Non Profit Fundraising Session by Juan A. McGrueder

1. NON-PROFIT FUNDRAISING
AND FUNDRAISING STRATEGY
JUAN A. MCGRUDER, PH.D. CFRE

2. WHAT WE WILL COVER TODAY…
○ State of Non-profit Giving in America
● Who’s giving to what…and why
○ Generational Considerations
● Digital Fundraising (Gen X and Y)
○ The Color of Money
○ Non-profit fundraising strategies
○ The Importance of Stewardship
○ The Impact of Philanthropy on Non-profits
○ Where do you fit in?

3. Reported Annually in June

4. GIVING TO NON-PROFITS IN
AMERICA
○ The total donated to charitable causes in 2013 was estimated to
be $335.17 billion. Although this is the fourth
straight year that giving has increased, it is still not at the pre-
recession level of $349.5 billion seen in 2007.
○ Overall Giving Trends by American individuals, estates,
corporations, and foundations grew by 4.4% in 2013.
○
Individual giving accounted for 72% of all charitable giving in
2013.
○ This is the fourth consecutive year of increases in giving, a
period of growth that began in 2010.
Source -Giving USA 2014 report

5. GIVING TO NON-PROFITS IN
AMERICA
○ Giving by individuals was up 4.2% in 2013.
○ Several factors influenced this growth including a 2.9% in
personal income, a lower unemployment rate, a 1.9%
increase in personal disposable income, and rising
consumer confidence.
○ A 2% increase in GDP and 27.8% increase in the S&P 500
also helped drive more giving in 2013.
○ Research has found a statistically significant correlation
between changes in total giving and values on the S&P 500.
Source -Giving USA 2014 report

6. GIVING TO NON-PROFITS IN AMERICA
by SOURCE
Source -Giving USA 2014 report

7. GIVING TO NON-PROFITS IN AMERICA
BY SECTOR
○ Giving to Religious organizations was flat on a
year over year basis while giving to Education
was up 9%.
○ Giving to Human Services was up just 2.2% and
the Health sector was up 6% compared to 2012
giving.
○ Foundations saw a 15.5% decrease in giving in
2013.
Source -Giving USA 2014 report

8. GIVING TO NON-PROFITS IN AMERICA
Source -Giving USA 2014 report

9. DONORS ARE BECOMING REALLY
SAVVY PHILANTHROPISTS

10. AMERICAN GENERATIONS
THROUGH THE YEARS

11. ○ Matures (1945 and before)
○ Baby Boomers (1946 to 1964)
○ Generation X (1965 to 1980)
○ Millennials (1981 to present)
MULTI-GENERATIONAL
MARKETING

12. GENERATIONAL HABITS

13. GENERATIONAL HABITS

14. GENERATIONAL HABITS

15. GENERATIONAL HABITS

16. 2015 PREDICTIONS: NONPROFIT
FUNDRAISING TRENDS TO WATCH IN 2015
○ Digital Fundraising
○ Youtube Video

17. THE COLOR OF MONEY
The Building Blocks of Fundraising
Endowment
Facilities
Current Operations

18. ○ Volunteer led, volunteer driven
○ Volunteer led, staff driven…the GT model
● Role of Campaign Cabinet and Steering Committee
● Role of Advisory Boards
MANAGEMENT MODELS

19. ○ Centralized
○ Decentralized
○ Distributed…GT Model
ORGANIZATION MODELS

20. ○ No single reason why donors give, but a
combination of factors
● Major gift donors give to vision
● Take the business of philanthropy seriously
● Often feel an obligation to give back
● Believe in the mission of the organization
● Are fully engaged with the organization
● Respect the leadership
○ Up to us to identify the most important
motivators, donor by donor, gift by gift
WHAT MOTIVATES GIVING?

21. • Pride of association
➢ Wanting to feel needed
➢ Being a worthwhile member
➢ of a worthwhile group
➢ Being actively involved
• The example of others
• Caring for others
WHY PEOPLE GIVE

22. If we know
why people give
we will know how to ask
HOW TO SUCCESSFULLY SOLICIT

23. • Know the facts
• Know your prospect
• Nurture your prospect’s interest
• Solicit in person
• Consider taking someone along
• Set goals for the meeting
• Talk about programs and ideas
• Be direct about the gift amount
HOW TO SOLICIT

24. •Key Messages
o I believe strongly in this cause.
o I am pleased to work actively for it.
o This is important and urgent.
o I am giving generously to it.
o We need and ask for your support.
HOW TO SOLICIT

25. ○ Identification
○ Information
○ Involvement
○ Investment
○ Stewardship
FOUR “I’S” OF FUNDRAISING

26. From Suspect to Prospect: Development
Research
● Public information
● Electronic screening (P!N)
● Peer screening
● Questionnaires
● Self-identification
● Records reviews (data mining)
● Referrals
IDENTIFICATION

27. ○ Prospect evaluation
● Capacity, from A1 to C2 (scale)
● Propensity, from bleeds school colors, to
just among philanthropic interests, to
angry
○ Prospect assignments in a distributed model
● Central
● College, School and program
○ Field research required to fully qualify the
prospect
IDENTIFICATION (CONT)

