Fundraising Fundamentals

Loving Philanthropy!

2013 contributions: $335.17 billion source of contributions

rounded)

2

?

?

?

Your Pie Chart

3

Follow The Money*

• 43% of giving by individuals from Boomers

– 21% matures

• 64% of all gifts by individuals from women

– 52% of women came to their marriage with assets

– 92% of male donors say their spouses greatest influence on giving

*Giving USA, Indiana University, US Trust

4

Fundraising ROI?

5

Inspired, Joyful, Generous Investing

6

Lifetime of Investing

7

Personal Capital

Human

Intellectual

Network

Financial

8

Ernie Ludy, Founder Medstat

“All In”

Management Process Why =

Vision, Plan, Priorities, Case

How = Strategies,

Staff, Board of

Directors

Who = DonorsWhat = Results,

Metrics

9

MissionVision &

Big Ideas

ValuesCosts and

Plans

Cases for

Support

Building Blocks

10

11

12

What

How

Why

Characteristics of a Vision*

• Bold

• Urgent and compelling

• Imaginable

• Desirable

• Feasible

• Focused

• Flexible

• Communicable

A strategic response to anticipated needs and conditions

*John Kotter, Leading Change

13

14

Values Matter

• The shifting nature of wealth and inheritance has families talking about values as well as money.

Strategic Plans

1. Organization plan

– Costs

2. Fundraising plan

– Overarching 3 to 5 year goals

– Tactical plan for current year

3. Marketing and communications plan

15

Cases for Support

• Impact and outcomes

• Reasons to increase

• Urgency – reasons to give and give NOW! • Vision

• Priorities

• Case for each priority including unrestricted

16

Ultimate

Principal

Major

Leadership Annual

Annual or Regular

17

Management Process Why =

Vision, Plan, Priorities, Case

How = Strategies,

Staff, Board of

Directors

Who =

Donors

What = Results,

Metrics

18

Software is a MUST!

19

Level 2011 2012 2013 2014 Need 2015

$50,000 0 0 0 1 1

$25,000 0 1 0 0 3

$10,000 1 1 0 2 6

$ 5,000 2 2 2 2 10

$ 2,500 5 1 3 0 15

$ 1,000 7 10 11 15 29

60% of Total

$ 500

$ 250

$ 100

Annual Giving Table of Gifts $500K

20

Level 2011 2012 2013 2014 Need 2015

$50,000 0 0 0 Joe 1

$25,000 0 Sally 0 0 3

$10,000 Mary George 0 SallyTom

6

$ 5,000 Found ACorp X

Found ACorp Y

Found ACorp Z

Found ACorp Y

10

$ 2,500 5 1 3 0 15

$ 1,000 7 10 11 15 29

Name By Name

21

• Based on capacity ratings – gifts over 1 to 5 years

• 80/20 or 90/10 rule

• 3 to 4 or more possible donors for each gift needed

Major Gifts Table of Gifts Guidelines

22

Calculating MG Capacity to Give• 5% of salary for an

annual gift • 5% of known

income and assets for a pledged major gift of $100,000 or more

• Wealth screening• Real estate

calculation

23

Inclination Ratings

• Is the donor philanthropic– Gives to three or more

charities at leadership AF levels + ($1,000+)

• Affinity– User of your service, touched

by your cause

• How many degrees of separation? – You know them– Someone you know, knows

them well

• Frequency of giving to your organization

– Three years or more? The more years the higher the score or frequency in one year

• How recent was the last gift?

– Current, last year or two years ago

• Size of last gift – Larger than your average gift or

– $1,000+

24

Points Ratings

Philanthropic 0-2 H = 10 to 12 points

Affinity 0-2 M = 6 to 9 points

Degrees of Separation 0-2 L = 4 to 5 points

Frequency/Loyalty 0-2 R = Less than 3 points

Last Gift 0-2

Size of Last Gift 0-2

Inclination Rating

25

Rating Quiz

26

Joe Connolly, WSJ (2013)

“Retention is the new acquisition

Customer service is the new marketing”

27

Best Prospective Donors

• Current leadership donors

• Current major donors

• Grantors

• Lapsed donors 1 to 2 years

• Donors who upgraded

• Give more than average gift

• Give from stock

• Trust bank

• Have you in their will

• Loyal

• Most engaged

28

1. Doing what we said (accountability and transparency)

2. Documenting expectations

– Particulars

– Decision makers

– Intent and motivations

3. Thanking within 24 to 72 hours

Defining Stewardship

29

Make It Personal – Share the Promise

30

4. Providing appropriate and desired recognition

5. Connecting donor/volunteers to the impactof their “all in” investments in pleasing and creative ways using a wide array of tools, voices and experiences

Defining Stewardship

31

Making Donors Say “Wow”

32

StewardshipMultipleVoices

Personal

Connect the Dots

Impact!!!!

