Terry Munday

Presidental Resources for Effective Fundraising February 22, 2018

“Blessed are the fundraisers

in heaven, they shall stand

on the right hand of the

martyr’s.”

- John Mott

Presidential Resources

u Board

- Advisory Committee (PACE)

- Board of Capacity Giving – 100% Giving

u Advancement Staff

u Accountability of Advancement Staff

- Using metrics

How to use database to reach your potential

- Giving special attention to donors

- Move lists

Donate to Charityu Matures-88%

u Boomers-72%

u Gen X-59%

u Gen Y-60%

Transfer of Wealth$41 Trillion

Next 30 Years

President’s Most Important Function

Chief Fundraiser

Proper Level of Funding

uNOTE: Most think the role of College President is to think great thoughts.

Chronicle Of Higher Education_______________________________Reports that presidents felt the area they were most unprepared for was “fundraising”.

Second: Budgetary issues

Past• Hired a staff of professionals to

raise gifts

Today

• Personal Involvement is critical• Move list• Get in front of large donors

Today• 50% or more of time on fundraising• Knows the stories of the institution

President – Chief Fundraiser

Resolution for board consideration

Vice President of Advancement is authorized

to send a notice to Board Members of their

annual giving

uFiscal Giving

uCalendar Year

Presidential Time in Fundraising

Time spent where it is most effective & nets

the greatest yield

- President cultivates top 1% of institution’s

prospects.

- 50% or more of time on fundraising

- Get in front of large donors

Move List

w 12 to 15 face to face visits per month

w Solicit 4-5 major gifts per month150-200 visits

w Visit 50% of their portfolio each year150 prospects – 75 visits

SUCCESS BASED ON:Level of experienceLength of service with organizationPortfolio potential

Accountability of Fundraisers

Giving Based on Percent of Income5 States – Most Giving

1. Utah 10.6%

2. Mississippi 7.2%

3. Alabama 7.1%

4. Tennessee 6.6%

5. South Carolina 6.4%

5 States – Least Giving

1. Rhode Island 3.1%

2. Massachusetts 2.8%

3. Vermont 2.8%

4. Maine 2.8%

5. New Hampshire 2.5%

Giving by Corporations

Kroger – gave 10% of previous year’s profits - $64 million

WalMart – gave largest by amount - $319.5 million

Things to look for in identifying donors

• Conventional wisdom is that approx. 1% of a person’s net

worth

• Major gift campaign – 2-10 times annual level

• Average planned gift is 10-25 times the annual fund gift

• 7 years to cultivate a planned gift

Why Donors Continue to Give

1. Know they are making a difference

2. Received thank you for giving

3. Enable donors to meet like-minded people

4. Effective and personal communications from the

charity

5. Some kind of recognition for support

Good Fundraiser

•Good listener

•Good personality

• -Speaking &Writing•Good

communicator

• -People Person

• -Van Gurley, Jim Sutter, Wanda Fortune

•Draws others

into conversations

1. Enjoys People

Good Fundraiser

2. Passionate, Enthusiastic, Committed to

Cause

• Loves his/her work

• Fire burns in their bones

• -Long hours, Long days, Fulfillment

and Inner Growth

• -Don’t tread waters

• -Status quo is anathema

Good Fundraiser

3. Knows the stories

of the organization

4. Ask for the order-Can close the

deal

• Politely persistent

• Does not accept “no”

• More difficult if the donor

likes fundraiser

Good Fundraiser

5. Sets goals and

works to fulfill

Good Fundraiser

6. Not afraid to fail

and learns from

mistakes

Good Fundraiser

7. Does not take

rejection as personal

Good Fundraiser

8. Are intuitive

•Studies show that successful

salesman are about always

intuitive

•Top major gift officers trust

their instincts and listen to

their intuition

Good Fundraiser

Ineffective Fundraiser1. Personality

does not attract

or hold donors

2. Fails to

develop

relationships

with donors

3. Lacks

caring for

donor

4. Fails to tell

the story

5. Not a good

listener

Ineffective Fundraiser6. Lacks passion and

enthusiasm

• Talk about themselves rather than organization

• Focuses on process rather than organization

• Does not know how to have fun

• Turf protection and lacks cooperation

7. Fails to make the ask-Hints of a need

Ineffective Fundraiser8. Job is considered short term

• Need 5 years to develop relationships

• 7 years for planned gift

9. Thinking money will come to you because you have a need

10. Lacks confidence in leadership

11. Thinks gifts can be raised without seeing the people

12. Does not personally give or have a giving heart

Observations1. Good Fundraisers are in demand

2. Write a job description

u Too may organizations have unrealistic goals

u Keeping the fundraiser focused on 2-3 areas is key. We tend to spread the fundraiser to thin

u Direct mail

u Legacy giving

u Trusts and planned giving

u Corporate Giving

u Admissions

u Church Relations

u PR

Tactics to Help you achieve your goals

u Do you have a match?

u Do you have someone with celebrity status that can sign an appeal?

u Have you used a segmentation strategy?

u Are you upgrading donors?

u Are you asking non donors for a low dollar ask to increase alumni giving?

u Are you challenging mid level donors to move to a higher level of donation?

u How many email appeals?

Donors who should receive Specialattention

u 1. Have notified your college of planned giftu 2. Donor of stocksu 3. Donor having a gift annuityu 4. Board member, professional staff, employee of 10 years or longeru 5. Donors who have made gifts for 10 years or more

(25 cumulative gifts)u 6. Top 250 planned giving prospects that have been identified by

research.- Avg. Planned gift in U.S. is $35,000 - $70,000

u 7. Donors who have given $10,000 in a year.This group also has the greatest potential for an estate gift.MOVE LIST – Assigned to each member of Advancement Staff

Evaluating ResultsEngagement Metric Score (EMS)

Who should the Advancement/Alumni Office spend their time with?

