Stewardship – The Second Most Powerful Move

Stewardship – The Second Most Powerful Move

It’s All AboutRelationships

2© The Osborne Group, Inc.

Trust is at the Heart of B i d Phil hBusiness and Philanthropy

• Trust has been an issue • Trust in Business for us for years

• 34% of Americans reported they believe

plummeted in 2009 from 58% to 44% *Business Week, September 28, 2009reported they believe

others are trustworthy* *David Halpern 2003

• 49% of employees trust

p ,

49% of employees trust their senior leaders* *Watson Wyatt Study 2007

• 36% of employees36% of employees believe their managers are trustworthy* *Harris interactive poll 2007

(C) The Osborne Group, Inc. 3


TrustworthyTrusted


Social Capital* *Shirley Sagawa and Deborah JospinSocial Capital Shirley Sagawa and Deborah Jospin

6 © The Osborne Group, Inc.

The Tarnside Curve of InvolvementInvolvement

High

Taking Personal

Responsibility

Ownership

y

Giving

Commitment

Ownership

Engagement

Commitment

7

Low

Low INVOLVEMENT High

Awareness Interest

Engagement

“The Promise”The Promise

• What do you explicitly and implicitly promise your donors when you solicit and/or accept a gift?


The Education TrapThe Education Trap


“WOW” Experiences


The Donor CycleThe Donor Cycle

Identifying the “Critical Few”

Learning about

Acquiring donors

Learning about them; telling your storyProviding

stewardship and Developing a relationship

i f ll

Saying thank you

paccountability

Meaningfully engagingAsking for a specific

amountPreparing to ask


The Development Management ProcessThe Development Management ProcessWhy =

Vision, Plan, Priorities, Case

Who = DonorsWhat = Results, ,Metrics

12How = Strategies,

Staff, Board of Directors

Building BlocksBuilding Blocks

Vision and Values

Plan Priorities

Fueling the Resource Values and Costs Engine

© The Osborne Group, Inc. 13

Big Ideas!IMPACTIMPACT

Not StuffNot StuffNot Outputs

OUTCOMESOUTCOMES

© The Osborne Group, Inc. 14

15

GREAT Story TellingGREAT Story Telling


What Questions Should Your Investment Case Answer?


The 10 Immutable Laws of Great Storytelling*Great Storytelling*June 2007 issue of Free Range Thinking by Andy Goodman.

Stories should speakStories should speak the audience’s language.g g


The 10 Immutable LawsThe 10 Immutable Laws…

2 Stories are about people2. Stories are about people.3. The people in your story have to want

somethingsomething.4. Let your characters speak for

th lthemselves.


The 10 Immutable LawsThe 10 Immutable Laws…

5. Stories need to be5. Stories need to be fixed in time and space.

6. Audiences boreeasily.

7. Stories don’t tell: they show.


The 10 ImmutableLaws…

8. Stories stir up emotions.9 Stories have at least one “moment of truth ”9. Stories have at least one moment of truth.10. Stories have clear meaning.


Elements of a Great Story*y*Andy Goodman

They have:They have:• A beginning, middle and end

T lli d t il• Telling details• Emotion• Truth• MeaningMeaningOur goal is to tell a story that people will

hear remember and want to retellhear, remember and want to retell22© The Osborne Group, Inc.

What are Your Institution’s Stories?* *Adapted by The Osborne Group from Andy Goodman

1. The nature of the challenge1. The nature of the challenge2. How we got started3 Emblematic success (unique the way we make3. Emblematic success (unique, the way we make

a difference)4 Performance including accountability impact4. Performance including accountability, impact

and outcomes5 Striving to improve (“failing forward” David Bornstein)5. Striving to improve ( failing forward David Bornstein)6. Where we are going – the vision story


Defining a World Class S d hi E iStewardship Experience


Assessment is a Great Place to Start


ManagementManagement

You’re not in charge It still matters!

• Balanced budget• Strong endowment• Prudent management• Transparent


DocumentingDocumenting

• Intent as well as the facts• Priceless outcome• Values• Motivations• Decision makers• Preferences


Thank YouThank You• Is what polite people • Within 24 to 72 hoursp p p

do. • IRS “receipt”• Special attention p

doesn’t mean delays!• Who says thank you?• How do you say it?


Listening and QuestioningListening and Questioning


First Year of Giving Matters!g*Target Analysis Group

Year One 40% Renew

Years Two-Four 65% Renew

Years Five Plus 85% Renew


Year One Stewardship PlanYear One Stewardship Plan

1. Thank you call 5. Impact report1. Thank you call2. Acknowledgment3 Welcome package

5. Impact report6. Client message7 Solicitation3. Welcome package

4. Invitation activity7. Solicitation


AccountabilityAccountability

• Cost per dollar raised

• Industry standards• Telling your fiscal g y

story


Providing RecognitionProviding Recognition

• PoliciesPolicies• Fairness

C lt id ti• Culture considerations• Motivation considerations• LOYALTY


Sharing the Significance, Impact and Joy!

