Transcript Institute for Charitable Giving

MAJOR GIFTS AND CREATING
ORGANIZATIONAL CAPACITY FOR
FUND DEVELOPMENT GROWTH
BBBS Large Agency Alliance
January 22, 2005
The Osborne Group, Inc.
1
Agenda


Why focus on major
gifts?
Building a major gift
prospect pool


Making effective
qualification and
discovery visits
Investing in fund
development



ROI
Staffing
Taking it on the road
The Osborne Group, Inc.
2
“Giving USA” 2003
$240.72 Billion
2003 contributions: $240.72 billion by source of contributions
Corporations
$13.46
5.6%
Foundations
$26.30
10.9%
Bequests
$21.60
9.0%
Individuals
$179.36
74.5%
The Osborne Group, Inc.
3
BBBS Revenue Distribution
By Source
Events
$60,726,000
29%
United Way
$43,974,000
21%
Government
$37,692,000
18%
Foundations
$27,222,000
13%
Individuals
$16,752,000
8%
Corporate
$ 8,376,000
4%
Other
$14,658,000
7%
The Osborne Group, Inc.
4
What’s a Major Gift?



For your agency?
For a donor?
Industry standards?
The Osborne Group, Inc.
5
Today’s Gift Pyramids
Old rule – 80% - 20%
Recent rule – 90% - 10%
Today’s experience – 95% - 1%
The Osborne Group, Inc.
6
Recent Study*

23 campaigns of more
than $100 million
94.4% of the money
from 1.7% of the
donors.
*Institute of Charitable Giving
The Osborne Group, Inc.
7
Donor Motivation








Is personal!
Impact – societal,
community
From the heart; shared
values
Giving back
Tradition
Recognition, peer
influence (Leadership)
Strategic investment
Trust, accountability
The Osborne Group, Inc.
8
The Major Gift Cycle
Identify the critical
few: those with the
greatest capacity to give
Discovery: Learn
about them;
share the story
Providing stewardship
and accountability
Saying thank you
Asking for a
specific amount
Developing a
relationship
Preparing to
ask
Engaging and Involving
The Osborne Group, Inc.
9
Major Gift Time Line
Identify
Learn
and
Share
Engage
and
Involve
Prepare Ask and
to Solicit Close
The Osborne Group, Inc.
Thank
Steward
10
Filling the Major Gift Pipeline

Looking for
individuals with a
net worth over and
above value of
primary home of
$1,000,000 Plus





Philanthropic
Cares about kids
Cares about
community
Former Big or Little
Someone who
knows us, knows
them or there is a
path
The Osborne Group, Inc.
11
Start with Who You Know







Bowl for Kids©
Raising More Money©
Direct mail donors who
have given you $100 or
more
Volunteers’ prospects
Corporate sponsors
Foundations and family
foundations
Current and past
leadership donors





Past capital campaign
donors
Legacy and major gift
donors and their
families
Current and past Bigs,
past Littles
Current and past staff
Board members, past
Board members and
volunteers
The Osborne Group, Inc.
12
Best Donors are Past Donors

4 to 11 times the
cost to acquire a
new donor as it is to
keep an old friend!
The Osborne Group, Inc.
13
Organize the List and
Make Decisions

How are you qualifying your donors
now?




Capacity?
Inclination?
Readiness?
What tools have you found to be the
most useful?
The Osborne Group, Inc.
14
Get Donors, Volunteers,
Staff Involved

Gathering
information



Internal screening
Peer screening
Research
The Osborne Group, Inc.
15
Rating Potential Donors’
Giving Capacity



Average American gives 2% of income
Average wealthy and philanthropic
American gives 4% to 7% of net worth
(income and assets) over one to five
years
Ratings based on 5% of net worth
The Osborne Group, Inc.
16
Composition of Estates With
Assets of $600,000 Plus
1.
2.
3.
4.
5.
6.
Stock
Real Estate
Bonds
Retirement assets
Cash
Life insurance
equity and annuities
7. Other







33%
28%
13%
12%
7%
2%
5%
The Osborne Group, Inc.
17
Rating Potential
Donors Exercise


Read each scenario and provide a dollar
range rating for each i.e. $250K to $500K
Then an inclination rating using High,
Medium, Low or Remote
Name
Capacity
Joe
$50k to $100K Low
The Osborne Group, Inc.
Inclination
18
Readiness versus Inclination






Sally loves BBBS
Wants to give
Thinks a big gift is
$1,000
Has the capacity to
give $500,000
How inclined?
How ready?
The Osborne Group, Inc.
19
Major Gift Maxim



We don’t have control over capacity
We have very moderate impact on
inclination
Readiness is our JOB
The Osborne Group, Inc.
20
Wealth Screening Opportunity



National initiative
User friendly
Powerful tool
The Osborne Group, Inc.
21
Types of Visits



Qualifying and
Discovery
Cultivation
(developing and
advancing
relationship)
Recruitment


Solicitation
Stewardship
(connecting with
impact of past gifts,
advancing
relationship)
The Osborne Group, Inc.
22
Preparing for the Visit






First impressions
Do your homework
Check the facts
Listen to others
Choose the setting
Set your agenda
The Osborne Group, Inc.
23
The Donor Puzzle©







