Afp fundraising day new york 2012

New York | Atlanta | Boston | Washington, D.C. | London Fundraising � Corporate Social Engagement � Digital � Research and AnalyDcs

AN INTRODUCTION TO MAJOR GIVING

FUNDRAISING DAY IN NEW YORK JUNE 8 2012

The experDse to do it right. The passion to see it through.

ChangingOurWorld.com Fundraising � Corporate Social Engagement � Digital � Research and AnalyDcs 2

Changing Our World

We provide counsel to nonprofits around the world – and to organizaDons naDonwide – to strengthen business operaDons and the fundraising that fuels their programs. We provide counsel to corpora*ons, philanthropies and high net worth individuals to structure their grantmaking programs and impact. We extend tradiDonal fundraising and engagement strategies online through digital communicaDon and fundraising strategies.

The trusted philanthropy and fundraising consulDng firm to the world’s leading nonprofit organizaDons, private foundaDons and philanthropists.

Founded in 1999

An Omnicom Company (NYSE:OMC)

100+ professionals

Headquartered in New York City with offices in Atlanta, Boston, Washington DC, and London

Our Firm



Four areas of pracDce

annual funds & major gies board development & training capital campaigns

corporate partnerships feasibility studies foundaDon relaDons

fundraising program design market entry studies outsourced staffing

planned giving strategic planning ultra high net worth engagement

cause-‐related markeDng employee engagement execuDve engagement

facilitaDon grants management interim staffing

measurement & evaluaDon nonprofit partner idenDficaDon partner management

program implementaDon signature program design strategic planning

FUNDRAISING AND DEVELOPMENT PLANNING

CORPORATE SOCIAL ENGAGEMENT

DIGITAL benchmarking digital strategy email and online markeDng

social media strategic website development

RESEARCH AND ANALYTICS consDtuent surveys & analysis demographic & economic projecDons network mapping

peer analysis predicDve modeling program & insDtuDonal assessment & design

An IntroducDon to Major Giving



•  The role of major gies

•  The major donor conDnuum

•  Strategic objecDves of your major donor program

•  The environment our major donors live in…and how that impacts how we must organize ourselves

Today’s conversaDon



What is the role of major gies in your organizaDon? •  Revenue diversificaDon

•  Sustainable support

•  Provides donors the opportunity to make a maximum impact through their philanthropy

•  RetenDon of high value, but lower level donors

•  Drives down cost raDo of fundraising

•  Provides access to new communiDes

•  Develops a pipeline for planned giving prospects

•  Creates relaDonships to turn to in Dmes of parDcular opportunity…or crisis

•  Can leverage addiDonal private support

•  Sends a message in the hallways of public policy



A core component of your donor pyramid



•  Major donors are generally excited by goals, not by need

•  Therefore, the organizaDon must clearly understand an organizaDon’s goals and needs

•  Donors must see the effect of your programs

•  Major gies are built on relaDonships with the organizaDon

•  The more personalized the solicitaDon, the higher the level of response –  You must ask and you must close

So let’s just first get some basics out of the way



And a couple of pinalls

If you build it…they will come

They won’t

We’re doing good work

Everyone is

Bill Gates is giving away a lot of money

Yes, but probably not to you

If everyone just gave a dollar

It would take forever to raise $100



But let’s back up…what successful fundraising requires

Whether good Dmes or bad…small or large…

CASE LEADERSHIP PROSPECTS PLAN

FUNDAMENTALS OF FUNDRAISING SUCCESS

all nonprofits must focus on

these four fundamentals.



…what successful major donor fundraising requires

•  A long Dme horizon for success –  CulDvaDon and solicitaDon is a lengthy process

•  Major donors must be brought into involvement with an organizaDon –  It is about engagement, not money

•  People respond based on who is asking –  CharismaDc, personable people trump case…people give to people

•  You must ask in order to receive –  Asking doesn’t cost anything –  Have fall back strategies



The major donor conDnuum IdenDfy

Research/Rate

PrioriDze

Assign

Prepare

Ask

Close

Thank

Sustain

Follow-‐up

To move major donors along this conDnuum, we must first recognize the world they (and we) live in.



