rainmaking: the formula for major gift success

7/29/2019 Rainmaking: The Formula for Major Gift Success

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Major Gift Fundraising: Strategy and Planning

Ann Marie Byrd, Development Director, Catholic Charities SpokaneAndrew Olsen, CFRE, Sr. Development Advisor, Russ Reid

September, 2012


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Weve been going through a droughtBUT THE RAIN IS COMING SOON!

The Situation: Giving has not yet returned to 2007 levels, but therain is coming

2011 - $293 billion donated




2007 - $307 billion donatedStatistics acquired from Giving USA 2011 report


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How this impacts YOU


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Typical long term donor value

Donors who have given less than $10,000

LTDV = $200 to $500 over a five year period

Donors who have given more than $10,000

LTDV = $3,500or 18 to 20 times greater than regular donor


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Cost of fundraising impact

Special event cost of fundraising is approximately 50% - 70%

Direct Response cost of fundraising is approximately 30%40%

Major Donor cost of fundraising is approximately 5%10%

These estimates include staff costs too. The benefits of a Major

Gifts programs are evident.


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Pyramid of giving

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The importance of a Major Gift program


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Six reasons you should have a major gifts program

1. Adds revenue to the bottom line

2. Greater donor involvement

3. Decreases overall cost of fund raising by reducing dependence onspecial events, government funds and direct mail

4. Great return on investment

5. Major gifts can represent 20 50% of your overall fundraisingrevenue

6. Positive impact on GIK, public relations, planned giving,Capital Campaign support, significant year-end giving, generatingcommitted volunteers


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Where is your development program?

A Robust Program

Many are involved.

Fundraising as Art & Science.

Leadership is maximized.

Your Case = Vision & Impact.

Diverse income generation:

Mass fundraising,

Major Gifts,

Planned Giving,

Special Events,

Institutional Funding, and

Churches and Civic Groups.

Donors qualifying donors.

New prospects everyday.

A Growing Program

Development staff grows.

Fundraising as Science.

Increased Board involvement.

Your Case=We Do This.

New fundraising strategies tried.

Development Committee formed.

Development is staff driven.

Volunteers become involved.

A Limited Program

Limited staff.

Ad hoc fundraising.

Limited Board involvement.

Your Case=Immediate Needs.

One major funding stream.

.

Begin Where You Are!


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Traditional view of major gift development

Identify

Qualify

CultivateSolicit

Steward


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Major donor development model

Identify/Qualify

Build trustingrelationship

Identifyphilanthropic

passion

Match passionto program

Evaluation andcommitment

Createmeaningful

givingexperience


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Building the major donor development program

Support flows to promising programs rather than needy

institutions. Si Seymour

Major donor development model courtesy ofAdvancement Resources, LLC
http://individual%20donor%20plan%20-%20quadrant%20analysis%20template.doc/http://individual%20donor%20plan%20-%20quadrant%20analysis%20template.doc/


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Identifying major donor prospects Who are your best major donor prospects?

Current major donors

Long-term donors who give at lower levels, but have greater capacity

New donors that come on with mid-level gifts

People who support you in other ways (non-$), but who are making

gifts to other similar organizations in the community


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Qualifying major donor prospects

This is an active engagement process

Call

Visit

Ask questions

Uncover hidden passions

Confirm the donors CIA

Capacity to make a major gift

Interest in your cause

Affinity for your organization


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Building trusting relationships

Key #1: This relationship isnt about you or your organization

Its about your donor and all the good she wants to accomplish in the

world

Key #2: The meaning of trust

Integrity

Honesty

Mutual understanding

Follow through


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Identifying philanthropic passion

What do you want to do with your resources to make an impact in

this world?

What are you passionate about?

How do you want people to remember you/your family?

If money were no object, what would you want to do to improve

the community/world, etc.?

What caused you to begin supporting us?


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Matching passion to program

Each donor should receive a custom proposal, based on the

intersection of her philanthropic passion and your program goals

Hunger

Children

Technology

Education

Immigrant populations

You arent in the restaurant business dont just shove a generic

menu in front of every donor


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Evaluation and commitment

Once youve matched passion to program, you need to present a

proposal that answers these questions for the donor:

Who What population will this impact

What Whats the problem and whats your solution?

When When will it begin, and when will we know if it was a success?

Why Why is this necessary, and why now?

How How will you solve this problem? What will the program looklike?

How Much How much will it all cost, and over what timeframe?


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Evaluation and commitment (continued)

Can I trust this organization?

Do they value me, or just my money?

Is this the right project for me? Is the timing right?

Will this enhance my legacy or my standing in the community?

Will my family/friends support my decision?


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Creating a meaningful giving experience

Its not about the money its about the impact

Look for ways to involve the donor

Identify appropriate feedback and recognition mechanisms


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Tipping points

Retirement

Sale of a business or property

Death of spouse, parent or child

IPO

Graduation of youngest child from college


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13 Major Donor Engagement Strategies

Invite major donor prospects to participate in your mission

Spend one-on-one time with major donors

Host small group events with 4-6 major donor prospect couples /

individuals

Ask them for feedback on a program they fund or one youre

looking to launch / change

Create special invitation only pre and post-event receptions for

major donors and major donor prospects


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13 Major Donor Engagement Strategies (cont.)

Invite them to meet personally with your ED or Board Chair

Create a special Executive Directors monthly communication just

for major donors and major donor prospects

Establish a major donor club with varying gift levels and benefits

Feature a major donors giving story in your newsletter

Place an appreciation article in a local publication of value to yourdonor


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13 Major Donor Engagement Strategies (cont.)

Create a special members-only portal on your website for major

donor communication and updates

Send them personalized video updates and thank you messagesfrom the field

Ask for another gift


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Catholic Charities of Spokane TY notes signed by Exec Dir, personal note for gifts of $200+

$500 - $999 get personal call from member of Admin team;

$1,000+ get call from Exec Dir

Regular updates on how gifts are impacting programs (for

restricted giving)

Personal visit for $5,000+ gifts

Birthday cards, special articles, etc.

Special events and private social gatherings


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Thank YouAndrew Olsen, CFRESr. Development Advisor, Russ [email protected]

626.463.9459

Ann Marie ByrdDirector of DevelopmentCatholic Charities of [email protected]

509.358.4266
mailto:[email protected]:[email protected]:[email protected]:[email protected]

rainmaking: the formula for major gift success

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