Record Breaking Major Gifts In 2016
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1 Record Breaking Major Gifts In 2016 Roy C. Jones, CFRE Development Advisor to Russ Reid January 29, 2016
2 Top 3 Takeaways! You will learn how to create a six week campaign to targeted hicapacity donors designed to motivate them to give big before year end. This strategy will literally provide an extra pay-day to your organization and spike giving as year-end approaches. You will discover how to integrate targeted major gift communications to hi-capacity prospects using the phone, digital SEM and to boost more responses from the mail and personal visits. You will find out the secrets used in major giving campaigns to reacquire lapsed major donors who come roaring back to your organization with gifts of $10,000, $50,000 and even $100,000+ 2
3 Session Overview 1. The Time Is Right 2. It Begins With The Data 3. Creating The Major Donor Contact Strategy 4. Big Gifts Require BIG Projects 5. An Annual Major Gift Campaign 6. Success Stories 3
4 1. The Time Is Right! A Record Breaking Year for Major Gifts
5 5 Business Growth is Real
6 Employment is Up! Source: Bank of America 6
7 Business and Profits Are Improving Source: Bank of America 7
8 8 Donor Advised Funds are Exploding!
9 9 In 2015 Major Gifts Were UP!!!
10 Non-Profit Times Reports 55% of all Non-Profits Report Boosts in Major Gifts in 2015 compared to the previous year. 77% of Non-Profits report that they are ahead of fundraising goals due to the impact of MAJOR GIFTS. 63% of Non-Profits who work in the Human Services sector ended the year ahead of the previous year 10
11 2. It Begins With The DATA! Major Donors Will Step Up, Stand Up, Stand Down or Side Step Your job is to meet them where they are
12 Donor File Analysis BY SEGMENT Are your donors capacity rated annually? What percentage of wealthy individuals are giving small gifts and not upgrading? Why? Are donors stepping up incrementally to increase giving annually? Are donors standing up to make repeat major gifts or trending to be one-and-done? Why? Are donors standing down by decreasing the amount they give from one year to the next? Are donors side-stepping or lapsing after reaching the 4-figure; 5-figure and 6-figure annual giving levels? Why? How does the attrition rate of $1,000 - $9,999 and the $10,000+ donors compare with those who give under $999? Why? Are major donors lapsing faster that regular donors? Why? 12
13 13
14 Identify BROKEN Rungs on Your Donor Giving Ladder What level of the donor pyramid are donors bunching up Where are your donors gathering by dollar amount. Work to Spread Them Out by Pushing Up the ASK Create ask amounts that stretch donors and work to make sure that your are NOT making the same ask to every major gift prospect What level of the donor pyramid are donors lapsing? What are you doing (or not doing) that is forcing donors at that level to lapse. 14
15 Reformat your case for support Develop a NEEDS LIST from your approved operational budget to better upgrade donors rungs on the ladder Fund your budget first!!! Your budget must be repackaged into programs with overhead built into each ask. The Needs List should be grouped by dollar level $2,500 -$5,000 - $10,000 - $25,000 - $100,
16 Donor research / Prioritizing a workable list How many prospects do you research/target for major gifts? 3 Segments: Active donors, LYBUNTs, SYBUNTs Rank every prospect: from #1 to??? 16
17 The BIG Secrets Behind Record Breaking Major Gift Programs Count all the money! MAJOR DONORS 10 to 15% of new donors will be cash millionaires. The list strategy in acquisition determines the capacity of new donors. WHITE MAIL 5% of $100+ gifts use their own envelope. Higher Avg Gifts = More White Mail Donations WEB SITE GIVING 15-30% of DM donors go on line to make their gift with a higher average gift RECEIPT MAIL 10-12% of donors will send a second gift if thanked within 48 hours (lower average gift) 17
18 3. What Is Your Major Donor CADENCE How does your contact strategy differ with major donors compared to regular donors?
