice for Philanthropy in the New Economy Your case is a terrific cultivation and fundraising tool Make more personal contacts Donors want to see ROI

26. “Philanthropy is voluntary action for the public good through voluntary action, voluntary association and voluntary giving.” Payton, 1988

27. Through the centuries, it has been clearly established that people want and have a need to give. People want to give to causes that serve human and societal needs. They will give when they are assured the organizations they contribute money to are worthy, and accountable in using the gifts they have received. Through communication, cooperation, and coordination, we can enable all people to experience the joy of giving!

28. Questions & Answers