the osborne group, inc.1 major gifts and creating organizational capacity for fund development...
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The Osborne Group, Inc. 1
MAJOR GIFTS AND CREATING ORGANIZATIONAL CAPACITY FOR FUND DEVELOPMENT GROWTH
BBBS Large Agency AllianceJanuary 22, 2005
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The Osborne Group, Inc. 2
Agenda Why focus on
major gifts?
Building a major gift prospect pool
Making effective qualification and discovery visits
Investing in fund development ROI Staffing
Taking it on the road
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The Osborne Group, Inc. 3
“Giving USA” 2003$240.72 Billion
2003 contributions: $240.72 billion by source of contributions
Corporations$13.46 5.6% Foundations
$26.30 10.9%
Bequests$21.609.0%
Individuals $179.3674.5%
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The Osborne Group, Inc. 4
BBBS Revenue Distribution
By SourceEvents $60,726,000 29%
United Way $43,974,00021%
Government $37,692,000 18%
Foundations $27,222,000 13%
Individuals $16,752,000 8%
Corporate $ 8,376,000 4%
Other $14,658,000 7%
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The Osborne Group, Inc. 5
What’s a Major Gift?
For your agency? For a donor? Industry standards?
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Today’s Gift Pyramids
Old rule – 80% - 20%
Recent rule – 90% - 10%
Today’s experience – 95% - 1%
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Recent Study* 23 campaigns of
more than $100 million 94.4% of the money from 1.7% of the donors.
*Institute of Charitable Giving
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Donor Motivation Is personal! Impact – societal,
community From the heart;
shared values Giving back Tradition Recognition, peer
influence (Leadership)
Strategic investment Trust, accountability
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The Osborne Group, Inc. 9
The Major Gift CycleIdentify the critical few: those with the greatest capacity to give
Discovery: Learn about them; share the story
Developing a relationship
Engaging and Involving
Asking for a specific amount
Saying thank you
Providing stewardshipand accountability
Preparing to ask
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Major Gift Time Line
Identify Learn and Share
Engage and Involve
Prepare to Solicit
Ask and Close
Thank Steward
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Filling the Major Gift Pipeline Looking for
individuals with a net worth over and above value of primary home of $1,000,000 Plus
Philanthropic Cares about kids Cares about
community Former Big or
Little Someone who
knows us, knows them or there is a path
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The Osborne Group, Inc. 12
Start with Who You Know Bowl for Kids© Raising More Money© Direct mail donors
who have given you $100 or more
Volunteers’ prospects Corporate sponsors Foundations and
family foundations Current and past
leadership donors
Past capital campaign donors
Legacy and major gift donors and their families
Current and past Bigs, past Littles
Current and past staff
Board members, past Board members and volunteers
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Best Donors are Past Donors
4 to 11 times the cost to acquire a new donor as it is to keep an old friend!
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Organize the List and Make Decisions
How are you qualifying your donors now? Capacity? Inclination? Readiness?
What tools have you found to be the most useful?
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Get Donors, Volunteers, Staff Involved
Gathering information Internal screening Peer screening Research
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Rating Potential Donors’ Giving Capacity Average American gives 2% of
income
Average wealthy and philanthropic American gives 4% to 7% of net worth (income and assets) over one to five years
Ratings based on 5% of net worth
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Composition of Estates With Assets of $600,000 Plus
1. Stock2. Real Estate3. Bonds4. Retirement assets5. Cash6. Life insurance
equity and annuities
7. Other
33% 28% 13% 12% 7% 2% 5%
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Rating Potential Donors Exercise Read each scenario and provide a dollar
range rating for each i.e. $250K to $500K Then an inclination rating using High,
Medium, Low or Remote
Name Capacity Inclination
Joe $50k to $100K
Low
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Readiness versus Inclination Sally loves BBBS Wants to give Thinks a big gift is
$1,000 Has the capacity
to give $500,000 How inclined? How ready?
