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Intro to fundraising - 6.18.10
 

Intro to fundraising - 6.18.10

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  • This is the take away – we are a Catholic company committed to sustainable development programs.
  • Taboo subject – can be difficult since it cuts to the heart of insecurities, fears, jealousy and envy. We isolate ourselves within our offices and churches. John Paul II called for a new evangelization because we were not engaging people in the community and the world. This is also about fundraising… Inadequate infrastructure – while the level of sophistication of development infrastructure has seen great advances in recent years, areas such as a slow postal system, a shortage of accurate direct mail lists, a shortage of development professionals who make face-to-face visits, and donor relationship management systems continue to present challenges to fund-raising in Italy.
  • Nouwen article – pages 4-8, 15-21.Conversion of prejudices of poor - they did this to themselves, lazy, addicted, working the system, etc. Have resources & some services. Conversion of prejudices of rich – have everything they could want, great lives, stingy if they don’t give. Often isolated, lonely & in need of ministry. Shift in our attention to divine things. It requires a conversion from traditional perspectives and prejudices of the asker and donor. It asks us to consider how we approach and appropriate money, what we think about the poor (slackers to be saved) or the rich (not authentic, arrogant, controlling, etc.), and what we are called to do with our life and resources.
  • Donors enter into a new communion with others. They become part of something larger and bigger through their support of an organization or cause.
  • Biblical requirement of care and concern for others, parable of the talents, etc. - to whom much is given, much is expected. The Kingdom is where God provides for all our needs – where your treasure is, your heart is alsoAttitude of faith, trust and self-sufficiencyAsking allows many to join in the common effort to build the God’s Kingdom on earth & invest in the work of GodAsking was done as an act of faith – people grow in faith, connect to the church, and connect their family to the church.
  • Inviting benefactors into a community & a relationshipPastors earning the trust of parishioners and being concerned about salvation of soulsAsk and approach is different for each person, but based on common faith. Regardless of theological beliefs, the prudent fundraiser knows his/her audience and speak to the passion of the donor. Success and fruitfulness of the organization is as important as the relationship of members of the communityRooted in freedom, prayer, gratitude & love for God and othersFor priests and directors, relationship with parishioners can be enhanced by fundraising process. Visiting sick, praying with others, providing comfort, support, direction and encouragement to all – including the wealthy. Authentic expression of ministry with development work as vehicle for engagement. Asking, receiving, and giving are major acts of trust.
  • Adapted from E.H. Guy Mallabone, MA, CFRE, VP for External Affairs, SAIT
  • Adapted from E.H. Guy Mallabone, MA, CFRE, VP for External Affairs, SAIT
  • A good idea is to create a file labeled case resources… as you come across materials for your case place them in the file so you have it handy when you are ready to begin developing your case. Mission Statement – Answers the question “why?” does this organization existGoals – General statements about what the organization wants to achieveObjectives – Specific statements about what the organization will do to achieve his goalsPrograms and Services – detailed descriptions of the programs and ministriesGovernance – leadership council, board information, including bio’s and how they are selectedStaffing – Staffing patterns both paid and volunteerFacilities and Infrastructure – description of physical setting and procedures. Include off-site programs if relevant.Finances – Narrative, numerical and graphic materials that give a clear picture of how dollars are spentOrganizational Planning, Development & Evaluation – short and long term planning processesHistory – brief description of how the organization came into being
  • Fundraising Requires AskingIssues for a small non-profit go to the common challenges we face.There are tons of things going on in the world of development. We just talked about four types of visits, Discovery, Cultivation, Solicitation, and Stewardship. you can easily spend ¾ of your time not asking.If there are only one or two of you in an office responsible for the development operation, it is easy to get tied to the desk. To get the newsletters doneTo get the special event details finalized.In a small non-profit, we need to plan ahead and be deliberate about asking.Ask your board members or key volunteers early in the year.Make it something you do every month.We often have an attitude of scarcity – asking needs to be a positive thing we do.We are not about apologizing, we are about inviting people to be part of our good work.You are not a used car salesman. You are a professional who seeks to change the world for the better.View your benefactors as you team. They help make the mission of your organization possible.One of the best things you can do is to regularly go out and meet people, tell them your story, look them in the eye, and invite them to be part of your mission by giving a financial gift.
