Post on 31-Jul-2020
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Philanthropy
Sustainable Major Gift relationship development during a world of transition
Presenter
Carl Young, CFRE
Philanthropy and Fundraising Director
Peter MacCallum Cancer Foundation
PFRA Chair
Track supported by
Fundraisers
HEROES for humanity
Philanthropy
Sustainable Major Gift relationship development during a world of transition
Presenter
Carl Young, CFRE
Philanthropy and Fundraising Director
Peter MacCallum Cancer Foundation
Track supported by
Thought provoking - Myth busting?
Experience – Karen Osborne – Guy Mallabone
Your MG program status
Something for everyone
I/we can’t do that?
Does it take a long time to ask for a major gift?
Recruitment
Major Gifts – some basics
Setting the scene
Philanthropic Culture and the Power of Language
Building blocks to handle a changing world and major gifts
The science and the art of ask
Prospecting and Stewardship
• Transactional or relationship development?
• Proactive or reactive?
• Stewardship or Value?
Program Integration
• Donor Relationship Management and Coordination
• Moves Management and LIA
• Development Officer KPIs (actions versus volume)
• Donor recognition
• Making the Ask – Examples and discussion
Today’s session
First things first: what amount makes a major gift?
Research by Market Smart
Donors and Donations | Definition of a “Major Donor”
Figure 2.1 Major donor dollar thresholds
Counting Definition No. Thresho
ld $
i. Minimum dollar value of a single gift at any time 4 5-
10,000
ii. Minimum dollar value of a single gift in the past or current
year
2 1,000
iii. Minimum dollar value of cumulative gifts in any one year* 5 5-
20,000
iv. Minimum lifetime dollar value 0 N.a.
v. Either as a single gift or cumulative across multiple gifts in any
one financial year
1 10,000
vi. Combination of money and other factors; wealth screening,
qualitative research, linkage and interest, history with the
organisation, qualification call
1 1,000
Total 13
Clear and measurable donor service level standards for staff to follow
BQ(+cash gifts)
Major Gifts$1000 > $5000 > $10000 > $1m+
Annual GivingMid Level Cash + RG Donors $250 > $4999
Donor Entry
Direct Mail and RG Acquisition – other etc., etc.
Serv
ice
Lev
el S
tan
dar
ds
High Value Major Gift $50,000+
Major Gift $5000 - $49,999
High Value Donor $1000 - $4999
Mid-Level Program $250 - $999
http://americanhistory.si.edu/topics/philanthropy/pages/power-giving-2018
Member of the public - Donor - Supporter
Enquiry - Feedback - Complaint
Moves Management
Research – Qualification - Prospect – Not a Prospect
Linkage – interest - Ability
Cultivation – Donor functions – high value donors – mid-level donors
Solicitation – donor engagement
Stewardship –Acquittals - Donor Celebration
Donation – Gift – Pledge – Instalments –Write-off
Tied Gift – Untied Gift – Endowment Fund –What is a Major Gift?
Development Officer – Gift Solicitor – Primary Relationship Manager – Secondary Relationship
Major Gift Manager – Philanthropy Manager
Donor Rights – Organistional Rights – Naming Rights - Donor Recognition
Donor Privacy – Public Information
WHAT ROLE DO YOU PLAY?
Creating a Philanthropic Culture - the Power of Language
1. Communitarian
2. Devout
3. Investors
4. Socialite
5. Re-payer
6. Altruist
7. Dynast
Seven Faces Study – Prince & File
Seven faces of philanthropy
Can you talk to donors in their language?
26%
21%
15%
11%
10%
9%8%
Communitarians
Devout
Investors
Socialites
Re-payers
AltruistsDynasts
• Founded in 1949 by Sir Peter MacCallum, with a vision to create a world class cancer centre where scientists and doctors worked side by side to quickly translate research into care
• The Peter MacCallum Cancer Centre is a public hospital
• It is Australia’s only specialist hospital and research centre with a single focus – cancer
• It houses Australia’s largest cancer research group and is world renowned for its work
Today’s Peter Mac Vision
The best in cancer care, accelerating discovery, translating to cures “Nothing but the best is good enough in the
treatment of cancer.” Sir Peter MacCallum
Peter MacCallum Cancer Foundation - Case Study
Building a pipeline
PMCC
Transition to a new hospital/research site
2 Board Chairs
Numerous Board Member Transition
4-5 CEOs
3 COOs
5 Executive Directors of Comms
6-7 CFOs (sorry I lost count)
2 Executive Directors of Research
2 Deputy Directors of Research
450 – 600 Researchers
Can you be consistent in an ever changing world?
