donor centered fundraising child and family services of northwestern michigan prepared by: kathy...
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Donor Centered Fundraising
Child and Family Services
Of Northwestern Michigan
Prepared by: Kathy Lievense, CFRE
The Summit Group, Consultants in Philanthropy
$306.3 BillionContributed in 2007
Individual Giving
$252 Billion
82.3% of all Gifts
Individuals $229 Billion
Bequests $ 23 Billion
Corporate Giving
$15.6 Billion5.1% of all Gifts
Foundation Giving$38.5 Billion12.6% of all Gifts
Who is Receiving the Contributions We Make?
Religion 33.4%
Education 12.1%
Human Services 9.7% The number of
Foundations 9.1% 501©3 organizations
Unallocated Giving 7.7% stands at an all time
Health 7.6% high of 1,126,367
Public Society (UW) 7.4%
Arts & Culture 4.5%
International Affairs 4.3%
Environment & Animals 2.3%
The largest increase in 2007 was to international affairs (16.1%). Human services showed an increase of 8.4%.
Pyramid of Giving – The Five I’s
IDENTIFICATION
INFORMATION
INTEREST
INVOLVEMENT
INVESTMENT
The Ladder of Effectiveness
• Direct Mail
• Media Use
• Special Events
• Phone-a-Thons
• Grants
• Personal telephone without letter follow-up
• Personal telephone call by a peer with a letter follow-up
• Solicitation by personal letter without a follow-up telephone call
• Solicitation by a personal letter with a follow-up telephone call
• Personal visit by one person
• Personal visit by a team
Moves ManagementThe most empowering
strategies for all major gift fundraisers!
Moves Management Program
1. Select 20-25 of your best prospects
2. Create a file on each person
3. Identify “natural partners”
4. Consult with natural partners
5. Select a primary player6. Develop a strategy for
each prospect
7. Plan your next 5-10 moves and establish gift objectives
8. Record and review9. Refine strategy10.Review, refine, review,
refine, etc.
Plan one move per month for your best prospects!
90/10 Rule!
•
Donor-Centered Fund RaisingFocuses not on Money, but on the People Behind the Money
Since the fundraising industry has put such a strong emphasis on planned giving, why is performance in this area not
showing improvement?
Why is 50% renewal rate after the first gift considered to be the “industry standard”?
If people made an effort to support a charity in the first place, then what is happening in fundraising that causes half of
them to say “no” the very next time they are asked to give?
Why do almost 90% of donors disappear within five renewal campaigns?
Where are these donors going?
A cycle ensues: giving, seeking but not finding satisfaction, moving on to another charity.
Solution… We must foster all relationships effectively!
How to Build Donor Loyalty
“Garbage In, Garbage out”
Give highest priority to securing a second gift from first-time donor
(bonding “window” is 1-3 months)
Basic rule of economics: Investmore in cultivation and retaining higher
value donors
Identify and specifically address likely defectors
Reconsider how to tell your success story to existing donors
Introduce your “leader” in person to donors
Treat online donors as your most valuable members
Monitor both your traditional and emergent competition
How do you communicate how you are different from other organizations?
Respond and resolve all donor inquiries
Let’s Focus on a New Generation!
Who are the Millinias?
Born since 1968
They work collaboratively
They believe they can makethe world a better place
They live immersed in causes
Their signature is digital fluency
They ask “How do we begin?”
Often feel under-appreciated within organizations
Talk on-line in venues that support open, free-flowing conversations and opinions
What Do We Ask Ourselves?
Why do we want to connect to the Millennias?
What conversations do we want to have with them?
How open are we to listening to them?
What will we allow them to do that we don’t feel we have to control?
Today’s younger generation are the philanthropists of tomorrow!