  • Asking is expensivePeople are used to automatic monthly debits from their checking accountsCar paymentsInsuranceYou name it…Cultivates long-term relationship with benefactorThe Best prospects for major gifts are consistent, reliable giversSamples – San Juan Diego Sustaining Saints Fund Flyer and formTAMU Living Faith Stats
  • Fund raising is all about relationships.Our job as development professionals is to find effective ways of building lasting, meaningful relationships between benefactors and our non-profit in a way that brings each entity a return. What is the return? IMPACT. Benefactor provides funding to make an impact. Nonprofit utilizes funding to make an impact. Which must mean communication is happening here… because how do we know we’re talking about the same impact? Need to get to know your benefactors. They need to get to know you. Can that happen in direct mail? Only very minimally. They can get to know us a little bit, but we can’t see their reaction. They can’t ask questions. We can’t ask questions. (It’s like online dating. It may peak your interest, but if you’re ever hoping to get married, at some point, you have to begin a personal relationship.) Face-to-face visits are THE WAY to build relationships with your benefactors.
  • How many people have heard of the process of discovery, cultivation, solicitation and stewardship?How many people are actively pursuing and tracking this process in your small nonprofit?What questions might you ask on a discovery visit?What kind of information might you be hoping to obtain as a result of the visit?How do you know what people to visit?A personal meeting made for the first time with a prospective benefactor to ‘Discover’ whether their motivations for giving align with your organization’s mission and needs.Usually a Cold Call or ReferralCan include the request for a gift
  • A personal meeting made to deepen the relationship- building process between the potential benefactor and the organization.Moves a person toward a giftCan include the request for a gift
  • What should you bring with you on a solicitation?A written request letter, maybe a proposal or packetEnthusiasmProfessionalismPositive attitudePlan for follow-up
  • What kinds of things should you be doing on a stewardship call? Bring a gift Bring a written report Bring a thank you from someone other than yourself Bring a copy of an article written about your nonprofit Bring a copy of the latest newsletter, brochure, etc. Talk about how the nonprofit has utilized the donor’s investment…what is happening?
  • Quote from Frank Shannon… Notes – the moniker “Annual Fund” is deceptive. We want, and we plan, to ask for a gift more than once a year. tell people what you do with gifts to the fund – we pay for everything from light bulbs to program expenses. This is the critical source of support that let’s our organization fulfill its mission. Undesignated giving is our highest fundraising priority.JUST DO IT!There are so many things we could be doing with our time, that this often comes last. Make it first. Get out there and ask!It is easy to ask someone if they have had a chance to review your proposal.
  • Dr. Jerold Panas

Intro to fundraising - 6.18.10 Intro to fundraising - 6.18.10 Presentation Transcript

  • Introduction to Fundraising June 15, 2010 Peter de Keratry & Mary Macuga Petrus Development, LLC 1
  • Welcome and Introductions Fundraising and Development Development as a Ministry Catholic Philanthropy Petrus Model for Sustainable Development Case, Leadership, Plan 2
  • CASE Strategic & Development Plan Case for Support LEADERSHIP Boards & Advisory Councils Lunch Break PLAN Components of an Annual Giving Plan Asking for Major Gifts 3
  • Petrus Development Founded in 2004, Petrus Development is committed to strengthening the Catholic Church by building quality development programs. 4
  • Our Team Over 60 years in fund development More than $300 Peter de Keratry John Flynn Mike Perkins Colleen de million raised to Managing Principal Senior Keratry Principal Consultant Senior date Consultant Diverse experience in Development & Catholic Ministry Mary Macuga Laurie Kish Kathryn Whitaker Mary Porter Consultant Project Manager Communications Bookkeeper Specialist 5
  • Fundraising and Development 6
  • 2008 Charitable Giving Corporations $14.50 5% Foundations $41.21 Individuals 13% $229.28 75% Bequests $22.66 7% Total = $307.65 billion ($ in billions) 7
  • Types of Recipients 2008 International Environme Affairs nt Arts, Culture, $13.30 and Grants to Gifts to and 4% AnimalsIndividuals Foundation Unallocate $6.58 * s Humanities $3.71 d 2% $32.65 Public- $12.79 1% 11% giving Society 4% $19.39 Benefit 6% $23.88 8% Healt h Religion $21.6 Education $106.89 4 $40.94 35% Human 7% Services 13% $25.88 9% *Foundation grants awarded to individuals Total = $307.65 billion ($ in billions) 8
  • Common Perceptions • Negative attitudes about fundraising among leadership and community – Fosters fear and avoidance • Catholic philanthropy is often reactive rather than reflective – Crisis-driven, not mission-driven – Band-aid approach is often the norm 9
