Transcript MAJOR GIFT STRATEGIES CASE STUDY

Securing 8 and 9 Figure
Leadership Gifts
Jerry May
Vice President for Development
University of Michigan
University of California, Los Angeles
November 4, 2009
“The Rich are Different from Us.”
- F. Scott Fitzgerald
2
The Importance of Major Gifts
Responding to the Challenge: The Role of Big Gifts
2,942
100%
$2,769 M
90%
80%
70%
60%
Fewer than 1%
of the donors…
have given 87%
of the dollars
50%
369,989
40%
30%
20%
$433 M
10%
0%
% of Donors
$100,000 or More
Updated: 5/7/2009
% of Dollars
Less than $100,000
3
Increasing Role of Transformative Gifts
Within major gifts*, the role of transformative level gifts is even more dramatic:
Campaign for Michigan
(ended 9/97, $1.4B)
Gifts of $5M+ accounted for 34% of major
gift dollars* to the Campaign for Michigan.
2%
100%
34%
80%
60%
40%
Michigan Difference Campaign
(ended 12/08, $3.2B)
20%
3%
0%
% Donors
Gifts $100K < $5M
% Dollars
Gifts of $5M+
100%
46%
80%
60%
Gifts of $5M+ increased to 46% for
the Michigan Difference Campaign.
40%
20%
0%
% Donors
Gifts $100K < $5M
*Major Gift = Giving of $100K+
% Dollars
Gifts of $5M+
4
Results From Benchmarking of $100m+ Gifts
2004-08: 68 Gifts of a $100M+
National & International
The successful organizations are the
large, life-impacting institutions with
strong traditions of philanthropy that
nurture long-term relationships over
multiple generations.
Higher Education Dominates
 Higher education institutions
• 88% of the 68 $100 M gifts since
2004 went to Universities; many to
academic medical centers
 Private universities dominate
• They have received nearly 60% of
the 68 $100 M+ gifts since 2004
Characteristics of Institutions
 Often institutions with strong reputations, and
almost all with strong research universities. Several
have multiple mega gifts:
• Harvard, MIT, Princeton, Columbia, Chicago,
Stanford
• Among publics: UNC, UC-Berkeley, UCLA, UCSF,
Virginia, Wisconsin, Michigan
 Themes: medical research, scholarships,
environment
• Nearly 40% of the gifts were for medical research/
care/facilities
• Multiple gifts for scholarships, arts and
environment
Characteristics of Donors
 Life connection: alum or family alum, or
grateful patient/family (28)
 Volunteer: director, trustee, committee (25)
 Made previous million+ gifts to same
organization (28)
 Donor in close proximity to recipient
organization (42)
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Mega Gift Trends
Where do the mega gifts go?
Other
12%
Internation
al higher ed
7%
Public
higher ed
22%
Where do mega gift donors live?
Other
Region/
Unidentified
13%
Private
higher ed
59%
New York
Metro Area
31%
Southern
States
14%
Midwest
1%
West Coast
34%
Other East
Coast
7%
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$50, $75, $100 Million and Above
• Bill and Dee – their compassion, their
dreams, eradicating disease
• Steve – his legacy, matching visions,
his passion
• Al – his legacy, helping humankind,
inspired by visionaries
Selected Leadership Gifts
to UM - Motivation
$10 to $20 Million
• Maxine and Stuart – their dream, their
passion, their legacy
• Don and Ingrid – their loyalty, their values
• Ron and Eileen – making a better world
• Judy and Fred – making an impact
• Penny and Roe – touching people’s lives
7
Necessary Conditions for a Successful Fundraising Program
• Strong university management
• Presidential commitment,
involvement, and leadership
• Institutional fundraising
knowledge
• Academic commitment and
involvement
• Professional staff resources
• Adequate financial investment
• Volunteer commitment,
organization and roles
• Donor and prospect identification,
cultivation and involvement
• Accurate prospect assessment
• Communication program
• Administrative support systems
• Acceptance of the importance of
continuous fundraising
• A culture of asking and focused
fundraising management
• A comprehensive fundraising plan
• Institutional policies for
fundraising, donor/honorary
naming and recognition
• An institutional reputation of
strong donor stewardship and
trust that the university will do
what the donor intends
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The Fundraising Process
Identify & Select the
Prospect
Collect Prospect
Information
Strategize &
Coordinate the
Prospect
Contact & Inform the
Prospect
Complete Gift
Agreement
If “Yes”
Solicit the Prospect
Acknowledge &
Steward the Prospect
Involve the Prospect
If “No”
Develop Solicitation
Strategy
Engage the Prospect
9
How do you know when a
prospect is ready to be
asked?
HOW DO YOU KNOW WHEN A PROSPECT IS
READY TO BE ASKED?
10
Prospect Preparation
Assess & Be Sure
• Extensive donor contact has taken place (7-10 substantive contacts).
