Microsoft Word How To Ask For Money 1.0

487 views

Published on

being able to bring in the money at what you do is key!

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
487
On SlideShare
0
From Embeds
0
Number of Embeds
11
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Microsoft Word How To Ask For Money 1.0

  1. 1. Chamber Enhancement Group & Association Development Solutions Presents The Art and Science of Asking for Money, and G et t i n g i t ! “Chamber & Association Success through Leadership and Staff Enhancement” November 2009 White Paper By Randy E. King Pres/CEO 1
  2. 2. GETTING MONEY IS EASY, JUST ASK! AND BRING LOTS OF ROI.. The most difficult job CEO’s of Chambers, Associations and Non- profits have, is to ask for money! The other difficulties CEO’s have is: “How do we do a better job of asking for and raising more money?” After twenty – three years the ‘song remains the same’. I first entered the world of raising money with a large non-profit at twenty-five years of age. It was the best training anyone could have. It was always how, “Much money are you going to bring us?” Tom Donahue the current president of the US Chamber of Commerce, would always start our conversations with, “How’s the money?” Today that training has served me well. Peter Drucker once said, “Business should study successful Non- profits.” As President and CEO of several performance Enhancement Companies, I teach the Chamber of Commerce/Association and Non-profit world how to do a better job of raising money. If you master this area all your programs and projects get completed; and that leads to more money. In membership organizations if you have the members you can get the money, and if you have the money you can develop programs that will bring in the members. When I lecture and consult around the country I am amazed how the money challenge always comes up. ..The money will always be there for the ones that can get it. YOU MUST FIRST BELIEVE IN WHAT YOU DO AND KNOW WHAT YOU DO You first have to believe in what it is that you are asking for. To start with, the biggest question that I ask is, ‘what is the Organizational Value (OV) to the person that you asking the investment or money from.’ The value 2
  3. 3. must be on the same level, if not more than the dollar amount you are asking for Always remember a rule that I have taught for years and truly believe myself. “Chase the mission and the dollars will come.”In other words, constantly talk about what the organization can do for them! Constant high value proposition statements. P.A.R.M.- - Prepare; Make a contribution yourself so you know what it feels like (good!), so you understand the psychology of giving, and so that you have more credibility when asking. Practice your presentation to make yourself more comfortable. If it’s not someone you already know well, do a little research (or ask staff to) to get a sense of the potential donor’s giving ability and proclivities. Make sure staff knows who you intend to ask, so we don’t overwhelm any one donor with multiple requests, or ask someone who just gave. Set goals for you and your Chamber or Association, and set aside time to do this. -Ask; in person, if possible. Bring materials, such as brochures, flyers, newspaper clippings about your Chamber or Association etc. -Relax; establish rapport with your “prospect”—a person you think might gave your Chamber of Commerce or Association money. Talk about common interests and ask what the prospect knows about why you are doing this project. - Make; sure they know the basics. Mention your Chamber or Association’s name and your Chamber or Associations’ name many times. If you use an acronym, say it and the full name. 3
  4. 4. Understanding why people give and businesses give is a key to understanding the “show me the money” In an article by Charles Bartling CAE, The Psychology of asking and Giving, points out 13 points of understanding: 1. People give because they feel they have an obligation to pay back their profession, their community, their school, or society in general 2. Much of philanthropy is in the genes of the giver. 3. Corporate giving is different than individual giving. 4. The quality of the organization's management is a significant factor in making the gift decision 5. The solution is a more powerful motivator than the need. 6. Fund-raising is really friend-raising. 7. The attitude of the ask will result in the quantity of the gift. 8. Maintain optimism in your approach, but reinforce the good that will come from the gift. 9. You can never embarrass a potential donor by asking for too much. You can only embarrass him or her by asking for too little. 10. When asking for money, it's as important to listen as it is to talk. 11. Find a champion to set the bar. 12. Say "thank you" again and again. 13. The most important motivator of them all is . . . The final and perhaps the most important lesson… There is perhaps nothing as satisfying to an individual as knowing that he or she made a difference in someone else's life. 4
