Domain 2: Securing the Gift Flashcards
23% (118 cards)
1
Q
Securing any gift is an ongoing process and includes the creation of:
A
A development plan, a case for support, and a communications plan.
2
Q
The piece that provides the infrastructure to fundraising is the case for support. The case answers these questions:
A
Who is the organization?
What community need are they attempting to address?
Why is the organization worthy of support?
Why is this organization the best to solve this societal need?
3
Q
The case is:
A
bigger than the organization and relates to a cause being served
4
Q
A case for support is:
A
the rationale underlying fundraising.
5
Q
The essence of fundraising success is:
A
a fully developed case for support that articulates clearly and boldly the reasons the organization deserves philanthropic gifts.
6
Q
The basis of fundraising is
A
the organization’s case for support. It is the expression of the cause and all the reasons why prospective donors might want to contribute to its advancement.
7
Q
There is typically one large case for the organization as a whole
A
from it, smaller individual case statements are developed for various constituencies and programs.
8
Q
The case helps to make it possible to:
A
match the organization’s needs to the donors needs.
9
Q
The preparation of the case begins with an understanding that non-profit organizations raise money to meet larger community needs.
A
Unmet social needs lead to the creation of non-profit organizations, and the case for support is built on how well the organization meets those needs.
10
Q
If the organization has a development director on staff:
A
they should be the catalyst in the preparation and development of the case. Staff begin the preparation, development, and validation of the case!
11
Q
Getting others involved in the development of the case is important to:
A
Seeking the ideas of key constituents – board members, volunteers, donors, and potential donors – is particularly effective in enlisting volunteer leadership for articulation of the case in fundraising.
12
Q
Every well-developed case for support has three key elements:
A
Purpose = Not just the fundraising goal. Should include the organization’s aims, purpose, and mission. Presents the case for current programs, and shows how new programs will benefit and enrich people’s lives. The purpose of a case can dramatically show the organization’s impact on its community in a variety of ways, now and in the future.
Content = The content centralizes information about a variety of subjects related to the case. These include: Organization’s needs, Cause, Mission, Goals, Objectives, Strategies and task plans, Governance, Staff competence for the mission, Budget, Financial history, Facilities.
Focus = Typically the case will have a particular focus. It might be one, two, or all three of these: Unrestricted operating support, Restricted gifts for operations, Restricted gifts for special needs – capital, endowment, or other.
13
Q
The development of the case begins with compiling information that provides the background for everything a potential donor might want to know about the organization:
A
Case resources
14
Q
Case resources document the following aspects of the organization:
A
-Mission statement (why does the org exist)
-Goals (what does the org aim to do)
-Objectives (more precise than goals and explains how goals will be met)
-Programs and services
-Finances (links budgeting with objectives and program descriptions)
-Governance (often serves as a litmus test for potential contributors)
-Staffing
-Facilities and service delivery
-Planning and evaluation
-History (the heroic saga of the organization)
15
Q
Internal Case:
A
is a database of information and knowledge
16
Q
External Case:
A
tells the story to the constituencies and orders and presents the information for communication, public relations, and fundraising.
17
Q
External case statements take the form of:
A
brochures, foundation (and corporation) proposals, direct mail letters, website development, campaign prospectuses, news releases, newsletters, speeches, and face-to-face solicitations.
18
Q
Case statement definition
A
a written version of the case for a specific constituency or campaign, derived from the organization’s overall case. It selects and articulates specific points from the overall case
19
Q
The case statement is:
A
the one definitive piece of the whole campaign.
20
Q
Case statements typically includes:
A
i. The organization’s services, programs, objectives
ii. How the goals of the fundraising program support the organization, including how funds will be used, why reaching the goal is vital to both society and those served by the organization, and how success of the fundraising program will strengthen the organization.
iii. The ways the organization will remain significantly productive in the future through its own efforts and the generosity of its supporters.
iv. The difference a donor’s support will make to the cause.
v. What the organization must do to improve/change its activities, aims, and value to society.
21
Q
How a case statement is used:
A
- Obtain feedback and create ownership.
