Raising money from High Net
      Worth Individuals
         Simon Burne
         August 2010
• Major donor fundraising is just as much about
  the donor as it is the project
• You don’t need bricks and mortar
• Peop...
• More professionals and fewer volunteers
• Increasingly volunteers cultivate &
  professionals ‘close’
• Higher expectati...
Challenges             Good News
• Multi-year pledge       • Still giving
  reluctance              • Relationships and
• ...
Seven Step Strategy
Seven Step Strategy PLUS
                                             Leadership
                                         ...
Some rules of thumb

• Ten suspects will yield one prospect
• Seven prospects will yield one gift
• 50% of major donors wi...
How many donors do I need??


Gift Size   Number       Value
            Donors
£5m                  1    £5m
£3m         ...
How many donors do I need??
Assumptions
Prospect Conversion                    8 to 1
External Conversion                 ...
Critical success factors

• Powerful Case for Support – just what do you
  want the money for?
• Excellent research
• Exce...
Finding your prospects
Developing a Prospect Hypothesis
• Describe the sorts of people who:
  • Have the right levels of wealth
  • Have evidence...
Researching your prospects

• Start with your database – they already love
  you!
• Use research companies or employ a
  r...
Cultivation

• How to meet them?
   • Go where they go
   • Hold an event they would like
   • Use celebrities
   • Ask fo...
Cultivation

• Assign a staff member to each MD
• Provide them with the information they ask
  for
• Invite them to a proj...
The ask

•   Many volunteers hate this
•   Best done by a professional
•   Know the right level of ask
•   If in doubt, as...
Follow up

•   Thank
•   Inform
•   Involve
•   Report
•   Surprise
•   Celebrate
What is leadership?

• Wealthy donors influencing other wealthy
  people to give
• Wealthy donors who will use their netwo...
Secrets of a Leadership Forum

•   Excellent Chair who has made a big gift
•   Clarity of purpose
•   Clarity of targets
•...
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Raising Money From High Net Worth Individuals

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Raising Money From High Net Worth Individuals

  1. 1. Raising money from High Net Worth Individuals Simon Burne August 2010
  2. 2. • Major donor fundraising is just as much about the donor as it is the project • You don’t need bricks and mortar • People make this more complicated than it needs to be! • Knowing what to do; deciding what to do; being disciplined = success! • 7 Steps & Moves management are all you need.
  3. 3. • More professionals and fewer volunteers • Increasingly volunteers cultivate & professionals ‘close’ • Higher expectations • Doing more with less • Involved in higher solicitations
  4. 4. Challenges Good News • Multi-year pledge • Still giving reluctance • Relationships and • Economic environment Leadership counts uncertainty • Stewardship is key • Foundations stretched • Trust and confidence in • Corporations dropping your organisation is key out • More potential donors • Everyone is doing it!
  5. 5. Seven Step Strategy
  6. 6. Seven Step Strategy PLUS Leadership Role 1. 2. 3. Discover Research Introduce 5. Ask Suspects Prospects 7. Maintain 6. Thank
  7. 7. Some rules of thumb • Ten suspects will yield one prospect • Seven prospects will yield one gift • 50% of major donors will give again
  8. 8. How many donors do I need?? Gift Size Number Value Donors £5m 1 £5m £3m 2 £6m £2m 4 £8m £1m 6 £6m £100k- £1m 20 £5m Total 33 £33m
  9. 9. How many donors do I need?? Assumptions Prospect Conversion 8 to 1 External Conversion 25 to 1 Prospect Research Wealth Band Matches Conversion Gift Level Total £50m+ 2 0 500,000 125,000 £25-50m 6 1 250,000 187,500 £10-25m 10 1 100,000 125,000 £5-10m 112 14 50,000 700,000 £1-5m 768 96 10,000 960,000 Influential 355 44 10,000 443,750 Total 1253 157 2,541,250
  10. 10. Critical success factors • Powerful Case for Support – just what do you want the money for? • Excellent research • Excellent cultivation • Making the ask • Loving your donors • Asking again
  11. 11. Finding your prospects
  12. 12. Developing a Prospect Hypothesis • Describe the sorts of people who: • Have the right levels of wealth • Have evidence of philanthropy • Have some connection to the cause • Are active in fields other than their work • Have business interests whose brands fit with you
  13. 13. Researching your prospects • Start with your database – they already love you! • Use research companies or employ a researcher • Use all published information • As names come up, ask your trustees and existing supporters if they know them
  14. 14. Cultivation • How to meet them? • Go where they go • Hold an event they would like • Use celebrities • Ask for a meeting • Events • Staff well • Brief and debrief fully
  15. 15. Cultivation • Assign a staff member to each MD • Provide them with the information they ask for • Invite them to a project visit • If they come, you’ve got them!
  16. 16. The ask • Many volunteers hate this • Best done by a professional • Know the right level of ask • If in doubt, ask them
  17. 17. Follow up • Thank • Inform • Involve • Report • Surprise • Celebrate
  18. 18. What is leadership? • Wealthy donors influencing other wealthy people to give • Wealthy donors who will use their networks • People will follow leaders – lead gifts are critical • Big donors will push average gifts up – small donors will push average gifts down
  19. 19. Secrets of a Leadership Forum • Excellent Chair who has made a big gift • Clarity of purpose • Clarity of targets • Time limited • High-powered • Exclusive

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