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Annual Giving: Moves ManagementAnnual Giving: Moves ManagementAnnual Giving: Moves ManagementAnnual Giving: Moves Management

Presented by:

Cassie Ritter Hunt, [email protected]

Mark J. Marshall, [email protected]

mailto:[email protected]

mailto:[email protected]

Bentz Whaley FlessnerBentz Whaley Flessner 22Bentz Whaley FlessnerBentz Whaley Flessner 22

Annual GivingAnnual GivingThe Flexible Role of Annual GivingThe Flexible Role of Annual Giving

Build participation

– Expand footprint

– Serve benchmark

Increase

current-use $

– Operating dollars

Teach donor behavior and

manage relationships

– Perpetual Giving

Prospecting

– ID connections

– Gather data

– Analyze major

donor behavior

Build strategic bridge

between campaigns

– Advanced annual efforts can

keep people giving and

ensure stewardship

Pre-sell the case

– Critical to the

campaign

Annual Giving

Is Central to

Overall

Fundraising


What is prospect management?

An organized process by which prospects are identified, cultivated, solicited

and stewarded with a goal of increasing philanthropy and engagement.

Fundamentals of Prospect ManagementFundamentals of Prospect ManagementFundamentals of Prospect ManagementFundamentals of Prospect Management

What is prospect Identification?

A variety of methods by which prospects

are identified for their philanthropic

potential, and moved into the prospect

management pipeline. For example,

wealth screening results, referrals from

volunteers, and self-identification.


Prospect Management PrimerProspect Management Primer

LeadLead QualificationQualification

Qualified LeadQualified LeadDiscoveryDiscovery

Not a prospectNot a prospectNot a prospectNot a prospect

ProspectProspectProspectProspect

Future prospectFuture prospectFuture prospectFuture prospect

Is this a prospect?Is this a prospect?Is this a prospect?Is this a prospect?

Strategy

Cultivation

Solicitation

Stewardship

•Communications

•Alumni Relations

•Special Programs


Annual Giving’s Role in Prospect Annual Giving’s Role in Prospect

ManagementManagement

•Qualifying prospects through giving

•Discovering prospects through visits

and volunteers

•Managing future prospects

Strategy

Cultivation

Solicitation

Stewardship

•Strategy involves an AG gift component

•AG solicitation serves as a cultivation step

•AG contributions continue through

stewardship

Framing the ChallengeFraming the Challenge


You have:

20,000 alumni

8,000 past and current parents

8 development officers

Major gifts officers should have primary solicitation

responsibility for an annual gift from no more than 10-20

prospects.

The Challenge:The Challenge:


This leaves the annual giving program This leaves the annual giving program

to manage:to manage:

26,800 constituents,

96%

1200 constituents,

4%

Managed by AG

Managed by MG

Congratulations!

You are the

primary prospect

relationship

manager for your

school!

Challenge #1: Applying the Challenge #1: Applying the

prospect cycle to an annual effortprospect cycle to an annual effort


•Prospect management works because it’s personal;

small numbers make it manageable.

•Annual giving can AID prospect management but we

must apply the same principals when:

• The solicitations are usually performed through mail or

over the phone.

• The timeframe is, at most, 12 months.

• The focus is on consistency rather than a one-time gift.

Prospect Management in Annual GivingProspect Management in Annual GivingProspect Management in Annual GivingProspect Management in Annual Giving

On the surface, the two efforts are contradictory.

Major Giving

Annual Giving

Bentz Whaley FlessnerBentz Whaley Flessner CONFIDENTIALCONFIDENTIAL 1212Bentz Whaley FlessnerBentz Whaley Flessner CONFIDENTIALCONFIDENTIAL 1212

How can you make 26,800 people feel

personally solicited?

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Challenge #2: Challenge #2:

Staffing PresumptionsStaffing Presumptions


Juggling the management of staff,

volunteers and major programs.

Oh, and you should be making visits,

too.

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“Annual Giving is where you go until

you are ready to be a major gifts

officer.”

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•First generation of VPs who didn’t

start in annual giving.

•Young staff with high turnover.

•Dynamic field with many

opportunities.Ch

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Challenge #3:Conditioned BehaviorChallenge #3:Conditioned BehaviorChallenge #3:Conditioned BehaviorChallenge #3:Conditioned Behavior


Building a conditioned behavior in

your prospect pool.C

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Annual Giving can condition the

“consumer” to respond in certain

ways.

• Fall solicitation cycles.

• Donor recognition tools.

• Ask amounts.

• Challenges.

