Major Gifts: More Donors, Bigger Donations

MAJOR GIFTSMORE DONORS, BIGGER

DONATIONS [

Mobile: 912.996.5383 P.O. Box 20731| St. Simons Island, GA 31522Twitter: @XcelFundraisingwww.charlesmolloyconsulting.com

We Will Cover

1. My Background

2. The Four Major Donor Targets

3. The Major Donor Process – Building Relationships

4. Prospecting – Prioritizing – Planning

My Background

• Charles Molloy Consulting launched in 2013

• Joined Resource Alliance (London) in 2014 as associate to work with US based clients

• Joined DonorPath in 2013 as fundraising expert

• Serving on DonorPath Expert Advisory Board since 2014

• Undergraduate studies at Fordham University, pursued graduate business studies at St. John's University.

• Certified Association of Fundraising Professional member.

• Born and raised in Mount Vernon, New York, Charles has worked and lived in New York City, Atlanta, Denver, D.C. and Saint Simons Island, Georgia.

My Fundraising Experience

• 30 years success addressing issues of hunger, child abuse, poverty and social justice.

Catholic Archdiocese of NY

CARE International (Relief and Poverty)

American Humane (Child and Animal Abuse)

MAP International (Medical and Health)

Bread for the World (Food Advocacy)

Nuru International (Extreme Poverty)

• Served on executive and senior management teams, with annual operating budgets from $1.5m to $200m plus

Four Major Donor Targets

“Round up the usual suspects.” Captain Renaud

Individuals What They Give

–Cash

– Securities

–Property

–BequestsCause & Effect Tool for Change

Individuals What You Should Know

• Largest givers of charitable dollars

• Most unrestricted

• High return on investment for face to face solicitation

• High retention rates after 2nd year

• Fairly predictableCause & Effect Tool for Change

IndividualsWhy You Should Be Cautious

• People intensive – relationships take time

• Often requires programming that appeals to the public and engages giving constituencies

Cause & Effect Tool for Change

Corporations and BusinessesWhat They Give

• Grants and donations

• Goods and services

• Matching gifts

• Royalties

• Contracts

Cause & Effect Tool for Change

Corporations and BusinessesWhat You Should Know

• Potential for large gifts

• Often unrestricted

Cause & Effect Tool for Change

Corporations and BusinessesWhy You Should Be Cautious

• Need to align with business interests

• Businesses avoid controversy & social advocacy

Cause & Effect Tool for Change

FoundationsWhat They Give

• Grants

• Program-related investments

Cause & Effect Tool for Change

FoundationsWhat You Should Know

• Relatively high return on investment

• Potential for large gifts

• Sometimes operating support if family foundations

Cause & Effect Tool for Change

Foundations Why You Should Be Cautious

• Time & project limited

• Usually restricted to programs

• May require extensive paperwork

Cause & Effect Tool for Change

• Most foundations are family foundations

• Highly competitive

GovernmentWhat They Give

• Grants and contracts

• Third-party payment

Cause & Effect Tool for Change

GovernmentWhat You Should Know

• Relatively high return on investment

• Potential for large gifts

Cause & Effect Tool for Change

GovernmentWhy You Should Be Cautious

• Time & project limited

• Usually restricted to programs

• May require extensive paperwork

• Highly competitive Cause & Effect Tool for Change

Building Major Donor Relationships

To the rich, the very rich, and the super rich! Have I left anybody out?”

Relationship Building Process

Relationship Building Process

• Identification – research, wealth scoring, database scanning, point of entry events

• Qualification – visits, phone calls, letter of inquiry

• Cultivation – donor and prospect contact

• Solicitation – proposals

• Stewardship – identify ways to grow involvement

Process

Building the BaseThree Steps

1. Prospecting

2. Prioritizing

3. Planning

Step One Prospecting

• Current donors

• Current major donors

• Planned giving inquirers

• Stock contributors

• Volunteers

• Monthly Givers

Prospecting We Are Not Looking for

Just Anybody

• Wealth (Capacity) - For someone to give you a major gift, they have to have some wealth

• Interest (Propensity) - You want people who have a strong interest or whose interest can be developed

Wealth FindingResources

• DonorPath Wealth Scores

• Capacity Rating Formulas

• Build a Model

• Ask Organizational Supporter

Wealth (Capacity)

• Read the Signs

• Expensive home, vacation home

• Is over 60 years old. Older people have had longer to earn and save money.

• Professional, doctor, lawyer, etc.

• Owns a business, sold a business

Wealth Rating Formulas

• Simple math formulas that provide a quantitative measurement

• They suggest an ability to give without considering unknown liabilities

• They are strictly based on wealth indicators and not on affinity or inclination

Wealth Rating Scores

• Real Estate Value: (>$400k) X5 years X 4% -or- (<$400k) X 5 years X 3%

• Salary Value: salary X 5% or 10%

• Political Contributions: $amount in cycle X 20

• Annual Giving: $amount in one year X 20

Wealth Rating Scores

• Direct Stock Holdings: Direct Stock Holdings X 5% or (Direct Stock Holdings/.20) X5%

• Estimated Net Worth: total real estate holdings X 3

• Estimated Giving Capacity: 3% of Estimated Net Worth

Affinity (Propensity)

• Read the Signs

• A past or current member of your board, advisory team or a volunteer

• Host of fundraising or point of entry events

• Willing to meet personally with program and/or fundraising staff

• Has visited project sites

• Length of giving

• Frequency of giving

Step TwoPrioritizing

Why Prioritize?

• to reach out to those most ready

• to cultivate those who require more

• to safely delay activity with those who are further down the list.

Ways to Keep Score

Propensity (Affinity) Capacity (Life Stage)

Ways to Keep Score

Propensity (Affinity) Capacity (Life Stage)

Assessing Propensity

How well do they like you?

• 3 - They place your institution among the 1 or 2 most important in their life

• 2 - They place you among the 3-5 most important

• 1- They know and support youSource - adapted from CARE USA and Corporation for Public Broadcasting moves management tools.

Assessing Capacity

• 3 - Their children are grown and self-sufficient; no children. Spouse is healthy/ deceased. Wealth is certain; they are ready to dispose of wealth

• 2 – At the peak of their career, inheritance is expected. Children are beginning own careers, starting own families. Wealth is not yet certain; they are not yet disposing of their wealth

• 1 - They are young, mid-way through their career, children

Source - adapted from CARE USA and Corporation for Public Broadcasting moves management tools.

Ranking the ProspectMultiply the Scores

• 9 - These are your best prospects. They are the most committed, have the greatest disposable wealth, and are most ready to give.

• 6 - These come next, either they need to become more committed to you (something you can influence)

• 4 - Need both to like you better and to be in a better position to give to you. After addressing your 9s and 6s, turn to this group.

• 3 - Either they love you but can’t give, or they can give but hardly know you. The former is not worth addressing now, but the latter definitely needs to go on your list for long-term cultivation

Step ThreePlanning

Planning Your MovesMoves Management

• Moves

• Cultivation

• Solicitation

• Stewardship

Source - adapted from CARE USA and Corporation for Public Broadcasting moves management tools.

• Management

• Most Time with prospects - 9,

• some time with prospects – 6

• less time—but never no time at all— with those below these levels.

Moves ManagementSteps

• Tours and visits

• Invites to meet program staff member (brown bags)

• Private meetings

• Newsletters

• Updates

• Notes you send and calls you make throughout the relationship building process.

• Webinars

• CEO briefings

Spreadsheet Example

• We would be glad to send to you.

Thank You

• Questions or Comments