PMCF
Transition to a new office and VCCC
Capital Campaign with charity stakeholders
2 Board Chairs
Approx 50% Board Transition
1 Executive Director
1 Philanthropy and Fundraising Director
4 Major Gift Managers
3 Database Managers
5 p/t Trust and Foundation Coordinators
8 > 25 staff
Victorian Comprehensive Cancer Centre Project
Out with the old and in with the new
Q: How can you make a $1b building invisible?
Donor Centric
Board of Directors
Chief Executive
Executives
Finance
Commsand
Marketing
Frontline staff
Program Staff
Development Team
The culture of philanthropy
Donor bill of rights
IVTo be assured
their gifts will be used for the purposes for
which they were given
BeneficiaryCentric
Board of Directors
Chief Executive
Executives
Finance
Commsand
Marketing
Frontline staff
Program Staff
Development Team
Beneficiary Centric
It’s not
rocket science!Just strategic
personal engagement
and disciplined follow up
Major Gifts
• Philanthropy is an emotional decision, not just financial
• A process, not an event
• Donations follow information, interests and involvement
• People give to people, to benefit humanity, equity and change, not projects
• 95% Planning, 5% Asking
• No such thing as an average gift
• Both the needs of the donor and the organization must meet
• Biggest mistake: NOT Asking
What is known about philanthropy and making the ask?
You cannot be a peacock with missing feathers
Components of a sustainable and ethical major gift program
MG SUCCESS
Case for Support
CEO and Org buy-in
Major Gift Team
Priority List
Donor Bill of Rights
PRM Business
Rules
LIA SLSMoves Mangt
Tied Gift Policy
Naming Policy
Donor Recognition
Policy
MG Committee
Champions
Prospects
Major Gift Synergy (1+1=3)
The Science and Art of Major Gift Fundraising
https://www.youtube.com/watch?v=cFdCzN7RYbw
The Rightperson
Asking the Right donor
For the Right gift
At the Righttime
The Four Rs
Relational
or
transactionalengagement?
Proactivesolicitation
or
reactivesolicitation?
Other considerations
Linkage
The direct connection of an individual with an organisation (Board Member, volunteer, donor). Determined by a number of factors including
analysing donors giving trends such as how recent the donation is, frequency, of the donation and value of the donation (RFV).
Interest
Interest is based on their knowledge of the cause and/or level of involvement with the cause and charity in the past, as well as their belief
in the mission and vision
Ability
The ability rating is based on their capacity to give in a single donation at any one time, not what it is thought they will actually donate.
LIA system for donor and prospect ranking
Interest
Ability
Linkage
Linkage, Interest and Ability
The concept known as the LIA Principle assists the relationship manager to direct cultivation and solicitation strategies and engagement tactics toward those individuals who are most likely to provide high value donations or volunteer their services in some way.
The stronger each of these qualities, the more likely a prospect is to make a gift. Whilst this ranking system is no guarantee that the donor prospect will donate or increase their giving, it does assist Major Gift volunteers and staff in the identification of prospects and who are best to engage with.
Currently, the Peter Mac ranks Linkage, Interest and Ability from 0 – 5 allowing for a maximum score of 15 per prospect.
For the Capital Appeal 0-15 and an additional category of philanthropic history (5) making a total score of 50
The LIA system for donor and prospect ranking
History
InterestAbility
Linkage
1. Suspect Identification
2. Prospect Research and Qualification
3. Cultivation and Engagement
4. Solicitation
5. Stewardship and Acquittal
6. Not a Prospect
Definition of a “move” - A meaningful engagement of, or interaction with a potential donor.
