Presented by: Karen Osborne

1. Stewardship – The Second Most
Powerful Move

2. It’s All About
Relationships
© The Osborne Group, Inc. 2

3. Trust is at the Heart of
Business and Phil h
B i d Philanthropy
• Trust has been an issue • Trust in Business
for us for years plummeted in 2009 from
• 34% of Americans 58% to 44% *Business Week,
September 28, 2009
p ,
reported they believe
others are trustworthy*
*David Halpern 2003
• 49% of employees trust
their senior leaders*
*Watson Wyatt Study 2007
• 36% of employees
believe their managers
are trustworthy* *Harris
interactive poll 2007
(C) The Osborne Group, Inc. 3

4. © The Osborne Group, Inc. 4

5. Trustworthy
Trusted
© The Osborne Group, Inc. 5

6. Social Capital* *Shirley Sagawa and Deborah Jospin
Capital Shirley
6 © The Osborne Group, Inc.

7. The Tarnside Curve of
Involvement
High
Taking Personal
Responsibility
y
Ownership
Giving
Commitment
Engagement
Low
Awareness Interest
7
Low INVOLVEMENT High

8. “The Promise”
The Promise
• What do you explicitly and implicitly promise
your donors when you solicit and/or accept a
gift?
© The Osborne Group, Inc. 8

9. The Education Trap
© The Osborne Group, Inc. 9

10. “WOW” Experiences
© The Osborne Group, Inc.
10

11. The Donor Cycle
Acquiring Identifying the “Critical
donors Few”
Learning about
them; telling your
Providing story
stewardship and
p
accountability Developing a
relationship
Saying thank you
Meaningfully
i f ll
Asking for a specific engaging
amount
Preparing to ask
© The Osborne Group, Inc. 11

12. The Development Management Process
Why =
Vision, Plan, Priorities, Case
What = Results,
, Who = Donors
Metrics
How = Strategies,
Staff, Board of 12
Directors

13. Building Blocks
Plan Fueling the
Vision and
Priorities Resource
Values
and Costs Engine
© The Osborne Group, Inc. 13

14. Big Ideas!
IMPACT
Not Stuff
Not Outputs
OUTCOMES
© The Osborne Group, Inc. 14

15. 15

16. GREAT Story Telling
© The Osborne Group, Inc. 16

17. What Questions Should Your
Investment Case Answer?
© The Osborne Group, Inc. 17

18. The 10 Immutable Laws of
Great Storytelling*
June 2007 issue of Free Range Thinking by Andy Goodman.
Stories should speak
the audience’s
language.
g g
© The Osborne Group, Inc. 18

19. The 10 Immutable Laws
Laws…
2.
2 Stories are about people
people.
3. The people in your story have to want
something.
something
4. Let your characters speak for
themselves.
th l
© The Osborne Group, Inc. 19

20. The 10 Immutable Laws
Laws…
5. Stories need to be
fixed in time and
space.
6. Audiences bore
easily.
7. Stories don’t tell:
they show.
© The Osborne Group, Inc. 20

21. The 10 Immutable
Laws…
8. Stories stir up emotions.
9.
9 Stories have at least one “moment of truth.”
moment truth
10. Stories have clear meaning.
© The Osborne Group, Inc. 21

22. Elements of a Great Story*
y
*Andy Goodman
They have:
• A beginning, middle and end
• T lli d t il
Telling details
• Emotion
• Truth
• Meaning
Our goal is to tell a story that people will
hear,
hear remember and want to retell
© The Osborne Group, Inc. 22

23. What are Your Institution’s
Stories?* *Adapted by The Osborne Group from Andy Goodman
1. The nature of the challenge
2. How we got started
3.
3 Emblematic success (unique the way we make
(unique,
a difference)
4.
4 Performance including accountability impact
accountability,
and outcomes
5 Striving to improve (“failing forward” David Bornstein)
5. ( failing forward
6. Where we are going – the vision story
© The Osborne Group, Inc. 23

24. Defining a World Class
Stewardship E
S d hi Experience
i
© The Osborne Group, Inc. 24

25. Assessment is a
Great Place to Start
© The Osborne Group, Inc. 25

26. Management
You’re not in charge It still matters!
• Balanced budget
• Strong endowment
• Prudent management
• Transparent
© The Osborne Group, Inc. 26

27. Documenting
• Intent as well as the facts
• Priceless outcome
• Values
• Motivations
• Decision makers
• Preferences
© The Osborne Group, Inc. 27

28. Thank You
• Is what polite p p
p people • Within 24 to 72 hours
do. • IRS “receipt”
• Special attention
p
doesn’t mean delays!
• Who says thank you?
• How do you say it?
© The Osborne Group, Inc. 28

29. Listening and Questioning
© The Osborne Group, Inc. 29

30. First Year of Giving Matters!
g
*Target Analysis Group
Year One 40% Renew
Years Two-Four 65% Renew
Years Five Plus 85% Renew
© The Osborne Group, Inc. 30