  • Common Perceptions • Lack of Leadership Development – Leaders have little or no training in fundraising – ―We have always done it this way.‖ • Development professionals as mercenaries or ―used-car salesmen‖ – Suspicious of motives – Fearful of outcomes 10
  • Additional Challenges • Money can be a taboo subject • Fear of engaging the wealthy • Attitude that the ―Church‖ is well-funded • Isolation in office & churches • Inadequate infrastructure to support fundraising 11
  • Dispelling the Myths • ―We can‘t afford to implement a development program.‖ • Yes, you can! The proof is tangible • Identify, Inform, Involve and Ask for Investment • Development programs will vary as ministries vary • Dioceses cannot fund most ministry at the level necessary for exceptional ministry; other revenue is essential • Consider the injustice in NOT making an investment in development programs! 12 12
  • Dispelling the Myths • ―Asking for money is a difficult job.‖ – Development is MINISTRY— it is offering people an opportunity to be involved in the work of the Church – It brings Christ to people and people to Christ • ―People support many projects; they won‘t be interested in ours.‖ – Find out what excites a prospect and ask them to respond – The donor‘s need to give is always greater than the institution‘s need to receive. 13
  • What is Philanthropy? Philanthropy is a fulfilling, relationship- based process through which the needs of both benefactors and beneficiaries are identified and satisfied, because action is taken to effect positive change for an organization‘s mission and the good of a community. 14
  • The Ministry of Development • Effective fund development programs are essential to the long-term success of effective ministry • Traditional church financial models do not apply to all situations & organizations • We are dedicated to enhancing the Church‘s commitment to Catholic organizations 15
  • Catholic Philanthropy is… Requires those who ask for money & those who give money to shift how A Call to they see, think and Conversion act… • About money • About the poor • About the rich • About vocation & one‘s purpose in life 16
  • Catholic Philanthropy has… ―When those with money and those who need money share a mission, we see a A Common central sign of new life in the Spirit of Jesus Christ. Vision We belong together in our work because Jesus has & brought us together, and our fruitfulness depends on Mission staying connected with him.‖ -Henri J.M. Nouwen The Spirituality of Fundraising 17 17
  • Catholic Philanthropy is… ― ‗The Church's love for the poor . . . is a part of her Rooted in constant tradition.‘ This love is inspired by the Scripture Gospel of the Beatitudes, of the poverty & of Jesus, and of his concern for the poor. Love for the poor is even Tradition one of the motives for the duty of working so as to ‗be able to give to those in need.‘‖ Catechism of the Catholic Church, #2444 18 18
  • Catholic Philanthropy is … • Trust • Individuality About • Commonality • Freedom Relationships • Prayer • Friendship • Gratitude • Love for God & others 19 19
  • Catholic Philanthropy is NOT… • Begging – ―Tin-cup mentality‖ • About giving to ―charity‖ • Something to dismiss or avoid 20
  • Successful Fund Raising is… The right person asking the right prospect for the right gift for the right program at the right time in the right way. 21
  • Donor Cycle Stewardship Identification Donor Cycle Solicitation Qualification Cultivation 22
  • How do we know this process will work? Because it has been done! 23
  • Catholic Center at Duke University Durham, North Carolina 24
  • Accomplishments 2004 2008 • Operating Budget of • Operating Budget of $225,000 $800,000+ • Minimal Staff • 4 Staff Members including • Many Student Leaders an Associate Director • Office in the Basement • $1 million+ addition of office • Pizza & Mass Ministry and chapel • Chair of Catholic Theology at Duke Divinity School • Expanded student ministry 25
  • St. Thomas More Catholic Newman Center Minnesota State University, Mankato 26
  • A Success Story • Increased annual operating Operations Budget budget by over 2,000% 1st Year of Petrus Service • Doubled Professional Staff the first year of service $248,000 • Quadrupled Professional Staff the second year of service • Renovated current facility Under • Expanded student ministry $10,000 & involvement FY '08 FY '09 27 27
  • Qualities of a Successful Ministry • Commitment and investment in a sustainable fund development program • Development Director dedicated to fund development • A percentage of the Director‘s time allocated to the work of development • Commitment to face-to-face visits with benefactors 28
  • Questions 29
  • Petrus Model for Sustainable Development
  • • Case – Mission/Vision/Goals of the Organization – Strategic plan Operational plan Development plan – The Case for Support • Leadership • Plan
