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Terry Munday February 21, 2018Orlando, FL

Back to the Basics in Fundraising

Ø“The almighty dollar bequeathed to a child is an almighty curse. No man has the right to handicap his son with such a burden as great wealth. Will my fortune be safe with my boy and will my boy be safe with my fortune.”

Carnegie

Ø“Inherited wealth is a certain death to ambition as cocaine is to morality.”

Vanderbilt

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Knows the stories of the institution

• Bruce Cox• Fred and Leveda

RELATIONSHIPS

Most people pick charitable organizations to have a relationship with because of a

relationship with their family or community.(Barb)

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BUILDARELATIONSHIP

Giftswitharelationship…….5to1Giftsbyreferral…......................8to1Giftsbycoldcall………………10to1

KNOWS KEY TIMES FOR GIVING

• 24% given between Thanksgiving and the end of the year

• 34% given during the last 3 months• 74% of people will give during the holidays• 60% of people plan to give $100 or more

Gap Calls- GurleyWhy people give at these times:• Tax benefit•Spirit of the season•Charities are making appeals

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PHONE CALLS – GAP CALLS

§ Calendar year end – solicitation calls

§ Sample calling form

Name 2009 2010 2011 2012 ASKJohn Doe $300 $500 $1,000 $200 $1,000Mary Smith $1,000 $500 $500 $100 $1,000Sue Jones $100 $200 $400 $0 $400Van Gurley $5,000 $5,000 $5,000 $0 $5,000

Dan Bowen Ford

DONOR PYRAMID 90/10

Major and

Planned Donors

Loyal Givers

Small or Occasional

Donors

Non Donor Constituency

(Acquisition of Donors)

10% of Donors Account for 90% of Dollars Raised

20% of Donors Account for 5% of Dollars Raised

70% of donors Account for 5% of Dollars Raised

High Effort-High CultivationPersonal VisitsDinnersTelephone Calls

Personal SolicitationPersonal LettersPersonal Phone CallsFirst Class Stamp Letters

Bulk Rate LettersInternet AppealWebsite Requests

Marketing Materials

Newsletters

• Do not view donors as one group• Where do you spend your time?• Regular Donor Reports

IMPORTANCE OF DATABASE

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HOW TO HAVE FUNDRAISING SUCCESS

5%

5%

Time and Resources90/10 Donor Pyramid

Rotated Pyramid

• More Fun to Ask for Larger Gifts• Relationship Building• Jim Sutter

90%

25%

75%

KEY SECRETS TO FUNDRAISING:3 “C” PRINCIPAL

3 “C” Principal includes: Ø See the people

Ø See the people

Ø See the people

Personal Solicitation is the best method

à Direct Mail – 1% - 5%

àTelephone – 25% -40%

à Personal – 75%-80%

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WhatDoYouShare?

1. Fiscalintegrityoftheorganization2. StableLeadership3. TheirPassion

-Appealtotheheartnotthehead

“Everydaywehavestudentseitherdropoutorunabletogetacollegeeducationbecauseofalackoffunds”

StoryofElliottMiller

WHAT DO YOU SHARE

4. Specific amount on a

concrete item

5. Show people that they can

make a difference

6. Explain the benefits

-Tax deductions, (study reveals that the impact of taxes on giving ranks third most important motive)

-Percent spent of their gift

7. Make it personal

8. Sense of urgency

-The project can’t be delayed. Time is working against

the project.

9. Naming Opportunity

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GOOD FUNDRAISING

ØPeople give to peopleØPeople give to people with a causeØPeople give to people who ask

CHARACTERISTICS

ØPassionØCommitmentØCommunication SkillsØCommon SenseØPersonableØCuriousØHonestØGood EthicsØCreative

We can teach skills –can’t teach attitude.

LOOK OUTSIDE THE FUNDRAISING BOX WHEN HIRING

Ross Hoffman

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FUNDRAISERS HAVE DIFFERENT PERSONALITIES AND SKILLS”

• No candidates have experience in all fundraising activities

• Bold to make an ask• Hours writing a grant

HIGH PERFORMING FUNDRAISERS

ØVery, very bright individuals; above average mental abilityØAmbitiousØAchievement OrientedØCompetitiveØGets Things DoneØSolutions to Overcoming ProblemsØGoal OrientedØTakes ChancesØHigh Energy

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HIGH PERFORMING FUNDRAISERS (CONT.)

ØWorks Well Under PressureØOutgoingØPersuasive and Motivates OthersØGets Noticed for SuccessØLikes people around; does not enjoying working aloneØDislikes detailsØDoes a lot of travel to meet donors

Good Fundraisers are Proactive

.. . .

. . . .. . . ..

.

Top of an oak tree

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Kim Klein – “You already know all the people you need to know to raise all the money you need to raise.”

Give Me Five

Questions to Ask

• Do you know anyone• At your church• In your community• In your business• In your civic groups

• That…• Owns their own business?• Retired Early?• Owns a winter home in a sunny climate?• Travels extensively?• Owns commercial property, apartment

buildings or farm land?• Is involved in the stock market, trading on a

regular basis?• Is known for their charitable giving?• Is retired and has no children?• Has their own foundation or serves on the

board of a foundation?• Is an executive officer at a large corporation?• Is on other boards with you?