Motivation
Knowledge
Philanthropic decision
makers
Natural partners
Issues
Involvement and
contribution preferences
Stewardship
preferences
The Osborne Group, Inc.
24
Elements of Successful
Qualification and Discovery



Do your homework
Set agenda
Ask questions
about:




Work
Life
Philanthropy



Share your case for
support
Ask for feedback
Discuss next steps
IF this is a real
(now qualified)
prospective donor
LISTEN
The Osborne Group, Inc.
25
Visit Maxims




People remember more of what they
say than what you say
People believe what they say more than
what you say
You ask questions and share 30% of
the time
You LISTEN 70% of the time
The Osborne Group, Inc.
26
Key Take-Aways





Qualified – yes or no
If yes, capacity and
inclination rating
Perhaps readiness
rating
Possible giving
interests, values,
process
Next steps
The Osborne Group, Inc.
27
Is This a Qualified Prospect?


LISTEN to the exchange
What did you learn about:




Capacity?
Philanthropy?
Inclination?
Readiness?
The Osborne Group, Inc.
28
As Relationship Develops
Determine:







“Right”
“Right”
“Right”
“Right”
purpose
amount
solicitors
time
“Right” place
“Right” participants
“Right” materials
The Osborne Group, Inc.
29
The Role of the Annual Fund
in Major Gifts





Bumping folks up
Learning the donor’s decision-making
and negotiation processes
Learning more about giving interests
Opportunity to engage other decision
makers
Preparing donors for a comprehensive
ask
The Osborne Group, Inc.
30
Getting Appointment Tips




Agenda: Face to face
meetings, ambitious
and inviting itineraries
Skills: Confident tone,
brevity, specific time,
persistence
Call to appointment slot
ratios
Setting aside blocks of
calling time (with plenty
of lead time)




Personal assistants hold
the keys to the inner
sanctum
Planning two trips at
once (options for
donors)
Analyzing your statistics
(by region, time of day,
day of week, etc.)
Handling
objections/three no’s
The Osborne Group, Inc.
31
Three Inviting
Reasons for the Appointment








Advice
Input
Expertise
Action
Involvement
Solicitation
Stewardship
Information
The Osborne Group, Inc.
32
Making a Visit





Former Big
Board member recommended; doesn’t
know her well
Declined invitation to out of town RMM
event
Lives in upscale neighborhood
Owns her own business
The Osborne Group, Inc.
33
Investing in Fund
Development





ROI
People
Time
Infrastructure
Organizational Will
The Osborne Group, Inc.
34
AHP Study 2004
Lessons for Us

24 highest performing hospitals



Focus on major gifts
Leverage leadership and board
relationships
The highest performing hospitals
secured 51% of their revenue from
major gifts
The Osborne Group, Inc.
35
Highest ROI
% of
Revenue
from Major
Gifts
51%
35%
16%
11%
Highest
Fundraising
Performers
Top 25%
Second
25%
Third
25%
Bottom
25%
The Osborne Group, Inc.
36
Ideal Balanced Portfolio!
5%
10%
Major Gifts
5%
Annual Gifts
Corporate
20%
60%
Foundation
Planned Gifts
The Osborne Group, Inc.
37
Starts With Leadership




CEO
Board
Chief Development Officer
Senior Staff
The Osborne Group, Inc.
38
Staffing The Functions

Chief Development Officer




Special Events








Fundraising
Cultivation
Bowl for Kids Sake
Individual Giving


Strategy
Management
Major Gifts/staff CEO
Annual Appeals
Raising More Money
Leadership Gifts
Corporate and Foundation
Giving/Grant-writing
Data entry, Reporting and
Research
Development Assistant and
Stewardship
The Osborne Group, Inc.
39
BBBSA Fund Development
Organization
Judy Vredenburgh
President & CEO
John Malcolm
VP of Philanthropy
Jake Fried
Development Asst.
Director Major Gifts
<vacant>
Major Gifts Officer
<vacant>
Karen Mudd
Director Development
Fund Development
Researcher
<vacant>
Director Philanthropy
Information Services
Lesley Pratt
Gift and Biographical
Information Specialist
<vacant>
Director of Corporate
& Foundation Relations
<vacant>
Debbie Everitt
Director Agency Fund
Development
(Raising More Money)
Laura Clancy
Associate Director CFR
Manager of Alumni
Programs
<vacant>
Associate Director
Agency Fund
Development
Jon Glasoe
Stewardship Specialist
<vacant>
The Osborne Group, Inc.
40
A Model for Large Agencies
CEO/
Executive Director
Chief Development
Officer
Development Asst./
Stewardship Specialist
Director of Individual
Giving/RMM
Database Manager/
Researcher
Director of Corporate
& Foundation Relations
Director of Events/
BFKS
The Osborne Group, Inc.
41
How National Will/Does Help



Training
Tools
Consultation



Wealth screening
Partnerships
Gift sharing
The Osborne Group, Inc.
42
What Will You Do Differently?



What ideas did you
find the most
useful?
What do you want
to know more
about?
What will you try?
The Osborne Group, Inc.
43