Festival 2014 - Moving from Major to Mega Donors abcr


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Palestra apresentada por Bob Carter e Christina Walker, da Bob Carter Consulting, no Festival ABCR 2014, em Guarapari, Espírito Santo.

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  • You can reach Bob at bcarter@bobcarterco.com and Christina at cwalker@bobcarterco.com
  • Lets start with some key concepts

    A “major” or “mega” gift is different for different organizations. Maybe for your organization a major gift starts at R$5,000 and mega at R$25,000. Or maybe a major gift is R$100,000 and a mega gift is $R1 million. Regardless the principles are the same.
  • Regardless of the size, industry or country, nonprofit organizations that are successful in fundraising:
    Access a cadre of fundraising volunteers who can provide leadership in terms of their own giving and can attract others to do the same.
    Are perceived as credible and effective organizations that are worthy recipients of philanthropy.
    Make a compelling argument for why a significant investment of philanthropic funds is urgently needed and can specify the expected results from that investment.
    Rally the support of their natural constituencies (i.e. alumni, volunteers, members).
    Attract gifts of sufficient size and quantity to meet their goal.
    Have adequate staffing and infrastructure in the development and communications departments as well as sufficient organizational capacity to support an expanded fundraising effort.
    Embrace a culture of philanthropy
  • It’s not just your country that needs to have a culture of philanthropy, it’s your organization

    A culture of philanthropy refers to an organization’s attitude toward philanthropy and the development process. Being able to raise charitable funds depends having more than just a well-functioning development department.
    How do these statements apply to your organization? Do you have an internal culture of philanthropy?

    All staff understand that philanthropy is everyone’s responsibility, not just the development department.
    All staff (beyond the fundraising staff) understand their role in the development process.
    Everyone behaves as the organization’s ambassador and build relationships.
    Everyone can articulate the case for giving – tell the story of why a philanthropic investment is urgent and important.
    All departments respond to the needs of the fundraising department (program, finance, IT).
    We are a “donor centered” organization (see below).
    The President/CEO is committed to and personally involved in fundraising.
    The Board of Directors sets an example by having 100% participation and each member making the institution among its top philanthropic priorities.
    The organization knows and adheres to the highest ethical standards around fundraising, donors and gifts.
    Board & staff leadership understand that you have to invest money to make money.
    On being donor-centered:
    [Note that being “donor centered” does not mean loosing site of the mission in order to secure gifts]
    The organization’s donors are viewed and talked about with respect and appreciation.
    Donors are seen as key stakeholders who are vital to the success of the mission, not just spectators.
    Staff are held accountable for delivering results that are promised to donors.
    Relationships with donors and the stewardship of gifts are given high priority across the organization.
    Senior staff & fundraising staff are able to negotiate a transformational gift with a donor.
    (They are sufficiently grounded in the organization’s vision & priorities so that they don’t succumb to mission drift in the process of trying to find common ground with a major donor.)
    There is a decision making process in place for gifts of extraordinary size or impact, which may need to involve the board.
    The systems are in place to respond to donors’ expectations:
    Protect the privacy of their data
    Gift restrictions are honored; gifts are used as intended
    Timely acknowledgements and receipts
    Timely submission of formal stewardship reports
    Regular updates about how their gifts are being used
    Financial accountability and transparency – overall and about the use of their gifts
    The President/CEO and program staff are engaged as need be with the top donors.
  • What is your experience? Why do you think people give in Brazil?
  • Moving a donor from annual giving to major giving is a disciplined process of increasing engagement.
    The annual gift is just the beginning.
  • The key to both major and mega gifts is having a deep relationship with the donor. As they move from making major gifts to mega gifts, they feel part of the organization. They see the organization not just as a recipient of their donations, but as a way they can realize their aspirations, their legacy.

    Both major and mega donors want to see their gifts provide leverage -- leverage other giving.

  • The big difference between annual and major and mega gifts (MMG) is relationships. MMG are relationship based not transactional
    Building trust is critical
  • Transaction techniques produce transactional results. We arent saying that transactional fundraising is bad. Organizations need a stable base of annual support. And often major donors start with transactional gifts.
  • Im sure you have seen similar pictures of the donor pipeline. We begin with identifying and qualifying people/companies.
    Once they are qualified, they move in the to “prospect pool” for cultivation, solicitation and stewardship
    But you need/want to continue the involvement so that they are prospects again for another gift.
  • The first step is to identify and qualify prospects.

