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The Ask, Stewardship and the Donor’s Perspective
Gary L. Bukowski, CFRE
Vice President for Advancement
Dr. Gertrude A. Barber Foundation
www.GertrudeBarber.org
May 20, 2014
6:00 – 8:30 p.m.
Penn State Behrend
Fundamentals of Fundraising
Certificate Program
Presented by:
Today’s Agenda Preparing for the ask
Making the ask
Success – Now what?
Laying the foundation for a donor relations program – catalyst to enhancing &
accelerating the success of your fundraising program
Looking through “The Eyes of the Donor.” Post-solicitation through long-term
donor relations
------Break------
Panel discussion with foundation & corporate donors
1. Susannah Weis Frigon, VP of Investor Relations (Erie Community Foundation)
2. Ann Scott, SPHR, Community Outreach Manager (Erie Insurance)
3. Neil Parham, M.Ed., PHR, Senior Community Affairs Analyst (Highmark)
A Poem to Ponder
The Art of the Ask An excerpt from Asking by Jerold Panas
A fundraiser stood at the heavenly gate,
His face was scarred and old.
He stood before the man of fate
For admission to the fold.
“What have you done,” Saint Peter said,
“To gain admission here?”
“I’ve been a fundraiser, sir,
For many and many a year.”
The pearly gates swung open wide,
Saint Peter rang the bell.
“Come in and choose your harp,” he sighed,
“You’ve had your share of hell!”
Fundraising: What does it take?
• What characteristics do you need to have for this
special calling?
• David Dunlop tells us to “SEND MIKE”
Sensitivity – Effort – Nature – Devotion to the cause
Maturity – Integrity – Knowledge - Enthusiasm
www.AskingMatters.com
David Dunlop *Retired Senior Development Officer, Cornell University
Research shows… Americans gave $316.23 billion in 2012
Individuals
$217.79
73%
Individuals &
Bequests:
79%
$252.3 Billion
In the Words of Hank Rosso…
“Donors make major gifts because of a sense of obligation
to the nonprofit, the greater community, or the world.
Gifts of significance arise out of true interests, values, and
passions of the prospective benefactor.
Regardless of the particular motivation for giving, the role of
the major-gift officer is to engage the donor in the important
work of the nonprofit and deepen the benefactor’s involvement
in the organization’s mission and value systems.”
-Hank Rosso, author of Achieving Excellence in Fund Raising
Getting Started The importance of prospect research & moves management
1. Select best prospects (1-25)
2. Create a file of each prospect and collect easy to access research
3. Identify natural partners for each prospect
4. (Preliminary) Confidentially consult with your natural partners
5. (Preliminary) Select a primary player for each prospect
6. (Preliminary) Develop a strategy for each prospect and establish gift objectives as to amount and
gifting opportunity
7. Plan the next 5 – 10 moves for each prospect
8. Implement the moves for each prospect, and after each move we recommend you carry out the
following:
a. Review what has occurred and do your call report
b. Refine your strategy and gift objective as appropriate
c. Fine tune the planning of your next move immediately after you visit so it can be
incorporated into your next move
9. At year-end or beginning of the year, review the status of each prospect. Refine your strategy and
objectives and plan the next 5-10 moves. Use a calendar charting system, automatic tickler system,
or whatever works best for you.
i.e. Buck Smith originally used note cards that he carried with him in carrying out this process
10. At year-end or beginning of the year, add and delete prospects from your list as appropriate.
David Dunlop – Moves Management
Annual Fund Gift
Major Gift Ultimate Gift
Operational Needs Buildings, Equipment, & Endowment Primarily Endowment
Sustaining Gifts Special & Major Gifts (10 to 25 times Annual
Gift)
Generally once-in-a-lifetime expressions of support
(1,000 to 2,000 times Annual Gift)
Frequently given
Frequently asked for
Decision is rational, cerebral
Decision made quickly
Decision can usually be made without professional
assistance
Decision often made without spouse approval
Infrequently given
Infrequently asked for
Decision becomes emotional, visceral
Stop-and-think gift
Takes longer for decision
Nurturing fundraising
Spouse almost always involved
May involve combination of giving methods, often
deferred
Long-term relationship building
Decision becomes increasingly emotional
Takes longer and more study for decision
Receives professional input from others
The consequences of a poor decision become
greater
Sell special packages
Special projects & activities
Seek broad based support and peer involvement
Begin lifelong relationship
Acquire, renew, upgrade
Little cultivation required
Market institution’s mission & special
opportunities
Focus on select audience (Financial
capability + interest + involvement)
Foster strong personal relationship
Leverage association of staff, partners,
volunteers
Prior and regular cultivation
Total commitment to institution’s mission
Estate planning service & special opportunities
Educate prospects regarding planned giving
vehicles
Create bonding relationship
Leverage close relationships of staff, partners,
volunteers
Intensive cultivation
Direct mail
Telethon
Mass marketing
Special events
Local & community programs
Personal solicitation of prospects
Affinity programs
Personal solicitation (several contacts)
Special events (to focus attention and
cultivation)
Direct mail (for information, cultivation)
Initiation of stewardship
On-going stewardship
Personal solicitation (a number of contacts)
Educational seminars
Direct mail and topical newsletters
(for info, cultivation)
Special projects and events for involvement &
cultivation
Giving Clubs
Plaques, etc.
