development – follow up
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DevelopmentTypes of Giving
Shane D. Hudson
Where Does The $ Come From?• Individual
– Gifts– Bequests– Events
• Corporate– Grants/Gifts– Sponsorships
• Foundation• Government
– Local– State– National
Individuals
People Give With Their Hearts And Then Justify Their Gift With Facts
Individuals• Gifts Are Simple to Obtain
– No rigorous screening process– No political structure– No lengthily proposals
• Over 80% of All Gifts
• Relationships are Key
Why Do People Give?
• People Get Joy From Giving– Giving gives pleasure and satisfaction to the
donor.
Why Do People Give?• People Give Because They Want To
– Giving is not an unwanted burden– Think of your own giving – how does it make
you feel?
Thoughts on Individual Giving
• People Give To Save Or Change Lives
• People Don’t Give Unless They Are Asked
• People Give to Success Not Distress
• People Give Out Of Emotion And Justify It With Facts
• People Give Money To People– Person to person relationships underlie
philanthropy
Funding Options• Gifts or Opportunities?
– An investment in the future– Menu approach
• Operating funds• Scholarships• Endowment • Special Programs• Deferred Gifts
Individual Giving
• Each Donor is a Campaign
• Research and Segmentation
• What’s The Best Vehicle
• Personalized Communication, Recognition, Stewardship
Types of Communications
• Telephone Solicitations
• Direct Mail
• E-Fundraising
• Special Events
• Press
• Advertising
It’s Simple
• Identify
• Cultivate
• Ask
• Follow-up
• Thank
• Repeat
IDENTIFY
Research
• Subscribers, current donors and loyal single ticket buyers
• Other less active supporters
• Where else are they giving?
• What organizations are they members of?
Identifying Prospects
• Your most likely donor is someone who has already given in the past. – They have already invested in you– Go to them first– Work for a deeper relationship
Identifying Prospects
• Moves Management– Find committed donors and move then into
larger gifts– Are they giving what they can afford– Repeat donors can mean big money– Once a donor is on board do everything you
can to keep them
Identifying Prospects
• Get to know your current donors– They arts ATM’s, they are people
Identifying Prospects
• Never make a cold call– Chances of success are much greater if you
have someone open the door for you
Identifying Prospects
• 95% of the money comes from 2-3% of your donors– Always narrow your focus to a few prospects
with deep pockets– Develop relationships– Don’t spread yourself too thin by chasing
every opportunity • Can’t manage follow-up
Identifying Prospects
• Most people who give to charities give to 5-15 different organizations– Active donors give to 25-35 organizations– 7 out of 10 Americans donate– Givers hang out with givers
Identifying Prospects
• Women drive the gift– Much like ticket buying– Majority of our nation’s capital held by women
CULTIVATE
Cultivate
• Fundraising is about relationships– Take the long term approach– The closer the relationship the more likely
(and larger) the gift– Take a long term approach– Get to know your donors
Cultivate
• Create a specific plan for each prospective donor– Goal to engage and involve the donor– Something that person is specifically
interested in– People want to be connected to something
meaningful in their lives
Cultivate
• Stay in front of your prospects– Direct correlation between the number of
contacts and the amount of the gift• Handwritten Notes• Personal Calls• Advisory Committees• Volunteer Projects• Bring Them to an Event
Cultivate
• Ask questions– Learn about the donor– What motivates them to give
Cultivate
• Make “advice and counsel” calls– Ask advice– Be sociable– Have fun– Develop a friendly relationship before you ask
Cultivate
• Turn prospects into volunteers– Get them involved– Ask them to participate– Create ownership
Cultivate
• Plan your visits– Always go to the door knowing what your
objectives are– What do you hope to accomplish– What is success– What are you asking
Cultivate
• Follow-through– Fundraising depends on it– Getting the door open is just the first step– Build credibility with an immediate follow-up
ASK & FOLLOW-UP
Just Ask!
• Be Passionate
• Listen
Just Ask!
• Discuss Common Ground– People give to people with causes, not just
causes– Enthusiasm for the cause will take you a long
way– Find connections
Just Ask!
• Listen your way to a major gift– Remember to be quiet and listen– Focus on the person behind the gift– Focus on how the donor can change the
world
Just Ask!
• Reconnaissance is vital– Research your potential donor– You need to have
• The right people • Involved in the right solicitation• At the right time• For the right amount• For the right purpose• At the right time and place
Just Ask!
• Person to person– Never rely on the proposal to sell for you– Cut the deal in person– Proposal is just an after-the-fact formality
Just Ask!
• Peers to peer– Peers should solicit peers– Volunteers can carry more credibility than
staff
Just Ask!
• Say: Would you consider a gift in the range of ________ for _________.
