major gift fundraising and engagement f or engineering constituencies

Major Gift Fundraising and Engagementfor Engineering Constituencies

SPEAKERS

Anthony Escobar Major Gift Officer, Cornell University

David Wahls Senior Associate Director, Fulton Schools of Engineering at ASU

AGENDA

1. Research & Prep Work2. Practical Tips & Trends3. Case Studies4. EI & Strengths Finder5. Summary6. Q&A

AGENDA

1. Research & Prep Work 2. Practical Tips & Trends3. Case Studies4. Emotional Intelligence5. Summary6. Q&A

25th Percentile

50th Percentile

75th Percentile

90th Percentile

95th Percentile

99th Percentile

99.5th Percentile

99.9th Percentile

$19,375

$42,327

$85,811

$154,131

$200,026

$506,553

$815,868

$2,070,574

Income Percentiles

Wealth Across the U.S.

20s - 30s 40s 50s 60s 70s+

$10M

$5M

$3.3M $2.5M

$2M

Minimum Visible Wealth by Age Necessary to be Rated with Giving Capacity of $100K

Major Gift Wealth

20s - 30s 40s 50s 60s 70s+

1%2%

3%4%

5%

How much are they likely to give?

Philanthropic Capacity

Visible Wealth

Determining Rating & Capacity

5 Year IncomeReal Estate

Other Assets

Mr. Smith, Software Engineer (age: 55) • Mrs. Smith, Family Physician (age: 55)

Income:Mr. Smith = $100,000 to $150,000 (m = $125,000)Mrs. Smith = $150,000 to $200,000 (m = $175,000)Total 5-Year Income = ($125,000+$175,000) X 5 = $1.5 million

Total Visible Wealth = $1,500,000 + $900,000 = $2.4 million

Real Estate:Primary residence = $650,000Summer residence = $250,000Total real estate = $900,000

CAPACITY RATING = $2,400,000 X 3% = $72,000

Lawyers & Physicians

• Receive high annual cash income• Specialization + Employer

Lawyers Physicians

Specializations

Employers

• Corporate • Patent• Constitutional

• Orthopedic Surgery• Plastic Surgery• Cardiovascular

Surgery

• AM Law 200• National/International

Firms

• Large healthcare systems

• Leading universities

Financial Services - Investment Banking

• Age: Late 30s to 50s

• Lifelong career in finance

• Bonus large % of income

• Philanthropic Role Models

• MG Capacity

• Age: 20s to mid-30s

• Recent MBAs

• Bonus not a high % of income

• Likely to develop MG Capacity

Associate Vice President

$250,0

00

$450,0

00

Director Managing Director

Department Head

$700,000

$1,200,000

$2,500,000

Financial Services - Private Investment Funds

The 1%, Institutional Investors, Pensions, etc. pool their money into large funds

Buy, fix, & sell existing companies

Trade stocks and bonds to beat market return

Invest in new/growing

companies

Private EquityFunds

Hedge FundsVenture CapitalFunds

80% of Profit to Investors, 20% to Fund Managers

Entrepreneurs

• Wealth defined by singular liquidity event• “Liquidity Evaporation”• May transition careers but usually stay in startup

environment• Key Wealth Factors: Venture Capital + Exit Strategy

Series B Investment

FounderSeries ASeries B

Series A Investment

FounderSeries A

Founding

Founders

Founding Series A Series B $-

$1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000

Company Value

Entrepreneurs – Start Up Companies

• Cornell Class of 2002• Software Engineer @ Apple, helped

develop iPhone & iPad• Co-founded Push Pop Press,

converting books into iPad/iPhone formats

• Facebook “acqui-hired” in 2011

• Founded in 2005 by early employees of PayPal

• November 2005: Series A Investment, $3.5M

• April 2006: Series B Investment, $8M

• October 2006: Google buys for $1.65B

Entrepreneurs – Acquisition

FoundingFebruary 2004: Zuckerberg launches “The Facebook,” funded by Eduardo Saverin

Angel InvestmentSeptember 2004: Angel Investment of $500,000

Venture Capital RoundsMay 2005: Series A Investment, $12.7MApril 2006: Series B Investment, $27.5MOctober 2007: Series C Investment: $375MMay 2009: Series D Investment: $200MJune 2010: Series E Investment: $120MJanuary 2011: Series F Investment $1.5B

“Exit Strategy”May 2012: Debut on NASDAQ stock exchange, raising $16B, company valued at over $100B

Entrepreneurs – IPO

Other Usual Suspects

• Receive high annual cash compensation• Receive stock awards and options• Public information for the top 5 named executives (precise estimates of income!)