Characteristics of a Major Gift Prospect
Has the capacity to give, as might be recognized by past giving, lifestyle, or knowledge of family circumstances
ORIs philanthropic, a regular donor to other organizations
ORHas a philanthropic interest in foster care or adoption
ORHas an affiliation with CFS, such as a volunteer, parent,
relative or friend AND
Is Accessible
Making the Call!
“Every gift involves a bit of the donor’s self. Giving moneyis the most personal expression of a person’s values.”
REMEMBER:REMEMBER:
We are not seekers of money. We are engaged in empowering people to share!
We must have commitment, knowledge, skill & practice
The foundation of the solicitation is built on the Case Statement
People Give to People!
Making the Call!Be proud you’re inviting others to join you in helping others
Tell who will be helped
Give donors a choice
Ask donors what THEY want
Lay the foundation, plan for the long term, end the hard sell
Encourage feedback – comments, questions, complaints
Thank the donor, Thank the donor, Thank the donor
Be a donor yourself!
Additional Suggestions for Making the Call
• Remind the donor that his/her gift may be matched
• Offer monthly, quarterly or annual installments
• Put a smile on your face• Listen to your donors;
switch from monologue to dialog. Successful fundraisers listen 80% of the time
Additional Suggestions for Making the Call
• Be positive
• Think like a donor
• Offer donors the opportunity to become involved
• Invite donors to “see for themselves”
• Communicate with passion
• Tell stories, use photographs, use words wisely
• Explain reality
Standards of Giving Necessaryfor a $50,000 Campaign
This gift chart indicates that: 80% of the money will be contributed by 20% of the donors and 20% of the money will be contributed by 80% of the donors.
$ 5,000 4 1 $ 5,000
$ 2,500 8 2 $ 5,000
$ 2,000 16 4 $ 8,000
$ 1,000 32 8 $ 8,000
$ 500 64 16 $ 8,000
$ 250 100 25 $ 6,250
$ 150 120 30 $ 4,500
$ 100 160 40 $ 4,000
Less than $100 600 154 $ 1,250
TOTAL 1,104 280 $ 50,000
Donor Centered Gift Recognition
• Hold open houses where children are present
• Recognize program support through press releases
• Plaques – 53% of corporate donors will display them; 5% of individual donors will display them
• Present framed pictures drawn by a child
• Have the “right”person thank the donor• Host a “thank-a-thon”• For every one time a person makes a
gift, contact them two other times without asking for money.
• Take pictures. 86% of corporations & 65% of individuals love it!
• Remember donors when they are ill or celebrating a special day
PLAN! PLAN! PLAN!
• Goals’ Objectives & Strategies• Gift Acceptance Policies• Annual Calendar• Conflict of Interest Guidelines• Marketing/Public Relations Plan in Coordination with
Fundraising Plan• Job Descriptions (staff, volunteers, committees & board
members)• Publications• Coordination of annual fund, major gift program and
planned giving program – DONOR CENTERED!
Philanthropy in the NewEconomy
Challenges
Focus on the positive rather than the negativeRaise awareness of opportunities
Build infrastructureCreate a more philanthropic cultureEducate the board about their role in
philanthropyCommunicate often with donors without a
financial request
STRATEGIES
Going green and using more email
More efficient use of the website
Asking board members to make cultivation calls rather than solicitation calls
Inviting major gift donors to share why they made gifts
Asking the Executive Director to call and thank donors
Looking to make best use of social media
Encouraging younger people to be involved on committees
Key Advice for Philanthropy in the New Economy
Your case is a terrific cultivation and fundraising tool
Make more personal contactsDonors want to see ROI
“Philanthropy is voluntary action for the public good through voluntary action, voluntary association and voluntary giving.” Payton, 1988
Through the centuries, it has been clearly established that people want and have a need to
give. People want to give to causes that serve human and societal needs. They will give when
they are assured the organizations they contribute money to are worthy, and accountable
in using the gifts they have received.
Through communication, cooperation, and coordination, we can enable all people to
experience the joy of giving!
Questions &
Answers