• Strong relationships have been built with the donor through
involvement.
• There is substantial donor readiness and engagement (more likely to
say yes than no).
• There is significant knowledge of donor motivation and interests.
• There is confidence that family decision makers have also been
engaged.
• There is a good sense of how much a donor is capable of giving.
• A vision has been reviewed or is ready to be reviewed.
• Donor stalls and objections have been resolved or neutralized.
• Prospect coordination has taken place if the prospect has multiple
interests.
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Preparing for the Ask
• The solicitors – determine who will be the most effective solicitor team in asking for a
gift and who will actually ask for a purpose and amount.
• The idea – determine the purpose or funding alternatives based on real prospect
interests.
• The benefits – be cognizant of how the donor benefits; not tangibles, but intangibles
like recognition, long-term meaningful involvement, association, being part of a
tradition, being an investor, pioneering a new idea.
• The amount – determine how much to ask for (look at past gifts, assess potential,
seek volunteer assessment).
• The timing – determine proper timing for solicitation (assess current financial
situation, family dynamics).
• The place – determine an appropriate place & environment for a solicitation.
• The prospect partner – determine who, if anyone, associated with the prospect
should be present.
• The appointment – determine who will make the solicitation appointment & what
will be said that will not scare the prospect away or let the prospect be surprised.
Then make the appointment.
• The rehearsal
12
What are the key
elements of a
prospect
WHAT ARE THE KEY ELEMENTS
OF A
solicitation?
PROSPECT SOLICITATION?
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The Solicitation
The Celebration
of the Gift
The Long Road
of Cultivation
Stewardship &
Impact
Reporting of the
Gift
The Gift
Agreement
Setting Up the
Ask
Addressing &
Resolving the
Concerns
The Preliminary
Gift Discussion
The Issues or
Concerns or
Stalls
The Ask Meeting
The Discussion
about the
Content of the
Proposal
The Written
Proposal or
Letter
Confirmation
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Making the Ask
• Acknowledge and thank the prospect
for all they have given to the
university in
the past.
• Put the ask in the context and
magnitude of the campaign.
• Ask the prospects what their
objectives might be in making a gift.
Reflect what you have heard about
their interests.
• Review the need and project(s) you
wish the prospect to consider and
highlight naming opportunities and
donor recognition. Explain which
naming levels are based on university
policy.
• Ask for specific amount to be pledged
and paid over time.
• Appeal to competitiveness,
emphasize tradition, feature
leadership examples, pride and
excellence.
• Listen carefully to the responses of
the prospect.
• Answer questions from the prospect.
• Ask the prospect what he or she
thinks about the gift and ask if this
project is in an area of interest or
there is some other area in which
they are interested.
• Agree to talk further after the
prospect has had time to think it over.
15
Following Up on the Ask
• Provide a letter, a proposal, or draft gift agreement immediately following
the ask taking into consideration any issues learned in the solicitation.
• Make plans for follow-up contacts on the gift decisions.
• Have a plan of activities the donor is invited to while considering the gift.
• Have events/meetings serve as informal reminders (gentle) or artificial
deadlines.
• Close the gift (many gifts take six to eighteen months to close). If
necessary, do several iterations of the gift agreement in the process.
• Conclude with a signed gift agreement. Sometime use a signing ceremony
as a deadline or to heighten the importance of the decision.
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Most Common Errors in the Asking Process
1. Not having done thorough stewardship on previous gifts nor ensuring the donor
feels satisfied that previous gifts made a difference
2. Asking too early, under asking, not asking
3. Lowering the ask too soon
4. Not following-up on donor stalls and objections (remember, stalls and objections
are normal & part of the process)
5. Not listening to what the donor is saying
6.
7.
8.
9.
10.
11.
12.
Asking for something the donor does not want
Not considering what the donor needs
Not engaging the donor in a full relationship
Asking a husband while ignoring a wife or adult child
Not going to the donor to ask, or asking in the wrong environment
Surprising the donor
The wrong person doing the asking (the “I know him factor” vs. “the highest
influence factor”)
13. Not using an asking team
14. Not following up regularly during the process
15. Not paying attention to timing
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What are some of the determining factors
in closing the gift?
• Giving the donor guidance on the
amount
• The credibility and influence of
the volunteer
• Who else has given generously
• The desire to be part of the
campaign and on the major donor
list
• Support from the family of
the donor
• The recognition or naming
• The relationship with the
president, faculty member, a
dean, a doctor, a charismatic
administrator
• A funding idea that the donor is
passionate about
• The donors involvement in the
shaping of the gift
• Significant extra income or capital
gains in a particular year
• Being asked
• A reunion or anniversary
• A donor challenge
• A campaign deadline
• Life altering experience
18
NEVER GIVE UP
ON A PROSPECT
THERE IS ALWAYS
ANOTHER MOVE