28. ○ One way communication
● Message developed and conveyed by us to alumni
through GT Magazine, Tech Topics, Web site,
College and School newsletters
○ Knee to knee
● Create flow of information in both directions on a
personal level
○ Evaluate and develop propensity and interests
○ Further define capacity
INFORMATION

29. ○ Develop propensity
● Build relationships
● Develop trust in the vision/leadership
○ Engage through
● Visits with organization leadership
● On site visits
● Board involvement
● Requests for advice
● Invitations to do events and activities
○ Listen…
● Donor centric versus project centric fundraising
INVOLVEMENT

30. ○ Solicitation clearance
● Managing intersections
● Managing next steps (moves management)
● Managing the pipeline
○ Present the proposal, make the ask
○ Shhhh!
INVESTMENT

31. The meaning of No
○ No may mean “maybe” or “yes, however”.
○ Probing for the meaning of no.
● Is it the institution/organization?
● Is it the right project?
● Is it the amount of the ask?
● Is it the person making the asking?
● Is it the timing?
● Are there competing interests?
INVESTMENT (CONT.)

32. THE DONOR PYRAMID OF GIVING

33. ○ Best prospect for a gift is a well stewarded
current donor
○ Standards for:
● Timely acknowledgements
● Donor recognition
○ Facilities construction and renovation
○ Named endowments
○ Impact reports
○ Renew the process of cultivation for the
next gift!
○ It’s Cyclical!
STEWARDSHIP

34. THE VALUE OF STEWARDSHIP
1. Practice the Art of the Thank You
● Every gift deserves a prompt thank you.
● Make it an organizational priority to respond to donors with brief personal
notes.
● When it comes to donor thank you messages, the more personal the better.
2. Do Some Segmenting to Prioritize Outreach
● separate your donors into different groups to make sure that you are spending
your time as wisely as possible
● By splitting your donors into different groups, you can come up with an
appropriate thank you and engagement plan for each group.

35. THE VALUE OF STEWARDSHIP
Show Them the Impact
● your ability to connect with your donors
will be shaped by how you communicate
with them
● make sure that the impact created with
their gifts is a central element of the
conversation.
● Focusing on communicating impact helps
eliminate common complaints.
Create Opportunities for Personal
Interaction
● there’s no substitute for actually meeting
people in person and talking to them!
● start by getting creative and
brainstorming with your team. Think
about things from the outside in.

36. THE VALUE OF STEWARDSHIP
At the end of the day,
there are no one-sized fits all solutions
for creating an effective donor stewardship plan.
And that’s a good thing
because you know your donors best!

37. ○ Can be SIGNIFICANT
● The Centennial Campaign
1985 – 1990
○ Initial Goal - $145 M
● $202M Raised
● $102M Unrestricted
● $9 M Scholarship/Fellowship
● $15 M Faculty
● $12 M Facilities
IMPACT OF PHILANTHROPY

38. ○ Can also be TRANSFORMATIONAL
● The Campaign for Georgia Tech
● 1995-2000
○ Initial Goal - $300 M
● $711.9M Raised
● 233 Scholarships/Fellowships
● 54 Endowed Chairs
● 10 Buildings
IMPACT OF PHILANTHROPY

39. ○ Campaign Georgia Tech
● 2004 – Present (ending December 2015)
○ Initial Goal of --$1B
○ Presidential Transition in 2010
○ Increased Goal to $1.5B
○ Goals: $600M Endowment,
$400M Facilities,
$500M in Current Operations
● Raised to-date, Over$1.5B; Over 83,000 donors
● 85 Endowed Faculty Positions
● $50M Gift, booked in June, 2012
● Still seeking a $100M Gift, by campaign end.
IMPACT OF PHILANTHROPY

40. IMPACT OF PHILANTHROPY

41. IMPACT OF PHILANTHROPY

42. 1/31/2015
Gifts in the
range of
Number
Required For a total of Percent
Gifts in the
range of
Number
Received For a total of Percent
$100,000,000 1 $100,000,000 $100,000,000 - $0
$50,000,000 2 $100,000,000 $50,000,000 2 $105,978,467
$25,000,000 4 $100,000,000 $25,000,000 4 $131,266,808
$10,000,000 15 $150,000,000 $10,000,000 13 $166,186,018
22 $450,000,000 30% 19 $403,431,293 26.0%
$5,000,000 30 $150,000,000 $5,000,000 25 $157,909,941
$2,500,000 50 $125,000,000 $2,500,000 61 $210,483,907
$1,500,000 100 $150,000,000 $1,500,000 66 $124,606,984
$1,000,000 100 $100,000,000 $1,000,000 101 $117,057,435
280 $525,000,000 35% 253 $610,058,268 39.4%
$750,000 100 $75,000,000 $750,000 69 $59,778,553
$500,000 150 $75,000,000 $500,000 114 $65,969,397
$250,000 300 $75,000,000 $250,000 303 $103,689,224
$100,000 750 $75,000,000 $100,000 716 $108,052,077
1,300 $300,000,000 20% 1,202 $337,489,251 21.8%
$50,000 1,000 $50,000,000 $50,000 809 $55,290,545
$25,000 2,000 $50,000,000 $25,000 1,305 $43,417,598
$10,000 5,000 $50,000,000 $10,000 2,750 $41,626,045
< $10,000 80,000 $75,000,000 < $10,000 77,033 $58,681,618
88,000 $225,000,000 15% 81,897 $199,015,806 12.8%
TOTAL 89,602 $1,500,000,000 100% TOTAL 83,371 $1,549,994,618 100%
Summary of Objectives
Standard
Scale of Gifts
Received thru:
IMPACT OF PHILANTHROPY