– Always ask for a specific amount• Based on the donor’s values and motivation
Just Ask!
• People give when they are ready– Not because they are strong armed or
manipulated– Ask, but be ready to ask again
THANK YOU!
Then Say “Thank You”
• Donors are generally dissatisfied with the “thank you” communication they receive from organizations. – Make it personal– Show the significance of the gift– First gift is rarely the largest
• Make the first giving experience a joy
Thank You!
• Donors don’t want recognition as much as they want information– Show the money at work– What are they accomplishing by giving– What impact are they making
Thank You!
• Donors want– Prompt personal acknowledgement
• Within two weeks
– Confirmation that you are going to use the gift as intended
– Make your communication passionate– Reflect your mission and your excitement– Find additional ways to say “thanks”
Biggest Loss Occurs Between First Gift and “Renewal”
First year donor retention is 29.3% !!!
Why?
• Focusing on Strategy and Tactics Rather Than…
• The Donor• The Causes The Donor Cares About• The Way The Donor Is Being Treated
What Donors Want
• Prompt, Personalized Acknowledgement
• Confirmation That Gift Was Used As Intended
• Before The Next Ask – Measurable Results Showing Impact
Acknowledgement, Confirmation, Impact
• 9 in 10 Donors Would Give Again If Asked
• 6 in 10 Would Give More
• 3 in 4 Would Keep Giving Indefinitely
What Donors Don’t Want
• Generalized reports on results
• Prompt but impersonal thank you communications
• Over solicitation
• Poor quality communications
Retention
• Nonprofits Could Raise More…– Focus on retaining the best donors over the
long term– Understand what donors want– Better customer service
FOCUS ON RESEARCH AND RETENTION
Question?
• Should staff be expected to donate regularly to the arts organization for which they work?
Corporate and Foundation Gifts
• Requires much reconnaissance– Area of Interest (Education, Poverty, Arts)– Size of Gifts (Ask for what is appropriate)– Funding Cycle (Usually a long timeframe)– Politics (Who influences the gift?)
Corporations
• Two Types– Contributions
• Often from a separate budget of foundation• Be clear about what you are looking for
– Sponsorships• Marketing and PR• Community Development• Trades• Promotion
Corporations• Strong connection to the state of the
economy
• Undergo constant changes in leadership
• Arts and Culture not at the top of the list, even in the best of times
• May be limited to immediate community
• Conditions may be attached
• Dislike controversial art
• Ethics and politics
Corporations
• Reciprocity – What can the corporation gain by giving support?– Public Relations– Marketing Potential– Employee Benefit
Strategic Fit
Foundations Types
• Corporate Foundations:– Private foundations, but their boards are
often made up of corporate officers. – Their endowment funds are separate
from the corporation and they have their own professional staff.
Question?• Should arts organizations reject donations
from corporations because of what the company manufactures, the company’s business practices, or the company’s support of certain politics?
Foundations Types
• Family Foundations (PRIVATE)– Receive endowments from individuals or
families. – Many large, iconic foundations are family
foundations. • Think of the Gates Foundation, the Rockefeller
Foundation, and the Ford Foundation. – Most family foundations are much smaller
• Tend to fund locally• Often have little to no professional staff
Foundations Types
• Community Foundations (PUBLIC)– Public foundations and pool the assets
of many donors. – Provide donor-advised funds for donors
who want to become more purposeful in their giving but don't want to set up their own private foundations. • They work to improve their local
communities through:– Grant-making– Awarding scholarships– Providing services to donors.
Foundations
• Never Approach Cold– Send a letter of Inquiry– Find a connection
• Usually Specific• Some will not accept unsolicited proposals
• Get to Know the Staff– Staff usually has a good deal of influence
Government
• Many Sources– Local Arts Councils– Tourist and Convention Bureau– Social Services– State Arts Councils– National Endowment for the Arts– Other Federal Support
Advocacy is vital!
Government
• National Endowment for the Arts– An independent federal agency dedicated to
supporting excellence in the arts.
• 1965
• Seal of Excellence
• Budget - 161.3 Million
NEA
• President Lyndon Johnson said upon signing the enabling legislation for the NEA, "We fully recognize that no government can call artistic excellence into existence...Nor should any government seek to restrict the freedom of the artist to pursue his own goals in his own way."
The Question of Government
•Should the government support the arts?
•How much influence should the government have?
Get Your Board Involved• Bring a guest
– Bring a foundation executive, corporate representative, or family member to an event
– Ask a friend or business collogue to sponsor an event
– Act as an advocate with elected officials– Write donors personally– Make personal visits to donors with staff– Contribute– Create challenge gifts– Assist with cultivation– Give or get
Secret to Fundraising Success
• Cultivate Donors – Ask for advice and you’ll get money… ask for money and you’ll get advice.
Assignment