MONEY IN Sector Distribu*on of Giving: Percentage of the total by 5-‐year spans 1979-‐2010

Charitable Giving by Source 2010 -‐-‐ $290.89 billion

Giving USA



0

200

400

600

800

1000

1200

1400

1600

1800

Billion

s

Corporate FoundaDon Bequest Individual

Infla*on-‐Adjusted Giving by Source in 5-‐Year Spans 1969-‐2008 ($ billion) -‐-‐ $7.3 trillion in 40 years

Charitable Giving by Source 2010 -‐-‐ $290.89 billion

MONEY OUT

Giving USA



MONEY UP AND MONEY DOWN Total Giving

Giving USA



BUT MONEY FAIRLY PREDICTABLE

Giving USA



AND PHILANTHROPY BOUNCES BACK

-‐4

-‐2

0

2

4

6

8

1970-‐71 1980-‐81 1991-‐92 2002-‐2003 2009-‐2010 Philanthropy Last Year of Recession Philanthropy First Year of Recovery

Giving USA



AT THE SAME TIME… Growth in the number of 501(c)(3) public chari*es

Giving USA



AND THIS IS A PROBLEM BECAUSE…

150

160

170

180

190

200

210

220

230

240

250

1,000,000

1,100,000

1,200,000

1,300,000

1,400,000

1,500,000

1,600,000

1,700,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Charita

ble Giving (in $b

illions)

Num

ber o

f Non

profi

ts

Number of Nonprofits Filing 990 Charitable Giving

Registered nonprofits and growth in giving 1997-‐2010

Growth 1970-‐2010

Giving USA

259%

208%

0%

50%

100%

150%

200%

250%

300%

Number of Public ChariDes

Value of Giving Dollars



1. COMPETITION IS INTENSE

This competition

is affecting the

way major

donors give…

and it’s but one

change they are

coping with



0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1970-75 1980-85 1990-95 2000-05

Number of Nonprofit/Philanthropy Ar*cles Wall Street Journal, New York Times, Washington Post

1. COMPETITION IS INTENSE

2. TRUST IS FRAGILE

Are nonprofits going in the right direction or the wrong direction?

15

20

25

30

35

40

18-24 25-29 30-39 40-49 50-64 65+

Right Direction Wrong Direction

Harris InteracDve



1. COMPETITION IS INTENSE 2. TRUST IS FRAGILE

3. PHILANTHROPY EXPECTS ENGAGEMENT



1. COMPETITION IS INTENSE 2. TRUST IS FRAGILE 3. PHILANTHROPY EXPECTS ENGAGEMENT

4. PEERS LEAD

Campden/Changing Our World Report



1. COMPETITION IS INTENSE 2. TRUST IS FRAGILE 3. PHILANTHROPY EXPECTS ENGAGEMENT 4. PEERS LEAD

5. GEOGRAPHY IS LOCAL



1. COMPETITION IS INTENSE 2. TRUST IS FRAGILE 3. PHILANTHROPY EXPECTS ENGAGEMENT 4. PEERS LEAD 5. GEOGRAPHY IS LOCAL

6. IMPACT IS NON-‐NEGOTIABLE

BNP Paribas/Campden Research/Changing Our World Family Philanthropy Survey



1. COMPETITION IS INTENSE 2. TRUST IS FRAGILE 3. PHILANTHROPY EXPECTS ENGAGEMENT 4. PEERS LEAD 5. GEOGRAPHY IS LOCAL 6. IMPACT IS NON-‐NEGOTIABLE

7. COLLABORATION IS ASCENDANT




1. COMPETITION IS INTENSE 2. TRUST IS FRAGILE 3. PHILANTHROPY EXPECTS ENGAGEMENT 4. PEERS LEAD 5. GEOGRAPHY IS LOCAL 6. IMPACT IS NON-‐NEGOTIABLE 7. COLLABORATION IS ASCENDANT

8. WEALTH IS CHANGING

The base of the top quinDle of minority incomes will rise by 30% in the next 10 years in inflaDon adjusted terms.




1. COMPETITION IS INTENSE 2. TRUST IS FRAGILE 3. PHILANTHROPY EXPECTS ENGAGEMENT 4. PEERS LEAD 5. GEOGRAPHY IS LOCAL 6. IMPACT IS NON-‐NEGOTIABLE 7. COLLABORATION IS ASCENDANT 8. WEALTH IS CHANGING

9. AND CHANGING

Male 57%

Female 43%

% Of Top Wealth Holders with Gross Assets of $1.5 Million or More (2004)

1.2 million women $4.6 trillion in wealth 41% of wealth

McKinsey Global InsDtute



1. COMPETITION IS INTENSE 2. TRUST IS FRAGILE 3. PHILANTHROPY EXPECTS ENGAGEMENT 4. PEERS LEAD 5. GEOGRAPHY IS LOCAL 6. IMPACT IS NON-‐NEGOTIABLE 7. COLLABORATION IS ASCENDANT 8. WEALTH IS CHANGING 9. AND CHANGING

10. AND CHANGING

The rate of increase in the number of foreign born workers earning $100,000 or more has exceeded US naDve workers in these regions of origin.