  • A Strategic/Pastoral Plan • It is essential to provide a foundation for development with a vision, mission and strategy – Vision and mission provide the destination and direction – Strategy provides the road map – Know your goals for the upcoming year & the next five years 32
  • A Strategic/Pastoral Plan • Develop a written pastoral plan that: – Creates an idealized picture of the future of your organization. • If you could be the best ___ on the planet, what would that look like? – Reflects your organization‘s reason for existence and aspirations for its future. – Assesses the organization 33
  • Questions to Ask Yourself • Internal: Why do we exist? What does the Church need from us? What are our core values? What do students need from us? • External Why should donors favor our organization over others? Why should someone invest time or money in our organization? 34
  • A Strategic/Pastoral Plan • If you don‘t have a written long-range plan with well defined mission, vision and strategies then find a qualified consultant or volunteer to help guide you though a strategic planning process. • If you are asking people to invest in your vision they must see benefit and value to it. A written plan provides a roadmap for staff and volunteers and credibility for donors. 35
  • Break
  • Development Truth The ability of an organization to secure philanthropic support will be ultimately and directly related to that organization‘s ability to articulate a compelling, powerful, promising, realistic vision which rings true with people‘s reason, and – more importantly – which stirs their hearts. -Tim Burchill 37
  • The Case for Support Case n. the reasons why an organization both needs and merits philanthropic support, usually by outlining the organization‘s programs, current needs, and plans. AFP, Fund Raising Dictionary 38
  • The Case for Support ―The case is an expression of the cause, or a clear, compelling statement of all of the reasons why anyone should consider making a contribution in support of or to advance the cause‖ Harold J. Seymour Designs for Fund-Raising 39
  • Purpose of the Case • To communicate the aim, purpose and mission of the organization or institution • Present the case for current programs • Show how new programs will enrich and benefit lives of many in society • Dramatically demonstrate how an organization has had an impact on the community - economically, socially, artistically, spiritually, and/or historically for today and tomorrow 40
  • Potential Benefactors Want to Know… • Who are you? • Why do you exist? • What is distinctive about you? • What is it that you want to accomplish? • How do you intend to accomplish it? • How will you hold yourself accountable? 41
  • Two Major Case Elements 1. Case Resources – Internal documents used to compile the case statement – Provides background information on anything a potential benefactor may want to know about an organization 2. Case Expressions – Distill information from the case resources to foster understanding of the organization within the community 42
  • Case Resources • Mission Statement • Goals • Objectives • Programs and Services • Governance • Staffing • Facilities and Infrastructure • Finances • Organizational Planning, Development & Evaluation • History 43
  • Case Expressions • Brochures • Foundation Proposals • Appeal Letters • Capital Campaign prospectuses • News releases • Newsletter articles • Web site • Presentations to community organizations • Face to Face visits for cultivation and solicitation 44
  • Questions to Ask During Case Preparation 1. What is the problem or need that is central to our concern? 2. What specific service or program do we offer to respond to that need? 3. How do the components of our organization – staffing, facilities, technology, planning – contribute to our programs? 4. Why are the problem and service important? 5. Are others doing what we are doing? Are they doing it better? Are we duplicating services? 45
  • Questions to Ask During Preparation 6. Do we have a written plan with mission statement and objectives for our programs? Is it current? 7. What are the needs for financial support? 8. Is the organization competent to carry out the mission? 9. Who are the people associated with the organization? Staff? Board Members? Volunteers? 10. Who should support the organization and why? What are the benefits for a benefactor? 46
  • Quality Written Case Expressions • Capture your  Have a sense of attention & interest relevance • Instill confidence  Move others towards • Communicate a the future sense of conviction  Encourage immediacy • Spur desire for  Foster excitement support  Communicate importance • Call others to action 47 47
  • Successful Verbal Case Expressions • Personal • Passionate • Genuine • Enthusiastic and Animated • Tell Stories • Sell the Vision 48
  • Preparing the Case • The development staff is responsible for gathering and generating information from all program and administrative sources. • Input comes from key individuals such as board members, administrators, staff, key volunteers and constituents • Use professional services especially in the areas of copywriting, graphic design and printing. 49