  5. 5. PLACING A MONENTARY VALUE ON WHAT YOU DO I am asked many times how do we place a value (Price) on what it is that we are asking for. When the Price isn’t Right….Andrew Lang 1. While the association's goal is to fulfill its mission and serve its members, to do this well in the long run requires that we avoid under pricing and that we make profits where we can. 2. It is always best to set prices after some input is given by those outside of the department responsible for creating the product. 3. It is essential to know the full cost of a product before you begin to set a price for it. 4. Never price a product without knowing what the market is paying for similar products. 5. The more important the potential revenue stream, the more thorough the testing of potential pricing should be. 6. Be sensitive to buyers' perceptions of the price you are considering. To what extent can you raise it without changing that perception? 7. Work to identify all your premium products and be sure to price them accordingly. 8. Nonmember prices should always encourage non-members to become members. 9. Think in terms of the actual dollar value to the purchaser when setting or revising discounts. 10. It is important to review your pricing annually. If a product has strong demand, raise the price. If a product is selling poorly, consider discounts. 11. Remember not to "jar" your marketplace when raising prices or reducing discounts. Move in steps when necessary. 5
  6. 6. Relevancy Test-I..Q../E..Q.. Relevancy Test-I Q /E Q Chambers / Associations,, Non-Profits Chambers / Associations Non-Profits Peak Performance Profits Peak Performance Effort (x) Customer Contact = ? % (4/100/?) /?) (4/100 O. V . C/M&M 1 to 10 1 to 10 The Relevancy test, diagram (I) is truly the foundation of the ability to ask for money effectively. O.V. - Organizational Value C. - Communication M. - Message M. - Messenger 6
  7. 7. THE POINTS TO IMPORTANCE Before anything else will work we first have to establish a few points of importance. I was at a major Association conference as one of the guest speakers. My first test question that I love to place in my audiences’ hands is: If we had 4 hours to give our entire story as to why they should join; or give; or sponsor; to 100 non-members/decision makers, or someone that has never heard of what we are doing, how many of those 100 would say YES; “Here is my money.” You would be amazed at the answers. One CEO said; “Probably less than 20%”. This is where the problems are. Give me those same 100 and I promise you that I would capture over 70% of the money! Here is how the above test works (diagram (I): The O.V. (Organizational Value), it’s a simple rule; strong O.V. will equal strong dues and non-dues revenue. So you have to look down deep and ask the big question, on a scale of 1 to 10, how much value do we bring the end user?(our business community) If we are asking for money on a certain project, does this project tie into the persons ‘yes’ side of their brain? 7
  8. 8. HAVE CLARITY AS TO WHAT YOUR VALUE IS TO YOUR BUSINESS COMMUNITY I have run into many Chamber CEO’s that have a hard time understanding what their value is to the business community. When I run into this, I have a “Discovering the Value in My Organization Workshop”. Line by line we outline the items their organization has to offer its customers (members in this case). After the so called ‘audit’, we then place a value (direct or indirect), on each item. At all times, the R.O.I. ratio should be as high as 10 to 1. In other words for every dollar the business or person gives, their return benefit should be ten- fold. In one of my educational CD’s, “Join – Stay & Pay, I go into detail about this. In the present time and for a very long time to come, (for that matter this has not changed) businesses are demanding more R.O.I. for their chamber bucks! Being able to clearly articulate and demonstrate the value of their local chamber membership and sponsorship programs will be the survival of your Chamber of Commerce. I truly believe that if your chamber conducted a 4 hour non-member orientation on what the value of their membership would bring to their business and the overall community, 70% to 80% would join. That is the good news! Here is the bad news: You don’t have 4 hours to conduct the orientation. You rely on referrals, volunteers, a sales force and your reputation as a chamber (Your branding), having clarity on what it is you do and the “call to action” is very important when it comes to bringing in members, and retaining the ones that you have. 8
  9. 9. MAKE SURE YOUR MESSAGE AND MESSENGER ARE CLEAR AND CONSISE WITH PASSION AND CONVICTION! Your story had better be crisp and concise. Your chamber marketing pieces that you are showing your member/potential member had better clearly shout: WOW I need to join and stay with this organization! You must have a good story! Who is telling the story and what is being heard and interpreted within that message? Is it congruent with the chambers message? Does it clearly show that the value of membership overrides the dues that you are asking them to invest? Yes, they are investing because they know you will do the right thing with their money. Always remember, it is about the upfront experience that the business owner has with your chamber. After twenty-three years of selling memberships and advertising programs to members and non-members, the questions still remains the same: What have you done for me lately? And what are you going to do for me now? The member and potential member has to hear and see what is taking place within THEIR local chamber. Running your chamber like a business demands; overcoming objections; bringing strong product value to your potential client base; and most importantly, constantly being on the cutting edge of market and product development. Last, but not least, getting your message out to the market 9