Consider these questions as you review your address file. We are looking for individuals that share the same values with your organization with whom we can build relationships. These questions are not intended to be exclusive, but give you some idea of the types of individuals we wish to identify.

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Prospect Amount of Ask Relationship Assist

With Ask

1 John $5,000 Neighbor Y

2 Mary $10,000 Bus Associate N

3 Sue $25,000 Banker N

4 Bob $50,000 Uncle Y

5 Charles $100,000 Grandfather Y

Research in Giving- most major giving & planned giving in new prospect began as annual

givers

- An alumni making a gift of $1 million will have made their 1st gift 20

years earlier.

“Show persistence – not rapid persuasion”

-78% of planned giving donors gave 15 or more gifts during their lifetime

to college named in their will.

Good Advice:

“The donors who are already supporting your organization are your best source for your next gifts”

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2016 – SOURCES OF CHARITABLE GIVING

Foundations

Bequests

Individuals

Corporations

Individuals72%

Corporations 5%

Majority Charitable Dollars Went to:1. Religion – 32%2. Education – 16%3. Human Services – 12%4. Health – 9%

U.S. Total Donated $389.05 Billion

AGE FACTOR

% of Income

Age

• 3% 25 year olds• 2% 26-35 year olds• 2% 36-45 year olds• 4% 46-60 year olds• 5% 61-75 year olds• 12% 76 year olds

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GENDER DIFFERENCES IN CHARITABLE GIVINGØ Single women give more than single men.

Ø Men donors tend to give significantly more than female donors for religious causes.

Ø Women tend to give to more causes than men which means women give more smaller donations.

Ø Men tend to give to fewer organizations.

Ø As women get older, their giving to religious organizations increases.

DONOR SEGMENTATION

[], We haven’t figured out how to connect

with them yet.[][] Engines of

philanthropy, []

[] Showing up the next 50 Years, []

[], Technology & Media will change by the time they

show up. []

GENERATIONS

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THREE COMPONENTS OF ANNUAL FUND

1. Direct Mail- Nov. 15 – Dec 31 (Primetime)- Mailings per year

2. Special Events

3. Personal Solicitation- People give to people-People give to people with a cause - People give to people who ask

Of the $400 billion raised by all Non-profits in a year 20%

Is raised through

DIRECT MAIL

DIRECT MAIL FACT

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- Mailing List - Offer Premium - Copy Quality

Page Letter/Not Effective2-3 Page Letter/Most Effective4 Page Letter/Too Long

- Two ColorImportance Of A PS ( Cursive)Use Of Return EnvelopeUse Of No# 10 Envelope

BulletinImportant Information EnclosedTax Letter

- Anecdotal Stories

Direct Mail - 50/30/20

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COST TO RAISE A DOLLAR

Event: 50 cents

Annual Fund: 25 – 30 cents (Direct Mail)

Major Gifts/Capital Campaign, 5 – 10 Cents

Government – 35 Cents$7.00 - $8.00 Premium Regulation

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Jerry Lucas

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90 % of the GIFTScome from

10% Of The PEOPLE

VARIABLES THAT PREDICT THE AMOUNT OF THE GIFT

• Leaving a legacy• Age of Donor• Identification with a project• Advisory Committee/PACE • Board participation

-Women get involved first – then give

• Income – greatest correlation

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WHYPEOPLEDON’TGIVETOYOURORGANIZATION

1. Never asked-Number 1 reason people do not give

2. Not educated about your organization3. Lack a relationship

•Relationship requires time-Donor needs to know you-Get their advice and ideas- Donor involvement and engagement

SalvationArmy– StanfordStudy

THE ASK ØProperaskiswhentheprospectis…

-askedbytherightperson-askedattherighttime-askedfortherightgift

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THEASK1. The donor is asked to write a check2. Ask for a specific amount-no range

-Westerville, Ohio-Rule of thumb (10-20 times annual gift)

3. Use staff and president, CEO4. Use two volunteers

-One to share vision-One to make the ask-One who has a relationship

5. After ask (SILENCE)6. Minimal amounts of materials

THE ASK

A “NO” - - -does not

complete the process of an ask

Whydidtheyanswerwitha“no”?1.Nogreatfeelingorinvolvementwithinstitution.2.Thereisalackofinterestinthisspecificproject.3.Iaskedfortoomuch-amount.4.Thetimingisafactor.

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TIPS DURING AN ASK

ØSmile early & OftenØStand or sit tallØSit toward the front of your chair, lean into your ASKØBe physically accessible. Don’t cross your arms.ØGood voice inflection, speak with volume.ØExpress gratitude for visit.ØBe curious. What do you see in the room?ØMake intentional small talk – kids, vacation, work projects, hobbies,

likes & dislikes.ØGive compliments

IMPROVEMENT OF YOUR ORGANIZATION THROUGH EVALUATION

1. How Many Asks Made2. Gifts Secured3. Avg. Major Gift Size4. Major Donor Retention Rate5. Annual Fund Comparison

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Finally, always remember to say….

Thank you, Thank you, Thank you!!!

QUESTIONS

Terry Munday

terry.munday@indwes.edu