September 23, 2008

YMCA of Middle Tennessee Development Team

Presentation By:Suzanne Iler

Jan Berry Holland Youngblood-Hensley

“Elements of Successful Fundraising”

What Motivates Giving?What Motivates Giving?(from Fundraising for Dummies by John Mutz & Katherine Murray)(from Fundraising for Dummies by John Mutz & Katherine Murray)

• Emotional response• Belief in the cause• Image• Marketing• Sense of belonging• Giving back to a cause• Peer influence• Enjoyment• Personal experience• In memory/honor of

someone

• To set an example• Pass on a legacy• Spiritual reasons• Empathy• To make a difference• Tax deductions• Good seats at a sporting

event• Because the right person

asked!

• They are insecure about the organization as a whole

• The organization doesn’t have long-term plans

• They weren’t asked for the right amount

• There was not a request for a specific amount

• The spouse was not included in the request

• The ask was fundraiser driven• They aren’t motivated by the

cause• They are not a part of a culture of

giving• They have compassion fatigue

• They weren’t asked• They are unhappy with the

organization’s financial integrity• Their interests and priorities have

changed• Mismatch of interest• No sense of urgency• Nobody said “Thank You” the last

time• They no longer have the

resources to give• They didn’t like the manner in

which they were approached • They don’t have confidence in the

leadership of the organization

Why Donors Don’t Give?Why Donors Don’t Give?(from Fundraising for Dummies by J. Mutz & K. Murray & The Artful Journey by B. Sturtevant)(from Fundraising for Dummies by J. Mutz & K. Murray & The Artful Journey by B. Sturtevant)

Maximizing Your ResultsMaximizing Your Results(Effective Practices Listed Most Effective to Least Effective)(Effective Practices Listed Most Effective to Least Effective)

• Personal visit by team of two volunteers• One-on-one personal visit• Personal letter followed by a phone call• Personal phone call to someone you know• Personal letter without follow-up phone call• Phone call to someone you don’t know• Form letter• Brochure sent as a direct mail piece• Article in institution newsletter or magazine• News carried in mass media• Advertising in newspaper, radio, TV, magazine• Other forms of communication (posters, billboards, etc.)

Cultivation CycleCultivation Cycle

• IdentificationIdentification

• InformationInformation • AwarenessAwareness

• UnderstandingUnderstanding

• CaringCaring

• InvolvementInvolvement

• CommitmentCommitment

– Identify prospective donors.

– Present your case, set your goals, gather materials to present to the prospect.

– Communicate and be articulate in describing your case.

– Answer any questions the prospective donor may have, be honest.

– Find the donor’s passion (share with you are doing and you can see in their eyes what excites them about your case).

– Invite them to invest.

– Ask them for their pledge.

Annual Campaign 101Annual Campaign 101

• What does the annual campaign support? The YMCA annual giving campaign raises funds needed to keep the YMCA and its services available to all, regardless of income or ability to pay.

• Where does the money go? All money raised is used to support the YMCA’s life changing programs for children, youth, adults, seniors and families in our communities.

• Why is the campaign even necessary? The need for financial assistance is increasing every year and YMCA membership dues only cover the day-to-day operational expenses of our facilities.

The YMCA annual giving campaign raises funds needed to keep the YMCA and its services available to all, regardless of income or ability to pay.

All money raised is used to support the YMCA’s life changing programs for children, youth, adults, seniors and families in our communities.

The need for financial assistance is increasing every year and YMCA membership dues only cover the day-to-day operational expenses of our facilities.

Prospect ResearchProspect Research

Moves ManagementMoves Management

• Top 20 Relationships

• Philanthropic Minded

• Passion for/Connected to Your Organization

• Means to Make a Major Gift

Are These Moves?Are These Moves?

• Taking a Donor on a Golf Outing?

• Form Letter?

• Organization Newsletter?

• Impromptu/Unplanned Meeting?

Good Examples of MovesGood Examples of Moves

• Secure an Awareness Tour of Your Program

• Set a Meeting for a Prospect to Hear a Testimonial from a Program Participant

• Send a News Article on Statistics Related to Your Program and a Personal Note on the Work Your Organization is doing in this Area

Prospect ClearanceProspect ClearanceYMCA of Middle Tennessee Prospect Clearance Form

The YMCA of Middle Tennessee strives to provide our donors the best possible giving experience. We also seek to maximize opportunities for contributed dollars to further the mission and good work of the YMCA.

Center: Staff Contact:

Prospect’s Name (not organizational contact)

Address Connection to the YMCA

Awareness ToursAwareness Tours(A Key part of the cultivation process...)(A Key part of the cultivation process...)

• Volunteer Involvement• Staff Organization• Formal Timeframe/Scripting• Attention to detail, go the extra mile• Welcome• Tour by key staff• Program presentations• Testimonials• Q&A (Vital!)• Departure/Closing• Follow-up

The Ask…The Ask…

• Always ask for a specific amount• If at all possible, ask in person• Make sure it is the correct project• Make sure the correct person is asking• Ask for the gift and then LET THE DONOR

TALK!