19 Primary Target of the Major Gifts Program Planned Giving Major Donors Corporations Foundations Major Donors (Individuals) Corporations Foundations Middle/Major Donors Direct Response/ Regular Donors Individual Donors generate over 75% of all Major Gifts. Yet do NOT exclude small businesses and companies from your cadence. 19
20 How many meetings can you do in a year Number of meetings determines workflow Major gift work happens primarily through face to face contact Mail, and phone are used to tee up face to face visits Only do in depth research on the number visits you can make Build a team to help you with meetings Remember, you are primarily thanking and demonstrating ROI with impact reports The pitch is often What do you want to do this year? 20
21 The Fundraising Programs: Cultivation and frequency for Major Donors Direct mail appeals E-communications Newsletters Thank you receipts Phone Annual Impact reports (demonstrate ROI and lives impacted) Face-to-face meetings for major gifts 21
22 Cultivating and asking Three Tiers 3-Tier Approach to Cultivating Relationship: Friend-raising Fund-raising Trusted Advisor
23 Assessing your program and build on what s working Annual process is replicated each year: Early Spring: Update Wealth Scores, Re-rank, New Qualifiers Late Spring / Summer: Meetings, meetings, meetings Early Fall: 2 nd visits, asks and major gift proposals Late Fall: call backs, closes and MIAs December: gifts and acknowledgement
24 Key areas to focus on Maximize existing staff Utilize donor database to full potential Identify scope of resources/effort needed Mirror others who ve seen success Rally your team Prospect Review Meeting (official or unofficial) 24
25 The planning process is not completely linear, and tends to be fluid, moving back and forth for each major donor Additional Research Identify & Qualify Revised Plan Plan Individual Plan General Plan Involve New Facts and Information The Ask real friendship before any ask 25
26 4. It Takes BIG Needs To Get BIG Gifts Reposition Your Operational Budget Into Fundable Projects
27 A Complete Walk Thru of Your Facility & Programs Identify the capital improvements and projected needs that are part of your budget this year. Remember: fund your budget first!!! List these projects out based upon cost amount Factor in annual overhead for staffing and facilities Which are the most fundable? Which demonstrate the most impact to an outsider of your charity? 27
28 Develop a Needs List from YOUR BUDGET $100,000 asks a minimum of two needs $50,000 asks a minimum of three needs $25,000 asks three to five needs $10,000 asks five to ten needs $5,000 asks 10 to 15 needs Update your needs list quarterly 28
29 5. A Six Week Campaign to Major Donors A annual campaign BLITZ for a specific major project Project should be part of your approved budget and general fund Deploy in late spring or late fall, avoid summer and winter (Jan-Feb) Prepare to contact major gift prospects 6 times in a 6 week period Lapsed Major Donors, High Capacity Middle Donors, Active Major Donors
30 Deployment of the Major Donor Campaign Integration is the key Intertwining mail, , web, phones and meetings into the same effort to targeted high capacity donors 1. Step One: Donor file audit. 2. Step Two: Site and budget review to identify top project 3. Step Three: Target 3,000 to 5,000 prospects: Middle donors, major donors and lapsed mid-majors. 4. Step Four: Two direct mail appeals developed 5. Step Five: Four e-appeals 6. Step Six: Internal calls to top prospects 7. Step Seven: Phone calls from Gateway to balance 8.Now the real work begins. Board and staff training for one-toone cultivation and of relationship building 30
31 Deployment of the Major Donor Campaign Integration is the key Effort requires you to remove a donor from the series as soon as they respond. Receipting to happen with 24 hours of receiving donation. 1. Week One: Launch Note with real pen PS and cell phone announcing campaign, need and match. 2. Week Two: First e-appeal 3. Week Three: Kitchen sink package with a complete dossier on project, costs and number of lives impacted. 4. Week Four: Second e-appeal 5. Week Five: Internal calls begin to top prospects who have not responded; Third e-appeal 6. Week Six: External calls begin from paid telefund company to the non-responders; Fourth e-appeal 31
32 32 City Union Mission Pr
33 33 City Union Mission Pr
34 34 City Union Mission Pr
35 35 City Union Mission
36 36 City Union Mission
37 37 City Union Mission
38 38 City Union Mission
39 39 City Union Mission
40 40 City Union Mission
41 41 Digital Campaign: 3 to 5 appeals
42 42 Call Campaign to non-responders is last step!
43 SUCCESS STORIES Kansas City In just 6 weeks they raised $1.3 million, nearly a $1 million lift in income from these donors over the same period in the previous year. Targeted 3,600 people 1,902 people responded across all channels Raised $1.3 million $684 average gift 43
44 SUCCESS STORIES Omaha - A Facebook thank you: Candace Hoyt-Gregory: Just secured another million dollar gift for future Kingdom building, thanks Roy C. Jones for investing in me! Detroit Immediate impact of $250,000 by simply sending a note to a few hundred targeted Major Donors Smalltown, USA Anyone can do it! 100 cups of coffee 44
45 Thank You! Roy C. Jones, CFRE Development Advisor to Russ Reid
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