april 23, 2014 managing major gift programs for maximum effectiveness presented by: richard perry...
TRANSCRIPT
April 23, 2014
Managing Major Gift ProgramsFor Maximum Effectiveness
Presented by:
Richard Perry and Jeff Schreifels
How To Think About This
1. Problem/Opportunity
2. Three Operating Principles
3. Seven Pillars of a Major Gift Program
There is a problem…Value Attrition Benchmarks
of 33 National OrganizationsCumeGiving Year Year YearLevel 1 2 3
1,000$ -58.62% -45.83% -61.45%
2,500$ -57.26% -40.61% -60.85%
3,000$ -61.32% -45.55% -55.29%
10,000$ -50.71% 0.92% -27.10%
Value Lost By Class Year
Example of Value Attrition
Three Operating Principles - #1
Treat donors
as partners
vs.
sources
of cash.
Three Operating Principles - #2
Donors
Have
Life
Three Operating Principles - #3
The role
of money
in society
is to
transfer
value
Money is a result – NOT an objective.
Matching the donor’s interests and passions to the needs of the organization brings true donor fulfillment and joy.
– AND it brings the money
Before You Start…
Do you have
the right organization?
Effective FR Organization
The Pillars
Pillar #1- The Right Caseload
Qualifed CaseloadGroup of donors that want to relate
Caseload PoolDonors that meet a predetermined metric
450
150
Build the Caseload:• Determine Criteria for Pool• Qualifying Donors• Tier Donors (A-25, B-50, C-
75)• Develop process to bring
people on and off caseload
Pillar #1 – The Right Caseload
Understand:How a caseload grows over time.
Pillar #1 – The Right Caseload
Understand:The right composition for a caseload.
Pillar #2 - Create Goals
• Goals create focus and drive planning• Not meant as a way to punish but something to attain• Must be realistic and based on actual behavior and capacity• Must be cash-flowed
Pillar #3 – The Right Plan
A Plan For Every DonorInterest Comm
Name Goal Passion Pref Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Paul Smith $ 5,000 Disaster Services Email
YMAD touch
Email Internal memo
Invite to EDS Briefing
YMAD + person helped letter Bday Card
Visit prog site - opp briefing
YMAD plus ask
YMAD touch and thanks
Ride along in EDS vehicle for demo
YMAD with possible special ask
Invite to Board Luncheon
YMAD - book on the poor
Betty Richards $ 25,000 Single Mothers
Personal Visits
YMAD touch - lunch at Applebees
Tour House of Hope - meet Sally/kid
Internal doc on expansion plans + YMAD
Invite to architect briefing+ dinner
Visit in home present final plan and ask
Thanks and YMAD
Invite to "Foundersluncheon
Research on plight of single moms
Bday Card and YMAD
Ground breaking ceremony, visit w/new mom
YMAD with possible special ask
YMAD and gift of H of H child drawing
• A plan for every donor is required if you are to meet your goals• Plan at least one “touch” per month, per donor – sometimes more• Create a healthy mix of reporting back, personal touches, asks
Pillar #3 – The Right Plan
Elements of the Right Plan: A good Donor Moves-Management Plan
includes: I.D of donor passion and interest. Figure out donor communication preference. A financial goal for the donor. A stream of frequent “Touches” that:
Tell the donor she made a difference through her giving.
Give the donor an insiders view of the organization Sets up an ask.
Pillar #3 – The Right Plan
Two Moves Management Tracks
Pillar #3 – The Right Plan
Project Support PortfolioA system for packaging program
1. Total organizational budget allocated to major program categories of the organization.
2. Program activity reported in pre-determined categories.
3. Program needs communicated in a donor focused process.
4. Total actual costs, activity and outcome statistics of the program category shown to donor.
5. Allows non-profit to communicate with donors in a way that suits them and causes them to respond and fund total budget needs
Program To Sell
Pillar #3 – The Right Plan
Three Elements Of An Offer
Pillar #4 – Ask For Support
• Know your donor• Know your program• Make a perfect match of program to
donor• Compose the ask• Practice the ask• Make the ask
Pillar #4 – Ask For Support
Common mistakes about asking:
1. No match to donor passion and interest.
2. Relationship of trust not built.
3. Not enough feedback given prior giving…
Pillar #4 – Ask For Support
4. Ask not put into the context of a larger vision
5. MGO is more interested in getting the money than fulfilling donor interests.
6. Ask is too low.7. MGO is not prepared to offer “terms” in payment of
pledge.8. Ask is packaged too intellectually and
philosophically – void of emotion and passion.9. MGO is not prepared to handle objections.