McKinsey Global InsDtute

Why does all this mauer?



Because the nature of major donor philanthropy is changing, so must the nature of major donor fundraising strategies.







Developing a major donor case for support

•  Need is a given

•  What is your soluDon?

•  What is your approach?

•  What will this achieve?

•  How do you/will you measure your results?

•  How is it sustainable?

Drae a 2-‐3 page case for support that asks and answers the quesDons major donors will ask: -‐  Why should this project be important to me/

my company/my foundaDon? -‐  Are the outcomes important enough to

create a sense of urgency? -‐  How much money is really needed?



Communitarian Devout Investor Socialite Repayer Altruist Dynast

Individuals give for various reasons…be aware of why your donors are giving.

Seven Faces of Philanthropy

Different donors will have different value proposiDons



Prospect PrioriDzaDon: Top Down, Inside Out •  Major gies set a level toward which

other prospects can aspire •  Solicitors are more likely to be

successful with high-‐potenDal, close-‐in prospects… and success breeds confidence which leads to conDnued success

•  ConsideraDon should be given to

proper sequencing of solicitaDons… e.g. will a gie made first by Donor A be helpful in soliciDng a gie from Donor B?

UlDmate Prospects

Next Tier Prospects

IniDal Sphere of Influence



Finding major donors



•  Be upfront and emphasize that the best prospects are major donor and volunteer contacts. Access is important; ask current donors to facilitate introducDons to individuals within their circles.

•  Focus donors’ auenDon by providing a list of current or lapsed donors in their

area (pull by zip code) for their review. •  Create separate prospect and suspect lists. Keeping two lists will allow you to

include their suggesDons, while you focus auenDon on the best names. Research both prospects and suspects.

•  Turn donors into volunteers; you become a fundraising coach.

And then network…



The donor engagement cycle

Cul*va*on Visit learn & educate

Develop Donor-‐Specific Strategy

What will we ask for? What do we need to give this donor? How will we prepare this donor for the

ask?

Employ Strategy special invitaDons and updates; note from

leadership; mail clippings; addiDonal visit; etc.

Solicit Gi` Thank & Steward

visits, leuers, project updates, invitaDons

POINT OF ENTRY



Develop and engage leaders •  Engage your Board

–  Now more than ever you must ensure that the Board is proacDve and involved •  Communicate regularly regarding your finances •  Use their skill sets – this is a good Dme to get them more engaged •  Rally the champions •  Ask them to acDvely parDcipate in prospect idenDficaDon/culDvaDon and solicitaDon

•  Set an example of generosity •  UDlize their professional and personal networks

•  Revisit your by laws-‐ who is engaged? Who is not?

•  Diversify your Leadership •  Expand/change your board to include various skill sets and networks

•  Thank, Thank, Thank

•  Remember that … charismaDc people usually trump strong cases



Develop a plan •  There is much to be done…

–  Develop a comprehensive, well thought out development plan that takes into consideraDon and includes:

•  RealisDc fundraising goals •  Segmented annual appeal schedules •  Major gie culDvaDon and solicitaDon objecDves •  Segmented stewardship acDviDes •  Integrated online campaigns •  Corporate and foundaDon outreach objecDves •  Planned/estate giving efforts •  Internal checkpoints and strategy meeDngs with staff, leadership and volunteer commiuees



The best thing you can do

•  IdenDfy who your top 25 prospects are −  More resources? What about your next 25? Your next 50?

•  What do you want your relaDonship with that donor to look like in the long-‐term?

•  If you’re going to get there, what needs to happen in the short-‐term?

•  What are the next three things that need to happen?



Sample prospect plan Donor Name & ID Kevin, 56485324

DescripDon Really nice person with a lot of money

Gie history

First $25 response to acquisiDon mailing, 11/2008

Largest $500 response to ‘close the year’ mailing, 12/2010

Latest $1000 aeer auending open house, 5/2011

Cum 7 gies totaling $6,500

Last acDon Sent Kevin latest newsleuer with a handwriuen note from Bill

RelaDonship manager Bill

Lead donor contact To establish (Amy, board chair)

Long-‐term objecDve Secure mulD-‐year commitment to upcoming campaign; access Kevin’s networks

Short-‐term objecDve TransiDon Kevin to sustained, annual major donor

Next three steps

1.  Invite Kevin to Center for a tour and non-‐solicitaDon lunch with the ExecuDve Director

2.  Send birthday card on July 3 3.  Invite to leadership circle stewardship event as guest of Amy and the ED

THANK YOU For more informaDon, please contact: Kieran Wilson, MarkeDng Director [email protected] | 646.264.2622

Afp fundraising day new york 2012

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