    CIA – capacity, interest, access
  • Its not just people/companies who are wealth, it’s people who are interested in the topic
  • There are few prospect research resources in Brazil. Read the news every day! Not only Folha or Globo or Exame, but Veja (

    Look for hidden wealth
  • Think about the Clase A. What are they like? They are leaders, innovators, change makers, problem solvers in business. They expect to do the same in their philanthropy. They expect to see results for their philanthropic investment.
  • Before we design a cultivation strategy for major gift prospects, we need to understand what they want and how they think.
  • Working with major and mega gift prospects requires a long and a deep perspective
  • Plan how to engage them as part of setting your strategy. These are just a few examples of “moves”

    There will be some that you’ll invite others to, and some that would be just for that person. Remember you want to spend 90% time on 10% prospects
  • In sum, the cultivation of major and mega gift prospects has to be tailored to that person.
  • How is soliciting a major/mega gift different from other kinds of gifts?

    Getting big gifts requires big ideas.

    You don’t have to have it completely figured out before you go to them. In fact, you want to engage them in co-creating the idea. That requires a flexibility and creativity on the part of the nonprofit leader, and a firm grasp of the organization’s mission so that you don’t loose your focus just to get a big gift.
  • Stewardship is not the end. It is the beginning of the next stage of the relationship. Your stewardship determines whether or not you get repeat or larger gifts. You should put as much time into stewarding a gift as you did cultivating it.
  • Stewardship is not just thanking them and reporting back on how their gift is used; it is about further involving them – cultivating them for the next gift.

    You’ll see similar ideas to the earlier slide on cultivation
  • In sum, its quite simple…
  • Concluding remarks
  • (Or whatever would be a transformational gift for you. It could be R$1 million)

    Bob always asks nonprofit leaders to think about and plan for what they would do with a transformational gift.
  • Leadership makes the difference. It starts with all of you in this room!
  • Bob Carter, CFRE
A consultant with significant expertise in local, national and international fundraising, Bob Carter has faced complex problems and opportunities and found ways to be successful in nearly every case. Bob established Bob Carter Companies LLC in 2010 and serves as President and CEO.
    Bob concentrates on building dynamic teams to deliver specific services that meet the unique needs of charities and donors. He works with complex regional, national and international organizations and institutions to design specific strategies, based on individual cultural realities, to maximize positive outcomes. His service as member and chair of numerous not-for-profit boards lends firsthand experience to his governance counsel.
    Bob’s experience includes a 26-year career with Ketchum (including 15 years as President), one of the largest firms in the fundraising industry, and serving as Senior Advisor to Changing Our World and Omnicom Nonprofit Group.
    A graduate of Johns Hopkins University, Bob has published articles in several professional journals and frequently serves as a lecturer and presenter for Columbia University’s Masters in Philanthropy Management program, the Council for Advancement and Support of Education (CASE), the Association of Fundraising Professionals (AFP), and the Association for Healthcare Philanthropy (AHP).
    Bob and his wife, Carol, live in Anna Maria, Florida. His sons, Travis and Trent, and their families live in Naples, Florida.
    From small, local nonprofits to complex global organizations with multinational teams, Christina has 30 years’ experience working in every area of institutional advancement. She has worked with environmental, health, arts, international aid and development organizations in the United States and abroad. In addition to fundraising, her expertise includes planning, facilitation, capacity building, and board development.
    Prior to joining BCCo, Christina was the Director of Conservation Leadership for The Nature Conservancy’s Latin America Region where she launched its philanthropy, marketing, corporate engagement and board development efforts. Christina was also on the management team for the 16-country region and served as relationship manager for the region’s top principal gift and corporate prospects. In five years, she grew the in-region annual philanthropy revenue from zero to $10+ million and total annual philanthropy to $20 million.
    Christina also served as the Conservancy’s Chief Philanthropy Officer. She supervised a nationwide staff of 150 and provided leadership for 300+ field staff members. Christina planned and launched the Conservancy’s successful $1.6 billion campaign. She also authored a major study of charitable giving outside the United States, which led to expansion of the Conservancy’s fundraising programs in major markets around the world.
    Earlier in her career, she held positions with consultancies Campbell & Company and Staley/Robeson/Ryan/St. Lawrence, where she provided resident and strategy counsel for national and international organizations.
    Christina has directed 14 campaigns with goals from $1 million to $1.6 billion, for organizations with annual operating budgets ranging from $200,000 to $1 billion. In addition to campaign experience, she also has direct experience in major gifts, corporate and foundation relations, development operations, and marketing and communications.
    Christina earned a bachelor’s degree in Public Administration and Criminal Justice, Summa Cum Laude, from Park College. She holds a master’s degree in International Relations from the University of South Carolina, where she completed substantial coursework towards a doctorate. Christina also earned a post-grad certificate in Sustainable Development from Goddard College. She is a frequent presenter and trainer on nonprofit management issues, as well as a contributing author to the only textbook on international fundraising.
    Christina has a long-standing interest in international causes.  She is a Pakistani-American who came from three generations of family members in the diplomatic corps and grew up in a multi-lingual, multicultural environment.  She is a student of Vietnamese Zen Master Thich Nhat Hanh and is involved in international peace and development issues through her service on the board of his foundation, the Thich Nhat Hanh Foundation. Christina resides in Sarasota, Florida, with her family.

