September 15, 2015

Understanding Your Database

Moves and Strategies

Presented by:Lee Ann Jansen – Sr. Development Officer

&Ed Chetan Edwin, CSPG – Sr. Development & Estate Planning Officer

Research Suggests Giving Boosts Happiness and may Improve Health

Chronicle of Philanthropy, Sept. 8, 2015

• A psychology professor, Elizabeth Dunn of the University of British Columbia, who studies human happiness discussed her research at an international conference during the first week in September, that charitable giving not only makes people feel better but can lower their blood pressure, as reported by the Thomson Reuters Foundation.

• The studies found that the donors' blood pressure was lower after giving, while that of those who spent the money on themselves did not change. Giving is "not just heartwarming, it may be quite literally good for our hearts," she said.

Development in a Nutshell

• Good development is noble and honorable• It’s not about the money, it’s about the

relationship• People give because they understand the

impact in the community that will happen, for the individuals and organizations from their donation/investment

• People give to strength, success and quality• The giver has the right to enjoy the giving• Development is fun!

Why People Give• Belief in mission and stability of the

organization

• High regard for staff and volunteer leadership (relationships have/are being continually developed and strengthened.)

• To make an impact

How do we get started?Do you know

your current donors/database?

Do you know your current donors?

Items to consider:

• Who are your top 100-200 donors?

• Do you know why your largest donors are giving to your organization?

• Do you know what areas of interest your donors are giving to? Are there any patterns emerging?

• What is your average gift size? Do you know how many donors are giving at each level annually?

Do you know your current donors?

• Who are your repeat donors? Over last 5 years? last 10 years? A significant characteristic for a donor/investor that is

attached to your organization and more likely to give, is that they have been giving repeatedly over years – even at $25.

• What is the percentage of your donors that contribute annually over the last 5 years? Last 10 years? Are there any patterns emerging?

• What is your stewardship plan for first time and repeat donors?

• What is the cumulative/lifetime giving of your largest donors?

Once you have some general data on the donor database,

is there a general way to start building a donor

profile?

General Donor ProfilePersonal Information

Name: Date of Birth:Spouses Name: Spouses Date of Birth:

o Number of children, names and ages, spouses names and ages, where each live:

o Number of grandchildren, names and ages, spouses names and ages, where each live:

o Number of siblings, names and ages, spouses names and ages, where each live:

o Elderly family members or friends needing care or the prospect may wish to remember:

 

General Donor ProfileGeneral Information regarding goals, interests, motivations

o Past involvement and activities with your organization: o Ideas for future involvement: o Areas of assumed or verified interest at your organization: o Involvement with other charitable organizations: boards, committees, etc.: o School/College background: Spouse, Children o Financial priorities regarding disposition of assets (spouse, children, other

heirs, charities, political) o Indications of wealth and lifestyle which may reflect on the prospects attitudes,

priorities and motivations: o Do we know of any connectors to prospect/donor?

 

Donor ProfileThings to Consider

Other Factors to Consider:

• Current giving to your organization• Has disposable income• Level of commitment in the mission of your programs• Is an advocate of the type of service your organization

provides• Has been giving annually. Annual gifts are based on

income, Capital gifts on assets.• Has high philanthropic intent and experience• Has or currently serves on your board or is an active

volunteer• Liquidity is key

A little researchComplimentary:

o Private Company info: Company Web Site, Local/regional papers and magazines

o Real Estate: Zillow, Trulia, Local Assessors Office Online

o Biography: LinkedIn, Alumni News, Company Web-sites

o Political Giving: Open Secretso Social: Facebook, Twitter, Pinteresto Foundations/Board Membership: Guidestar

Are there more ways to discover

prospective donors?

More ways to discover prospective donors?

• Work with volunteers, committeesUse their networks

Always ask “who else might be interested in talking with us?”

• Discuss with others to get referralsGrateful families, alumni, current/previous participantsCommunity individuals (Champions) with a particular interest in your program(s)Organizational contacts and staff

More ways to discover prospective donors?

