Donor Relationship Manager Toolbox

Prepared by:

September 2010

The Jewish Federations of North America 1

Definition of Terms Moves Management: A term coined by professionals at the Institute for Charitable Giving. It is a systematic tactical approach to donor development that identifies a series of “moves” that strengthens the donor’s relationship with the institution such that it “moves” the prospect to a particular action and it recognize the need for developing individual strategic plans. Moves: Interactions with a prospect intended to advance the relationship and to bring the donor closer to the institution and to making a commitment. Moves or touches can take many forms such as a call or card and most effective, personal interaction. Natural Partner: The individuals who have a known relationship with the donor and will serve as the door opener to the donor role model and standard setter. The Natural Partner will provide invaluable information on the prospect to help build the individualized strategy. They may or may not assist in the cultivation and solicitation. Primary Player: The natural partner (volunteer or professional) who is in the best position to advance the relationship with the prospect. The primary player can also be the DRM or Natural Partner and will usually be involved in “the ask.” DRM – Donor Relationship Manager: The professional assigned to plan, manage, and orchestrate the relationship with the prospect. The DRM may or may not be directly involved in each move, but is responsible for the overall plan and outcome for their prospects. People do not give to causes – they give to people.

Prospective donors will give when they have become convinced of the value and need for their gift, and when they are personally asked by the “right” person – someone they respect, someone who can make a strong credible case for support, and someone with whom they have built a relationship over time. Relationship-based fundraising is a long-term donor development strategy that seeks to expand and maximize giving by personalizing the process. It means creating mutually beneficial ongoing relationships that help donors reach capacity giving.

Adapted from www.raise-funds.com (Tony Ponderis)

The Jewish Federations of North America 2

Major DRM Responsibilities Research 1. Collect pertinent information on the prospect

2. Identify natural partners and the primary player

3. Get to know the donor directly

Plan and Implement

4. Create a donor development plan and strategy for each prospect

5. Track each prospect’s relationship with the organization

6. Determine appropriate “moves” and who/how they should be implemented

7. Convene “teams” as necessary to strategize and share information

a. Coordinate and prepare natural partners and primary players

8. Execute the plan: see that the contacts or moves are made 9. Input information in donor management tracking system

Revise

10. Reconfigure the strategy over time and revise plan as necessary

11. Orchestrate the right ask by the right person at the right time

12. Implement a stewardship plan

“When a person of integrity, representing a worthy organization, visits with an individual who cares, great things happen. All of the tools, techniques and tips aside, major gifts fundraisers simply need to get out of the office and make things happen with people who share the vision of the organization.” Bill Sturtevant

The Jewish Federations of North America 3

Prospect Selection

Current major donor

Major donor to special campaign

Major fund holder

Member of a major donor family

Major donor to another Jewish or secular organization

Prospects with special philanthropic interests

High profile entrepreneurs

Selling or recently sold a business and/or retired

Donors with no children

Those who own a second home

Givers who are consistent – but flat – and have the ability to give much more

Long-standing giving history, especially those who are

o Widows/widowers or other recent inheritors

o Have no children

o Recent inheritors

o Older (65+) or younger (32-50)

Foundation principals or board members

Active in Federation and/or other Jewish organizations, especially if

o Spouse is also active

o Has a connection to local Jewish agency, Israel and/or Former Soviet Union

Been on community agency tour, to the Former Soviet Union and/or Israel

The “Smell Factor”

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Getting to Know the Prospect Three places you will find information:

Objective Facts – Research on various websites will provide you with a wealth of information. Learn which sites will be most appropriate for your prospect.

Subjective Information – Information gathered from natural players, primary partners or others.

Personal Account – Information gathered as a direct result of a personal encounter (meeting, phone conversation, significant chance meeting) with prospect him/herself.

Sample information for the confidential file:

1. Personal information about the donor, spouse, children, grandchildren, extended family.

a. What is their involvement in the community, in Federation, and in the prospect’s philanthropic decisions?