- Recruit volunteer leadership.
- Testing the market
- Forming a basis for case materials & related communications
22
Q
Adapting the Case to Constituent Groups
A
This includes determining the most critical constituencies (Major donors, community audience, corporations, foundations..)
23
Q
Ensuring a Successful Case Statement:
A
- Knowing about and/or collecting information about all aspects of the organization.
- Talking to everyone: administrators, staff, trustees, current and potential donors.
- Being aware of the expectations and interests of the target constituency.
- Relinquishing pride of authorship, and…
- Writing, rewriting, rewriting, and rewriting!
24
Q
Evaluating the Case Statement =
A
Gather reactions from each key constituency/market segment. The goal is to ensure the case statement is as effective as it can be for each constituency.
25
Elements of the Development Process:
* Developing the case for support
* Prospect research
* Cultivation and constituency development
* Solicitation strategies
* Acknowledgement and recognition
* Gifts management
* Volunteers and staff are engaged in the process
26
Development interfaces with ALL aspects of the organization.
* Building ownership in volunteers and staff
* Obtaining information required for development planning
* A complete budget and fundraising goal incorporated into the organizational budget process
* Outcome: a written operational plan that covers the same period as the organization’s plan
27
Effective fund development depends on a number of critical elements
i. an understanding of your various constituencies, their needs, and how your organization meets those needs.
ii. clear institutional direction and ongoing strategic planning.
iii. shared expectations of staff and volunteers.
iv. a governance and management structure that supports the fund development process.
28
The development plan serves as:
an operational guide for the organizations fundraising activities.
29
The organization’s strategic plan is a major source of direction and information for:
the development plan.
30
The development plan includes
i. Statement of purpose.
ii. Strategic/financial development goals.
iii. Strategies for achieving the goals.
iv. Operational policies related to goals.
v. Identified/targeted constituencies.
vi. Analysis of potential by constituency and strategy.
vii. Cultivation strategies.
viii. Solicitation strategies.
ix. Action plan and timetable for each strategy, with income benchmarks.
x. Assignment of responsibilities for strategies and individual solicitations to volunteers, staff, others.
xi. Marketing needs for each strategy.
xii. Budget and funding for each strategy.
xiii. Indicators of success.
xiv. Monitoring of processes/systems.
31
Staff and volunteers must be involved in creating the development plan.
Success of a development program requires joint ownership of the process. **This is particularly true with members of the board of directors.**
32
To create an effective development plan, each organization must look at a variety of factors and approaches based on its need. Factors that impact choices:
i. Operating income, capital improvement, physical plant, endowment income, and special development program income.
ii. Past history of donor support and opportunities for expansion giving.
iii. How fundraising helps advance the organization’s mission.
33
A well-integrated development program includes:
i. Basic annual income.
ii. Capital funds needed for special programs, buildings, and other physical plant requirements.
iii. Planned gifts to provide a financial cushion for the future.
34
Effective fundraising programs should evolve over time:
i. Establish annual fundraising structured to meet immediate operating needs.
ii. As additional needs develop, organizations may ask donors and others to help meet the organization’s capital needs (organized as restricted gift opportunities or as a separate but coordinated capital campaign).
iii. As relationships solidify further, donors become more interested in giving larger, more permanent gifts; planned giving is added.
35
The organization’s needs will drive which types of giving it will emphasize:
i. Heavy operating costs and few capital requirements, focus in annual and planned giving.
ii. Large capital needs, e.g., hospitals, colleges, etc., focus on capital fundraising.
36
Assess the organization’s readiness for fundraising success by looking at the following factors:
i. Organization’s reputation and credibility.
ii. Urgency of case.
iii. Availability and readiness of volunteers to solicit funds.
iv. A well-researched prospect database establishing the interest of potential donors.
v. Pre-campaign planning that has been thorough and has involved strategic planning, development planning, an internal audit, and a planning/feasibility study.
vi. Use of outside resources to assess readiness.
vii. Operational readiness of the development office.
