The Ask, Stewardship and the Donor’s Perspective

Gary L. Bukowski, CFRE

Vice President for Advancement

Dr. Gertrude A. Barber Foundation

GaryBukowski@BarberInstitute.org

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

Research shows…

Individuals

$217.79

73%

The top 5 organizations:

Preparing for the Ask

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

Making the Ask

The Progression of Giving The Institute of Charitable Giving, 1995

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

Success – Now What? Laying the foundation for a strong donor relations plan

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

Looking Through the Eyes of the Donor: Post-solicitation through long-term donor relations

The Three Components of …

Acknowledgement

Recognition

Stewardship

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

Questions?

Panel Discussion

Panel Members:

Susannah Weis Frigon, VP of Investor Relations The Erie Community Foundation Ann Scott, SPHR, Community Outreach Manager Erie Insurance Neil Parham, M.Ed., PHR, Senior Community Affairs Analyst Highmark Blue Cross Blue Shield