2. Professional background, business associates, and friends

3. Federation, synagogue, agency, and other Jewish communal involvement

4. Prior and planned visits to Israel, FSU, and other Jewish communities

5. Attitudes and concerns about local and overseas Jewish life

6. In what aspect of the organization is the person most interested?

7. Does the prospect have an established relationship with someone in the Federation? With a major donor:

8. Has the prospect taken a public stand on issues of concern to the Federation? If so, what are they?

9. Values, role models, interests, and hobbies

10. Membership or leadership in local and national civic, social, religious, and professional organizations.

11. What other organizations does the prospect support?

The Jewish Federations of North America 5

Sample Prospect Profile Worksheet

Completed by: _________________________________________________

Prospect’s Name_______________________________________________________________

Address ______________________________________________________________________

Business/Profession ____________________________________________________________

Capacity: How would you rate this person’s ability to give?

___ High ___ Medium ___ Low

Giving History: Current Year (AC) $ ______ Current Year (Other) $ ______ Previous Gifts $ _____________

Endowment Gifts: $ __________ Supplemental Giving: $ __________

Spouse’s Name: _____________ Current Year (AC): $ _____________ Current (Other $ _________

Interest: How would you rate this person’s interest in the Jewish Community?

___ High ___ Medium ___ Low

In Federation?

___ High ___ Medium ___ Low

Connection: What is your relationship with this person?

_____ Family _____ Through Federation

_____ Neighbor _____ Through Other Organizational Work

_____ Co-worker _____ Through Kids

_____ Federation Pro _____ Through Spouse

How close are you to this person? _____________________________________

Can you introduce them? ____________________________________________

Charitable Intent: What clues do you have regarding their interest in giving?

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What is most important in their life? ___________________________________________________________

What is their religious involvement? ___________________________________________________________

What organizations do they support? __________________________________________________________

With whom do they do business? _____________________________________________________________

With whom do they socialize? ________________________________________________________________

What do they do when not at work? ___________________________________________________________

What is their relationship/position with Federation? ______________________________________________

Other information to be aware of: _____________________________________________________________

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Donor Research – Web Resources General http://www.google.com http://www.zoominfo.com/Search/PersonDetail.aspx?PersonID=44959531 Residential Real Estate values http://www.zillow.com/ Tax assessor data link to all states http://www.pulawski.com/ Stock and securities information http://finance.yahoo.com/ Info on lawyers http://www.martindale.com Foundations: http://guidestar.org; http://fdncenter.org Political Donations: http://www.tray.com/cgi-win/indexhtml.exe?MBF=NAME Birthdays: http://www.zabasearch.com; http://resources.rootsweb.com/cgi-bin/metasearch For next generation: LinkedIn – Networking MySpace – Social Networking Plaxo – Contact Management YouTube – Video Clips Ryze – Networking Facebook – Social Networking Digg – Information Search Friendster – Social Networking Change.org – Non-Profit EBay -- Auctions iTunes – Podcasts eSnips – Artsy Content Yelp – P2P Reviews Lala -- Music Visiblepath – Linkage Metacafe – Video Ning – Social Network Creation Feedburner – Content Delivery Nexo – Social Network Creation Tribe.net – Grouped Networks Squidoo – Personalized Pages GiftWorx – Non-Profit Del.icio.us – Resource Tagging

The Jewish Federations of North America 7

Getting the “Visit” Tips to securing a meeting with your prospect:

1. Send a letter – Mail a note or e-mail in advance, letting them know you will be calling on them to arrange a visit. This approach lets the prospect know why you are calling and assures them that you will not be asking them for anything.

2. Practice-practice-practice – Have your opening line or two written down. Practice what you are going to say before you get on the phone. Be sure to list the points you want to cover. While you will have developed a “script,” you must feel comfortable with it so that it feels organic and spontaneous.

3. Have a calendar handy – Have two visit dates in mind. Offering a choice of times makes it much easier for the donor to stay focused.

4. Just do it – As we all know, the number one reason donors don’t give is because they weren’t asked. The first step is to make the call.