37
Gift decisions may be:
i. Spontaneous – dropping a coin in the Salvation Army red kettle.
ii. Responsive – making a gift in response to a direct ask from the organization.
iii. Deliberately planned – making a gift of stock the last week of December.
38
Regardless of how the decision is made, donors first ask questions like:
**i. Who is asking?
ii. For how much?
iii. Why me?
iv. For what purpose?
v. Why now?**
39
Individuals tend to give from three sources:
discretionary or disposable income, their assets, and estates.
40
It is generally accepted among professional fundraisers that...
**3 to 5 percent of contributors enrolled in an organization’s donor base have the ability to make major gifts.**
41
The Pyramid of Giving (from top to bottom):
i. **Planned Giving – wills, bequests**
ii. Major Giving (capital, endowment) – personal contact
iii. Special/Major Giving – personal contact, letter, phone call
iv. Repeat Annual Giving – personal contact, letter, phone call
v. First-timer Annual Giving – direct mail, online telethon, special events, media, door-to-door
42
Annual Giving
i. Primary method used to broaden support, upgrade levels, and provide operating support for ongoing programs.
ii. Income for restricted and unrestricted programs, acquire donors, renew donor support annually, cultivate donors to increase giving levels, solicit new donors to broaden support base, identify and involve leadership and other volunteers, identify major gift prospects, build donor loyalty.
43
Major Giving - Capital Campaign
An intensive, organized fundraising effort to secure philanthropic gifts for specific capital needs, executed within a specific time period.
Specifically targets buildings, e.g. funds for facilities.
44
Major Giving - Endowment
A pool of money invested to provide income and revenue for the organization’s operations or for a specific program; typically built by planned gifts
Maximize benefits for donor and organization; focuses on building permanent funds to support the organization’s work not spent for current operations or capital projects
45
Planned Giving
i. Integration of personal, financial, and estate planning concepts with an individual donor’s plan for lifetime or testamentary giving
ii. For the organization = provides higher-level gifts and increased future stability, increased donor commitment
iii. For the donor = ways to give beyond the use of current assets, often provides significant estate tax benefits
46
Comprehensive Campaign
i. May contain annual, major, and planned, or only capital/endowment campaigns, depending on organizational need
ii. Support for the special needs of the organization: facility construction, renovations or expansion, acquisition of special equipment, strengthening of an endowment, programs and scholarship
47
Why one campaign over another:
i. All have the potential to entice new volunteers and volunteer leaders, as well as confirm the commitments of current volunteers
ii. Annual giving uses a variety of solicitation methods; capital in generally for restricted purposes or endowment development and obtained through personal solicitation
iii. Smaller percentage of the constituent base represents major prospects for capital, endowment, and planned giving, vs. all constituents as prospects for annual giving
iv. Planned giving provides greater opportunity for donor and organization, focuses on longer term and larger gifts from accumulated assets
v. Endowment giving can be immediate and outright or deferred, depending on donor goals
vi. Annual giving is ideal for bringing in new donors and cementing their relationship to the organization; capital, endowment, and planned giving are perfect for upgrading the annual donor’s commitment over time
vii. Benefits of capital campaigns: builds familiarity with the organization and its goals; encourages donors to “think big” – pushing annual giving to new levels; increases organization’s visibility among constituents and the community; enables donor pledges over several years vs. just one in annual giving.
48
Organizations are increasingly in campaign mode at all times...
i.e. planning stages for the next campaign begin immediately at the end of the previous campaign; cultivation of** major donors (10% who gave 90% of funds and those in top tier**) continues in preparation for the next campaign.