  • Exercise Directions: • Using the questions above as a starting point, write an outline for your case statement. 50
  • • Case • Leadership • Ministry/Staff Leadership • Boards/Leadership Councils • Engaging Leadership • Plan
  • Involvement of Key Ministry Leaders • Executive Leadership – Pastor or Principal • Ministry Director • Development Director • Ministry Staff • Parish Council/School Board/Advisory Board • Benefactors, Friends, Community Members 52
  • Share the Load • People are our greatest resource • It‘s the Church’s ministry • Never enough staff—but God has all the people necessary to do the job • Engage the Church—the Catholic way— establish a Leadership Council 53
  • A Leadership Council A team of committed, competent people established to advise and support the director and staff to advance the mission of the organization. 54
  • Benefits • Provides wisdom & strength • Perspective • Continuity of corporate ownership • Accountability for deadlines & programs • Provides credibility • Culture of Excellence 55
  • Engaging a Leadership Council • Many people care as much as we do • People want to participate in our mission, but only can if we provide: – An invitation – A vehicle • Council members cannot work full time as we do, but they bring experience, perspective, skill & resources staff does not have 56
  • Rise to the Occasion Find the very best people—folks who are outstanding, creative and assertive, who will challenge you Your mission is too important to compromise. 57
  • Think BIG • The first people who come to mind are not always the most helpful; why limit ourselves to obvious resources? • The best way to do our work is not obvious or easy—otherwise we would not need assistance • Who are the very best people to advise and assist with ministry? 58
  • Leadership Council can help • Reach others who support our mission & build support • Involve talented people with experience & skills we could not afford • Influence when well-connected, respected by others • Raise Money for organizations who are understood & respected. Successful non-profits have board members who contribute financially to their mission 59
  • Who Can Best Serve? • Successful people – The best in what they do; at the top of their game • Creative people – Think outside the box and challenge you • Committed people – Generous with their time and money • People of faith • People passionate about your mission • Diverse people – Who reflect the whole Church & don‘t think alike 60
  • Practical Matters • Frequency of meetings: 2 – 4 council meetings per year • Transparency • Accountability • Regular Communication • Ownership • Scope of Responsibility / Authority • Sub-Committees 61
  • Council Meeting Agenda • Include prayer at meetings • Listen First - Members (not staff) do the talking • Have goal for each meeting • Include presentations to keep mission focused & to convey emotion; give a face to your ministry • Keep good minutes—distribute in timely manner • Provide social time to build sense of community 62
  • Nurturing the Council • Role of Pastor/President • Development Director‘s role • Term of Service / recognition • Keep Council informed and engaged between meetings • Plan productive meetings, with agenda distributed in advance 63
  • What the Council needs from Staff • Focused presentation of the needs – Don‘t just present problems; offer solution ideas for their modification or approval; don‘t get bogged down with details • Be clear about how council can help • Transparency and communication – Secrets are not helpful or respectful – Be positive, but don‘t just present good news • Results – Council members want to know they are making a difference 64
  • Advice alone is not helpful • When only advice is given, work will be harder & more overwhelming • Council members who are engaged & take ownership are critical – Council is not about helping to solve the pastor‘s/principal‘s problems; it is working together to serve the Church to advance the mission of Jesus • Roles are different, but the commitment is the same 65
  • What is Not Needed • More work for me instead of helping me to succeed • Micromanagement or interference – Policy & Direction, not day-to-day details • People who are not available & engaged • Group that is too alike & agreeable; rubber stamp, passive group that applauds every proposal 66
  • Council Members Can Help • Provide advice & support to Pastor/Principal & Staff • Represent the Ministry to other people of influence and means • Contribute money, raise money & introduce you to other donors • Share responsibility and ownership • Challenge staff to take risks, be prudent • Use their influence to advance the mission 67
  • Exercise • Write down 5-10 names of people who would be the best Leadership Council members for your organization. Think big! Go get ‗em. 68
  • Enjoy Lunch! We’ll resume in 45 minutes
  • • Case • Leadership • Plan • Components of an Annual Giving Plan • Asking for Gifts Face-to-Face
