Fundraising for Impact

MAJOR GIFTS AND PLANNED GIVING

TO MAXIMIZE RETURN ON INVESTMENT

VARDEN E. HADFIELD, CFRE

VARDEN@VARDENHADFIELD.COM 801-367-8002

WWW.PATHWAYASSOC.COM, WWW.DEVELOPMENTCOACH.ORG

Session Overview

• Audience listening and fundraising feelings

• Major Gifts Process

• Campaign structure and gifting tables

• Finding and getting appointments

• Two visit concept and stewardship

• Planned Giving Basics

• Types of gifts: bequests, trusts, insurance

• Finding and connecting with planned giving donors

• Q&A

Who are you and how do you feel about fundraising?

Major Gifts from Individuals: High Return on Investment

Contribution Sources Revised

• Foundations: 44% are family

• Bequests: 100% from individuals

Individuals, Family Foundations, Bequests

$ 338 87%

Corporations $ 19 5%

Non-Family Foundations

$ 33 9%

Focus on Cause vs. Focus on Technique

• Major gifts

• Mission and case for support

• Listen and adjust to donor’s interest

• Amount based on giving priorities

• Relationship long-term, based on

connection to mission

• Smaller gifts

• Trinkets and benefits

• Sell benefits, products, tickets

• Amount based on opportunity levels

• Relationship short-term, based on

events or benefits

Major Gifts are a High Return on Investment

• Low Cost

• 87% of all giving

• Simple, often quick decision-making

• Flexible and adjustable

• Larger, high-impact gifts

• Fun!

Major Gifts Can be Fun!

Donor Story: Academy of Curiosity

Case for Support

• Why is your cause vital and urgent for the people that will benefit?

• So what? What tragedy would happen if you did not exist?

• People give to help people, not organizations and budgets

• Summary: one page plus one budget page

• Facts with charts AND emotional story of a real person

Pre-Campaign

Planning

Membership

and Public

Phase

Planning and Quiet PhaseFollow

Through

Month/Yr – Month/Yr Month/Yr through Month/Yr Month/Yr- Month/Yr Mo/Yr – Mo/Yr

Pre-Campaign Planning• Clarify Objectives• Set Working Goal• ID and Engage Prospects• Draft Case for Support• Conduct Feasibility Study

Quiet Phase• Conduct Board Campaign• Host Listening Sessions• Conduct Walking Tours• Solicit Largest Gifts• Review and Revise Goal• Plan Campaign Kick-off

Public Phase• Solicit Mid-level Gifts• Solicit Membership Gifts• Solicit Broad-base Gifts• Host House Parties and Events• Donor stewardship

Follow Through• Thank Donors• Show Donors Impact• Final Campaign Report

Plan Campaign• Board Approves Campaign• Enlist Campaign Committee• ID More Prospects• Finalize Case for Support• Develop Campaign Plan Timeline• Create Donor Recognition Plan• Develop Communications Plan

Campaign Kick-Off• 60%+ of Goal Raised• Announce Campaign Goal• Announce Progress to Date• Celebrate Success• Press and Media Campaign

Campaign Timeline and Flow

Feasibility Study• Engage Consultant• Assess Readiness• Recommend Plan

Gift Range Chart

Number of donors 175

Goal Amount: $ 1,000,000

Gift Range No of Gifts No. of Prospects Subtotal Subtotal % of goal

$ 200,000 1 3 $ 200,000 20%

$ 100,000 2 6 $ 200,000 20%

$ 50,000 2 6 $ 150,000 15%

$ 25,000 5 15 $ 150,000 15%

$ 10,000 8 24 $ 100,000 10%

$ 5,000 11 22 $ 70,000 7%

$ 2,500 18 36 $ 60,000 6%

$ 1,000 38 76 $ 50,000 5%

$ 167 91 182 $ 20,000 2%

176 370 $ 1,000,000 100%

Finding Donors

• Your board

• Past donors

• Event participants, program participants, alumni

• Wealth screening of people on your lists

• Stewardship and thank you report visits and calls

• Referrals from board and donors

Getting Appointments

• Board, past donor intro—just learn more about cause

• Peer level contact: CEO to CEO, etc.

• Use phone, text, email appropriately and intentionally

• Personalize, guided by advance research if possible

• “I’d like to share some updates about our progress and to let you know about an

Important project I think you might be interested in. I don’t plan to ask for a gift

at this visit, but just learn about your interest in this project.”

Stewardship and Cultivation Visit

• Goal: Understand donor and their relationship to the cause

• LISTEN and learn

• How are you connected to this cause? Why did you give?

• Do you have any personal history connected to this cause?

• What other kinds of organizations do you like to give to?

• How do you like to learn about results of your gifts?

Pre-Ask Visit

• Goal: Information gathering and appointment for ask visit

• 5-10 minutes: Personal “small talk”

• 5 minutes: Stewardship update

• 5-10 minutes: New project case for support

• “What are your thoughts about this idea?”

• 10-15 minutes: LISTEN

• What is most interesting about this project?

• What difference would this make for the recipients?

• Could we return with a proposal for a leadership level gift?

Ask Visit

• Goal: Gift Commitment

• 15 minutes: Personal “small talk”

• 5-10 minutes: Personalized proposal

• “Because of your interest, we thought you might want to give $XXXXXX. How does

that sound to you?”

• 10-15 minutes: LISTEN

• If “yes”: learn timing, assets, payment schedule, follow-up methods

• If “no”: understand why: “Project? Timing? Amount?

Organization and Follow Through

Planned Giving Magic: You can do this!

Your generous Uncle Sam

Planned Gift Types

• Bequests: Wills and living trusts—by far most common

• Retirement plans and life insurance

• Donor advised funds

• Charitable trusts “Wealth Preservation Trusts” that give income to donor for life,

then pass assets to charity

• Charitable trusts “Wealth Preservation Trusts” that give income to charity for a

period of time, then pass assets to donors

• Charitable gift annuity

Donor Advised Fund

Charitable Remainder Trust

Charitable Lead Trust

Planned Giving Donors

• Long term relationship with organization: volunteer, alumni, participant

• Gift consistency more important than amount

• Consistent annual donor

• Age 50 and up, but often in 40s as well

Charitable Gift Annuity

Promoting Planned Gifts

• You can do this: attorneys do the details

• Legacy society, but respect privacy

• Current gift match for planned gifts

• Frequent mentions in all communications

• Highlight impact of planned gifts

• Share real-life, current examples of donors who are now alive

• “Wealth preservation”

Resources and Q&A

• www.pathwayassoc.com/resources

• www.developmentcoach.org/resources List of books, with links

• sww.afpnet.org Fundraising in general

• www.pgdc.com Planned giving in detail, for professionals

• https://www.philanthropy.com/ Chronicle of Philanthropy

• varden@vardenhadfield.com for electronic copies and two-visit process handout