Anatomy of a SolicitationAnatomy of a Solicitation(By Bill Sturtevant as presented in “Seize the Opportunity”)(By Bill Sturtevant as presented in “Seize the Opportunity”)

**Redundancy is your friend!**

The solicitation should take no more than 15 minutes (11 min. or less is ideal)You must have the “3 Rights”…

1. Right Case2. Right Timing3. Right Caller

I. PreliminariesII. Opening/Introduction (1.5 minutes or 10% of your time)

CAUTION: BE CAREFUL NOT TO LOSE THE DONOR DURING THE PRESENTATION SECTION – IT’S EASY BECAUSE YOU’RE THE ONE

DOING THE TALKING.

III. Presentation (6 minutes or 40% of your time)IV. Negotiation (6 minutes or 40% of your time)V. Closing (1.5 minutes or 10% of your time)

There Are Four Types of “No”There Are Four Types of “No”(According to Bill Sturtevant)(According to Bill Sturtevant)

A Permanent “No”

No, not now. – Yes during the right time

No, not that project. – Yes to a different project

No, that’s a bit much. – Yes to a smaller amount

Prerequisites for a Successful Prerequisites for a Successful Capital CampaignCapital Campaign

• Strong Board• Strong CEO/Executive• Strong Image• Strong Programs• Strong Strategic Plan• Strong Financial Position• Strong Current Support Campaign• Strong Case for Support

Key Components for a SuccessfulKey Components for a SuccessfulCapital CampaignCapital Campaign

• Marketing Study• Feasibility Study• Key Campaign Leadership• Lead Gift• Silent Phase• Community Phase• Groundbreaking• Dedication/Ribbon Cutting

Importance of YMCA FoundationImportance of YMCA Foundation

• History

• Supplements annual revenue stream

• Programs it Supports

• Benefits

Examples of Gifts to FoundationExamples of Gifts to Foundation

Endowment Gift of $13,000 allows 10 kids to participate in youth sports at

Scottsville YMCA each year.

Examples of Gifts to FoundationExamples of Gifts to Foundation

An Endowment Gift of $28,500 enables 10 kids to participate in

Summer Specialty Camp at Maddox each year.

Endowment Gifts Perpetuate Your Endowment Gifts Perpetuate Your Annual GivingAnnual Giving

Endowment Gift of $14,000 generates revenue to perpetuate your $500 annual gift.

Endowment Gift of $28,600 generates revenue to perpetuate your $1,000 annual gift.

Endowment Gifts Perpetuate Your Endowment Gifts Perpetuate Your Annual GivingAnnual Giving

Endowment Gift of $71,500 generates revenue to perpetuate

your $2,500 annual gift.

What is a Planned Gift?What is a Planned Gift?

A planned gift is something other than an outright gift. It takes a bit more planning and thus is often thought of as complex (but it isn’t always).

Another name for a planned gift is a “deferred gift” because the charity typically receives the gift years after the planning has taken place.

Planned Giving VehiclesPlanned Giving Vehicles

Most Popular Vehicles

1)Bequest in a will

2)Designate YMCA as Beneficiary of Retirement Plan

3)Designate YMCA as Beneficiary of Life Insurance Policy

Income Producing Vehicles

1)Charitable Remainder Trust

2)Charitable Gift Annuity

3)Charitable Lead Trust

Goals Goals

• Short term – Vision 2020

Expectancies = $15,000,000

• Long Term – Assets + Expectancies = Operating Budget by 2020 (currently $90,000,000)

YMCA Foundation of Middle TennesseeYMCA Foundation of Middle Tennessee

Endowment ProgressEndowment Progress

$7,482,924

$11,708,348

$15,930,306$19,755,145

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

2004 2005 2006 2007

Assets Expectancies Assets & Expectancies

Planned Giving Fun FactsPlanned Giving Fun Facts

Average age of one’s first will: Average age of one’s first will:

Average age of first bequest:Average age of first bequest:

% of bequest donors who also made cash gifts to % of bequest donors who also made cash gifts to the charity:the charity:

MORE FUN FACTSMORE FUN FACTS

% of Bequest Donors who leave gifts to more than % of Bequest Donors who leave gifts to more than one charity:one charity:

% of Bequest Donors who don’t notify the charity of % of Bequest Donors who don’t notify the charity of their bequest:their bequest:

Prospect IdentificationProspect Identification

Center Assoc. Bd Age Given 5 Given 10 Past Gifts Top 100Board Non-P.G. Over 60 of 7 Yrs of 12 Yrs Volunteer $10,000 + Donors

X X X

X X X X X

X X X X X

X X X X X X X

Estate Tax is only Voluntary TaxEstate Tax is only Voluntary Tax

• It’s perfectly OK to arrange your estate so as to avoid estate taxes. That’s why this is considered a “voluntary tax”.

