major gift fundraising and engagement for engineering constituencies
TRANSCRIPT
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
1. Research & Prep Work 2. Practical Tips & Trends3. Case Studies4. Emotional Intelligence5. Summary6. Q&A
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
Entrepreneurs
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
1. Research & Prep Work 2. Practical Tips & Trends3. Case Studies4. Emotional Intelligence5. Summary6. Q&A
• 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?
Case Study : Discussions
Case Study : Discussions
• 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
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
Case Study 1: Investment Banking
Investment Banking Industry Scholars
Results• 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
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
Case Study 2: Entrepreneurs
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
1. Research & Prep Work 2. Practical Tips & Trends3. Case Studies4. Emotional Intelligence5. Summary6. Q&A
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
Emotional Intelligence
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
Emotional Intelligence
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
Emotional Intelligence
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
1. Research & Prep Work 2. Practical Tips & Trends3. Case Studies4. Emotional Intelligence5. Summary6. Q&A