1. What We Do In Development and How We Go About Doing It Donald R.Gray Advancement Academy Conference April 27, 2003

2. Would you mind turning off your ringer? (in other words, please turn off or mute cell phones and pagers)

3. Universal Vision Statement for Philanthropy: “You want to compose a good world. It is an honorable and noble profession” - Maya Angelou

4. Mrs. Evelyn Kaufman Stow High School English Teacher, 1958 (that’s Stow, Ohio, NOT Vermont) Words reflect who you are to others and to yourself. Words also reflect how you choose to be seen by the world. So choose them carefully!!!!!!!

5. Donald Gray--What is Development? Gifts and Donations A GIFT is a tangible symbol of feelings between people A DONATION is a tangible symbol of support to a cause

6. Donald Gray--What is Development? Development and Fund Raising A GIFT is to DEVELOPMENT (givers) as A DONATION is to FUND RAISING (donors)

7. Inappropriate Terms hit up put the arm on … squeeze loaded milk … should give … ought to give … owes us pass the hat get into his/her pockets

8. Donald Gray--What is Development? Annual vs Major Gifts Annual Donations –frequently given/asked –discretionary income –unrestricted fund –mailings, events, phone –2-5% of income –90% gifts; 10% dollars –1st step to major gift –very, very important

9. Donald Gray--What is Development? Importance of Annual Fund in Major Gift Activity For all givers to universities who make a first “major gift” of $25,000 or more, –75% made a first donation to the university of $250 or less in response to the annual fund –83% have made smaller level donations (annual fund donations) for at least 5 years; almost 60% for at least 11 years

10. Donald Gray--What is Development? The Right Way to View Annual Fund Concept of Annual Fund as Living Endowment ($1million annually equates to an endowment of $20-25 million) Annual Fund is the spring that feeds the river of Major Gifts that flows into the estuary of Planned Giving

11. Donald Gray--What is Development? Annual vs Major Gifts Annual Donations –frequently given/asked –discretionary income –unrestricted fund –mailings, events, phone –2-5% of income –90% gifts; 10% dollars –1st step to major gift –very, very important Major Gifts –infrequently given/asked –from assets: stop/think –relationship required –targeted/restricted projects –10-20x annual fund gift –10% gifts; 90% dollars –often repeated over time –critical to success

12. Donald Gray--What is Development? The Math of Major Gift Work $For each major gift (>$25K), you need three prospective major givers $On average, a major gift is closed after 9 meaningful contacts, or between 6 mos-2yrs $Thus to get 5 new major gifts requires 3 x 9 x 5 = 135 meaningful contacts.

13. Donald Gray--What is Development? ULTIMATE GIFTS Once in a Lifetime Gift Combination of Giving Methods; Many People Involved Total Commitment to Institution’s Mission Long, Emotional Relationship (and several previous major gifts) Often Involves Major Naming Opportunity 1,000-2,000x Annual Gift/10-20% Net Incoming-Producing Assets

15. Donald Gray--What is Development? $100,000 annual income (gross) $2 million net income-producing assets Annual Donation: $2,000-5,000 to all charitable organizations (2-5% of annual income) Major Gift: $40,000-80,000 (2-4% of net assets) Ultimate Gift: $200,000-400,000 (10- 20% of net assets)

16. Donald Gray--What is Development? Having fun with Bill Gates: net assets approximately $85 billion Annual Donation: Who knows? Anything he chooses Major Gift: $1.7 billion - $3.4 billion Ultimate Gift: $8.5 billion - 17 billion Question: How much would a person with $1 million in net assets need to give to equal a relative $1 million gift from Bill?

17. $11.76 In raising funds from individuals, never overlook the concept of relative wealth.

18. Donald Gray--What is Development? Top Three Reasons People Give Major and Ultimate Gifts Belief in Mission and Stability of the Organization Sense of Civic Responsibility High Regard for Staff and Volunteer Leadership

19. “Charitable giving isn’t the ultimate test of one’s humanity but it does give us some numbers to play with.” St. Peter Recently departed non-philanthropist

20. Donald Gray--What is Development? “It just feels good”

21. Donald Gray--What is Development? Bottom Three Reasons People Give Major and Ultimate Gifts Guilt and Obligation Promotional Materials and Proposals Tax Considerations

22. Successful Development THE MYSTICAL MINGLING OF A JOYFUL GIVER AN ARTFUL ASKER A GRATEFUL RECIPIENT

23. Show Creativity Additional Gift Interest The Cycle of Successful Development Creating the Joyful Giver Making the Artful Ask A ttention I nterest D esire A ction yes no,no,no maybe acknowledge Invoking the Grateful Recipient Initial Contact ID