  • Annual Giving Plans May Include: • Marketing and • Parish Offertory Communications Support / Stewardship • Direct Mail • Grant Writing • Electronic Giving • Phone-a-Thon • Special Events • Face-to-Face Visits 71
  • Common Challenges • So many moving parts – where do you start? • Budget your time for asking • Make asking part of the organizational culture • Make the invitation personal – Tell the story – Invite participation in the mission through a financial gift 72
  • Concentric Circles of Giving Hank Rosso, Achieving Excellence in Fundraising 73
  • Planned Enabling Giving Gifts Major Giving Size of Gift Consistent Donors Sustaining First Renewal Gift Donors Gifts First Time Givers Universe of Prospective Donors Number of People 74
  • Donor Pyramid of Planned Gift Donor - Fund raising Strategies Personal contact only Source: The Fund Raising School, 2007 Ladder of Development Effectiveness Capital Donor - Personal contact only Special or Major Gift Donor - Personal contact, letter or phone call Renewed or Upgraded Donor - Personal contact, letter, or phone call First-Time Donor - Direct mail, telemarketing, fund raising benefit, Internet, media, or door-to-door contact Universe of Prospects 75
  • Your Message Here Marketing & Communications 76
  • Marketing & Communications • What message do you want to communicate? • Who are your audiences? – Students, parents, alumni? • What methods will you use to get your message out? – Newsletters, direct mail, website, e- mail, posters, facebook, twitter etc. • What is the response you hope to receive? 77
  • Marketing & Communications • Develop a written communication plan that includes a specific plan for how and when you will communicate to each stakeholder group • Create an annual calendar for communications • Communication must be timely, personal and concise. • Must garner a response and/or drive people to your website • Always communicate your key messages (from your case statement),include photos and stories 78
  • eGiving 79
  • Monthly e-Giving Programs • Asking can be expensive • Automatic monthly debits are the norm • Regular giving is a great cultivation tool • Great major gift prospects 80
  • Example of eGiving Success St. Mary‘s Catholic Center, College Station, Texas • Living Faith Program began in 1999 • Average net increase of 36.5 people in first 9 years • 575 new eGiving donors since 2000 • 402 donors currently giving • 69 donors giving for at least 7 years • Successful class gift program 81
  • St. Mary‘s Catholic Center 120 100 80 60 40 20 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 Total New Currently Giving 82
  • What Could eGiving do For You 10,000 Names in Database x 10% Yearly target of new eGiving Donors 1,000 Monthly eGiving Donors x $35 Average monthly giving amount $35,000 Monthly income generated through eGiving x 12 Months $420,000 Yearly income generated through eGiving 83
  • Benefits to a Small Non- Profit Endowment Earnings eGiving $1,000,000 120 eGiving Donors x 5% Interest Rate x $35 Avg. monthly gift $50,000 Income 4,200 Monthly Income Earned x 12 Months per year $50,400 Yearly Income 84 84
  • Direct Mail Appeals 85
  • Not Junk Mail! • Communicate your mission • Personalize your message • Return on Investment • Numbers (results) can‘t hide! • Your competitors are doing it • Operating Income • Building your asset for other fundraising programs (wills, bequest, major gifts) 86
  • Active vs. Acquisition • Active – Monthly, or semi monthly mailings are a source of NET income & sharing of your mission • Acquisition – Investment in acquiring a new donor involves inviting new donor to support and become part of your mission 87
  • Keys to Successful Program • Creative: copy, graphics, technique • Production Quality: print, mail house, USPS • Data and Lists: your donor file, rental lists (or exchange) • Analysis: CPDR, response rates, NET income 88
  • Creative • A world-class skier and Olympic hopeful flies downhill at breakneck speed, winning a key World Cup race to the delight of teammates, coaches and fans. • Pope John Paul II asks that a Center be established to promote evangelization: today his legacy is carried out by the Pope John Paul II Cultural Center. • The 41st President of the United States, George H.W. Bush, introduces a panel of leading policy experts during an issues forum at his Presidential Library. • A young attorney, blind since birth, makes his way through a busy crosswalk on his way to an important meeting with a client. Brimming with confidence and independence, the young man is guided by his specially bred, carefully trained Seeing Eye dog. 89
  • Production • Schedule • Package Specifications/Technique • Methodical, detailed approach to production management approach = minimal mistakes, meeting mail dates, and maintaining mail plan schedule. 90
  • Develop a Mail Plan Long-term schedule of appeals, projected mail quantity, expense and income Maps out different types of appeals you send over the year Enables you to ―mail‖ smarter 91