• If you don’t take steps to leave your money to your family, your church, and/or your charities, the government will gladly take it.

How can you help?How can you help?

Assist with Prospect Identification

Ideal Prospects

Long Term Involvement

Passion for Y’s Mission

Share Prospect Names with Development Director

Vision 2020Vision 2020Mission: A worldwide charitable fellowship united by a common loyalty to Jesus Christ for the purpose of helping persons grow in spirit, mind and body.

Commitment:We build strong kids, strong families and strong communities.

Values:Caring, Honesty, Respect and Responsibility

Vision: To be a source of strength to our community by providing an environment where people of all ages, faiths, races, backgrounds and abilities work toward achieving their God-given fullest potential, building friendships and experiencing the joy of helping others. We will fulfill this vision by:

•Increasing Availability to All

•Developing Youth and Teens. Inspiring Healthier Lifestyles

•Deepening Member and Community Involvement

•Ensuring Our Legacy

Serving Nashville and Middle Tennessee since 1875

Vision 2020 Campaign Project OutlineVision 2020 Campaign Project OutlineProject Capital

FundraisingGoal

Current GivingEndowment

Planned GivingGoal

We Build PeopleAnnual Giving

Total FundraisingGoal

Joe C. Davis YMCAOutdoor Center

$12.15 million $1.35 million $13.5 million in giftsupport

Downtown YMCA $8 million capital $1 million endowment $1 millionPlanned Gift for Capital

$10 million

Youth Development and Outreach

$500,000 $4.5 million in specific gift requests for Vision2020

$5 million

Margaret MaddoxFamily YMCA

$1.5 millionTeen Center

$500,000 $500,000Teen Center operationalsupport

$2.5 million

Northwest Family YMCA

$2 million Aquatic Center

$500,000 $500,000 Learn to Swim $3 million

Irrevocable PlannedGifts

$1.5 million $1.5 million

Revocable PlannedGifts

$12.5 million $12.5 million

Other Centers WeBuild People

$13.64 million $13.64 million

Bellevue $4.5 million $4.5 million

N. Rutherford $5.5 million $5.5 million

Putman Co. $660,000 $660,000

Leadership Center $2-4 million $2-4 million

Total $37.01 million $3.85 million $15 million $19.14 million $75 million

Vision 2020Vision 2020

• Initial Goal Range: $51 million to $58 million

(October 2004)

• Updated Goal Range: $75 million

• Begin process of evaluating Phase II Vision 2020 Campaign projects

Volunteer StructureVolunteer Structure

Campaign Co-Chairs

TreasurerSecretaryBoard ChairPast Board Chair

Cabinet Members

Camp Vice-Chairs

Downtown Vice-Chairs

Maddox Vice-ChairsNorthwest Vice-

Chairs

Youth Development Vice-Chairs Planned Giving

Vice-Chairs

Camp Steering Committee

Planned Giving Steering

Committee

Youth Development

Steering Committee

Northwest Steering

Committee

Maddox Steering Committee

Downtown Steering

Committee

Effective Acknowledgement SystemEffective Acknowledgement System

1. Be Prompt

2. Be Personable

3. Be Perfect

10 Ways to Say Thank You10 Ways to Say Thank You1. Conduct a Thank-a-Thon2. Mark birthdays, anniversaries or other special occasions3. Make note of hobbies and interests4. Send updates with photos particular to the project that the donor

supported5. Involve the donor by giving him/her the opportunity to volunteer,

serve on a committee or on the board6. Ask for the donor’s advice7. Invite the donors back for a tour8. Make note of any media coverage9. Send the donor cards from kids or program participants10. Send news releases on your volunteer leadership (board,

campaign, etc.) to the local media

Secrets for SuccessSecrets for Success

• It’s all about the donors

• It’s also about communicating with those donors

• Stewardship is king

• Spread the responsibilities

• Never, never quit building

• Integrity

• Listening the Gift

Doug LawsonDoug Lawson

“Philanthropy is the mystical mingling of a joyful giver, an artful asker, and a grateful recipient, in which all three – the joyful giver, the artful asker and the grateful recipient – benefit from the experience”

- Doug Lawson

Suzanne S. IlerVice President of Planned Giving

YMCA of Middle Tennessee900 Church Street

Nashville, TN 37203615-259-9622

siler@ymcamidtn.org

Contact Information

Jan BerrySr. Regional Development DirectorRutherford County Family YMCA

205 North Thompson Ln.Murfreesboro, TN 37129

615-895-5995jberry@ymcamidtn.org

Holland Youngblood-HensleyDevelopment Services Director

YMCA of Middle Tennessee900 Church Street

Nashville, TN 37203615-259-9622

hyoungblood-hensley@ymcamidtn.org

Q&A

Thank ou!