5. Stand up – Standing releases a flow of energy that doesn’t exist while you are sitting. Studies indicate that donors respond best to solicitors who are empathetic (excellent listeners), energetic (those that can spark a fire), and enthusiastic (truly driven). So get up and move around and get your own energy flowing.

6. Smile when you speak – Amazingly, the prospect will feel the warmth in your voice.

7. Stay on point – Your objective is to arrange a visit, not to state the case and certainly not to make an ask.

8. Remind them that you are following up on the letter you sent – This will allow you to refer back to a connection you already established and relieves you of having to restate your purpose.

Sample “scripts”

Hi, Sharon, this is _________. I sent you a letter the other day about getting your input on some of the work Federation is in involved in these days. I would be interested to learn how you might like to be involved as well. I was hoping we could meet next week to discuss this further. How is Monday, or Wednesday, at noon?

Hi, Sharon, Fred Cutler (primary player) sent you a note the other day telling you I would be contacting you. I would like to learn more about your involvement in Federation and the issues that concern you. Might you be able to meet for coffee Wednesday or Thursday?

(If you know the donor): Hi, Sharon. Federation has decided to acknowledge some of our most loyal donors [through an account management system.] This means that I have the privilege of being your liaison with the Federation. So that I can be most effective and responsive to your needs and interests, I would like to meet with you and learn move about what is important to you. Can we meet on Tuesday or Wednesday for lunch?

The Jewish Federations of North America 8

The First Meeting Checklist

Background information on prospect gathered from multiple sources (objective research; information from colleagues, primary players, and natural partners)

Opening statement prepared and practiced

Few important pieces of relevant information to share and stimulate the conversation available

3 to 5 open-ended questions at the ready to gather more information

Clear goal of what you are interested in learning from the meeting

Something with you to leave with the donor – information, invitation, business card, a promise for next steps. Never leave the meeting without an expectation of a next one.

Objectives of the first meeting:

1. To begin the relationship.

2. To get useful, relevant information

3. To leave something

4. To promise something

The Jewish Federations of North America 9

Sample Visit Checklist 1. Highlights from background information or report to be mindful of.

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2. Restate the purpose of your meeting – put it in your own words – remember you are not there to solicit.

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3. Small talk I might speak about:

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4. Open ended questions I have selected to gather more information.

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5. I am specifically interested in learning the following from the meeting.

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6. I have prepared something I will leave with the donor. (a book, an invitation, a brochure)

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7. A promise – for next steps. Never leave the meeting without an expectation of a next one. Identify possible next steps: (I will send…, someone will call, I’ll get back to you about X)

________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________

The Jewish Federations of North America 10

Conversation Starters Open-ended questions:

Require a narrative for an answer

“Why do you continue to give?”

Cannot be answered by a simple “yes” or “no”

“How did you first get involved?”

Begin with what, why, where, how, who, or when

“When did you make your first gift?”

Do not lead the person in a specific direction

“What excites you about our Jewish community?”

Sample Jewish Conversation Starters

Tell me about your family. Where do your children go to school? Where do your children live? What Jewish activities do they enjoy?

You’ve been a terrific supporter…why?

How did you first get involved in Federation/make your first gift to Federation?

What has been the most rewarding part of your involvement with the United Jewish Federation of San Diego County/Jewish Community Foundation? What do you value most about Federation/the Foundation? Its work? Your involvement?

What causes do you feel passionately about?

In what other Jewish or civic activities are you involved?

What makes you feel proud to be Jewish?

What brought you here?

What do you value most about our Jewish community?

Who had an impact on your Jewish identity?

What influences encouraged you to assume this leadership position?

What are your hopes for the future of our local community?

What makes you feel good about the work that we do?

What would you like to accomplish with your philanthropy?

What is your vision of a Jewish community for your children and grandchildren?

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Active Listening Rules 1. Stop talking! You cannot listen when you are talking.

2. Help the donor to feel relaxed. Pick comfortable surroundings. Smile. Be warm and welcoming. Help him/her feel that (s)he is free to speak; provide encouraging feedback such as “tell me more about that.”