  • Benchmark Housefile Results Cost Per Dollar Raised (CPDR) Goal of $.20 Response Rates Goal of 6%+ Donor Retention Goal of 50% Maintain Mailing by Mailing Results summaries 92
  • Benchmark Prospect Results Cost Per Dollar Raised (CPDR) Goal of $1.50 Cost to Acquire a Donor Goal of $10.00 Lifetime Value break even by year 3 93
  • Donor File & Data Do you know where your donors fall in terms of ―recency‖ and gift average Dollar asks: $50 donor, don‘t ask for $10, base on HPC Best donors = donor‘s who just gave Is your data clean? NCOA? 94
  • Is Direct Mail for Your Organization? • No money, no mission • Established constituency • Remind, thank, acknowledge • Offer eGiving as gift option • Stay the course, even during recession 95
  • Writing a Direct Mail Letter • Keep it simple! • Short sentences, white space, brief paragraphs, easy to read, pictures, bold sentences… • Shorter is not necessarily better • Package: – A personalized letter – Return envelope with an attached response card – Outside envelope 96
  • Writing a Direct Mail Letter Appeal letter • Ask for help from a professional writer • Make sure you ask for a specific gift amount • Always use a P.S. • Use inspiring quote or tell a story • Use 4 color or at least 2 color ink & add a photo 97
  • Exercise • Write a direct mail letter that you could send this spring. 98
  • Break 99
  • Face to Face Visits 100
  • Face-to-Face Visits • Key to any relationship building process • Major gift fundraising is like a dating relationship • Creating meaningful relationships will lead to long-term sustainability – people become invested in your success 101
  • Face-to-Visits • Discovery – Personal meeting made for the first time – ‗Discover‘ whether their motivations for giving align with your organization‘s mission and needs. – Usually a cold call or referral – Can include the request for a gift 102
  • Face-to-Visits • Cultivation –Personal meeting to advance the relationship –Deepens the relationship –Moves a person toward a gift –Can include the request for a gift 103
  • Face-to-Visits • Solicitation – Personal meeting to request a gift – Fundraiser (staff or volunteer) asks for a specific gift • Specific program • Specific project • Specific fund for undesignated use 104
  • Face-to-Visits • Stewardship –Personal meeting to thank a benefactor –Acknowledge a gift –Reports return on investment –Cultivate future giving –Can include the request for a gift 105
  • Make an Ask ―The most valuable gift to a non-profit organization is a non-designated gift.‖ Frank Shannon 106
  • Support Your Case 10. Dress for Success 9. Pray before the meeting 8. Have faith 7. Act Competent 6. Demonstrate Professionalism 107
  • Support Your Case 5. Put yourself in their shoes 4. Know your case inside and out 3. Two ears, one mouth 2. Listen… hear… 1. Have fun! 108
  • Value of Major Gifts • Larger gifts often: • Historical givers are the best – Set the pace for giving candidates for future gifts – Inspire confidence • People give because they are – Build leadership asked to give – Give credibility • Benefactors respond to specific requests & peer – Create momentum solicitation – Insure Success in • Be enthusiastic and persistent Reaching the Goal - Don‘t be apologetic 109109
  • Why Do Major Gifts Matter? Major Gifts Offer Best Return On Investment! Activity Return on Investment • Direct Mail $.14 • Special Events $.50 • Capital Campaigns $.70 - $.90 • Major Gifts $.80 - $.95 110
  • St. Lawrence Catholic Campus Center Development Revenue & Expenses Ratio Revenue Expenses (7/1/96 – 6/30/03) (Exp/Rev) Individual Solicitation $ 11,372,625 $ 1,841,226 * 16.2% Sunday Offering $ 2,016,913 $ 10,770 0.5% Grant Writing/Foundations $ 2,829,593 $ 78,460 2.8% Special Events $ 919,933 $ 507,368 55.2% Phonathon $ 592,140 $ 107,249 18.1% Mail Appeals $ 389,266 $ 107,665 27.7% Misc. $ 12,750 $ 18,133,220 $ 2,652,738 14.6% 111
  • Attitude & Consciousness • Acceptance that development is truly a ministry that carries Christ to people and people to Christ. • Goal is developing people through their involvement and investment. • Who is doing the greatest service? The benefactor‘s faith-need to give is greater that the institution‘s need to receive. 112
  • Principals of Major Gifts 1. The Pastor or Principal – Makes the Decision – Sells the Decision 2. Your story is about people, not money 3. Similar cases are not similar – Presentation counts 4. The State of the economy isn‘t the problem – Not asking enough people is the problem 113
  • Roadblocks to Success • Procrastination • An apologetic approach • Not making the visit • Fear 114
  • What is Cultivation? Cultivation is the process of developing a more meaningful relationship between the prospective benefactor and the organization seeking financial support. 115
  • What is Cultivation? Cultivation seeks to: • Learn about the benefactor • Learn about capacity to give • Involve donors with ministry/programs in the past, present, planned involvement in the future • Other Philanthropic support • Clarify his/her understanding of the big picture of your program 116