43. ○ 2006 Total $1.2B
○ 2013 Total $1.7B
○ 2015 Total $2.0B
VALUE GT ENDOWMENTS…

44. TOP 25 FASTING GROWING
UNIVERSITY ENDOWMENTS - 2011
○ #1. University of Virginia
2011 Endowment: $4.8 billion
2010 Endowment: $3.7 billion
Annual Change: 28.4%
Over $1B increase in one year
○ #25. Harvard University
2011 Endowment: $31.7 billion
2010 Endowment: $27.6 billion
Annual Change: 15.1%
Over $4B increase in one year

45. ○ Everywhere!
● Providing the Vision for Resource Development
● Goal Setting
● Identifying and Hiring God Talent
● Prospecting: Identify
Inform
Involve
Invest
Steward
○
WHERE DO YOU FIT IN… IN
YOUR ORGANIZATION?

46. ○ Prospect Coordinators
○ Central Clearance System
○ College, School, Program based officers
○ Collaboration with
● Other Internal Entities
● Planned Giving
● Regional Officers
● Corporate Relations
● Foundation Relations
PROTOCOL

47. 1) Learning the culture of the organization and its
constituents
2) Formulating the strategic plan
3) Designing the case for support
4) Casting the organizational vision to external constituencies
5) Deepening engagement of top donor prospects
ESTABLISHING ADVANCEMENT/
DEVELOPMENT ROLES

48. 6) Cultivating new donor prospects
7) Participating in (as well as
understanding) all phases of the giving
cycle
8) Creating an Executive Advisory Board or
Executive Fellows program
9) Encouraging staff involvement in all
areas of advancement
ESTABLISHING ADVANCEMENT/
DEVELOPMENT ROLES

49. 1) Answer these critical questions:
○ Vision - What do we aspire to be tomorrow?
○ Mission - Who we are today and what is our
purpose?
2) Complete a SWOT Analysis
○ Strengths (Internal)
○ Weaknesses (Internal)
○ Opportunities (External)
○ Threats (External)
FORMULATING THE STRATEGIC
PLAN

50. ○ Positioning (Clarity)
○ Branding (Distinctive)
○ Market Differentiation (Persuasive)
○ Experiential (Social Interaction/Learning)
○ Value (Repetition and Retention)
ORGANATIONAL VISION CASTING

51. One thing is certain, fundraisers are a totally dissimilar group.
They look different. Act differently. Work differently. They are
diverse – hard charging and hard driving – quietly effective.
They include used-car salesmen types, ministers and priests,
scholars and backslappers. Computer freaks and computer
frightened. Great writers and virtually illiterate.
~ Jerold Panas, Born to Raise (1988)
AN IMPORTANT NOTE!

52. ○ Never short change the mission
○ Spend the time required to get organized
○ If you plan to have a cocktail at your event do so only after you are
absolutely sure that all details are covered
○ Take the work seriously, not yourself.
○ Laugh
○ Take your personal philanthropy seriously
○ Meet constituents where they are and they will go with you to where
your organization’s mission needs them to be
○ Listening “fluently” is an essential skill for success in
advancing philanthropy
○ NEVER get caught without a business card
○ Engage people in conversation at every opportunity
TOP 100 THOUGHTS TO LIVE BY
CHARLES R. STEPHENS

53. ○ Never schedule a solicitation visit before you are fully prepared
to ask and the prospect is fully prepared to respond
○ Do not ask before the prospect gives you permission
○ Asking for too much is not offensive; asking for too little is
○ Always be reachable
○ Do not sacrifice family for mission or ambition
○ Maintain personal contact with your top donors; keep the list on your
desk in sight
○ Resist pressure to re-invent the wheel
○ Include significant others in major gifts and ultimate gifts solicitation
strategies
○ Advancement is 75% research and cultivation and 25% asking;
ask for no gift before its time
TOP 100 THOUGHTS TO LIVE BY
CHARLES R. STEPHENS

54. NON-PROFIT FUNDRAISING
AND FUNDRAISING STRATEGY
Questions &
Answers
Juan A. McGruder, Ph.D., CFRE
Director of Development
Georgia Institute of Technology
Ivan Allen College of Liberal Arts
Atlanta, GA 30332-0525
Office: 404-894-1898