3. Make eye contract. Show that you want to listen.

4. Remove distractions. Shut the door, eliminate side conversations. Put cell phone and blackberries away.

5. Empathize with others. Put yourself in the donor’s place to see things from his/her perspective.

6. Be patient. Allow plenty of time, without interruptions, to have a dialogue.

7. Avoid argument and criticism. Try “yes, and….” Gather “yes …. but”

8. Ask open-ended questions. Encourage expanding detail.

9. Show your appreciation. Always communicate your sincere gratitude for the donor’s time.

10. Stop talking! This is the first and last, because all other commandments depend on it.

Physical signs of active listening:

Nod head (in moderation)

Maintain eye contact

Lean forward

Keep arms at your sides

Don’t fidget

The Jewish Federations of North America 12

Sample Individual Planner

Introductory Information

Donor Relationship Manager: _____________________________ Prospect: _____________________________________________ Spouse/Partner: ________________________________________ Other relatives of note (parents, children, siblings): ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Is there a natural partner or partners (such as an annual campaign solicitor?) If so please list: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ If not, who might be considered? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Have you interviewed the natural partner to obtain relevant information? Yes [ ] No [ ] What information was obtained from the natural partner regarding the interests of the donors and possible recommended strategies for working with the donor? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ I have completed the Visit Checklist. (Please attach) If you have an on-going relationship with your donor, please refer to the most recent visit checklist you completed.

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Descriptive

Please note this information should be input in your federations’ donor management system and classified as highly confidential and should be treated as such. 1. Donor Background- Provide details regarding what you know about the donor that is important to the advancement of the relationship. Information about the donor specifically as well his/her perceptions and relationship with the federation should be noted. List any motivational triggers for giving. Any additional information that you feel is meaningful and useful should be included here (e.g., personal circumstances).

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________________________________________________________________ 2. Relationship Background - Describe your relationship with the donor to date. Be sure to include the specifics of when and where you met, the nature and depth of your relationship and how you would describe the chemistry between the two of you.

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________________________________________________________________ 3. Philanthropic Profile – Detail all information you are aware of that goes directly to donor philanthropic history and or philanthropic interests. These may be concrete in terms of gifts made or perceived interests inferred from your current relationship. Please be sure to distinguish the two.

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4. Possible Projects – Based on the information above and given the list of communal programs and project priorities, list the spheres of interests or specific projects that might be of interest to the donor.

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5. Know More – If you do not yet have the necessary information either on donor interests or community priorities, please list the next steps you will be taking to secure that initial information. Please be as specific as possible. Note who (by name) you will be speaking with including federation staff and others, as well as a time table.

Step 1: _____________________________________________________

Step 2: _____________________________________________________

Step 3: _____________________________________________________

6. The Moves that Make Sense – The information in questions 3 and 4 should help inform your plans for subsequent moves. Knowing where you think you want to get to, will help you plot out your course of action to get you there. List 5 “Moves” you suggest to help advance the relationship towards meeting donor identified interests and community priorities. Be sure to include specific names of agencies, programs, or individuals as appropriate. Include a time-table by month. (See Moves Management Grid.)

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Sample Moves Management Grid

Name

Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec

Sally Donor

P

V

I

M

P- I

P

Sam Fonder

M

I

P

V

P = Phone Call

V = Visit

M = Mail

I = Invite

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Menu of Meaningful Engagement Opportunities

MAIL MEET INVITE VISIT

Along with a personal note:

Recipients

Donors and prospects to join you for:

Local beneficiary agencies

Articles Federation Lay Leaders Dinner or lunch Missions

CDs/DVDs Federation Professional Leaders

Lectures / cultural events VIP overseas visits

Brochures and newsletters Agency Executives Golf / tennis JFNA General Assembly

Annual reports Special events JFNA Lion of Judah conference

Books Ride to an event

Internet and e-mail resources

Holiday cards

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“In any given solicitation scenario, people donate for their reasons, not ours. Donating is really a special case of decision making, and such decision making is sequential. The donating decision is made in a series of predictable and logical steps. By following the prospect’s sequence, you find that either there is a fit with prospect and the giving opportunity, which leads to a gift, or there is no such fit, at least for now.”