  • Cultivation takes time • Cultivation is intended to bring people closer to your ministry • People give to People 117
  • Discovery & Cultivation Calls • Develop the relationship • Develop rapport • Share personal stories of why you are involved • Share personal information about family, friends, etc • Find out about their family, friends, business/profession, etc 118
  • Discovery & Cultivation Calls • Listening is more important than talking • Discovery and Cultivation calls should always involve more questions answered by the prospective benefactors than by the staff member – What motivates the benefactor? – What does the benefactor want? – Think like the benefactor…put yourself in his or her shoes 119
  • Steps to a Visit 1. Phone call to request visit 2. Research: Getting to know your prospective benefactor 3. Preparation including a script with who says what & potential objections 4. Visit 5. Thank you 6. Follow-up Action Plan 120
  • Prospect Research • Research Major Gift • Network programs with Prospects major gift prospects – Past Giving History – Peak interest of – Wealth Indicators benefactors with gift – Profiling options that are near and • Research relationships dear to them, e.g., music program or retreats – Key volunteers, Church hierarchy, University officials, etc. – Who could be helpful on a solicitation and who plays what role? 121121
  • Set the Appointment • Introduce yourself • State that you are calling on behalf of from ministry • Don‘t discuss the case over the phone • Be honest about time requested – 30 to 45 minutes 122
  • Five Parts to a Successful Visit 1. Casual conversation- ―small talk‖ 2. Present need and case for the ministry – Be inspirational and enthusiastic 3. Request the specific gift – Trial Close 4. Listen and handle prospect‘s response 5. Follow-up and closure 123
  • Small Talk It is all Relationship-building! – Get to know more about the REMEMBER person … you know – Be yourself more about – Ask about family, connection to this than they do ministry, business, etc. – Take note of home or office furnishings and photos 124
  • Present the Need • Explain exciting things going on with your ministry • Recount stories of how individuals have been impacted by the ministry • Cite numbers that show growth and opportunity • Mention how others are being formed in their faith • Describe the vision for the future of the ministry 125
  • Make the Request • Let the prospect know that continued financial support is crucial to continue ministry and elevate it to the next level • Be confident • Expect success • REQUEST A SPECIFIC AMOUNT !!!!!!! 126
  • Make the Request I Made the Request! Now what? 127
  • Wait for It! Until this point you controlled the agenda, now it is time for you to sit back and LISTEN! “He who speaks first loses.” Ancient Christian Development Proverb 128
  • Anticipate Four Responses 1. Yes! 2. No – 10% of the time – 5% of the time – Thank them! – Ask Why – Complete the letter of • Is there something they intent don‘t understand? ―Always Leave Open the • Is this an informational Possibility of a Gift in the meeting? Future.‖ Second Ancient Christian Development Proverb 129129
  • Anticipate Four Responses 3. Offer a Lesser Amount 4. Need time to think it over – 15% of the time – 70% of the time – Graciously accept best possible gift – That‘s Great! – If you think they can do – Schedule a follow up better, defer a decision call in 5-7 days & follow up in 5-7 days 130130
  • Scheduling the Follow Up • Schedule a specific date to call ―I will call you next Thursday or Friday. Which is better for you?‖ • NEVER leave it with ―Call me when you decide!‖ 131
  • Say Thank You ―On behalf of our ministry, thank you for your time and your prayers for our success.‖ 132
  • Why Gift Invitations Succeed • Top Priority and • Peer Solicitation Sense of Urgency • Time Table Followed • Plan Followed • Sights Kept High • Solicitors Make Gifts First • Personal Passion for the Cause • Compelling Case 133133
  • Strategy for Success • Be Bold • Have Faith • Ask!! 134
  • Absolutes for Visits • Have a set agenda • Communicate your need • Dialogue, not monologue • Ask relevant questions • The more the prospective benefactor talks, the more they sell themselves on your ministry 135
  • Caution • Undefined purpose • Overstated emotionalism • The pleading of needs • Misunderstanding what motivates a prospect • Vague plans • Unsubstantiated grand claims 136
  • Exercise • Major Gift Solicitation 137
  • We‘ve Covered A Lot! • Case • Mission/Vision/Goals of the Organization • Strategic / Pastoral Plan • The Case for Support • Leadership • Ministry and Staff Leadership • Leadership Councils • Engaging Leadership • Plan • Components of an Annual Plan • Asking for Gifts Face-to-Face 138
  • Thank you! Peter de Keratry pdekeratry@petrusdevelopment.com Mary Macuga mmacuga@petrusdevelopment.com Petrus Development, LLC 1150 Lakeway Drive, Suite 206 • Austin, Texas 78734 www.petrusdevelopment.com 139