49
Once a solid annual giving program is in place, the next step is (often):
the launching of a major gifts/capital campaign
50
Major-gift campaigns provide value to an organization as a whole: it also builds peoples’ experience and confidence:
i. Builds volunteer leadership skills
ii. Hones skills of development staff
iii. Solidifies the board-administration partnership
iv. Unites constituencies in a common cause
51
Major Gift Campaign Success factors – institutional readiness:
i. Reputation and credibility
ii. Urgency of the case
iii. Availability and readiness of the board/volunteer leadership to solicit funds
iv. A solid prospect database, fully researched and with established interest
v. Operational readiness of the office and systems
vi. Extent to which comprehensive, pre-campaign planning has occurred, including:
Strategic plan for the organization and the development office
An internal audit
A planning/feasibility study
52
Major Gift Campaign Success factors – constituent readiness
i. A stable, positive image/reputation
ii. A core of ready, accessible volunteers
iii. An adequate number of prospects capable of making substantial gifts are cultivated and ready
iv. Ongoing awareness/information/cultivation programs are in place
v. A completed external planning/feasibility study to test readiness and raise sights
53
Pre-major gift campaign activities – the internal audit:
i. The entire organization is reviewed during the pre-campaign audit
ii. Organizational planning
iii. Board Leadership
iv. Administration and finance
v. Development operations
vi. Donor base
vii. Volunteer structure and involvement
viii. Public and donor relations
54
A feasibility study tests a cross-section of leadership and major prospective donors to discover the likelihood of campaign success.
It confirms or suggests changes be made to the campaign plan in areas such as the goals, strategies, campaign structure, staffing and support requirements, etc.
Study results are reported to the board of directors, which then decides whether and how to proceed.
55
The final pre-campaign activity is preparation of a gift-range table:
A realistic reflection of the approximate levels of giving and the number of gifts requires at those levels to achieve a stated dollar objective.
**A campaign is likely to reach its goal if the largest gift equals 10% or more of the goal and it, along with the next nine gifts, total one-third of the goal, **and the next 90 gifts equal one-third of the goal
If these first two-thirds of the campaign are achieved this way, it is most likely that the final one-third of the goal can be raised from all other gifts
56
**Traditional “Rule of Thirds” Gift Table**
**i. Top 10 gifts account for 1/3 of the total**
**ii. The next 100 gifts account for another 1/3 of the total**
**iii. The final 1/3 come from everyone else**
57
While the traditional rule of thirds can be made to work, most modern campaigns are using...
major gift models in which far fewer gifts are responsible for much larger percentages of the total.
58
**Not uncommon for a lead gift to be 30% of the campaign goal – sometimes even 50%...**
**and the top 10-15 gifts often account for 60% of the total.**
59
A realistic campaign gift table usually results from:
what is learned during a feasibility study.
60
As plans for the major-gifts campaign develop, part of the planning should include development of clear and agreed-upon policies and guidelines for how the campaign will be run. The policies should also cover how the funds received should be processed, counted, and reported. This helps ensure everyone, volunteers and staff, is on the same page.
i. Fundraising strategies
ii. Role of campaign steering committee
iii. Role(s) of other volunteers
iv. Communications plan
v. Campaign budget
vi. Campaign duration
vii. Duration of pledge period (typically 36-60 months)
viii. The procedure for recording pledges
ix. How gifts will be deposited (especially cash)
x. Establishment of rules regarding how gifts will be counted that are not directly a result of the campaign (annual fund, bequest, etc.)
xi. Guidelines for accepting non-cash gifts
xii. Establishment of authority for assignment and transfer of securities
xiii. Guidelines for accepting and crediting planned and other gifts
xiv. Establishment of recognition opportunities and their criteria
xv. The procedure for final campaign wrap-up and audit
61
Phases of a Major-Gifts Campaign
i. Planning
A statement of preliminary goals and an action plan are established.
ii. Cultivation
The interest of prospective contributors of the campaign is developed through exposure. These first two phases can take 18-months to several years.
iii. Solicitation
The phase in which volunteers and staff ask for contributions from individuals, corporations, and foundations.
Solicitations start at the top and begin within the organization.
These “gifts of confidence” provide credibility for the campaign and allow major-gift solicitation to begin.
In a major-gifts campaign, gifts are solicited in sequence beginning with those with the highest giving potential, then moving to the next lowest levels.
The solicitation phase includes:
* Quiet phase: when gifts from “family” and lead gifts are solicited, with a goal of 100% board participation and about 40-50% of the goal has been achieved.
* Active solicitation phase: a finite timeframe during which volunteers are actively seeking donations
iv. Pledge or fulfillment
Generally a three- to five-year period planned for payments of pledges.