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Cultivation Case Study Have all those with DRM assignments sit together as a team to work through this case study. Try generating the issues to explore, the possibilities for giving in priority order, and post-meeting issues to consider. Rhoda Simon is 68 years old and was widowed three years ago. She and her late husband, Sam, both grew up in the community. They have two children. Their son, Michael, runs the family’s glass and mirror business, and their daughter Ellen and her family live in another state. Rhoda is a Ruby Lion of Judah, and while she has attended Lion events, she has not been involved in the Women’s Division or the Federation. (Her primary Jewish involvement has been with Hadassah.) Rhoda became a Lion in the second year the pin was adopted in the community, and for many years kept her gift flat at the minimum Lion level. When Sam passed away, Rhoda increased her gift to $10,000. When Sam was alive, he was a $50,000 donor to the Annual Campaign, which made him a member of the Leadership Circle. He and Rhoda usually attended Leadership Circle events. Over the years, Sam served several terms on the Federation Board but never in any significant leadership capacity. Sam’s gift was not endowed, although when he died three years ago, he left a bequest of $100,000 to the Federation. Rhoda’s gift is also not endowed. Rhoda and Sam were very involved in their Reform Temple, where Sam served two years as President and Rhoda served as Sisterhood President. When the new Temple building was put up 10 years ago, Rhoda and Sam donated $500,000 to dedicate the chapel in memory of Sam’s parents. (At the time, both of Rhoda’s parents were alive, although they have since died.) The Women’s Division Director was surprised when Rhoda called to say she had received the Save-the-Date for the International Lion of Judah Conference in Israel and was interested in going. Apparently, Rhoda’s daughter Ellen is a Lion in her community and suggested that her mother go with her. Rhoda is considering making her son’s wife a Lion so that she can go on the trip with them.

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Principles of Donor Stewardship Cultivators must also be involved in stewardship – making sure that donors have been thanked and shown how their gifts have been put to work. Know your audience – since you should know your donor quite well by this

point, you should also know which mode of communication will have the greatest impact – letter, postcard, personal visit, or even an e-mail. It’s all part of knowing your donors to learn about their special interests so you can tailor your approaches to capitalize on what’s important to them.

Be timely – The time to thank someone for a gift must be long before you ask for another gift. Your donor will feel important and special when you keep in touch for birthdays, graduations, other life-cycle events, or “just because.” Make sure that your “moves” occur at times relevant to your donor’s life, not just relevant to your fundraising timeline.

Be respectful – Appearance counts. Make sure your letters are handwritten whenever possible and that all names are spelled correctly. Take the time to think about the language you use when communicating with your donor, and make sure to balance familiarity with the appropriate level of respect.

Report results and be specific – Donors love and deserve to know how their gifts make a difference. When appropriate, arrange a meeting between the donor and a beneficiary. Share copies of evaluations or other information related to how the project is progressing. Be honest. Your relationship is built on a foundation of trust – something that you do not want to jeopardize.

Be creatively engaging – Capture your donor’s imagination and engage them in future projects.

Say thank you – Provide individualized, appropriate recognition

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Selected Resources The Artful Journey Cultivating and Soliciting the Major Gift William T. Sturtevant Yours For The Asking An Indispensable Guide to Fundraising and Management Reynold Levy The Zen of Fundraising 89 Timeless Ideas to Develop Your Donor Relationships Ken Burnett Relationship Fundraising A Donor-based Approach to the Business of Raising Money Ken Burnett The One to One Future: Building Relationships One Customer at a Time Don Peppers and Martha Rogers How to Get Million Dollar Gifts and have the Donor Thank You Robert Hartsook Yours, Mine, and Ours Creating a Compelling Donor Experience Barry McLeish Asking A 59-Minute Guide to Everything Board Members, Volunteers, and Staff Must Know to Secure the Gift By Jerold Panas New York Times, March 9. 2008 The Money Issue www.raise-funds.com www.charityamerica.com