Identify prospects for Development1. Annual Fund 2. Major gifts 3. Planned gifts

PurposeWho has a relationship with your college/university

Engagement Metric Score (EMS)

Criteria Possible Points Score

Alumnus with Degree 0/3 3

Alumnus (Attended but never

graduated)

0/1 0

Parent (N/A, Past, Current 0/1/2 2

Married to Alumnus 0/1 1

Served on a College Committee 0/3 1

Served as college Bd Member

Past/Current

0/5/10 5

Staff/Faculty/Retiree 2/4/6 6

Involved in Athletics/Music/Extra

Curricular)

0//2/4 2

Purchased Alumni Directory 01 1

Total 31 Points 21 Points

Relationships

Giving Possible Points Score

Cumulative Giving

0/0-

$4,999/$5,000/$50,000/50,000-

$100K/$1 Million

0/1/2/3/4/5/7/9 5

Annual Total Giving in Last 2

Years

0/$1-499/$500/$999/$1000-

$2,499/$2,500-$4,999/$5,000-

$10,000/Above $10,000

0/1/2/3/4/5/6 4

Consecutive Giving

0/3 years/5 years/10 years

3/5/10 5

Years with Increased Giving

0 – 2 years - 3 Years - 5 Years

0/3/5 5

First Time Donor 0/2 2

Restricted Gift (Scholarship,

music, nursing, athletics)

0/2 2

34 Points EMS Total 23

Engagement Metric Score (EMS)

0 - 10 Continue Direct Mail

11-20 Visit From Alumni Director

21-30 Visit from Advancement Office

31-40 Receive Invitation to Special Banquet

41-65 Visit from President, Insiders Club, Etc.

Engagement Metric Score (EMS)

Hire A Competent VP for Advancement or Development PersonØ Demonstrate confidence in VP

- Pace members- Commencement speakers- Board members

Ø Include in teamØ Encourage faculty, and staff to support VP position

- Annual meetingsØ Personal Chemistry with President

A. Long tripB. Office near the presidentC. Adequate budgetD. Weekly meetings or sometimes daily meetings

Statistics on Fundraisers

u 25% of executive fundraisers were fired in 2012

u 1 of 3 executives are lukewarm about the person holding their

top development position

u 50% of fundraisers plan to leave their jobs within 2 years

u 40% want to leave fundraising entirely

u The average time to replace a fundraiser is 16 months – at a

average cost of $127,650.

u The average time that a fundraiser stays at his job is 16 months

Be more intentional in Board appointments.

Board Involvement in Fundraising

Ø Thank-A-Thon During Board Meeting

Ø Give Board Members names of individuals to

call as a thank-you

Ø Give names of prospects

Ø Make donor calls

- Not all board members

- Size of ASK

Ø Top 3 Charities

Time vs. MoneyØPersons who give time are volunteers.

ØPersons who give money are donors.

ØBoard members must be both.

ØBoard members who give time as their gift are in a great position to ask others for time.ØHowever, “Time” does not pay staff, utilities or other expenses.ØChairman of HSB-Trust

Fundraising Advice for the Board

u Are you giving regularly to this organization?

u How many friends have you taken on a tour of campus?

u Who have you introduced to the President or VP for Advancement?

u Are you challenging your friends to give to your organization?

u What have you done lately to encourage staff?

Why are Board

members

nervous when

we talk about

fundraising?

uReasons Board Members are Reluctant to

take responsibility for fundraising

1. They don’t understand the importance of taking a

leadership role in fundraising

2. They are afraid to ask for money

3. They think it is the staff’s job to fundraise

4. Reciprocal giving-identifying your friends for a gift- friend

will ask you for a contribution

5. Fear and Embarrassment-Money is a sensitive subject

6. Don’t know how to raise funds

- Art of Fundraising

Fundraising Responsibilities of Board Members

1. Make a proud personal gift

“Stretch Gift”

100% participation

“Your giving reveals your passion” Matthew 6:21

Make a planned gift

7 years to get a planned gift (Art Hodson)

Average Gift $35,000 - $75,000

2. Know the organization you serve

60 second elevator speech

Board needs to know statistics, enrollment, budget, mission

Fundraising Responsibilities of Board Members1. Help thank donors.

v Great strategy to get repeat gifts is to have Board Members

send a note.

2. Personal Advocates

3. Help Identify Prospective Donors

v Open the Door

v Attend Campus Events

v Give Campus Tours

Board’s Involvement in Fundraising

Ø 75% executives say their boards are insufficiently involved in raising money

Ø36% of the boards have no fundraising committee Ø17% of the boards have no involvement in fundraising

Common Mistakes 1. Board members are requested to ask for money, not to build

friendships. Many Board members skip to the most difficult

and awkward part of the fundraising cycle (The Ask).

uInstead we should identify donors, cultivate/create

friendships, thank the donor and foster long-term

relationship

2. Cold calls – I gift in 10. We should protect Board members

from rejection – preserve their self-esteem

3. We make too many calls at too low a dollar level. Better use

of Board member’s time is on larger prospects & fewer calls

4. Emergency Fundraising

uDon’t wait until a crisis to mobilize the board

5. Lack of Training, Coaching

uSend them to make calls in 2’s

uSupport from the staff or president

QUESTIONS

Terry Munday

terry.munday@indwes.edu