May last longer, however, the trend is to shorter pledge periods so as not to confuse donors with the ongoing need for their annual contributions.
v. The Campaign Timetable
Part of campaign planning is determining the timetable of operations, which is a very specific time-sensitive schedule that includes the four phases noted above.
62
Major-Gifts Campaign Quiet Phase:
When **gifts from “family” and lead gifts are solicited, with a goal of 100% board participation and about 40-50% of the goal has been achieved.**
63
In a capital campaign program the “special gift” opportunities offered to both large and small donors are commonly known as:
Commemorative gifts
64
Major gifts usually come from:
individual, corporations and/or foundations that have previously given annually and have been significantly involved in the organization in some way.
65
As with any other large gift (capital campaigns, planned giving or endowed giving), obtaining MGs (as part of a campaign or stand-alone gifts) is a process of cultivation and solicitation:
i. Prospect research (focus on donors who may be ready to from annual giving)
ii. Matching donor need(s) with giving opportunities
iii. Strong case/case statement
iv. Personal contact by a peer and a senior staff member
v. Appropriate follow-up
vi. Immediate and appropriate acknowledgement and recognition according to the donor’s needs and values
66
* The organization must be worthy of this level of support. Major donors are focusing increasingly on an organization’s “critical success factors.”:
These include, but are not limited to, organizational strength, committed volunteers, donations from 100% of the board, whether the person requesting funds is a donor, etc.
67
Duration of pledge period
typically 36-60 months/3-5 years
68
Six Steps to a “Model” Solicitation
**There are six steps for a “model” solicitation when visiting a prospect to as for a major gift:
i. Build rapport
ii. State the case for support
iii. Encourage involvement (ask open ended questions, consider asking for advice, etc.)
iv. Summarize benefits/case and close/ask
v. Be quiet
vi. Respond appropriately **
69
Planned Giving
Every donor in your database has the potential to fund a charitable gift annuity or other planned gift.
70
There are (basically) two types of planned gifts:
i. **Outright or current** – a complete transfer, or realized gift, of cash or stock as part of an estate plan.
ii. **Deferred **– a testamentary giving or life income arrangement to be realized in the future, such as bequests and charitable gift annuities.
71
Bequest: Direction in a will to give an asset or portion thereof to a charity. In can take the form of cash, property, real estate, insurance proceeds, RRSP/RIF proceeds, or securities. There are three types:
Specific – a specific gift amount, gift of property, or piece of artwork
Residual – one part of a specific number of equal shares of the residue of the estate after all legacies are paid.
Contingency – takes effect only if none of the donor’s primary intentions can be met (e.g., when primary beneficiary does not survive the donor).
72
Life insurance/RRSP/RIF
a contract between a donor and an insurance company through which the donor agrees the proceeds will be paid to a charitable organization at the time of the donor’s or insured’s death.
73
Publicly traded securities:
donor gives appreciated marketable securities or stock options to a public charity or foundation with no capital gains tax liability.
74
Charitable gift annuity:
an irrevocable contract between the donor and the charity under which cash or other valuable property is contributed to the charity in exchange for a specific amount paid in stated intervals for life or a set term of years.
75
Charitable remainder trust:
a trust instrument used by donors to transfer legal title of assets to a charitable organization for use at some future time. The income beneficiaries (self and/or spouse) receive income until death, and all the remaining trust assets are distributed to the charity at the termination of the trust (the charity is the capital or residual beneficiary).
76
Gift of residual interests in real property (real estate, art, rare books, collections, etc.):
agreement between a donor and a charity in which the donor gives ownership of real property to the charity yet retains use of the asset during his/her lifetime or for a defined period. The asset passes to the charity at the end of the agreement.
77
Advantages of Planned Giving to the Organization:
i. Establishes a long-term relationship with the donor.
ii. Encourages donor to think about gifts of assets in addition to income.
iii. Often provides future funds to be counted on (endowment, equipment, scholarships).
iv. Enhances opportunities for charitable bequests, particularly in the case of gift annuities.