  10. 10. place, and letting you community know and understand what it is that you sell and why they should buy. YES, you do sell a product! And part of it is your Passion and a belief structure! Make sure the two are STRONGLY COMMUNICATED!. BUT……DON’T BE AFRAID TO FLEX YOUR CHAMBER’S/ASSOCIATIONS MUSCLES. You cannot be afraid to “Flex Your Muscles” to the business community and show your VALUE to your members and potential members! Business owners are looking for a trusted solution to their business challenges and you are it! When the US Chamber of Commerce went from $75 million to developing a capital campaign and raising $200 million, they accomplished this with a new leader, Tom Donahue was not afraid to tell his potential market place and current customers: “We are worth the money and here is why”, every chance he got, He “Flexed His Muscles”, and the business community stepped up to the plate and gave him what he was after, Members and Money! This is the survival of your chamber/Association. How did Tom Donahue do this: VP’s were required to go out and get the money and ask for big money. The US chamber’s capital campaign was and is a huge success. With over $250 million budget today, Tom was able to push the Value, create more value and communicate the value to the World. Once again the O.V. will bring in the money. 10
  11. 11. KNOW THE COMPELLING REASONS TO MAKE IT EASY TO SAY YES! Clarity in what you do with compelling reasons to say “YES” is do or die. Know the Message! Understanding what, why and how much is key. My last 2 years with the US Chamber I was national Senior Project Leader of the Major Metro Project. I would go out from time to time with a team of 3 and ask for large membership dues. We knew exactly what we needed and why we needed it. Very clear and to the point. And the prospect on the other end of the boardroom table understood the need! Understanding Communication and Conversation 3 parts of communication (by the work of Aristotle) 1. Ethos – character/credibility of the person. 2. Pathos – connecting with the emotions – we tune into them and their needs 3. Logos – factual content 3 elements of conversation 1. Words = 7% they remember the way your said it! 2. Tone of voice = 38% 3. Body language = 57% 11
  12. 12. THE MESSENGER - THE MOST IMPORTANT KEY Now, for some words about the ‘Messenger. You could have great O.V. and unbelievable C (communication) and M (message), but if the Messenger does not communicate well, you will have problems. Tom Donahue’s success is all wrapped up in a great system: Great Organizational Value – Great Communication to the business community – Fantastic Message - and the last key ingredient, GREAT MESSENGER! I have always said, ‘communication rules the world’ and raises money. ‘The truth will set you free’ take a look at these areas and use the Test up top and rank yourself in all areas of your Organizations. COMMUNICATING FOR PROFIT! The 7 Fundamentals of a Perfect Presentation 1. Body Language/Energy Level/Transference of Feeling 2. Rapport 3. Third Party 4. Gain Control 5. Create Need 6. Build Value 7. Assume the Sale 12
  13. 13. The tools that must be included in your script in order to give a Perfect presentations are: * Initial Benefit Statement (IBS) * Show and Tell (if in person) * Reason Why * Gain Control * Create Urgency In my research in the field and on the phone, here are some of the biggest mistakes that I see when asking for the MONEY! They don’t ask They under ask for the MONEY They don’t understand the 3 communication and 3 conversation rules as I discussed earlier. They don’t ask thought provoking questions. They forget it’s about them, not you. They do not have a flexible Money option (game plan). You have to TRAIN the messengers. They don’t do the homework on the potential money giver. Rejection – Rejection – Rejection! Remember, money is not a rejection, it is a condition. 13
  14. 14. GOLDEN RULE: AS LONG AS THERE IS AN AGREEMENT IN CONCEPT, YOU HAVE PERMISSION TO MOVE FORWARD WITH ALTERNATIVES. *Talk about what you have accomplished this year and what you plan on doing. • Listen find out why they do or should care about what you do. • Tell them why you are involved in the project, and why you are investing your time in the project. Share your passion—it’s infectious. Name all the reasons, but focus on the ones you think your prospect values. If you aren’t sure—ask! • Tell the truth. Don’t promise more than you can deliver. • Focus on the cause, and what you can accomplish. • Tell a success story. OBJECTIONS, LEARN TO LOVE THEM! If they have questions or objections, use it as an opportunity to clear up any misconceptions. If you don’t know or don’t have an answer, don’t make things up, but promise to get back to them later. Numbers oriented people may be interested in your financial picture. Be prepared to talk about your budget, where your money has come from in the past (individual donations etc), and who has sponsored or joined to date. People like to get involved with a program that is new, or has momentum, and is likely to succeed. 14
