Securing 8 and 9 Figure Leadership Gifts Securing 8 and 9 Figure Leadership Gifts Jerry May Vice President for Development University of Michigan University.

Securing 8 and 9 Figure Securing 8 and 9 Figure Leadership GiftsLeadership Gifts  

Jerry MayVice President for Development

University of Michigan

University of California, Los AngelesNovember 4, 2009

““The Rich are Different from Us.”The Rich are Different from Us.”

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                                                              - F. Scott Fitzgerald

3Updated: 5/7/2009

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100%

% of Donors % of Dollars

$100,000 or More Less than $100,000

Fewer than Fewer than 1%1%  of the donors…of the donors…

369,989

$2,769 M

$433 M

2,942

have given have given 87%87%  of the dollarsof the dollars

The Importance of Major GiftsThe Importance of Major GiftsResponding to the Challenge:  The Role of Big Gifts

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Gifts of $5M+ accounted for 34% of major gift dollars* to the Campaign for Michigan.

Gifts of $5M+ increased to 46% for the Michigan Difference Campaign.

*Major Gift = Giving of $100K+

Increasing Role of Transformative GiftsIncreasing Role of Transformative GiftsWithin major gifts*, the role of transformative level gifts is even more dramatic:

Results From Benchmarking of $100m+ GiftsResults From Benchmarking of $100m+ Gifts2004-08: 68 Gifts of a $100M+

National & International

The successful organizations are the large, life-impacting institutions with strong traditions of philanthropy that nurture long-term relationships over multiple generations.

Higher Education Dominates Higher education institutions

• 88% of the 68 $100 M gifts since 2004 went to Universities; many to academic medical centers

Private universities dominate• They have received nearly 60% of 

the 68 $100 M+ gifts since 2004 

Characteristics of Institutions Often institutions with strong reputations, and almost all with strong research universities. Several have multiple mega gifts:

• Harvard, MIT, Princeton, Columbia, Chicago, Stanford

• Among publics: UNC, UC-Berkeley, UCLA, UCSF, Virginia, Wisconsin, Michigan

Themes: medical research, scholarships, environment

• Nearly 40% of the gifts were for medical research/ care/facilities

• Multiple gifts for scholarships, arts and environment

Characteristics of Donors Life connection: alum or family alum, or 

grateful patient/family  (28) Volunteer:  director, trustee, committee  (25) Made previous million+ gifts to same 

organization  (28) Donor in close proximity to recipient 

organization  (42)

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Mega Gift TrendsMega Gift Trends

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Selected Leadership Gifts Selected Leadership Gifts to UM - Motivationto UM - Motivation

$50, $75, $100 Million and Above• Bill and Dee – their compassion, their 

dreams, eradicating disease• Steve – his legacy, matching visions, 

his passion• Al – his legacy, helping humankind, 

inspired by visionaries

$10 to $20 Million• Maxine and Stuart – their dream, their 

passion, their legacy• Don and Ingrid – their loyalty, their values• Ron and Eileen – making a better world• Judy and Fred – making an impact• Penny and Roe – touching people’s lives

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Necessary Conditions for a Successful Fundraising ProgramNecessary Conditions for a Successful Fundraising Program

• Strong university management   • Presidential commitment, involvement, and leadership

• Institutional fundraising knowledge

• Academic commitment and involvement

• Professional staff resources• Adequate financial investment• Volunteer commitment, organization and roles

• Donor and prospect identification, cultivation and involvement

• Accurate prospect assessment

• Communication program • Administrative support systems• Acceptance of the importance of  continuous fundraising

• A culture of asking and focused fundraising management

• A comprehensive fundraising plan• Institutional policies for fundraising, donor/honorary naming and recognition

• An institutional reputation of strong donor stewardship and trust that the university will do what the donor intends

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The Fundraising ProcessThe Fundraising Process

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Identify & Select the Prospect

Complete Gift Agreement

Solicit the Prospect

Collect Prospect Information

Acknowledge & Steward the Prospect

Develop Solicitation Strategy

Contact & Inform the Prospect

Strategize & Coordinate the

Prospect

Involve the Prospect

Engage the Prospect

If “Yes” If “No”

HOW DO YOU KNOW WHEN A PROSPECT IS READY TO BE ASKED?

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How do you know when a How do you know when a prospect is ready to be prospect is ready to be 

asked?asked?

How do you know when a How do you know when a prospect is ready to be prospect is ready to be 

asked?asked?

Prospect PreparationProspect Preparation

Assess & Be Sure• Extensive donor contact has taken place (7-10 substantive contacts).• Strong relationships have been built with the donor through involvement.

• There is substantial donor readiness and engagement (more likely to say yes than no).

• There is significant knowledge of donor motivation and interests.• There is confidence that family decision makers have also been engaged.

