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Terry Munday
Presidental Resources for Effective Fundraising February 22, 2018
“Blessed are the fundraisers
in heaven, they shall stand
on the right hand of the
martyr’s.”
- John Mott
Presidential Resources
u Board
- Advisory Committee (PACE)
- Board of Capacity Giving – 100% Giving
u Advancement Staff
u Accountability of Advancement Staff
- Using metrics
How to use database to reach your potential
- Giving special attention to donors
- Move lists
Donate to Charityu Matures-88%
u Boomers-72%
u Gen X-59%
u Gen Y-60%
Transfer of Wealth$41 Trillion
Next 30 Years
President’s Most Important Function
Chief Fundraiser
Proper Level of Funding
uNOTE: Most think the role of College President is to think great thoughts.
Chronicle Of Higher Education_______________________________Reports that presidents felt the area they were most unprepared for was “fundraising”.
Second: Budgetary issues
Past• Hired a staff of professionals to
raise gifts
Today
• Personal Involvement is critical• Move list• Get in front of large donors
Today• 50% or more of time on fundraising• Knows the stories of the institution
President – Chief Fundraiser
Resolution for board consideration
Vice President of Advancement is authorized
to send a notice to Board Members of their
annual giving
uFiscal Giving
uCalendar Year
Presidential Time in Fundraising
Time spent where it is most effective & nets
the greatest yield
- President cultivates top 1% of institution’s
prospects.
- 50% or more of time on fundraising
- Get in front of large donors
Move List
w 12 to 15 face to face visits per month
w Solicit 4-5 major gifts per month150-200 visits
w Visit 50% of their portfolio each year150 prospects – 75 visits
SUCCESS BASED ON:Level of experienceLength of service with organizationPortfolio potential
Accountability of Fundraisers
Giving Based on Percent of Income5 States – Most Giving
1. Utah 10.6%
2. Mississippi 7.2%
3. Alabama 7.1%
4. Tennessee 6.6%
5. South Carolina 6.4%
5 States – Least Giving
1. Rhode Island 3.1%
2. Massachusetts 2.8%
3. Vermont 2.8%
4. Maine 2.8%
5. New Hampshire 2.5%
Giving by Corporations
Kroger – gave 10% of previous year’s profits - $64 million
WalMart – gave largest by amount - $319.5 million
Things to look for in identifying donors
• Conventional wisdom is that approx. 1% of a person’s net
worth
• Major gift campaign – 2-10 times annual level
• Average planned gift is 10-25 times the annual fund gift
• 7 years to cultivate a planned gift
Why Donors Continue to Give
1. Know they are making a difference
2. Received thank you for giving
3. Enable donors to meet like-minded people
4. Effective and personal communications from the
charity
5. Some kind of recognition for support
Good Fundraiser
•Good listener
•Good personality
• -Speaking &Writing•Good
communicator
• -People Person
• -Van Gurley, Jim Sutter, Wanda Fortune
•Draws others
into conversations
1. Enjoys People
Good Fundraiser
2. Passionate, Enthusiastic, Committed to
Cause
• Loves his/her work
• Fire burns in their bones
• -Long hours, Long days, Fulfillment
and Inner Growth
• -Don’t tread waters
• -Status quo is anathema
Good Fundraiser
3. Knows the stories
of the organization
4. Ask for the order-Can close the
deal
• Politely persistent
• Does not accept “no”
• More difficult if the donor
likes fundraiser
Good Fundraiser
5. Sets goals and
works to fulfill
Good Fundraiser
6. Not afraid to fail
and learns from
mistakes
Good Fundraiser
7. Does not take
rejection as personal
Good Fundraiser
8. Are intuitive
•Studies show that successful
salesman are about always
intuitive
•Top major gift officers trust
their instincts and listen to
their intuition
Good Fundraiser
Ineffective Fundraiser1. Personality
does not attract
or hold donors
2. Fails to
develop
relationships
with donors
3. Lacks
caring for
donor
4. Fails to tell
the story
5. Not a good
listener
Ineffective Fundraiser6. Lacks passion and
enthusiasm
• Talk about themselves rather than organization
• Focuses on process rather than organization
• Does not know how to have fun
• Turf protection and lacks cooperation
7. Fails to make the ask-Hints of a need
Ineffective Fundraiser8. Job is considered short term
• Need 5 years to develop relationships
• 7 years for planned gift
9. Thinking money will come to you because you have a need
10. Lacks confidence in leadership
11. Thinks gifts can be raised without seeing the people
12. Does not personally give or have a giving heart
Observations1. Good Fundraisers are in demand
2. Write a job description
u Too may organizations have unrealistic goals
u Keeping the fundraiser focused on 2-3 areas is key. We tend to spread the fundraiser to thin
u Direct mail
u Legacy giving
u Trusts and planned giving
u Corporate Giving
u Admissions
u Church Relations
u PR
Tactics to Help you achieve your goals
u Do you have a match?
u Do you have someone with celebrity status that can sign an appeal?
u Have you used a segmentation strategy?
u Are you upgrading donors?
u Are you asking non donors for a low dollar ask to increase alumni giving?
u Are you challenging mid level donors to move to a higher level of donation?
u How many email appeals?
Donors who should receive Specialattention
u 1. Have notified your college of planned giftu 2. Donor of stocksu 3. Donor having a gift annuityu 4. Board member, professional staff, employee of 10 years or longeru 5. Donors who have made gifts for 10 years or more
(25 cumulative gifts)u 6. Top 250 planned giving prospects that have been identified by
research.- Avg. Planned gift in U.S. is $35,000 - $70,000
u 7. Donors who have given $10,000 in a year.This group also has the greatest potential for an estate gift.MOVE LIST – Assigned to each member of Advancement Staff
Evaluating ResultsEngagement Metric Score (EMS)
Who should the Advancement/Alumni Office spend their time with?