Business Owners • Company value largest factor in determining wealth• NOT usually looking for an asset sale• Often held in the family over generations

Executives

AGENDA


Time ConstraintsConvenient Meeting Place

Clear PlanBe Direct

• Salary schedule• Events serve multiple purposes• Historically a difficult

group for fundraising

• Do not see themselves as Major Gift Prospects

• Timing of Meetings• Historically a difficult

group for fundraising and engagement

• Networking• Access to senior leaders• See firm leaders as role

models

• Networking• Willing to be engaged

and take meetings but challenging for fundraising

Lawyers Doctors

FinancialServices

Entre-preneurs

Engagement Opportunities• Advisory councils or other high level volunteer opportunities• Speaking roles in classes aligned with areas of expertise (context knowledge)• Speaking roles with student clubs or informal career talks/lunches with both

undergrads and grad students• Networking and Events that serve a dual purpose (e.g. lectures for CLE or

CME)• Specific stewardship benefits at various giving levels• Access to senior leaders at the college and university • Firm-based engagement and cultivation activities (law and financial services)• Bestowing an award (department, college or university level)

And others . . .

Practical Tips & Trends

PARENTS!Child applies and

enrolls at the university

Lawyers Doctors

FinancialServices Entrepreneur

s

Special considerations• Geographic Location – Ex. NYC v. Boston• Utilizing faculty• Working with financial planners • Educating about philanthropy• Young Professionals: matching gift programs

Practical Tips & Trends

AGENDA


• Break up into individual groups:– Attorneys - Estate Planning and Patent– Physicians – Lead physicians for partnership, development of products, clinical trials,

lead gifts– Financial Services – Wall Street/Banking– Entrepreneurship – CEO’s and Founders

• Objectives:– Share real stories about successful donor-centric interactions that led to investments.– Learn techniques for getting the first visit, advancing your relationships and closing

gifts.– Discuss leading questions that are most useful in engaging prospects in a meaningful

discussion about their relationship with your school.– Leave with 1-2 strategies that you want to try out.

Case Study : Discussions

• Please share a personal story of a donor relationship which led to a significant investment with the group.

– What has worked best for you to get in the door with the constituency involved? (e.g., phone calls, introductory letters from dean, other introductory letters or emails, volunteers)

– What clues did you use to determine your donors’ interests? – How did you leverage knowledge of the donors work and passions to steward

their relationship?– Who was involved in the solicitation? Why? Was that the right mix?– How did you know the donor was ready to be asked? How did you set the

amount?– How was the gift a “win” for the donor?– What materials are important to present during a solicitation for each group?

Immediately following?



• How have you used these groups as volunteers

– Advisory boards – What strategies might work to

encourage board members to assist with fundraising?

– Have you used volunteers to make major gift solicitations? What are some of the pros and cons of involving volunteers?

• What have you done to train volunteers or board members regarding their role as major gift fundraisers?

– Do you use job descriptions for your volunteers?

– What are the biggest challenges you face in working with volunteers? What are some strategies for overcoming these challenges?

• How can you motivate your volunteers to: – Identify and evaluate prospective

donors– Open doors– Set an example– Provide visionary leadership – Review strategies and provide practical – Participate in solicitation strategies– Thank donors

Case Study 1: Investment Banking


Investment Banking Industry Scholars– Historically poor tracking of alumni through the University database

• 0 Managing directors, VP or C suite individuals identified• Little if any directed alumni giving toward investment banking or support for students

generated from Wall Street• Students cold calling individuals for job calls

– Use of LinkedIn, company information to verify Finance, Engineering and Math graduates on Wall Street

• Identified 82 individuals for possible connection – 12 in Managing Director levels and above• Creation of initial contacts in the industry to build out network contacts – late night drinks,

early morning coffee, meetings at Banks– Key is to stay on the individuals – Investment bankers have busy schedules, use e-mail and look for the

gate keeper - investment bankers will turn you down to see how resilient you are

– Leveraging existing relationships and support• Identification of lead volunteers and industry mentors• Social events with key alumni and individuals – sponsored by lead volunteers• Dean and faculty travel and support• Summer intern lunches with alumni


Investment Banking Industry ScholarsResults

• Connection with 4 unknown Managing Directors and above• Creation of a network of alumni across the industry

– New York, San Francisco, London, China, Chicago• Continuation of alumni events in New York

– Mentoring and networking opportunities for Young alumni and seasoned professional networks established and run by young alumni in the area

– Attachment to the larger Klein Awards in Economic forecasting• $3.5M Generated with a secured pipeline of investments – year 1

– $3M Chair - stock– $400K Scholarship – stock – 2 - $50K endowed scholarships from individuals under 30

• Make sure to look at matching funding from investment banks, it can be as high as 2 or 3 times for younger employees and directors and above have designated amounts to give for charity

Case Study 2: Entrepreneurs


CEO Panel

– Limited access to time • Conference calls – use of time effectively for planning visits to campus• Tie into events when around your campus