• There is a good sense of how much a donor is  capable of giving.• A vision has been reviewed or is ready to be reviewed.• Donor stalls and objections have been resolved or neutralized.• Prospect coordination has taken place if the prospect has multiple interests.

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Preparing for the AskPreparing for the Ask• The solicitors – determine who will be the most effective solicitor team in asking for a gift and who will actually ask for a purpose and amount.

• The idea – determine the purpose or funding alternatives based on real prospect interests.

• The benefits – be cognizant of how the donor benefits; not tangibles, but intangibles like recognition, long-term meaningful involvement, association, being part of a tradition, being an investor, pioneering a new idea.

• The amount – determine how much to ask for (look at past gifts, assess potential, seek volunteer assessment).

• The timing – determine proper timing for solicitation (assess current financial situation, family dynamics).

• The place – determine an appropriate place & environment for a solicitation.• The prospect partner – determine who, if anyone, associated with the prospect should be present.

• The appointment – determine who will make the solicitation appointment & what will be said that will not scare the prospect away or let the prospect be surprised.  Then make the appointment.

• The rehearsal 12

WHAT  ARE THE KEY ELEMENTS OF A PROSPECT SOLICITATION?

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What are the key What are the key elements of a elements of a prospect prospect 

solicitation?solicitation?

The Solicitation The Solicitation

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The Gift Agreement

Addressing & Resolving the

Concerns

The Discussion about the

Content of the Proposal

The Celebration of the Gift

The Written Proposal or

Letter Confirmation

Setting Up the Ask

The Preliminary Gift Discussion

The Ask Meeting

Stewardship & Impact

Reporting of the Gift

The Issues or Concerns or

Stalls

The Long Road of Cultivation

Making the AskMaking the Ask

• Acknowledge and thank the prospect for all they have given to the university in the past.

• Put the ask in the context and magnitude of the campaign.

• Ask the prospects what their objectives might be in making a gift. Reflect what you have heard about their interests.

• Review the need and project(s) you wish the prospect to consider and highlight naming opportunities and donor recognition.  Explain which naming levels are based on university policy. 

• Ask for specific amount to be pledged and paid over time.

• Appeal to competitiveness, emphasize tradition, feature leadership examples, pride and excellence.

• Listen carefully to the responses of the prospect.

• Answer questions from the prospect.• Ask the prospect what he or she 

thinks about the gift and ask if this project is in an area of interest or there is some other area in which they are interested.

• Agree to talk further after the prospect has had time to think it over.

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  Following Up on the AskFollowing Up on the Ask

• Provide a letter, a proposal, or draft gift agreement immediately following the ask taking into consideration any issues learned in the solicitation.

• Make plans for follow-up contacts on the gift decisions.

• Have a plan of activities the donor is invited to while considering the gift.

• Have events/meetings serve as informal reminders (gentle) or artificial deadlines.

• Close the gift (many gifts take six to eighteen months to close). If necessary, do several iterations of the gift agreement in the process. 

• Conclude with a signed gift agreement. Sometime use a signing ceremony as a deadline or to heighten the importance of the decision. 

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Most Common Errors in the Asking ProcessMost Common Errors in the Asking Process1. Not having done thorough stewardship on previous gifts nor ensuring the donor 

feels satisfied that previous gifts made a difference

2. Asking too early, under asking, not asking

3. Lowering the ask too soon

4. Not following-up on donor stalls and objections (remember, stalls and objections are normal & part of the process)

5. Not listening to what the donor is saying

6. Asking for something the donor does not want7. Not considering what the donor needs8. Not engaging the donor in a full relationship 9. Asking a husband while ignoring a wife or adult child10. Not going to the donor to ask, or asking in the wrong environment11. Surprising the donor12. The wrong person doing the asking (the “I know him factor” vs. “the highest 

influence factor”)13. Not using an asking team14. Not following up regularly during the process15. Not paying attention to timing  17

What are some of the determining factors What are some of the determining factors in closing the gift?in closing the gift?

• Giving the donor guidance on the amount 

• The credibility and influence of the volunteer 

• Who else has given generously• The desire to be part of the campaign and on the major donor list 

• Support from the family of the donor 

• The recognition or naming• The relationship with the president, faculty member, a dean, a doctor, a charismatic administrator 

• A funding idea that the donor is passionate about

• The donors involvement in the shaping of the gift

• Significant extra income or capital gains in a particular year 

• Being asked• A reunion or anniversary• A donor challenge• A campaign deadline• Life altering experience

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NEVER GIVE UP NEVER GIVE UP ON A PROSPECTON A PROSPECT

THERE IS ALWAYSTHERE IS ALWAYSANOTHER MOVEANOTHER MOVE