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How are we going to pay for it? Cultivating Supporters + Sponsors October 30, 2019
How$are$we$going$to$pay$for$it?Cultivating*Supporters*+*SponsorsOctober*30,*2019
! Patricia'Martin'* President,'Litlamp'Communications
! Lynn'English'– President,'Lynn'English'Consulting
Who we are
1)#Share#strategies#for:• Cultivating#family#foundations#and#major#individual#donors
• Developing#a#corporate#sponsorship#program#
2)#Work#together#to#develop#new#ideas#3)#Have#time#for#discussion#and#questions
What We’ll Do Today
Trends in Individual Giving “The greatest wealth transfer in history”
• Donor%participation%rate%declined%considerably%between%200042016."The"US"saw"a"decrease%of%about%20%million%donor%households."
• The"2017%Tax%Cuts%and%Jobs%Act’s increase"to"the"annual"standard"tax"deduction"(reduces"tax"incentives"for"giving"for"some"households)"and"other"changes"in"the"philanthropic"environment,"impact"how%donors%approach%giving%and%how%organizations%approach%fundraising.
• Donor%Advised%Funds%allow"donors"to"grow"donations"tax=free"while"donors"maintain"an"extended"time"period"for"distribution.
Indiana%University%Lilly%Family%School%of%Philanthropy
Donor Participation
“Traditionalists”-(those-born-before-1945)-
“Baby-boomers”-(born-between-1946-and-1964)-
“Millennials-(born-between-1981-and-1996)-“Gen-Z”-(born-after-1997)
Donor-households(headed(by(older(generations(continued(to(contribute(a(larger(share(of(their(income to-charitable-causes.-Those-born-between-1910-and-1924-contributed-8.8%-of-their-income.-Boomers-contributed-2.16%.-Millennial-households-contributed-0.9%-of-their-income.
Who’s Giving?
Huge%Generational%Shift%! More&than&half&of&U.S.&family&foundations&anticipate&providing&leadership&roles&to&younger&family&members
Growth%in%Impact%Investing%– especially&among&millennials.&“Millennials)have)the)strongest)commitment)of)any)age)segment)to)social)or)sustainable)investing)and)have)an)increasing)belief)that)it)is)possible)to)invest)in)for8profit)companies)that)have)a)positive)social)or)economic)impact)while)also)achieving)healthy)financial)returns.”
Northern%Trust%Wealth%Management
The Transfer of Wealth and...
• Family'Foundations'with'professional'staff• Family'Foundations'without'professional'staff• Donor'Advised'Funds• Giving'Circles'and'Peer<to<Peer• Online• Crowdfunding
How they give…
Research
Cultivate
Solicit
Steward
Identify
Virtuous Cycle
Identification and Research
Family'Foundations'with'professional'staffUsually'have'established'guidelines'and'procedures
Family'Foundations'without'professional'staffOften'operate'under'the'radar,'no'unsolicited'proposals
Major'DonorsWealth'Managers,'Community'Foundations,'Women’s'Foundations,'Giving'Circles
Cultivation…it’s all about relationships
Family'Foundations'with'professional'staff – don’t'go'around'the'staff
Family'Foundations'without'professional'staff'– engage'trustees'and'family'members'across'generations
Major'Donors'– understand'the'motivation'
Solicitation
Follow%established*guidelines*when%they%exist
Ask%for%what*you*need*and*be*clear*about*proposed*impact*and%obstacles
Understand%donor’s*intentions*and*expectations*
Stewardship
Understand)how$donor$prefers$to$engage
Offer)options)that)respect$the$donor$and$your$organization’s$values
Don’t$wait$until)the)end)of)the)grant
Sharing Best Practices and New Ideas
With a partner(s)
What%are%best%strategies you%have%you%used%to%identify,%cultivate%and/or%steward%a%family%foundation%or%major%donor?
What%is%the%biggest%challenge%you%face%in%making%the%ask?
What%question would%you%like%the%group%to%respond%to%today?
Discussion