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Major Gift Maxim
We don’t have control over capacity
We have very moderate impact on inclination
Readiness is our JOB
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Wealth Screening Opportunity National initiative User friendly Powerful tool
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Types of Visits Qualifying and
Discovery Cultivation
(developing and advancing relationship)
Recruitment
Solicitation Stewardship
(connecting with impact of past gifts, advancing relationship)
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Preparing for the Visit
First impressions Do your homework Check the facts Listen to others Choose the setting Set your agenda
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The Donor Puzzle© Motivation Knowledge Philanthropic
decision makers Natural partners Issues Involvement and
contribution preferences
Stewardship preferences
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Elements of Successful Qualification and Discovery Do your
homework Set agenda Ask questions
about: Work Life Philanthropy
LISTEN
Share your case for support
Ask for feedback Discuss next
steps IF this is a real (now qualified) prospective donor
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Visit Maxims
People remember more of what they say than what you say
People believe what they say more than what you say
You ask questions and share 30% of the time
You LISTEN 70% of the time
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Key Take-Aways Qualified – yes or
no If yes, capacity and
inclination rating Perhaps readiness
rating Possible giving
interests, values, process
Next steps
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Is This a Qualified Prospect?
LISTEN to the exchange What did you learn about:
Capacity? Philanthropy? Inclination? Readiness?
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As Relationship DevelopsDetermine:
“Right” purpose “Right” amount “Right” solicitors “Right” time “Right” place “Right” participants “Right” materials
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The Role of the Annual Fund in Major Gifts Bumping folks up Learning the donor’s decision-
making and negotiation processes Learning more about giving interests Opportunity to engage other
decision makers Preparing donors for a
comprehensive ask
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Getting Appointment Tips Agenda: Face to face
meetings, ambitious and inviting itineraries
Skills: Confident tone, brevity, specific time, persistence
Call to appointment slot ratios
Setting aside blocks of calling time (with plenty of lead time)
Personal assistants hold the keys to the inner sanctum
Planning two trips at once (options for donors)
Analyzing your statistics (by region, time of day, day of week, etc.)
Handling objections/three no’s
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Three InvitingReasons for the Appointment
Advice Input Expertise Action Involvement Solicitation Stewardship Information
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Making a Visit
Former Big Board member recommended;
doesn’t know her well Declined invitation to out of town
RMM event Lives in upscale neighborhood Owns her own business
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Investing in Fund Development
ROI People Time Infrastructure Organizational Will
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AHP Study 2004Lessons for Us
24 highest performing hospitals Focus on major gifts Leverage leadership and board
relationships The highest performing hospitals
secured 51% of their revenue from major gifts
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Highest ROI% of Revenue from Major Gifts
51% 35% 16% 11%
Highest Fundraising Performers
Top 25% Second25%
Third25%
Bottom25%
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Ideal Balanced Portfolio!
60%20%
5%
10%5%
Major Gifts
Annual Gifts
Corporate
Foundation
Planned Gifts
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Starts With Leadership CEO Board Chief Development Officer Senior Staff
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Staffing The Functions Chief Development Officer
Strategy Management Major Gifts/staff CEO
Special Events Fundraising Cultivation Bowl for Kids Sake
Individual Giving Annual Appeals Raising More Money Leadership Gifts
Corporate and Foundation Giving/Grant-writing
Data entry, Reporting and Research
Development Assistant and Stewardship
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BBBSA Fund Development Organization
Jake FriedDevelopment Asst.
M ajor G ifts Officer<vacant>
Director M ajor G ifts<vacant>
Fund Developm entResearcher
<vacant>
Stewardship Specialist<vacant>
Karen M uddDirector Developm ent
G ift and BiographicalInform ation Specialist
<vacant>
Director PhilanthropyInform ation Services
Lesley Pratt
Laura ClancyAssociate Director CFR
Director of Corporate& Foundation Relations
<vacant>
Associate DirectorAgency FundDevelopm entJon G lasoe
Debbie EverittDirector Agency Fund
Developm ent(Raising More M oney)
M anager of Alum niPrograms<vacant>
John MalcolmVP of Philanthropy
Judy VredenburghPresident & CEO
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A Model for Large Agencies
Development Asst./S tew ardship Specialist
Database M anager/Researcher
Director of IndividualG iving/RMM
Director of Corporate& Foundation Relations
Director of Events/BFKS
Chief Developm entO fficer
CEO/Executive Director
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How National Will/Does Help Training Tools Consultation
Wealth screening Partnerships Gift sharing
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What Will You Do Differently? What ideas did
you find the most useful?
What do you want to know more about?
What will you try?