• Attend events and gatheringsRetirement receptions, award dinners, community events, athletic events

• Utilize research methods for development

• Identify projects for Corporate and Foundation funding

• Watch for possibilities in publications (newspapers, local magazines) and social media

Listen for the gift

You have spent time analyzing your

donors and prospects – now what?

MovesA move is a targeted initiative, not just any activity.

A move is a move only when:

o It moves the donor/prospect closer to your organization or a particular program

o It moves us closer to understanding the donor/prospect’s interests or capacity

o It moves the donor/prospect and us closer to readiness for an ask

Institute for Charitable Giving

What Is Your Plan?

Qualities of a Good Relationship

“

“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

Maya Angelou

o Remember to listen for the gift . . .

Qualities of a Good

RelationshipAfter an interaction, do both parties…

• Feel a greater sense of zest (vitality, energy), a greater sense of worth, more motivated to act, and more connected with each other? If so, this is a good quality interaction.

• Drained, depressed, anxious, glad it’s over? If so, this is not so good and not much fun.

• Have the feeling that the other is o a net stress reducer (this is good)o a net stress inducer (this is bad)

What Is Your Plan?In each interaction throughout the process ask yourself/team:• What is the plan for interaction with the donor/prospect?

• What information do you want to walk away with about the donor /prospect?

• What information do you want the donor/prospect to walk away with?

• Always listen for the gift. Are your talking more than listening and asking questions? I always have 3-4 questions in mind to ask the donor/prospect.

What Is Your Plan?Introductory meeting: o Increase prospect’s understanding of the organization and mission.

Assess the prospect’s areas of interest.

o Based on these conversations – how are you going to involve them?

Cultivation meeting(s): o Remember to think about what might be going on with your

donor/prospect: new grandchild, closed a business, sold a business or property, traveling extensively

o Is there an area of interest that was appealing to them, do they know other volunteers or donors? Build your cultivation strategy based on these interactions.

Are you listening for the gift?

What Is Your Plan?Solicitation: o Does the donor/prospect know that you are going to ask them to

consider a gift? o Where will you meet? o Who will attend from your organization? If more than one person,

who will say what? o Are you meeting with an individual, a couple, a family – will there be

a attorney or financial advisor present? o What materials will you bring? o Have you considered how the current ask works into the long-term

strategy. o And so on.

Stewardship: o How are you going to acknowledge, thank and recognize?

How are you going to involve your donors/prospects?

What are the opportunities

to get and keep them engaged?

Involvement Opportunities

Goal = Development staff or team to build and continue strong relationships with prospects and existing donors.

Utilize Existing Activities for Cultivation and Stewardship

o Breakfast, coffee, lunch, dinner with the Executive Director, Medical Directors, select Board members, leaders in your organization, direct participants who have benefited from donation(s).

o Is there a group of like-minded donors? Small lunch or dinner gathering – 8-10 people hosted by a select donor/volunteer.

o Volunteer engagement: Advisory committees, planning committees, service committees, focus groups, boards

Involvement Opportunities

o Tours of program, facilities, behind the scenes. Engagement with a meaningful part of the work/organization.

o Do you have a current donor: with a Save Mart Center Suite, a Grizzlies suite, is

hosting a Parties for the Parkway – that would be interested in donating the suite to host other prospects, or program participants

o Community Events: athletic events, theatre performances, San Joaquin Valley Town Hall lectures, annual gala’s, luncheon’s

StewardshipStewardship plan

Goal:

Develop a stewardship program with a focus on creating happy donors whose commitment and giving increases throughout their lifetimes.

Acknowledge:o Ensure appropriate acknowledgement of all gifts. o Determine levels of personal acknowledgements from leadership

and participants within your organization. o Determine how you will communicate: Program information,

video message from leadership, participants, volunteers.