Naming Opportunities
Lifetime giving recognitions
Wall “Hall of Fame”
Heritage-type club
Naming opportunities
Lifetime giving recognition
CULTIVATE CULTIVATE ASK ASK
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ASK CULTIVATE
©Institute of Charitable Giving
Asking for the Gift *You Don’t Have to Be Great to Start, but You Have to Start to Be Great
1. Begin by knowing everything possible about the institution and donor
2. After careful assessment, determine the specific amount you should ask for
*Eighty-five percent of getting the gift is setting up the visit
3. Don’t let the size of the gift dominate the presentation. It’s all about mission – not
money
4. When making the ask, use words such as: “I would like you to consider a gift of…”
5. Get a commitment to something before leaving, either the gift or the date for another visit
The Golden Rules of Fund Raising
From Asking by Jerold Panas
Listening for the Gift
The importance of listening for the gift
“The Fundraiser’s Guide to Listening” The Institute for Charitable Giving
The Heart Speaks: A Cardiologist Reveals the Secret Language of Healing by
Mimi Guarneri, M.D., of the Scripps Center for Integrative Medicine
Donor Relations: What?
Donor relations > stewardship.
Three components:
◦ Acknowledgment.
◦ Recognition.
◦ Stewardship.
“Everything that happens between asks.”
Communication and interaction.
Reaching the Heart of the Donor: Donor TouchPoint Management, J. Hedrick
Donor Relations: Why?
Cost of acquiring a new donor.
Cost of losing a donor.
Increased competition.
Increased expectations of donors.
Focus on building relationships.
Lifetime value of donor.
Reaching the Heart of the Donor: Donor TouchPoint Management, J. Hedrick
Donor Retention
Nonprofit Donor Retention Rate: 39%
Donor Attrition Rate: 61%
Loss of donors requires that new donors be
acquired.
Acquisition is costly!
Bloomerang – Fundraising Effectiveness Project (FEP) https://bloomerang.co/blog/infographic-2013-fundraising-effectiveness-project-survey-report/
Donor Retention
What is your retention rate?
◦ For first-time donors?
◦ For memorial/tribute gift donors?
◦ For donors of $1,000 or more?
Is increasing your retention rate a stated
goal?
◦ How will you accomplish that goal?
◦ Strategies?
◦ Evaluation?
Reaching the Heart of the Donor: Donor TouchPoint Management, J. Hedrick
Donor Retention – Why It’s Important
10% improvement in donor retention
◦ Compound effect each year
◦ Less investment in acquisition
◦ Increased giving
◦ More involvement
200% improvement in lifetime value of
database
Source: Adrian Sargeant, Tiny Essentials of Donor Loyalty
What do donors expect?
People generally only know what they want when they don’t get it.*
Donor Satisfaction
◦ Very satisfied or just satisfied.
◦ Shaped by relative importance.
◦ Influence of expectations.
When donors leave, find out why.
*Source: Theodore Levitt as paraphrased by Adrian Sargeant.
Expectations of Donors
Reaching the Heart of the Donor: Donor TouchPoint Management, J. Hedrick
Donor Relations
As gifts become larger and the relationship with the organization
grows, donor relations changes and becomes:
•More individualized.
•More aligned with a donor’s preferences, interests, beliefs,
and personality.
•More driven by the donor’s relationship with the organization.
•More personal with more one-on-one contact with leaders at
higher levels.
•Focused on involvement and engagement.
•More specific in reporting on the impact and importance of
past gifts.
From Effective Donor Relations by J. Hedrick
Component 1
Acknowledgement Process of saying “Thank You” for the gift:
Letter
Receipt
Phone call
Hand-written note
Utilize the most personal form of communication between the
organization receiving the gift and the person, corporation,
foundation or organization who made the gift
Component 2
Recognition
Expressing gratitude in a public way:
Donor report
Donor wall
Press release
Special presentation
Display for donor’s home
Recognition Example
Pictured here is the cover of
the 2012-2013 Barber Honors,
the 6th donor report in the 62-
year history of the Barber
National Institute .
Check it out online!
Component 3
Stewardship
Using the gift as the donor intended:
Communicating with the donor on how the gift was used
Communicating that the organization is responsible
Honoring of donor intent
Example: Endowment reporting to donor
Understand me.
Value me.
Remember me.
How was my contribution
used? EXAMPLE
How did my contribution
make a difference?
What was the impact of my
gift? EXAMPLE
Expectations of Donors
Reaching the Heart of the Donor: Donor TouchPoint Management, J. Hedrick
Donor Relations: How?
Donor Relations Plan!
◦ Buy-in of development staff
◦ Establish principles for plan
Steps
◦ Review current practices
◦ Identify gaps
◦ Develop list of opportunities
◦ Create the program
Evaluation
Reaching the Heart of the Donor: Donor TouchPoint Management, J. Hedrick
Earning Loyalty
“Building donor loyalty is the single
biggest challenge facing nonprofits
today.”
-Adrian Sargeant
Reaching the Heart of the Donor: Donor TouchPoint Management, J. Hedrick
Remember…
“People will forget what you said,
People will forget what you did, but
People will never forget how you made them feel.”
-Maya Angelou
https://www.youtube.com/watch?v=7s22HX18wDY
Final Thought
“It takes a noble person to plant a
tree that will one day provide shade for
those whom he may never meet.” -Anonymous