78
Advantages of Planned Giving to the Donor
i. May provide opportunity to give with income and estate tax deduction.
ii. Some may provide opportunity to enjoy either a fixed or variable income.
iii. Some may provide opportunity to supplement retirement income (e.g., deferred charitable gift annuities and charitable remainder trusts).
iv. If highly appreciated assets are contributed, it may avoid or lessen capital-gains tax liabilities.
v. May offer opportunity for increased income compared to other investments
vi. May allow competent management of assets transferred as gifts.
vii. May allow donor to pass an asset to an heir after an established period of organizational use.
79
Steps for Starting a Planned Giving Program:
i. Board and staff commit to the concept of Planned Giving.
ii. A committee is appointed to study the potential and make recommendations to the board.
iii. The board adopts a plan and approves guidelines.
iv. The board approves a budget for planned giving and recognizes it will be a long time before the investment is returned.
v. Training programs are established and carried out for the board and staff; continuing education and information resources are provided.
vi. Prospects are identified, beginning with the board and current major donors.
vii. A planned gifts subcommittee (and other appropriate subcommittees) is formed within the development committee.
viii. A marketing plan is prepared, including timing for production of supporting materials and schedule of special events, such as estate planning seminars.
ix. A mail-cultivation program is started.
80
An annual appeal letter asks a donor to sponsor a child, even though the organization does not tie a donation to a specific child. This is an example of:
a direct mail appeal that appeals to a donor’s need for demonstrating impact. Connect appeal to donor’s needs!
81
An underlying and very important aspect of securing gifts of any type is the understanding of prospects’ motivations and needs.
It’s no different with annual gifts, even though annual giving campaigns involve the largest number of prospects who are often treated as an unknown.
82
AG Appeals can be customized based on:
demographic profiles and identified areas of interest.
83
(Annual Giving) Using several methods of solicitation in tandem is most effective.
By coordinating several methods, individuals can be targeted at different levels of interest and involvement to encourage commitment and enthusiasm.
84
(AG) Personal solicitation is still the most effective
**16 times more effective than mail solicitation!**
85
Personal solicitation is most effective when:
a prospect’s peer conducts it.
86
In planning for an annual fund, **the arithmetic of fundraising concept** directs the fundraising practitioner to:
determine the quality and number of gifts that are required to achieve the organization’s goal.
87
(Arithmetic of fundraising) Decisions about the plan’s strategies should be delayed until the following determinations have been made:
What quality of gifts is required, and how many are needed in each category.
What should be the ratio of prospects to donors?
Does the donor base have the number of prospects to support the ratio?
Is it realistic to expect that these prospects can be identified?
If these questions cannot be answered clearly and factually, then is the goal of the annual fund realistic?
88
The arithmetic concept as it pertains to the annual fund means that:
that a large amount of the money to be raised will come from a small number of contributors who are encouraged to provide what will necessarily be larger gifts.
89
**(Arithmetic of Fundraising - AG) The Formula:**
** The top 10 percent of the gifts received during the annual fund have the potential to produce 60 percent of the money required to meet the goal.
The next 20 percent of gifts will account for 15 to 25 percent of the money required.
The remaining 70 percent of gifts will cover the remaining 15 to 25 percent of funds required.**
90
Charitable Lead Trust
Established by a donor transferring assets to a trust that provides income to a nonprofit org for an individual’s life or for a period of years or combo, at the end of that peroid, the trust assets revert either to the donor (grantor) or to someone the donor designates (non-grantor)
91
When evaluating a mailing to existing donors, the most important calculation is:
return on investment!
92
Telephone solicitation (volunteer phonathon or paid callers)
Selectively used to acquire, renew and/or upgrade donors; most effective when used in combination with other solicitation methods.
93
Mail solicitation/direct mail
Most impersonal and least efficient for new donors; can be effective for renewals.
94
Giving clubs
Best used to upgrade donors at the top of the low end of annual giving; provides incentive recognition to move donors to higher levels; each level provides customized recognition.