Six stages of Moves Management
A system of planned initiatives that move an individual through a cycle and further a potential donor’s relationship with the organisation to the point of investment. (Guy Mallabone)
Engagement
Cultivation
Submission
Solicitation
Acquittal
Stewardship
Qualification
Research
Moves Management Cycle combined with SWOT
Prospect
Not a prospect
Tailored donor engagement
Increased donor engagement
Improved knowledge transfer
Measureable, evidence based donor development
Apply Moves Management process to all stages of donor engagement and development
• Assists in the knowledge transfer process (short and long-term), operational structure and team culture
• Develops understanding and consistency of fundraising language
• Enable fundraising managers to coach, support, measure and empower staff
• Empower staff to maximise actions and outcomes
• Measure actions and solicitation outcomes
• Measure duration of cultivation and solicitation plan per major gift manager
An effective Moves Management process empowers staff
Clear criteria and business rules established
1. Primary Relationship Manager
2. Secondary Relationship Manager
3. Tertiary Relationship Manager
4. Pathway
5. Gift Solicitor
6. Nominator
Provides guidance to staff and volunteer gift solicitors
Donor/Prospect Management and Engagement
Numerous Donor Proposals
• Victorian CCC
• Endowment
• Tied Major Gifts
• Tied Trust Gifts
• Bequest
Tied to each Proposal• Actions
• Proposal Attributes
• Ratings
• Moves Management Score
• Leadership
Mr John Sample
Capital Campaign Prospect
Bequest Prospect
Major Gift Prospect -cancer research
Numerous propositions and relationship coordination
Moves management scores as a proposal attribute
• Fully customisable
• Fully reportable
Date recording – stage
ageing
Large campaign greater
need for accurate stage
ageing
Prospect management tied to each proposal
Depending on the size of a charity and their Major Gift objectives, Direct Mail can still play an important role in Major Gift Growth and Stewardship
Challenges?
• Integrating Direct large gifts with a Major gift program
• Program KPIs
• Major Gift Manager KPIs
• Solicitor/program recognitions
• Not creating silos
• Potential decline in direct mail channel
DM/Fundraising
Traditional Model
Geographical reach
Donor Acquisition
(cash)
Obtain second gifts and lead generation for Regular Giving
High Value & Major Giving
Bequest lead generation
Stewardship (all FR programs), reactivation
and upgrading
Direct mail and major gift integration?
Measurement and program integration
June 30 current level of giving June 30 level of giving 12 months later
Proactive
Reactive
Measure Last FY -3 Last FY -2 Last FY -1 Last FY Current FYPROSPECT 172 206 252 251 182
PROPOSAL 502 729 1,083 1,332 911
DONOR 74,126 76,486 86,412 93,492 66,385
SOFT CREDIT DONOR 48 58 51 42 16
EXPECTED AMT $2,971,000.00 $2,515,000.00 $4,320,590.00 $10,653,160.00 $10,113,700.00
GIFT RECEIVED AMT $4,554,034.27 $3,208,952.15 $6,594,396.24 $9,510,225.63 $6,546,002.39
GIFT RECEIVED AVG AMT $29,960.75 $19,566.78 $42,002.52 $50,318.65 $107,311.51
PROACTIVE DONOR 331 383 478 226
REACTIVE DONOR 25 23 1
Tracking Success – Live Dash Boards
Date
PRM Proposal Expected $ Funded $ Variance to target Actions
A 13 $1,179,000 $100,000 -$1,079,000 37
B 43 $1,307,000 $620,000 -$687,000 135
C 46 $7,422,700 $5,188,500 -$2,234,200 58
D 30 $195,000 $71,202 -$123,798 95
Total 132 $10,103,700 $5,979,702 -$4,123,998 325
Financial Year Current - Proposal History
PRM Overall Performance Summary Grid
Actualversus
Pledged
Primary Source
Top 30 - 300 Donors (capacity)
Working group - High Value networks and identified leads
Profiling and cross reference
database with BRW List
Secondary Source
Volunteers networks
Leads from other supporters
New donor leads via Surveys, Direct Mail, other income streams.
Identifying and developing major gift prospects
Starting with existing donors closest to the charity and working outward to
seek new Major Donor Prospects
Founders $1M+
Founding governors $500K - $1M
Founding benefactors $250K -$500K
Founding patrons $100K - $250K
Founding fellows $50K - $100K
Founding associates $25K -$50K
Renewable pledges over a 3-5 year time frame
Endowment Fund Target Initial Target: $10mRevised Target: $100m
A clear donor recognition policy
Stewardship versus valuing the donor
PresenterCarl Young, CFRE
Philanthropy and Fundraising Director
Peter MacCallum Cancer Foundation