Identify prospects for Development1. Annual Fund 2. Major gifts 3. Planned gifts
PurposeWho has a relationship with your college/university
Engagement Metric Score (EMS)
Criteria Possible Points Score
Alumnus with Degree 0/3 3
Alumnus (Attended but never
graduated)
0/1 0
Parent (N/A, Past, Current 0/1/2 2
Married to Alumnus 0/1 1
Served on a College Committee 0/3 1
Served as college Bd Member
Past/Current
0/5/10 5
Staff/Faculty/Retiree 2/4/6 6
Involved in Athletics/Music/Extra
Curricular)
0//2/4 2
Purchased Alumni Directory 01 1
Total 31 Points 21 Points
Relationships
Giving Possible Points Score
Cumulative Giving
0/0-
$4,999/$5,000/$50,000/50,000-
$100K/$1 Million
0/1/2/3/4/5/7/9 5
Annual Total Giving in Last 2
Years
0/$1-499/$500/$999/$1000-
$2,499/$2,500-$4,999/$5,000-
$10,000/Above $10,000
0/1/2/3/4/5/6 4
Consecutive Giving
0/3 years/5 years/10 years
3/5/10 5
Years with Increased Giving
0 – 2 years - 3 Years - 5 Years
0/3/5 5
First Time Donor 0/2 2
Restricted Gift (Scholarship,
music, nursing, athletics)
0/2 2
34 Points EMS Total 23
Engagement Metric Score (EMS)
0 - 10 Continue Direct Mail
11-20 Visit From Alumni Director
21-30 Visit from Advancement Office
31-40 Receive Invitation to Special Banquet
41-65 Visit from President, Insiders Club, Etc.
Engagement Metric Score (EMS)
Hire A Competent VP for Advancement or Development PersonØ Demonstrate confidence in VP
- Pace members- Commencement speakers- Board members
Ø Include in teamØ Encourage faculty, and staff to support VP position
- Annual meetingsØ Personal Chemistry with President
A. Long tripB. Office near the presidentC. Adequate budgetD. Weekly meetings or sometimes daily meetings
Statistics on Fundraisers
u 25% of executive fundraisers were fired in 2012
u 1 of 3 executives are lukewarm about the person holding their
top development position
u 50% of fundraisers plan to leave their jobs within 2 years
u 40% want to leave fundraising entirely
u The average time to replace a fundraiser is 16 months – at a
average cost of $127,650.
u The average time that a fundraiser stays at his job is 16 months
Be more intentional in Board appointments.
Board Involvement in Fundraising
Ø Thank-A-Thon During Board Meeting
Ø Give Board Members names of individuals to
call as a thank-you
Ø Give names of prospects
Ø Make donor calls
- Not all board members
- Size of ASK
Ø Top 3 Charities
Time vs. MoneyØPersons who give time are volunteers.
ØPersons who give money are donors.
ØBoard members must be both.
ØBoard members who give time as their gift are in a great position to ask others for time.ØHowever, “Time” does not pay staff, utilities or other expenses.ØChairman of HSB-Trust
Fundraising Advice for the Board
u Are you giving regularly to this organization?
u How many friends have you taken on a tour of campus?
u Who have you introduced to the President or VP for Advancement?
u Are you challenging your friends to give to your organization?
u What have you done lately to encourage staff?
Why are Board
members
nervous when
we talk about
fundraising?
uReasons Board Members are Reluctant to
take responsibility for fundraising
1. They don’t understand the importance of taking a
leadership role in fundraising
2. They are afraid to ask for money
3. They think it is the staff’s job to fundraise
4. Reciprocal giving-identifying your friends for a gift- friend
will ask you for a contribution
5. Fear and Embarrassment-Money is a sensitive subject
6. Don’t know how to raise funds
- Art of Fundraising
Fundraising Responsibilities of Board Members
1. Make a proud personal gift
“Stretch Gift”
100% participation
“Your giving reveals your passion” Matthew 6:21
Make a planned gift
7 years to get a planned gift (Art Hodson)
Average Gift $35,000 - $75,000
2. Know the organization you serve
60 second elevator speech
Board needs to know statistics, enrollment, budget, mission
Fundraising Responsibilities of Board Members1. Help thank donors.
v Great strategy to get repeat gifts is to have Board Members
send a note.
2. Personal Advocates
3. Help Identify Prospective Donors
v Open the Door
v Attend Campus Events
v Give Campus Tours
Board’s Involvement in Fundraising
Ø 75% executives say their boards are insufficiently involved in raising money
Ø36% of the boards have no fundraising committee Ø17% of the boards have no involvement in fundraising
Common Mistakes 1. Board members are requested to ask for money, not to build
friendships. Many Board members skip to the most difficult
and awkward part of the fundraising cycle (The Ask).
uInstead we should identify donors, cultivate/create
friendships, thank the donor and foster long-term
relationship
2. Cold calls – I gift in 10. We should protect Board members
from rejection – preserve their self-esteem
3. We make too many calls at too low a dollar level. Better use
of Board member’s time is on larger prospects & fewer calls
4. Emergency Fundraising
uDon’t wait until a crisis to mobilize the board
5. Lack of Training, Coaching
uSend them to make calls in 2’s
uSupport from the staff or president