prospect and moves management for major gifts robin kraujalis, cfre assistant director of...
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Prospect and Moves Management for Major Gifts
Robin Kraujalis, CFRE
Assistant Director of Development
Saint Louis Zoo
What is a Major Gift?
Amount +
Purpose =
Extraordinary
How are major gift fundraising techniques the same? Different?
SAME• Reasons for giving• Fundraising cycle
DIFFERENT• One-on-one• Donor-focused• Longer timeframe• Many steps
Reasons for Giving - Why do people make major
gifts?• They have assets
• They have philanthropic needs & interests
• Their needs match your mission
• They can impact/satisfy needs
• They have trust and respect for the organization, solicitor and staff
Friend Raising Cycle
Strategy
Solicitation
CultivationRecognition
Stewardship
Potential donors
MemberFamily
NaturalistKeeper
Curator
MPS
QualifyGenerally self-qualifyMembership levelsRequest upgrade
Group strategyMembership levelsBenefits
Membership renewalsMembership brochuresAdoption renewals
MarketingPublic relationsEventsToursDinners
Thank you letterAnnual report listingDonor boards
ZudusInvitationsEventsBenefits
Zoo parents
Donor-Focused Development
• Each donor is different-unique-and, therefore, each donor must be cultivated differently, using different techniques, skills and benefits.
• Understanding each person’s motivations enables us to identify their needs and ultimately, to ask them for a gift that is meaningful and appropriate (extraordinary).
Moves Management
• Each contact with the donor is an opportunity to learn more about their needs and interests and to move the relationship forward in a positive way.
• We need to determine where the person is in the gift-giving cycle (readiness to give) and where we want to move them next.
Prospect research/management is critical to moves management
Prospect research helps us:
• Prioritize
• Strategize – primary players– interests– where they are in gift-giving cycle, next move
• Track our progress
Major Donor Cultivation Cycle
Qualify
Strategy
Cultivation
Solicitation
Recognition
Stewardship
IdentifyHolding area forsuggested names
Find initial informationEstimate initial capability
How to involve prospectGet to know prospect: interests capability
Involve prospectVolunteer solicitorDetermine Zoo interestsDetermine ask amount-----------------------“Background” vs.“Foreground” MovesSpecific amount
Specific project
Thank donorNaming opportunitiesCampaign events (groundbreaking, press announcements)Campaign listingPlaques
Keep donor informedKeep donor interested
feed back loop
MPS
Major gifts
Zoo Friendsand Members
Major Gift Cultivation Cycle
• Five I’s (G. T. Smith)– Identification– Information– Interest– Involvement– Investment
Major Gift Cultivation Cycle
• Dunlop’s Version– Identification– Information– Awareness– Knowledge– Caring– Involvement– Commitment
Case Study
Creating a prospect and moves management system for the Saint Louis Zoo’s major gifts program and our Zoo 2004 campaign.
• Getting started
• Key information
• Keeping track
• Strategic planning
Identify your prospects for major gifts & moves management
• Your members and other contributors
• Board members
• Volunteers
• Contributors to other organizations
• People with assets and influence in your community
• Data screening service
Qualify (Prioritize or Rate) Your Prospects
• Readiness
• Capability
Rating System: Saint Louis Zoo
• Readiness/Involvement:
A Very involved. Minimal cultivation
needed.
B Somewhat involved. Some cultivation
needed.
C Minimal or no known involvement
Prospect Rating: Saint Louis Zoo
• Readiness– Board membership– Volunteer activity– Event attendance– Gifts to your organization– Gifts to organizations with similar mission– Relationship to you or others who can influence
a gift.
Prospect Rating: Saint Louis Zoo
Capability (Maximum Potential Gift)
1 $500,000+
2 $100,000 - $499,999
3 Less than $100,000
4 Unknown
Prospect Rating: Saint Louis Zoo
Capability for Major Gifts
• 3% of estimated net worth
• 20 times consistent annual gift
• Up to 10% of annual income
Prospect Rating: Saint Louis Zoo
Estimating Net Worth
• 10 x salary
• 4 x real estate holdings
• Selling price of company x holdings x 25% to 50%
• Estate x 60% x portion of estate = inheritance
Prospect Rating: Saint Louis Zoo
• External Rating with Volunteers– Verify internal (staff) rating and research– Identify primary players and connections– Identify donors’ interests and needs– Identify volunteers!
Moving on to Moves Management
• Strategy– Prioritize the prospect pool
• Top down, inside out
– Meet with primary players• Who can most influence a gift?
– Determine next move• Where is the donor in the gift-giving cycle
(readiness)?
• Where do they need to go next?
Next Move
SUSPECT
Where they are in the gift-giving cycle (readiness to give): may have interest in giving
Move: need to qualify, do further research, invite to a campaign event or dinner
Next Move
PROSPECT
Where they are in the gift-giving cycle (readiness to give): qualified prospect
Move: explore needs and interests, e.g. invite for tour of the Zoo
Next Move
POTENTIAL DONOR
Where they are in the gift-giving cycle (readiness to give): has an interest in giving
Move: present case and ask, e.g. invite for lunch and presentation
Next Move
DONOR
Where they are in the gift-giving cycle (readiness to give): has given.
Move: build relationship and involvement, reinforce decision to give.
Managing the Moves -Key Indicators
• Cultivation or Proposal Status
• Action Steps or Ticklers
• Rating
• Solicitors or Key Players
Managing the Moves -Key Reports
• Volunteer & Staff Tickler Reports
• Monthly Status Reports– Number & Type of Actions Completed– Number of Gifts Received, Avg. Gift, Yield– Rating & Status Report– Progress Toward Goal
Managing the Moves -Tools for Strategic Planning
• Once you these key indicators, you can use this information for planning:– How many steps, on average, does it take to
secure a gift? – What is the average amount given?– How many actions or solicitations can a
development officer complete in a year? How many will it take to reach our goal?
Managing the Moves -Tools for Strategic Planning
(continued)
• Do we need more staff? Or volunteers?
• Who are our most effective solicitors?
• Which prospects are yielding the best gifts?
• Were our ratings accurate?
• Which prospects should we focus on next?
“Group” Moves Management
• Applying strategies to groups of prospects can also be effective, for example:– Civic Progress– Trustees– Next 100– Cover and Close– Home Stretch
“Group” Moves Management
• Key Indicators– Prospect Priority Classification
• Trustee
• 1st priority, 2nd priority and so on
– Proposal Type• Trustee
• 2nd gift
– Proposal Deadline
Case Study - Individual Prospect
Qualify
Strategy
Cultivation
Solicitation
Recognition
Stewardship
IdentifyHolding area forsuggested names
Find initial informationEstimate initial capability
How to involve prospectGet to know prospect: interests capability
Involve prospectVolunteer solicitorDetermine Zoo interestsDetermine ask amount-----------------------“Background” vs.“Foreground” MovesSpecific amount
Specific project
Thank donorNaming opportunitiesCampaign events (groundbreaking, press announcements)Campaign listingPlaques
Keep donor informedKeep donor interested
feed back loop
MPS
Major gifts
Zoo Friendsand Members
Moves Management - Conclusion
• Effective for Managing Major Gift Prospects or Groups of Major Gift Prospects (and Staff and Volunteers!)
• Requires Thoughtful Strategy and Effective System for Tracking Key Information
• Requires Discipline - For Updating, Maintaining & Reviewing Information
• Requires Research & Development Officer Cooperation
Credits
• The Stelter Company, Skills Plus Relationship Building Workshop
• David R. Dunlop, “Special Concerns of Major Gift Fundraising.”
• Steve Wilkerson, Pierpont & Wilkerson