• Program• Leadership Annualp• Major Gifts


Stewardship is UniversalStewardship is Universal

• Anonymous • CorporateAnonymous• Unrestricted• Annual Fund

Corporate• Foundations• In-kindAnnual Fund In-kind• Volunteers


Leadership Gifts and Impact Statements!

• $25,000• $10,000$ ,• $ 5,000• $ 2,500$ 2,500• $ 1,000


Culture of Stewardship and “Customer Service”


Culture of Stewardship and Accountability

• President, Head of School• On the institutional dashboard• Measuring and reporting

DonorSatisfaction

2008 2009 2010

83% 92% 99%


Program CalendarProgram Calendar• What who when• What, who, when• Happens no matter what• Gift officers can intervene• Gift officers can intervene

Jan Mar Apr June Jul Sept Oct DecJan-Mar Apr-June Jul-Sept Oct-DecUnder $1k

$1k $25k$1k-$25k

$25k+


Philanthropy Research by Donors* *DonorTrends Survey by CMS and Prime Group

• 65% of donors report going online before making a gift


ThTh N b *N b *The The Numbers*Numbers* *Convio 08 “Wired Wealthy” *Convio 08 “Wired Wealthy”

• 80% of donors have given onlineO l 8% f d d• Only 8% of donors agreed strongly that charity Web sites are inspiring J t 7% t l th t• Just 7% agree strongly that charity Web sites make them feel personally connectedconnected


People Want Ch iChoicesAccording to Starbucks CEO, “There are over 70 000 different70,000 different ways that our customers cancustomers can, and do, order a Starbucks coffee"


Using Your WebsiteUsing Your Website

• Advocacy opportunitiesAdvocacy opportunities• Podcasts

Vid• Video• Social networking• Virtual events• Interaction and community buildingInteraction and community building• Personalization!!!!!!!


Donor Relations ProfessionalsDonor Relations Professionals

• StatusStatus• At the table

C ti• Creative• Marketing and communications ties


Do You Know Me?Do You Know Me?


Donor Satisfaction SurveysDonor Satisfaction Surveys


Inventory of Stewardship Tools

• Web• Phone• Mail• Photos Most PersonalPhotos• Albums• CDs• Email

Most PersonalHighest Rated

S llEmail• Publications• Media• In person visits and tours

Small groupLeadership Annual

• In person visits and tours• Accountability deck• Mission gifts• Ways to directly connect to

Large groupEveryone else

• Ways to directly connect to outcomes


Measuring SuccessMeasuring Success

• Stewardship audit and strategic planD ti f ti d t bilit• Donor satisfaction and accountability survey

• Stewardship committee


World classMeasures

• Retention -- year 1, years 2-4, years 5+R f l d d (1 d 2 )• Return of lapsed donors (1 and 2 years)

• % Upgrades; % of downgrades• Annual to major gifts• Annual to major gifts• Satisfaction w/institution, impact, communications• Overall program effectivenessOverall program effectiveness


Your Score?Your Score?

• What do you KNOW you do well?Wh t d KNOW d t i• What do you KNOW you need to improve or enhance?

• What don’t you KNOW?


Where do you Need to Improve? Investigate?

1. Management1. Management2. Documentation3 Acknowledgments3. Acknowledgments4. Accountability5 Recognition5. Recognition6. Impact and

outcomesoutcomes7. Overall

Measurement andMeasurement and Effectiveness


Stewardship

Surprise

PersonalAccountabilityS

Connect Impact!!!! Connect the Dots

Impact!!!!


Stewardship OutcomesStewardship Outcomes• Donor retention • Word of mouth • Lifelong donors• More productive

marketing • Increased Board and

l i lp

relationships• Greater pledge

f lfill t

volunteer involvement and satisfaction

• Annual gifts leading tofulfillments• More upgrades• More renewals

• Annual gifts leading to major gifts

• More renewals• More legacy gifts


Need Help With the Take Off?Need Help With the Take Off?• Want to learn more?

Email us!

Need Help With the Take Off? Need Help With the Take Off?

Email us! •• [email protected]@theosbornegroup.c

omom• The Osborne Group is p

a full service management, consulting and training fi i li i ifirm specializing in philanthropy, opinion research and organizationalorganizational management

This presentation is the copyrighted property of The Osborne GroupThis presentation is the copyrighted property of The Osborne Group, Inc. (TOG) www.theosbornegroup.com It cannot be used, copied, sold or given away without written permission from TOG 54(C) The Osborne Group, Inc.