– Passing on knowledge is a key motivating factor• Creation or connection to student entrepreneurial groups

– Leverage Alumni network to include other individuals and key investors


CEO Panel

Key Medical Device Alumnus• Goal of inspiring more students to create companies• Set up scholarship for Innovation Scholars

– Includes mentoring on campus, Silicon Valley or industry specific entrepreneur mentor, trip to Silicon Valley

• Includes other Silicon Valley Entrepreneurs in trip to campus• Group discussions with BioMedical Engineers

Case Study 3: Estate Planning Attorneys

Case Study 3: Estate Planning Attorneys

Estate Planning Attorneys

– Establish connection• Network among estate and gift planning

– Connections come from prospects, alumni, estate giving advisory group

– Information on connections and how individuals can give through the University

• Joint presentations– Faculty present to community members about poignant research

topics– Connections with retirement communities– Cautions on endorsement or agreements

Case Study 4: Physicians

Case Study 4: Physicians

Some suggestions for getting visits and commitment to engagement activities• Cultivation events around major medical conferences

Small dinners with a dean/senior officer

• Leverage CME lectures and events

• Speaking engagements with pre-med students

• Shadowing programs or other special academic enrichment programs at a hospital

• Connections to a physician’s research and similar research taking place at the university

• Get to know the office manager – he/she is the gatekeeper to a physician’s calendar

AGENDA


Emotional Intelligence

Daniel Goleman, PhDWhat is Emotional Intelligence?

• The way we manage emotions – both our own and those of others• Self awareness• Picking up cues about how others are feeling• Knowing how to tune into others• Demonstrating empathy

Three types of Empathy• Cognitive: understanding how others think • Emotional: feeling with someone; creates rapport with someone• Empathic Concern: tuning into people and if you can do something

for them, you help them

Focus and Notice• Compassion – we are naturally wired to be compassionate• On ourselves v. others• Pre-occupation and self absorption• Taking Notice


How does this apply to fundraising?

Everyday we attempt to engage prospects – both with philanthropic dollars and volunteer opportunities

We meet with all different types of personalities who view themselves differently; sometimes we may even feel the need to “act” in our positions

We understand that the more time spent with a prospect through personal contact (meetings, events, campus visits, etc) the more likely they will be engaged


What is the role of gift officers?A different framework from which to think about your approach with prospects

Some key questions:

How do we help prospects focus and take notice?

How do we build trust?

How can we turn a donor from viewing a contribution from a narcissistic focus to that of altruistic joy?

What are the aims we have in having a relationship with a prospect?

Baseline Assumptions

Lack of time

Self absorbed & Narcissistic

What’s in it for me?

ROI

Competition for attention from other charities


What is the role of gift officers?Sincerity: a genuine interest in what they do, their interests, and how they think and willingness to equally share of your own personal experiences and stories

Honesty: why do we want a prospect to be engaged? What do we hope to receive from them and what can they expect in return?

Transparency: being an honest broker for the institution and the donor

Effective Communication: intentions made clear, value propositions are strong (both in verbal and written communications)

Empathy: understanding their concerns and frustrations and a willingness to listen and to help (if needed or requested)

Seven Faces of Philanthropy

Russ Prince and Karen FilePrince and File share their approach for cultivating relationships with donors by identifying donors’ motivations for philanthropy.

Communitarian – Doing Good Makes Sense [for the Community]Devout – Doing Good is God’s WorkInvestor – Doing Good is a Business PropositionSocialite – Doing Good is FunAltruist – Doing Good Feels RightRepayer – Doing Good in ReturnDynast – Doing Good is a Family Tradition

7 Faces of Philanthropy

Russ Prince and Karen File

• How can knowing your donors’ motivations help you structure the relationship, and their ultimate investment, in a way that maximizes the impact of their philanthropy?

• What clues can you use to determine your donors’ motivations?

• What tools do you have available for making matches between donor interests and ASU priorities?

• How can you adjust your case for support to address donors’ motivations and interests?

AGENDA

1. Research & Prep Work 2. Practical Tips & Trends3. Case Studies4. EI & Strengths Finder5. Summary6. Q&A

Summary

Give yourself every opp to succeed; be smart. really understand the constituency you are working with and make notes of commonalities for others in your portfolio; read the latest news pertinent to their area

Rely on colleagues in law school med and biz school for engagement ideas and best practices

Take risks Present something out of left field

Think critically about the value proposition you present; is it strong enough? Don't undervalue your own experiences but rather use them as baselines / references

Speak their language and show understanding and empathy. Use methods that they are accustomed to (spreadsheet)

Have confidence in yourself and your strengths; understand how they work in tandem with others

AGENDA


major gift fundraising and engagement f or engineering constituencies

Documents

series b investment

series f investment

series d investment

series e investment

series c investment

capacity rating

year income real estate

software engineer age