  15. 15. GET THE COMMITMENT NOW! WHY NOT? Ask for their pledge of financial commitment. Once you’ve presented your case and dealt with any objections, it is then time to get a commitment. Don’t be apologetic; if you don’t ask for Dues/ sponsorship contributions, most people will not give them. Explain why a new donation (or an increase) is needed. State and Federal cutbacks, economy is challenging—turns such losses into issues to be solved instead of failures of your Chamber or Association. DON’T PLEAD FOR A “BAIL OUT.” Ask for a specific amount that is high but not outrageous. It’s easier to bargain down than up. Also, according to United Way, “studies have shows that solicitors, who ask for more, get more.” After you ask for the money, say nothing more. Smile, Relax. It’s better to let the silence make them a little uncomfortable than jump in with an excuse that gets them off the hook, or distracts them from their answer. They have the right to say no. You have the right to ask. When you have secured their financial investment/commitment or better yet, their check, thank the person for the important role he or she is playing in meeting the needs of your Chamber or Association and their community. 15
  16. 16. If they pledge “support” but are not specific, ask for a dollar amount. If it is a large amount, ask if they would prefer you to send them an invoice, or pick the check up personally? Thank them again. I recommend that people who give donations should be thanked seven times for each gift/donation. Send an official thank-you for their tax records. Send them updates periodically. If you have a newsletter, be sure they receive it, and that you acknowledge their financial involvement in the newsletter. When you are ready to ask again, you will want to say thanks again for their last financial involvement, and would they consider giving a larger amount. If they say no, thank them for letting you present them your case. Ask why, if it’s not too awkward. Maybe they’d like to be involved in some other way – donate time, or materials – or perhaps the timing is wrong this year, but they’d be interested in the future if you approach them at a different time of year etc. Don’t forget – Say THANK YOU!! Summary How to Ask for Money – building the foundation for the yes! 1. Repeat the name of your organization often. 2. Say your name, the name of your group and your position: "Hello, my name is Joe Jones, Executive Director of the Organization 3. Describe your group's activities and its effectiveness (maximum of five sentences): "The Organization provides training and technical 16
  17. 17. consulting services to nonprofit groups in the areas of leadership development, empowerment, board development, and financial self- sufficiency. Organization works with neighborhood groups, rural organizations, churches, minority constituencies, seniors, and organizations for the disabled. 4. Describe your budget: "It costs $900,000 to operate the Organization for one year." 5. Describe your Financial funding Strategy: "The O receives 70% of its funding budget from workshop and training fees, consultant contracts from our constituencies, and earned income projects. We receive 10% of our funds from state and federal sources Asking for Money - the presentation • Always ask for a specific amount of money. • If the donation is tax-deductible, say so. • Always ask for money for a specific part of your program. • Ask for the dollar amount again. • Try to break down your request into cause and effect terms: "Your $100 contribution will enable us to mail our 300 newsletters." • Smile - stop talking. Wait for a response. • Answer questions briefly. • Explain why you need the money NOW. • Repeat steps 1-5 until they say yes. Role Play Pick a friend or colleague to play a potential funder. Role-play steps 1-7 and actually ask for money for a real project in your group. Switch off. You may even exchange money during this role-play. Allow five minutes for each person. Why are people afraid to ask for money? Answer: They are not trained properly 17
  18. 18. M/$ Policy & Programs People Organizational Leadership A t A L L le v e ls The 3 components that drive the money process are summed up within the above diagram. Leadership and your people are the foundation for your Chamber of Commerce and Associations success! Organizational Success starts with staff Development. At ALL Levels! 18
  19. 19. Here is diagram (III). I often use this when I lecture about; “POSITIONING YOU ORGANIZATION TO ACHIEVING FINANCIAL GROWTH”. The 3c’s Building Blocks of a GREAT Non-Profit Organization Commitment to Excellence Communication Mission Messaging Vision • Message to our customers Values • Message of ROI Leadership, at ALL levels • Message to the community • Message to potential customers 3rd C Congruency In order for us to GROW, we must know! Is everyone on the same page? 2nd C 1st C 19
  20. 20. Over the past many years, I have raising tens of Millions of dollars and training thousands of people how to raise the money selling memberships, sponsorships/Advertising dollars. When I conduct training seminars and lecture on how to “Get the Money”. There are several rules that has served me well and, I always make sure that I “pass them on” to my Students and audience---------------- -Attitude - Urgency - Conviction - & Assumption - Attitude, yes I can! Urgency, yes it will! Conviction, I believe it will! Assumption, I am expecting it will! Now, go out and get the MONEY! ©2009 CEG LLC All Rights Reserved 23413 N. 80th Way – Scottsdale AZ 85255 – (800) 913-1359 Visit us @: www.chambergrowth.com or www.assocgrowth.com 20

×