95
Electronic solicitation – “ePhilanthropy”
Similar solicitor experience as telephone or direct mail; best integrated with other approaches; website can be used for reference/more info; social networking media.
96
EFT sustained monthly giving – a payment technique.
Automatic transfer of funds from donor’s bank account to organization’s; an inexpensive and efficient way to collect donations.
97
Group solicitations: special events
Purpose: to raise public awareness, helps cultivate prospects and donors; requires specific and detailed planning; not a major fundraising initiative.
98
A wisely developed plan will provide for multiple mail solicitations at carefully selected times during the course of the entire year.
Some of these will be donor acquisition mailings. Others will involve upgrading mailings and appeals for special-purpose gifts.
99
Every well-developed case for support has three key elements:
Purpose, Content, Focus
100
Seeking Grant Support from Organization
* All starts with personal relationships – make a personal connection with a program officer, board member, or employee.
* Send a letter of inquiry, containing an outline or summary of the project, whether requested or not.
* If the response is positive, write a grant proposal.
101
Elements of a Grant Proposal:
i. A proposal summary
ii. A problem (needs) statement
iii. Project goals/objectives
iv. Methodology
v. Evaluation
vi. Budget
vii. Include any supporting materials requested by grantor
viii. Do not submit materials not requested by the grantor; adds unnecessary work
102
The Roles and Responsibilities of a Volunteer Solicitor:
1. Speak authoritatively as a representative of the organization and participant in the campaign.
2. Articulate, in face-to-face dialogue, the case for support in an informal, enthusiastic, and compelling way.
3. Respond confidently to all basic questions, and seek answers to more complex inquiries.
4. Suggest possible benefits to the donor (recognition, tax, problem solving, community development, etc.) as a result of giving.
5. Believe in the campaign effort and annual campaign goal and convey that.
6. Be an individual who has made and/or effected a meaningful contribution to the organization.
103
Suggestions for a Successful Solicitation:
1. Establish the appointment in advance.
2. Be patient.
3. Be persistent.
4. Be courageous – ask for the gift!
5. Be proud of your role.
6. Remember that you’re not asking for yourself.
104
Preliminary Steps for Personal Solicitation:
1. Keep your sights high – familiarize yourself with the organization and its programs.
2. Convince yourself first.
3. Solicit those prospects you can motivate.
4. Learn about your prospective donors.
5. Plan your approach.
6. Rehearse solicitations.
7. Committee calls or team solicitations may be appropriate – rehearse as a group.
8. Use the campaign literature effectively.
9. Schedule appointments by phone – do not mention money, but if asked “Is this a solicitation?” respond with something like “I (we) want you to be involved in this venture with us.”
10. Solicit face-to-face.
11. Seek the maximum gift.
105
Asking for Major Gifts:
ALWAYS solicit in person! Describe your project/organization and the way it helps to solve a problem; match the prospect’s needs to those of your cause; and ask for the prospect’s support.
106
Asking for Major Gifts:
1. Pick the right prospect.
2. Solicit in person.
3. Convince yourself first.
4. Know your cause.
5. Know your job.
6. Know your prospect.
7. At the meeting:
i. Explain your role as a volunteer/staff – talk about why you believe in the organization and mention your own gift in context of your commitment to the cause.
ii. Talk about community issues and how the organization can help respond. Share organization’s programs.
iii. Remind the prospect how their gift will help respond to the community problem.
iv. Ask for a specific amount. Aim as high as you can – stretch the prospect.
v. Get a commitment before ending the meeting.
8. Ask for a specific amount – and secure a promise.
9. What if…contingency plans!
i. Don’t just accept a gift that is too small. If appropriate, try to negotiate.
ii. Don’t just accept a “no”. Keep selling, if appropriate, or withdraw saying that “perhaps now is not a good time.” And ask to return in a month and meet again.
iii. If prospect agrees to consider the appeal but wants to take some time to decide, make arrangements to follow up personally and secure the final decision.
iv. Job is to get the answer – not just ask!
10. After the meeting – Report in!
107
The following elements should be included in a good case statement:
* A description of the organization's mission and the key community need(s) that it addresses
* List of the organization's objectives.
