intermediate practices in philanthropy dr. dana zorovich, cfre

Development Fundamentals: 102

Intermediate Practices in Philanthropy

Dr. Dana Zorovich, CFRE

The College Board is driven by a single goal — to ensure that every student has the opportunity to prepare for, enroll in and graduate from college.

Our work falls broadly into three categories: College Readiness, College Connection and Success, and Advocacy.

The College Board’s Focus

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As a not-for-profit membership association representing more than 5,900 colleges, universities and schools, the College Board leads national and international efforts to improve access to and readiness for higher education.

As Federal and State funds are declining, the College Board is responding to a need voiced by our constituents for tools and practices to attract private foundations to your college readiness efforts.

Foundation Funding Support

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Philanthropy Defined:

philanthropy, n. a voluntary act for the common good.

Acknowledgement: Philanthropy is a private sector means of effecting social change outside of government. It is an acknowledgement that Government cannot resolve all societal issues and acts as an outlet for those voluntarily seeking change.

Prospecting Cultivation and Solicitation Relationship Building Volunteer Management Fundraising Management Accountability

Agenda

• Tools to identify individuals and groups

• Segmentation• Delineation between

suspects and prospects

Prospect Research

• System to store information

• Retrieval and analysis cycles

• Leading training efforts

Data Management • Categorize by potential

(rating)• Prioritize and plan

solicitations• Ambassador training

Plan Solicitations

Prospecting: Identification and Understanding

Data Gathering and Analysis◦ Prospect Information Sources◦ Written/Published Materials◦ People◦ The Internet

Prospecting: Identification and Understanding

Qualifying Prospects◦ Donor Survey Components and Use◦ Market Survey Components and Use◦ Prospect Screening, Qualifying, and Rating

Prospecting: Identification and Understanding

Giving Capacity Code

Giving Potential Giving Inclination Code

Description

1 $500,000 + 1 Clearly turned off; no record of interest

2 $100,000-$499,999 2 Minimal interest, occasional donor, attends meetings, infrequently

3 $50,000-$499,999 3 Moderately active or formally very active

4 $10,000-$49,999 4 Very active, regular donor, committee member

5 Under $10,000 5 Governing Board member, regular gift, very engaged

Sample Rating Approach

Planned Gifts

Major Gifts

Annual

Giving

Match Prospects to Giving Programs

External

Secure gifts

Assessment

Testing/Evaluation

Survey/study response to materials

Training to increase

effectiveness

Internal

Comprehensive Campaign Plan

Design solicitation materials

Case for Support

Cultivation: Securing the Gift

Giving Methods Planned gifts Major gifts Annual gifts Volunteerism

Which gifts are from your pocketbook, checkbook, or portfolio?

UltimateGift

BequestPlanned Gifts

Special Gifts

Endowment CampaignsCapital/Special Campaigns

Annual CampaignsRenewal

First Time Gift

AwarenessSpecial Events

Publications

Public RelationsIdentification

Information

Interest

Involvement

Investment

Giving Pyramid

case, n. the reasons why an organization both needs and merits philanthropic support, usually by outlining the organization’s programs, currents needs, and plans.

Source: AFP, Fundraising Dictionary

1. Identify and validate the needs2. Document the needs3. Identify programs and strategies designed to

meet the needs4. Establish the competence of the organization

and its staff5. Explain who will benefit from the services that

will be made possible with a gift

The Case Statement Will:

Relationship Management Prospect Management Negotiation Techniques

Moves Management: Relationship Technique

Opening Involvement Present the Case

Overcome Objections Close

Gift Solictation

Investment

Involvement

Interest

Relationship Building

Fundraising Philanthropy

Intervention Interaction

Transactional Transformational

Short-tern oriented Long-term oriented

Get the money and get out Get the person

Centered on organization Donor centered

Linear thinking System thinking

Not fulfilling Totally satisfying

Dominated by networks Driven by mission/vision

Fundraising vs. Philanthropy

Identification

Screening

Introduction

Interest

AppreciationInvolvement

Rating

Solicitation

Response/Recognition

10 Steps for Relationship Development

Identification and Recruitment

Training

Representation and Responsiveness

Maximize Commitment though

Meaning

Recognition

Replacement

Volunteer Management: Community Engagement

Leadership Support

Professional Services

Volunteer Fundraising

Field Support

Volunteer Roles in Fundraising

Strategic Planning

Alignment with Philanthropy

Short and Long Term Plans and

Budgets

Performance Analysis

Effectiveness of Program

Effectiveness of Staff

PolicyLegal and

Ethical Standards

Governance

Fundraising Managment

The responsibility, duty, and obligation of the board of directors working in concert with senior administrative staff, to successful manage the organization's programs and services and to steward all its fiscal activities.◦ Duty of Care◦ Duty of Loyalty◦ Duty of Obedience

Governance

Reporting Audiences•Donors•Board•Staff

Public Trust•Transparency•Allocations are appropriate•Financial records

Compliance•IRS rules•Legal considerations, e.g.,

planned giving

Accountability

I. To be informed of the organization's mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes.

II. To be informed of the identity of those serving on the organization's governing board, and to expect the board to exercise prudent judgment in its stewardship responsibilities.

III. To have access to the organization's most recent financial statements.

IV. To be assured their gifts will be used for the purposes for which they were given.

Donors’ Bill of Rights

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V. To receive appropriate acknowledgment and recognition. VI. To be assured that information about their donations is handled

with respect and with confidentiality to the extent provided by law. VII. To expect that all relationships with individuals representing

organizations of interest to the donor will be professional in nature. VIII. To be informed whether those seeking donations are

volunteers, employees of the organization or hired solicitors. IX. To have the opportunity for their names to be deleted from

mailing lists that an organization may intend to share. X. To feel free to ask questions when making a donation and to

receive prompt, truthful and forthright answers.◦ Developed By

American Association of Fund Raising Counsel (AAFRC)Association for Healthcare Philanthropy (AHP)Council for Advancement and Support of Education (CASE)Association of Fundraising Professionals (AFP)

Donors’ Bill of Rights (cont.)

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Prospecting Cultivation and Solicitation Relationship Building Volunteer Management Fundraising Management Accountability

Closing…

Catherine Dunncdunn@collegeboard.org