31. Year One Stewardship Plan
1. Thank you call 5. Impact report
2. Acknowledgment 6. Client message
3.
3 Welcome package 7.
7 Solicitation
4. Invitation activity
© The Osborne Group, Inc. 31

32. Accountability
• Cost per dollar
raised
• Industry standards
• Telling y
g your fiscal
story
© The Osborne Group, Inc. 32

33. Providing Recognition
• Policies
• Fairness
• Culture considerations
C lt id ti
• Motivation considerations
• LOYALTY
© The Osborne Group, Inc. 33

34. Sharing the Significance, Impact
and Joy!
• Program
• Leadership Annual
p
• Major Gifts
© The Osborne Group, Inc. 34

35. Stewardship is Universal
• Anonymous • Corporate
• Unrestricted • Foundations
• Annual Fund • In-kind
• Volunteers
© The Osborne Group, Inc. 35

36. Leadership Gifts and Impact
Statements!
• $25,000
• $ ,
$10,000
• $ 5,000
• $ 2,500
• $ 1,000
© The Osborne Group, Inc. 36

37. Culture of Stewardship and
“Customer Service”
© The Osborne Group, Inc. 37

38. Culture of Stewardship and
Accountability
• President, Head of School
• On the institutional dashboard
• Measuring and reporting
Donor 2008 2009 2010
Satisfaction
83% 92% 99%
© The Osborne Group, Inc. 38

39. Program Calendar
• What who when
What, who,
• Happens no matter what
• Gift officers can intervene
Jan-Mar
Jan Mar Apr-June
Apr June Jul-Sept
Jul Sept Oct-Dec
Oct Dec
Under $1k
$1k-$25k
$1k $25k
$25k+
© The Osborne Group, Inc. 39

40. Philanthropy Research by
Donors* *DonorTrends Survey by CMS and Prime Group
• 65% of donors report going online before
making a gift
© The Osborne Group, Inc. 40

41. The Numbers*
Th N b * *Convio 08 “Wired Wealthy”
• 80% of donors have given
online
• Only
O l 8% of donors agreed
fd d
strongly that charity Web
sites are inspiring
• Just
J t 7% agree strongly th t
t l that
charity Web sites make
them feel personally
connected
© The Osborne Group, Inc. 41

42. People Want
Choices
Ch i
According to
Starbucks CEO,
“There are over
70,000
70 000 different
ways that our
customers can
can,
and do, order a
Starbucks coffee"
© The Osborne Group, Inc. 42

43. Using Your Website
• Advocacy opportunities
• Podcasts
• Video
Vid
• Social networking
• Virtual events
• Interaction and community building
• Personalization!!!!!!!
© The Osborne Group, Inc. 43

44. Donor Relations Professionals
• Status
• At the table
• Creative
C ti
• Marketing and communications ties
© The Osborne Group, Inc. 44

45. Do You Know Me?
© The Osborne Group, Inc. 45

46. Donor Satisfaction Surveys
© The Osborne Group, Inc. 46

47. Inventory of
Stewardship Tools
• Web
• Phone
• Mail
• Photos Most Personal
• Albums Highest Rated
• CDs
• Email Small
S ll group
• Publications Leadership Annual
• Media
• In person visits and tours
Large group
• Accountability deck Everyone else
• Mission gifts
• Ways to directly connect to
outcomes
© The Osborne Group, Inc. 47

48. Measuring Success
• Stewardship audit and strategic plan
• D
Donor satisfaction and accountability
ti f ti d t bilit
survey
• Stewardship committee
© The Osborne Group, Inc. 48

49. World class
Measures
• Retention -- year 1, years 2-4, years 5+
• Return of l
R f lapsed d
d donors (1 and 2 years)
d )
• % Upgrades; % of downgrades
• Annual to major gifts
• Satisfaction w/institution, impact, communications
• Overall program effectiveness
© The Osborne Group, Inc. 49

50. Your Score?
• What do you KNOW you do well?
• Wh t do you KNOW you need t improve
What d d to i
or enhance?
• What don’t you KNOW?
© The Osborne Group, Inc. 50

51. Where do you Need to
Improve? Investigate?
1. Management
2. Documentation
3.
3 Acknowledgments
4. Accountability
5.
5 Recognition
6. Impact and
outcomes
7. Overall
Measurement and
Effectiveness © The Osborne Group, Inc. 51

52. Stewardship
Surprise
Accountability Personal
S
Impact!!!! Connect
the Dots
© The Osborne Group, Inc. 52

53. Stewardship Outcomes
• Donor retention • Word of mouth
• Lifelong donors marketing
• More productive
p • Increased Board and
relationships volunteer i
l involvement
l
• Greater pledge and satisfaction
fulfillments
f lfill t • Annual gifts leading to
• More upgrades major gifts
• More renewals
• More legacy gifts
© The Osborne Group, Inc. 53