©2003 The Osborne Group, Inc. 100 South Bedford Road, Suite 340 Mount Kisco, NY 10549

Guidelines for Developing Leadership Annual Fund Impact Statements©

A Resource of The Osborne Group, Inc. We know people give to our institutions because they want to make a difference and they believe that we are the right place to effect that societal and/or individual change. They take a leap of faith and trust their philanthropy will accomplish something important. Giving small gifts to operating budgets doesn’t require a great leap of faith. As we seek larger, repeatable, unrestricted and budget relieving gifts of $1,000 to $25,000 (and for some larger institutions $50,000 and $100,000), however, that leap of faith appeals to far fewer people. They often want to give to specific projects and purposes because they want concrete and specific outcomes. So how do we make leadership annual fund gifts as appealing as restricted gifts? We add impact statements to our giving clubs. They serve as the case for investment for your leadership annual fund program specifically, though you can use the ideas behind to bolster your case for the entire annual fund. Impact statements answer four questions:

1. What will the gift support? 2. What difference will this make in the lives of our students, faculty, alumni, (patients if

you are a teaching hospital)? 3. What are the outcomes a donor can expect from this gift or how will this make someone

else’s life better (the community better, the state, society better)? 4. Why should I, the donor, increase my gift?

The last question is particularly important. As you develop items to include in your impact statements, tie the gift level to specific services and programs you provide but don’t feel these must be a dollar-by-dollar accounting from your balance sheet. You want to give your prospective donors a sense of the kinds of things their gifts will help accomplish or support, not what items their dollars will “buy.” (This is philanthropy, not shopping!) You do want to make the examples included in your impact statements tangible and link them to specific impacts and outcomes. As you move up the giving ladder, the impact envisioned should get larger, more significant, and more appealing thus giving the donor reasons not only to give, but to give more. Examples of Impact Statements

• Supports a (name of institution) Scholar for one year, enabling a highly-talented, high-need student to enrich our community with his or her leadership and benefit from the (name of institution) experience

• Underwrites a summer sabbatical for one of our senior faculty members to explore an area of interest and bring renewed energy and expertise to their classroom

• Supports our health and wellness program that ensures that each student can develop athletic, leadership and fitness skills to carry him or her through a lifetime

• Enables the Headmaster (President, Chancellor) to place critical unrestricted funds into those areas where opportunities are greatest

©2003 The Osborne Group, Inc. 100 South Bedford Road, Suite 340 Mount Kisco, NY 10549

Getting Started Meet with your CFO and go over the budget. Where do unrestricted dollars go? What do unrestricted funds accomplish? Which of those things would be appealing to donors? Meet with faculty members and brainstorm with them what unrestricted and/or budget relieving programs, initiatives and/or opportunities would have appeal? Remember, you are not restricting gifts. You are simply letting donors know these are the types of things accomplished with gifts of this size. As you develop and refine your impact statements, use this task as another reason to get in the door with your prospective donors: asking for help reviewing your materials is a great way to generate new ideas about how to use these, but also a terrific way to find out what resonates most profoundly with your individual donors! How to use Impact Statements: Do use the information you gather to develop your leadership annual fund impact statements throughout your fundraising efforts in support of your institution. They can be: • Incorporated into your printed materials, or as a “stand-alone” brochure • Used to bolster all types of special events including point of entry, cultivation,

solicitation/fund-raising and recognition/stewardship events o At a fundraising event, for example, you can offer giving circle level tables at a gala

or foursomes at a golf outing, letting participants know what can be accomplished with their collective gifts.

• Included in all speeches given by your President (Head, Chancellor, Dean), and in face-to-face or phone calls by staff or volunteers

• The basis for all your in-person cultivation visits with prospective donors • And, of course for Stewardship Using Impact Statements for Stewardship The impact statements “market” your leadership annual giving programs. They offer a promise of change. Stewardship demonstrates the fulfillment of that promise. This is what we said we would accomplish and we did. Linking your stewardship and accountability reports, communications, and events to the impact statements reinforces the importance of unrestricted giving. If you would like to learn more about creating mission-based leadership annual giving circles; making the case for support; making effective in-person visits; incorporating leadership annual fund solicitations into major gift and campaign solicitations; creating or enhancing your stewardship program so that it includes annual giving, consider taking one of the many excellent workshops online, on the phone or in person. Or contact us for consultation and advice. Also available are two video training programs on making discovery visits and on solicitation. The Osborne Group is a full service management, consulting and training firm. Visit us at www.theosbornegroup.com or call us at 914 428-7777

Stewardship – The Second Most Powerful Move

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