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ANNUAL GIFTS vs. MAJOR GIFTS

Small vs. Large

Income-based and sourced vs. Assets-based and sourced

Repeatable, routine vs. One time, unique

Solo decision vs. Family/Advisors

Quick, easy decision vs. Deliberation

Single call vs. Many visits

Your timing vs. Donor’s readiness

Quick release vs. Partnership

Needs-based vs. Opportunity-based

Aggregate impact vs. Visible impact

Difference Between Annual Giving Difference Between Annual Giving Difference Between Annual Giving Difference Between Annual Giving

and Major Givingand Major Giving


Major Gifts

Engaged Process

Rare

Impact on assets

Contrasting Donor BehaviorsContrasting Donor Behaviors

Annual Gifts

Transactional

Repeatable

Limited impact on assets

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Examine your management of:

An alumnus or alumna who lives within 50 miles of campus.

An alumnus or alumna who lives in a major concentration

point.

An alumnus or alumna who lives 1500 miles away.

An alumnus or alumna who lives in Wichita.

ExerciseExercise


Evaluate renewal and upgrades:

By segments.

By demographics.

By program.

By appeal.

By individuals.

Teaching the case through appeals.

Aligning personal interests with organizational priorities.

Teach Donor BehaviorTeach Donor Behavior


Annual Giving FallacyAnnual Giving Fallacy

There is a danger in changing how we segment!

The world is changing, demographics are changing,

your institutions are changing…but not your

segments?

Defining a StrategyDefining a Strategy


• Develop individual strategies for your top prospects

• All managed prospects

• All members of your leadership society

• Top prospects for your leadership society

• Segmentation at other levels

• Based on donor behavior

• Based on donor potential



Develop a strategy for each, noting:

• Types of contact

• Volunteer or staff interactions

• Target amount and date for the ask



People:

• Institutional representatives engaging prospects

• Logical connection to organization

• Passionate about your mission

• Board members, Class Agents, Reunion Committees, etc.

Programs:

• Alumni magazine and other publications

• Facebook, LinkedIn

Strategy: Use your Natural Partners for Strategy: Use your Natural Partners for Strategy: Use your Natural Partners for Strategy: Use your Natural Partners for

Relationship ManagementRelationship Management


Expanding the BaseExpanding the Base

Expanding

Donor Base

Leadership

Giving

Increased Giving

Entry Level Giving

Prospect Pool

Expanding

Donor Base


Building Your StrategyBuilding Your Strategy


Each constituent should have a clear Each constituent should have a clear

home in your strategy.home in your strategy.

Jill Johnson „75

First time gift last year!

Retain!

Bob and Sue Smith „66

3 consecutive years at at

$2500. Upgrade!


Don’t manage to the anomaly.

Create the appearance of a campaign of one.

Develop tactics that are in sync with the philosophy

and the strategy.

Keys for Building a Prospect Keys for Building a Prospect

Management StrategyManagement Strategy


What gaps do you have in your program?

The “Pine Tree” effect.

You get what you plan for!You get what you plan for!

Leadership Giving

Level below

Leadership Giving



Magic Letter #41!

You are unlikely to wear down

a non-donor into submission!

4. Leadership Giving4. Leadership Giving


Leadership giving fills a critical void between major gifts

and solicitation of the masses.

• Self-identified donors.

• Screen-able prospect pool.

• Generally comprises more than 60% of annual giving

dollars.

Leadership GivingLeadership Giving


Dual Purpose

Solicitation Tool

Gift Ladders

Volunteers

Special Asks

Relationship Management Tool

Small group – tribal impact!

Special events

Recognition

The Role of Leadership Giving The Role of Leadership Giving

ProgramsPrograms



Declining participation is okay because:

“We raised more money.”

“We had more donors.”

This is about market penetration!

Donor to

Increased

Gift Tipping

Point

In the early 1990s

Chrysler had 60% of

the minivan market.

Today it is near 30%.

Mechanizing the SystemMechanizing the System


In order to make a prospect management

system work, it has to be documented in

your donor database!

• Document where each prospects falls in your strategy

grid.

• Track ask amounts to evaluate yield.

• Get as specific as you can in measuring response rates

for each solicitation tool.

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Partner with Advancement Services

• Discuss what reports you‟ll need to evaluate your

efforts, so the right data can be tracked from the start.

• Give advance notice of appeals going out and response

mechanisms coming back.

• Understand your school‟s terminology for prospect

management and ensure the appropriate fields are

available for your efforts.

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• Annual Giving is the primary prospect management tool for

most of your constituents.

• Integrating major gift strategies for annual giving prospects

can result in a greater yield and stronger relationship.

• View annual giving as a conditioned behavior and a

prospect management effort, not solely a means of

solicitation.

• Manage your program for the relationship, not the money.

Key TakeawaysKey Takeaways

Thank youThank you

.

staff - sharing the annual fund fundamentals - annual ... presentations...your donor database! •...

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