Pillar #5 – Thank Donors
• Call within 3 days of receiving a gift
• Receipt and thank you letter within one week
• Call from CEO or board member
• “Surprise” thank you calls or notes throughout the year.
Pillar #6 – Report Back
• Invest in it• Evaluate all that you do• More than once per year• Use social media• Surprise your donor-make it personal
Donors want to make a difference...
You made me aware.
You asked me to help.
Said it would make a
difference.
I believed you. Gave
what I could.
You told me my gift made a
difference.
So I want to help again.
You didn’t tell me I made a
difference…so I gave
somewhere else to make a
difference.
Pillar #7 – Love Accountability
Measure:
How the same donors last year are performing this year.
How the donors are performing against individual goals.
How many visits, contacts and asks the MGO is making.
Report on unusual gains and losses for any donor on the caseload to make sure other numbers are not being skewed.
MGO performance review.
One Gift Hides Poor Performance
How New Money Covers Loss
Need to make sure there is a focus on donors first then dollars and avoid an incorrect assessment of your situation.
1. Passionate Giving Blog
2. White Papers from Veritus Group Packaging Your Budget For Donors Seven Pillars of a Major Gift Program Building a Culture of Philanthropy Six Secrets to Becoming an Extraordinary Major Gift
Officer Qualifying Donors for Major Gift Caseloads Social Networking and Major Gifts Transporting Your Donor To The Scene
3. Marketing Impact Chart Template
Three Resources
A Look At Our Work For Others….
Two Cases….
Case #1
Social Service Organization
Situation and Challenges:1. Large unmanaged caseloads with unqualified
donors in a major gift program that was not growing.
2. More major donors on file than labor to manage them.
3. No management of MGOs to provide accountability, focus and results.
4. No 6 & 7 figure asks/gifts although organization needed the funds.
Case #1Social Service Organization
What We Did:1. Provided management structure and accountability which
resulted in focus, results, donor retention and management reporting to show all activity.
2. Modified caseloads so that only qualified donors were on them resulting in better use of labor.
3. Added major gift talent to service available donors.4. Provided moves management strategy to secure better results
including upgrading, retention and 6 & 7 figure gifts.5. Turned failing MGO around.6. Hired new MGOs.7. Provided steady operational growth PLUS additional funds for
capital project.
Case #1Social Service Organization
Results1. Period growth of 81.46% in operating revenue for a total of
$22,013,052.
2. Period growth of 112.51% in TOTAL revenue for a total of $25,388,328
3. Seamless movement from departing MGO (D) to new MGO (E) with increase in revenue.
4. Successful turnaround of failing MGO (C) in Yr 6.
5. Raised $3.375 million for a capital project with minimal effect on operating.
6. Secured multiple 6 & 7 figure gifts.
7. New MGO already at $1.2 million in caseload value with only 18 months on the job!
Case #1Social Service Organization
Case #2International Relief & Development Organization
Situation and Challenges1. Very large caseloads with many unqualified
donors and wasted MGO labor.
2. Very little individual donor planning and no goal setting for each donor.
3. More major donors on file than labor to manage them resulting in needed funds being “left on the table”.
4. Few management and performance systems and reports.
Case #2International Relief & Development Organization
What We Did1. Reduced all caseloads to qualified donors with high
inclination and high capacity.
2. Re-organized caseloads into 3 tiers reflecting donor value.
3. Created goals and plans for each donor.
4. Assisted in developing strategies and approaches to donors.
5. Introduced additional management systems and reports, including YTD actual against goal by donor, tracking moves by donor and MGO performance reports.
6. Recommended hiring 1 additional MGO in the year and another one in the next year.
Case #2International Relief & Development Organization
Results1. Surpassed goal of $22.8 million by $3 million or 13%.
2. Did this at an ROI of 1:12.
3. Maintained very high value caseloads – each one over $1 million.
4. Ramped up MGO to over $1.2 million in one year.
5. Created case to successfully add a new MGO in next year.
6. Secured multiple 6 & 7 figure gifts.
7. Current year revenue at: $26.3 million.
Case #2International Relief & Development Organization