54. Need Help With the Take Off?
• Want to learn more?
Email us!
• mail@theosbornegroup.c
om
• The Osborne Group is p
a full service
management,
consulting and training
firm
fi specializing i
i li i in
philanthropy, opinion
research and
organizational
management
This presentation is the copyrighted property of The Osborne Group,
Group
Inc. (TOG) www.theosbornegroup.com It cannot be used, copied,
sold or given away without (C) The Osborne Group, from TOG
written permission Inc. 54

55. Guidelines for Developing Leadership Annual Fund
Impact Statements©
A Resource of The Osborne Group, Inc.
We know people give to our institutions because they want to make a difference and they believe
that we are the right place to effect that societal and/or individual change. They take a leap of
faith and trust their philanthropy will accomplish something important.
Giving small gifts to operating budgets doesn’t require a great leap of faith. As we seek larger,
repeatable, unrestricted and budget relieving gifts of $1,000 to $25,000 (and for some larger
institutions $50,000 and $100,000), however, that leap of faith appeals to far fewer people. They
often want to give to specific projects and purposes because they want concrete and specific
outcomes. So how do we make leadership annual fund gifts as appealing as restricted gifts? We
add impact statements to our giving clubs.
They serve as the case for investment for your leadership annual fund program specifically,
though you can use the ideas behind to bolster your case for the entire annual fund.
Impact statements answer four questions:
1. What will the gift support?
2. What difference will this make in the lives of our students, faculty, alumni, (patients if
you are a teaching hospital)?
3. What are the outcomes a donor can expect from this gift or how will this make someone
else’s life better (the community better, the state, society better)?
4. Why should I, the donor, increase my gift?
The last question is particularly important. As you develop items to include in your impact
statements, tie the gift level to specific services and programs you provide but don’t feel these
must be a dollar-by-dollar accounting from your balance sheet. You want to give your
prospective donors a sense of the kinds of things their gifts will help accomplish or support, not
what items their dollars will “buy.” (This is philanthropy, not shopping!) You do want to make
the examples included in your impact statements tangible and link them to specific impacts and
outcomes. As you move up the giving ladder, the impact envisioned should get larger, more
significant, and more appealing thus giving the donor reasons not only to give, but to give more.
Examples of Impact Statements
• Supports a (name of institution) Scholar for one year, enabling a highly-talented, high-
need student to enrich our community with his or her leadership and benefit from the
(name of institution) experience
• Underwrites a summer sabbatical for one of our senior faculty members to explore an
area of interest and bring renewed energy and expertise to their classroom
• Supports our health and wellness program that ensures that each student can develop
athletic, leadership and fitness skills to carry him or her through a lifetime
• Enables the Headmaster (President, Chancellor) to place critical unrestricted funds into
those areas where opportunities are greatest
©2003 The Osborne Group, Inc. 100 South Bedford Road, Suite 340 Mount Kisco, NY 10549

56. Getting Started
Meet with your CFO and go over the budget. Where do unrestricted dollars go? What do
unrestricted funds accomplish? Which of those things would be appealing to donors? Meet with
faculty members and brainstorm with them what unrestricted and/or budget relieving programs,
initiatives and/or opportunities would have appeal?
Remember, you are not restricting gifts. You are simply letting donors know these are the types
of things accomplished with gifts of this size.
As you develop and refine your impact statements, use this task as another reason to get in the
door with your prospective donors: asking for help reviewing your materials is a great way to
generate new ideas about how to use these, but also a terrific way to find out what resonates most
profoundly with your individual donors!
How to use Impact Statements:
Do use the information you gather to develop your leadership annual fund impact statements
throughout your fundraising efforts in support of your institution. They can be:
• Incorporated into your printed materials, or as a “stand-alone” brochure
• Used to bolster all types of special events including point of entry, cultivation,
solicitation/fund-raising and recognition/stewardship events
o At a fundraising event, for example, you can offer giving circle level tables at a gala
or foursomes at a golf outing, letting participants know what can be accomplished
with their collective gifts.
• Included in all speeches given by your President (Head, Chancellor, Dean), and in face-to-
face or phone calls by staff or volunteers
• The basis for all your in-person cultivation visits with prospective donors
• And, of course for Stewardship
Using Impact Statements for Stewardship
The impact statements “market” your leadership annual giving programs. They offer a promise
of change. Stewardship demonstrates the fulfillment of that promise. This is what we said we
would accomplish and we did. Linking your stewardship and accountability reports,
communications, and events to the impact statements reinforces the importance of unrestricted
giving.
If you would like to learn more about creating mission-based leadership annual giving circles;
making the case for support; making effective in-person visits; incorporating leadership
annual fund solicitations into major gift and campaign solicitations; creating or enhancing
your stewardship program so that it includes annual giving, consider taking one of the many
excellent workshops online, on the phone or in person. Or contact us for consultation and
advice.
Also available are two video training programs on making discovery visits and on solicitation.
The Osborne Group is a full service management, consulting and training firm. Visit us at
www.theosbornegroup.com or call us at 914 428-7777
©2003 The Osborne Group, Inc. 100 South Bedford Road, Suite 340 Mount Kisco, NY 10549