AuthenticS

33

Mission, Vision and Values Gatherings

34

Management Process

Why =

Vision, Plan, Priorities, Case

How = Strategies,

Staff, Board of Directors

Who = DonorsWhat = Results,

Metrics

35

Annual or Regular Giving Programs

1. Direct mail

2. Online

3. Monthly and payroll deduction

4. Social media

5. Phone

6. Street (peer to peer)

7. Checkout counter (cause marketing)

7. Volunteer

8. Special events

9. In-kind

10. Corporate matching

11. Challenges

12. Leadership annual

13. Tied to a major gift solicitation

36

Special Events

37

Event Goals

38

Think, Feel, Do!

39

Mission Infused

Pre-Work

40

Post Event Follow-up

41

Special Event Checklist

• Number

• Net dollars raised

• Goals

• Think, feel, do

• Mission infused

• Impact statements

• High retention

• Capture cell and email

• Strategic follow-up42

The Rights©

• “Right” purpose

• “Right” amount

• “Right” solicitors

• “Right” time

• “Right” participants

• “Right” place

• “Right” materials

43

Donor Process

Identification and Rating

Discovery and Research

Strategy Development

Strategic Engagement

Solicitation and Closing

Thanking and Recording

Stewardship and Strategy Development

44

6. The Tarnside Curve of Involvement*Developed by Patrick Boggen, Tarnside Consulting, UK

High

GIV

ING

INVOLVEMENT High

Awareness Interest

Engagement

Commitment

Ownership

Taking Personal

Responsibility

45

Philanthropic Profile©

46

• Capacity, inclination

• Motivations, values, passions, interests

• Top philanthropies and why; where you are

• Decision makers, timing, process

• Natural partners

• Possible obstacles, issues

• Stewardship and engagement preferences

Strategic Conversations

47

Listening Styles

• Stories

• Data

• Testimonials

• Info-graphics

• Videos

48

Listening

49

• Open/Closed• Direct/ Indirect/ Leading• New information• Clarification/Confirmation

• Attitude• Values• Implication• Commitment

50

Strategic Questions

Getting the Appointment

51

Roles and Responsibilities

52

CEO

BoardCDO

1. Building Blocks

2. Ensure a strategically composed and engaged high performing board of at least 20 to 25 individuals

3. Top 25 to 50 donors and prospective donors

4. Invest in fundraising

5. Culture of Philanthropy

CEO

53

Make Time

54

55

“Culture Eats Strategy for Lunch”**Peter Drucker

56

• Manage program and staff (outsourced as well)

• Plan and organize

– Goals, budget, table of gifts, software

• Portfolio of top donors and prospective donors

• Support CEO, board leaders

• Metrics and reporting

• Staff key board committees

– Fundraising & marketing, board development

CDO

57

High PerformingBoards

AND not OR

59

• Must Have

• Very Important

• Specific Needs based on strategic plan, values

Strategically Composed

60

• Identify

• Engage

Fill the Funnel

• Strategic Conversations

• Engage

Discover• Leadership

level

Solicit and Steward

• Share expectations

• Assign Buddy

Recruit & Onboard

Board Building Process

61

Top Ten Philanthropy Responsibilities

1. Make your organization #1, 2 or 3 philanthropic priority

2. Give generously (stretch gifts) and early3. Build a strategically composed, engaged board4. Know mission, vision and work; be able to articulate5. Be a Passionate Ambassador6. Introduce others7. Make personal visits8. Participate in stewardship- share the joy!9. Invest in Fund Development10. Learn all about Fund Development

62

Yes to Organization

Yes to Leadership, Vision

Yes to Role of Philanthropy

Yes to Concerns Addressed

Yes to Scope, Purpose

Please Join me with an

Investment

The Upside Down Triangle©

63

Management Process Why =

Vision, Plan, Priorities, Case

How = Strategies,

Staff, Board of

Directors

Who = DonorsWhat =

Results,

Metrics

64

Metrics

• Retention, loyalty

• Upgrades

• Yes rates

• Social and new media

• Event conversions

• Acquisition

• Re-acquisition

• Board stats

65

Fundraising Success Factors

• Read your notes

• Give yourself a grade

• Use the grid

• Decide what you will do

• Set dates

• Build in accountability

• Celebrate successes

66

High ImpactHarder to Achieve

High ImpactEasier to Achieve

Lower ImpactHarder to Achieve

Lower ImpactEasier to Achieve

Action Planning

67

• Like us on

• Visit us: www.theosbornegroup.com for freepodcasts, blog posts, videos and tools

• Contact us: mail@theosbornegroup.com 914-428-7777

• Follow us on Twitter @kareneosborne, @bobosborne17

• Connect on LinkedIn Karen Osborne, Laurel McCombs, Robert Osborne, Jr., Yolanda Rahman

This presentation is the copyrighted property of The Osborne Group, Inc. (TOG) It cannot be used, copied, sold or given away without written permission from TOG

68