* The proposed strategies for reaching those objectives and a timeline.
* Organizational assets (programs, facilities), staff, and budget needs.
* The target audience that will benefit.
* An explanation of the impact of supporting the mission and the implications if the community need is not met
* A review of the strengths and subject matter expertise of the organization.
108
Additional case statement items may include:
* Service area analysis including demographics, key industries, resources and service gaps, and organizational comparisons both locally and nationally.
* Strategic plan (if one has been done).
* An organizational chart and staff bios.
* Recent and historical giving history.
* Current and long-range needs.
* Other relevant organizational history.
109
Major Gift Fundraising Guidelines:
*** On average, the Major Gift Officer (MGO) should manage a portfolio of no more than 150 prospects.
* Time should be divided between cultivation, solicitation, and stewardship.
* On average, MGOs are expected to make 30 major gift solicitations per year resulting in 15 to 20 gifts.
* On average, MGOs are expected to qualify 15 to 25 new prospects each year to replace those who have been removed from the prospect list. **
110
Key Elements of a Successful Capital Campaign:
* Feasibility study.
* Commitment of time & support from all key stakeholders.
* A strategic plan.
* A clearly articulated case for support.
* A donor base that is willing and able to commit to substantial lead gifts before the public phase of the campaign.
* Competent staff and/or the help of outside counsel
* An adequate budget for campaign expenses.
111
Donor Motivations:
* Awareness of the need and a desire to help the recipients.
* Trust in the organization and its ability to use the gift effectively and responsibly.
* A sense of duty.
* Tax benefits.
* Routine giving is most impacted by a personal connection to the cause or organization (friend or family member, personally impacted).
* The top motivator for unexpected giving is a personal connection or crisis
* The number two motivator for online giving: social media influencers, celebrities, and politicians.
112
Barriers to Giving:
* A poorly defined and/or articulated case for support.
* Trust in the organization.
* Poor stewardship.
* Lack of communication with donors.
* Lack of demonstrated impact.
113
Types of Gifts:
* Cash from the donor's own accounts or accounts in which the donor has an advisory role (Donor-Advised Funds, Qualified Charitable Distributions, family foundation grants, etc.)
* In-Kind
* Securities (stocks & bonds).
* Trusts.
* Real Estate: Commercial or residential.
* Assets (financial: retirement accounts, life insurance policies, etc.
* Assets (tangible): jewelry, art, cars, etc.
114
Elements of a Feasibility Study:
The feasibility study is a tool and a process to help an organization determine its institutional readiness to
engage in a capital campaign:
* The board and leadership must agree to proceed
* The organization should engage a third-party to conduct the study.
* Background research will be conducted on the organization, it's donor and volunteer base, and the community
* Interviews are conducted by the third-party consultant.
* Findings are reviewed, and next steps are recommended. *
115
Questions a Feasibility Study Should Answer for the Organization:
* Is the capital campaign the correct strategy?
* Is the timing of the campaign optimal?
* Does the organization have the infrastructure to conduct a campaign?
* Who will lead the campaign? (both from a staff and volunteer standpoint)
* What is the constituent base's capacity and willingness to give?
* Is the constituent base ready and willing to support the campaign beyond financial gifts?
116
Common Fundraising Vehicles:
* Direct marketing
* Special events.
* Grant proposal writing
* Corporate sponsorships
* Cause-related marketing
* Major gifts.
* Gift planning
* Memorials.
* Membership and alumni program.
* Gaming & lottery programs.
* Workforce/payroll/federated campaigns.
* Peer-to-peer.
117
Measuring Tools to Evaluate the Success/Effectiveness of Fundraising:
* ROl (Return on Investment)
* Growth Rate (the growth in number of donors and money raised).
* Retention Rate (the number of donors who give subsequent gifts).
* Average Gift (online and offline).
* Average funds raised by volunteers (board members, peer-to-peer, etc.)
* Lifetime value of a donor.
* Cost per dollar raised.
118
An item or items of value given with a solicitation or promised as a result of a gift:
Premiums