StewardshipRecognize

o Recognize giving at various levels

o Communicate to donors through various mediums: donor newsletter, holiday/birthday/congratulations cards, e-mail news updates and impact stories, donor honor rolls, social media, snail mail

o Invitations to various events, press conferences, stories of impact through feature stories on web-site, e-mail newsletters/blasts

o Provide annual impact report of the impact of their gift and overall funding

o Specific stewardship plans for your largest donors are necessary i.e. $100K, $500K, $1M+ donors

Solicitation Process

Integrating Major & Planned Giving

2 sides of the same coin

Reaching Donors

S&P 500 Performance2007 - 2015

$15.9 Trillion in Mutual Fund Assets

89% of Mutual Fund Assets held by

Households

Daily Flows-Equity Funds

Volatility in the Market

Percentage of RMD’s from IRA Accounts

Percentage of near Retiree Households

Bond Funds are not attracting Cash leaving

Equities

Economy - Jobs

The 10 Fastest Growing U.S. Metros

The 10 Fastest Growing U.S. Metros

1-year price growth forecast: 10.03 %

Median home sale price: $217,250

Price change over past year: 4.19 %

Average days on market: 40 days

The 10 Fastest Growing U.S. Metros

Austin, Texas  1 38 +1.9% +3.6%

Houston, Texas

2 39  +1.6% +3.7%

Raleigh, N.C. 3 41  +0.8% +4.0%

Fresno, Calif.

4 49 -0.9% +4.5%

Dallas, Tex.  5 63 +0.8% +3.4%

Baton Rouge, La. 

6 65 +1.5% +3.0%

Oklahoma City, Okla. 

7 66 +1.8% +2.9%

Las Vegas, Nev. 

8 68 +1.3% +3.0%

Grand Rapids, Mich.

9 69 +0.6% +3.3%

San Jose, Calif.

10 72 +0.2% +3.4%

Metro U.S. rank Global rank GDP per capita change

Employmentchange

Fresno County Agricultural Value Sets

Record

Aug. 25, 2015

Overall, agricultural production in Fresno County totaled more than $7.03 billion

9.26% increase from 2013's $6.44 billion Increase of 6.98% from 2012's $6.58 billion, the previous

record year.

Fresno County Agricultural Value Sets

Record1. Almonds      2014 - $1.303 billion    2013 - $1.109 billion 2. Grapes      2014 - $905.099 million    2013 - $1.037 billion4. Milk      2014 - $636.534 million    2013 - $512.276 million6. Tomatoes      2014 - $524.349 million    2013 - $444.705 million7. Pistachios      2014 - $378.286 million    2013 - $242.802 million

9. Peaches      2014 - $193.114 million    2013 - $146.632 million

Make a Gift & Get it Back

Trust spins off income to the Charity for a term of years.

Donors transfers cash, securities, property into a trust & receives an immediate income tax deduction.

Donors receives back the gift!

Make a Gift & Get it Back – the

ScienceAssumptions:

Donor invests principal of $150,000

Projection begins in 2015 and runs for a term of 3 years

Trust makes annual payments to Charity

Donor income tax bracket is: 50.928%, 47.633% for tax savings, and 33.935% for capital gains

Income is 0%, capital appreciation is 0% (no gains)

Make a Gift & Get it Back – the

ScienceDetails 3% 5% 7%

Principal placed in a Trust (held and invested by the Donor)

$150,000 $150,000

$150,000

Payments to Charity $4,500 $7,500 $10,500

Income Tax Deduction (donor receives this deduction up front & has up to 6 years to exhaust)

$13,027 $21,714

$30,399

Income Tax Savings $6,025 $10,343

$14,480

Total Distributed to Charity

$13,500 $22,500

$31,500

Principal returned to Donor (after the period of 3 years)

$136,500 $127,500

$118,500

“Service to others is the rent you pay for your room here on earth.”

Mohammed Ali

Annual Spring Symposium

Tuesday, May 10, 2016

Lani Starkey, JD, LLM, CPA AVP - Principal Gifts, Estate and Gift Planning

San Joaquin Planned Gifts Council & AFP California Valley Chapter