    Follow Christina’s blog about international philanthropy and nonprofit management: www.christinawalker.org

  • Festival 2014 - Moving from Major to Mega Donors abcr

    1. 1. Moving from Major Donors to Mega Donors Bob Carter & Christina Walker 20 May 2014 ABCR
    2. 2. 2 Key Concepts • Fundraising is both an art and a science • Spend 90% of effort on top 10% of prospects • People give to people; giving is both personal and emotional • Remember: it’s the donor’s money • Building trust takes time & effort • Learn to “dance” with prospect • Fundraising staff are the catalyst, not a main ingredient
    3. 3. 6 Essentials 1. Leadership 2. Case for Support 3. Access to prospects 4. Adequate internal resources 5. A great plan 1. Culture of philanthropy 3
    4. 4. A culture of philanthropy • All staff understand their role • Everyone can tell the story (the case) – Ambassadors • Not apologetic about fundraising • President/Director involved in fundraising • Board sets an example • Highest ethical standards • Understand need to invest in fundraising • Donor-centered
    5. 5. Why Do People Give? • They believe in the cause or idea • They are involved as volunteers and see the needs and outcomes • Their religion, the need to do good or be a part of something larger than themselves • They see others give • Because they are asked • They are thanked properly • Their gift’s impact has been demonstrated 5
    6. 6. Growth Cycle: Annual to Major Gift Donor • Annual gift • Consistent support • Involvement • Increased support • Increased involvement • Project gift The beginning Key indicator Learning about organization Confirms as prospect Confirms major donor potential Solidifies relationship See results 6
    7. 7. Growth Cycle: Major To Mega Gift Donor • Multi year project • Deeper involvement • Investment gift • Stewardship See impact Feel part of organization Leadership engaged Multiple players Organization as vehicle to realize personal dreams Leverage, catalyst An ambassador to others 7
    8. 8. Relationship Giving • Right person, amount, project, and time • Project is worthy and management is good • Organization keeps promises • Gifts are honored, well- managed, and appreciated 8  People give to people  Confidence  Trust  Stewardship
    9. 9. Fundraising Tactics • Transactional – Annual Events – Sponsorship – Annual Direct Response Mail Telephone Web TV/Radio Canvass • Relational – Major Gifts – Mega Gifts
    10. 10. Results • Transactional – Operating funds – Short term projects – Lack of donor engagement – Impersonal – Quid pro quo • Relational – Project specific – Operational – Capital – Endowment – Long term commitments – Deep engagement – Personal
    11. 11. Donor Characteristics Transactional Prospect – Dislikes involvement – Gives to be social – Unwilling to commit long term – Wants to write check and be done – Instant gratification – Will not solicit others Relational Prospect – Wants deep involvement – Gives to make change – Wants to see change over time – Wants to invest – Understands complexities of change – See value and will invite others 11
    12. 12. Major/Mega Gift Fundraising The “Gift Cycle” Critical Function: Solicitation + Closure = Gift 12 Identification Closure Continued Involvement Solicitation Cultivation Qualification Stewardship Prospect Pool
    13. 13. 13 Identification Continued InvolvementQualification Prospect Pool Cultivation Solicitation Stewardship Major/Mega Gift Fundraising The “Gift Cycle”
    14. 14. Who Are Your Best Major Gift Prospects? • From your current consistent donors • Your Trustees and other high level volunteer • Current major donors • Previous donors • Don’t forget women 14
    15. 15. Sources for Major Gift Prospect Lists • Current Donors – Those who have been giving for 5 or more years – Those who have been upgrading their investments • Referrals from Board, staff, existing donors • Lapsed Donors • The news • Outside Lists – Other not-for-profits – Trade, professional, civic organizations – Commercial lists 15
    16. 16. What do Megas Want? • Access • Outcomes • Collaboration not competition • Leverage not limits • Catalytic not contentment
    17. 17. Mega Profile • Engager • Leverage • Relational • Life change • Entrepreneurial • Mobilization • Calls to action
    18. 18. 18 Identification Continued InvolvementQualification Prospect Pool Cultivation Solicitation Stewardship Major/Mega Gift Fundraising The “Gift Cycle”
    19. 19. Long and Deep? • Long is the perspective offered to these kinds of prospects – Requires purpose and intentionality – Requires patience – Requires planning • Deep is the Level of engagement for these kinds of prospects – Requires risk tasking, flexibililty – Requires best-in-class expertise – Requires more time from leadership 19
    20. 20. Ways to Involve Major Gift Prospects 20  Social gatherings  Orientations  Forward news information  Special events  Ask them for advice  Ask them to volunteer  Project tour  Hold meetings; relay success stories  Ask them to be on the Board or a committee  Invite them to lecture  Invite them to be on a panel  Electronic updates  Field trip
    21. 21. Cultivation of Prospects • Must be donor-centered • Tailored to each individual prospect • A blend of communications • A planned, regular sequence of activities • Real continuity is important 21
    22. 22. 22 Identification Continued InvolvementQualification Prospect Pool Cultivation Solicitation Stewardship Major/Mega Gift Fundraising The “Gift Cycle”
    23. 23. The Mega/Major Gift Scenario • Creative thinking about opportunities for transformational investments – Large impact packaging • Acquire or position existing expertise • Discuss early with trusted advisors (theirs) • Prepare for preliminary discussion of “ideas” • Make that person the catalytic stakeholder 23
    24. 24. Preparation • Pay attention to the interests and needs of the prospect, not the organization • Do not imply or promise what you cannot deliver – be careful of this trap • Be resourceful, creative, and flexible • Be prepared to deliver on results & report back 24
    25. 25. Persistence • Follow through on every detail • Read and re-read your Moves Management notes frequently • Revise strategy as needed • Keep volunteers and key players up-to-date 25
    26. 26. Moves Management • Planned steps with prospects • Move from cultivation to solicitation to stewardship • Based on strategy to realize goal • Multiple players, one orchestra leader • Requires coordination, discipline 26
    27. 27. 27 Identification Continued InvolvementQualification Prospect Pool Cultivation Solicitation Stewardship Major/Mega Gift Fundraising The “Gift Cycle”
    28. 28. Ways to Steward Major Gift Donors 28  Personalized annual report  Personalized tour  Send news & stories about their project (video)  Ask to be on panel or lecture  Write a feature story about them  Have them host small event for other donors
    29. 29. Simplicity of the task • Identify & Qualify them • Engage them • Lead them • Invite them • Close them • Cultivate them • Retain them 29
    30. 30. Taking Stock
    31. 31. Key Question What would your organization do if a R$10 million donor appeared in your office this afternoon?
    32. 32. Are you ready? • Are you prepared for success? • Is your program worthy of such an investment? • Have you held any discussions of senior management on the topic of transformational vision and attendant steps?
    33. 33. Truisms • If not discussed, the odds of your ever having such a benevolent investment show up are immensely diminished. • Big gifts are attracted to big ideas. • Tell your institution to make no small plans!
    34. 34. Always Position for the Future • Spend time on relationships • Engage your prospects with the cause • Concentrate on the emotional needs of your prospects • Get on their side of the desk • Stress OUTCOMES!! Not activities • Accept their perspective and tell them how you (or others) came to the gift decision 34
    35. 35. Major/mega gift culture starts at the top! • Board • President/Director • Senior administration • Senior program staff • Chief philanthropy officer 35
    36. 36. Remember... • This has to be fun, or at least enjoyable, for you and the donor or the behavior will not be repeated • Make your own largest Major Gift ever this year and see how good it feels! 36
    37. 37. Moving from Major Donors to Mega Donors Bob Carter & Christina Walker 20 May 2014 ABCR