Cape Cod Philanthropy Day The Beginner s Guide to Building Donor Relationships

Transcription

1 Cape Cod Philanthropy Day 2014 The Beginner s Guide to Building Donor Relationships November 12, 2014 Presented by Rosemarie Resnik, President, Rosemarie Resnik & Associates, Inc. Béatrice Gremlich, Senior Development Officer, Cape Cod Healthcare Foundation

2 What Can we Accomplish in an hour and a half? Donor Motivation Defining Moves Management o Identifying o Qualifying o Cultivating o Solicitation o Stewardship

3 MARATHON NOT A SPRINT

4 What is it NOT?

5 Who Gives? Faithful friends Supporters (large and small) Members Clients/patients Board Members(current and former) Volunteers (current and former) Donors to similar causes Family Foundations and Businesses

6 What Motivates Donors to Give a Gift? Ability Belief Contact

7 Donor Thought Process Question 1 Question 2 Question 3 Question 4 Question 5 Why Them? Why Me? What Impact? How Much? Why Now?

8 Case for Support A well defined description of why organization both needs and merits philanthropic support.

9 Exercise: Case Statement Questions What is the message? How much do you need to raise? What are the funding priorities? Why is it necessary? How will the donor dollars make a difference? Impact What difference do you make in the community? Why is the community support so vital? Who will benefit? What is the impact of the gifts? Why should someone give?

10 What Donors Expect From You Involvement Thanking Social Recognition Financial Reporting Impact Organization Do not over promise and do not create unrealistic expectations

11 What To Expect From Your Donor Connections Involvement Board/ Committees Time Long Time Engagement Financial Support Donor Input on Strategy

12 GIFT PYRAMID = $500,000 $100,000 = $100,000 $50,000 = $100,000 $25,000 = $100,000 $10,000 = $100,000 $5,000 = $100,000 What is your goal?

13 Moves Management Stewardship Identification Solicitation Qualification Cultivation

14 What is Moves Management? Systematic method of moving individuals through the donor life cycle: Process driven: assigning prospects to a specific person, After qualifying prospect, develop a strategy, Implement the strategy according to a timeline, Record each significant interaction Identify change in status Progress ensures qualify and accountability 14

15 Moves Management Chart

16 IDENTIFICATION

17 How Important is your Database? nfidential Co Confidential

18 How is Donor/Prospect Information Used? To identify potential donors and inclination and capacity To track gifts for receipting and recognition purposes To track giving patterns in order to determine RFA (recency, frequency, amount) To track and coordinate moves with the prospect/donor Labels, reports, etc..

19 Identify Your Prospects Who cares about us and why? Who cares about the purpose of this campaign and why? Are there existing relationships? o o Affiliation Connections with committee members/staff Who is capable of giving at the right level? o o Screening Financial Ability How many degrees of separation are there?

20 Things to Look For Philanthropy Longevity of giving Age of donor/prospect Family Wealth Relationship to organization Stock holdings Real Estate Salaries and bonuses Relationships to Board and volunteers What clubs, organizations do they belong? Profession Education, friends, politics, family Number of children

21 Prospect Research Resources Google Wikipedia Zillow.com FREE Portico (indorgs.virginia.edu/portico) The Social Register MA Board of Library Commissioners FEE Lexis Nexis Wealth Enging/Target Analytics Ancestory.com D&B The Foundation Center Guidestar Hoovers Donorsearch.net

22 Donor Rating Matrix High Interest Factors that Lead to Higher Interest Previous Contributor A Sense of Ownership Multi-Generational Family Involvement Emotional Attachment/Strategic to the Project Strong Tie to a Person Involved Low Interest High Capacity Lead 2 nd Tier Donors Donors/Prospects Low Capacity 2 nd Tier Donors Long Shots

23 Prioritize Your Prospects By Gift Capacity & Inclination (rating) Top 25 lifetime donors Top 20% of donors in previous fiscal year Gift of $250+ through direct mail Previously cultivated donors Donors who have given $5,000+ Pick your top Prospects to begin moves management ASK

24 Cultivation: Building Relationships Opportunity where organization can strengthen the relationship with donors

25 Cultivate Your Prospects Inform They must be aware of the problem. Educate They must be persuaded there is a solution. Motivate They must be encouraged to give. How will you cultivate the relationship?

26 Exercise #1 Name of Donors: John and Jane Doe Age: John 67, Jane 65 Current giving level: $1,000 annual gift Form of Contact: Home visit Length of visit: 1 Hour Cape residence: Oyster Harbors Off- Cape residence: Boston and Naples, FL Purpose: Cultivate interest for an increased gift of $25,000

27 Cultivation Ideas Prepare moves management strategies Tour of facility/program Peer to peer with Board Member or top person Phone calls to follow up Articles and press releases Event (and seat with influencers ) Small Gatherings Face-to-face Solicitations Proposal

28 The process of presenting an opportunity to invest assets in the programs and activities for (organization).

29 Fundraising Is The right person asking The right prospect For the right gift For the right program At the right time In the right way.

30 Role of Solicitors Ask top prospects for a gift Contact prospects to determine their willingness Review gift pyramid with prospect to determine level of gift they are likely to make Solicit Prospects Handle Objections Conduct the meeting Prepare for the meeting and solicit Set up the meeting Close the gift and/or Follow up Honor their requests

31 How do you know they are ready to be asked? Capacity Affinity Responding to your follow up Agree to the next encounter Ask for more information They ask you

32 Solicitation: Making the Ask and Closing the Gift

33 The Ask Appointment Have your story ready Call them Try calling early, at lunch or the end of the day Don t discuss giving on the phone Offer a choice of dates and times Be sure prospect knows this is a meeting to discuss a contribution and who will be attending

34 Prepare Review your case for support, needs and funding opportunities What do we need the money for and how will their gift make a difference? Determine gift suggestion. Forecast possible objections.

35 Questioning Don t rush Make them aware of the need before you show them how the need can be met Be certain we do not force yes or no answers Work at fact-finding and uncovering their motivation and needs

36 Opening Talk about the prospects interests Talk with them, not to/at them Involvement is the objective Work to see things from their point of view LISTEN

37 Listening Communication is an active and selective process Anticipate the points they will make Judge what they already said to you Be emphatic-putting ourselves in the prospects position Let me be sure I have understood what you said

38 Asking for the Gift The Closing Emphasize the benefits of what we do, rather than dwell on the problems and needs They know that you are there to ask for money Ask for more than expected, but not more than they can give Suggest the amount desired

39 Agrees to Make the Gift Requested Thank the donor for their generosity! Send letter of gift commitment (signed proposal or pledge agreement). Send a personal note card of thanks.

40 Handling Objections Requests Time to Consider Most common outcome. Acknowledge that the prospect will want to think this over before making a commitment. Ask what the likely timetable is for a decision. Be specific about who and when follow up will occur.

41 Handling Objections Gift Indication is Less Than Requested This is the type of situation where an influential peer can have an impact on the solicitation. Emphasize: Multi-year pledges or one-time gifts. Flexible payment schedules. Various fulfillment options appreciated assets, planned gifts. We don t expect your answer today. We ask you to take some time to consider this request further. May we touch base about this in a week?

42 Handling Objections Declines to Give or Unable to give Usually a rare occurrence. No Ask if they would consider a lower level. Don't force a gift. Not now Would they consider in the future? Suggest following up in a few months. Not sure how Give gift options. Explore the objection: Tell me more about your concern

43 Top Solicitation Mistakes Not practicing Not knowing enough about the prospect. (Prospect Research) TOO MUCH TALKING. Don t speak after asking the gift. Failing to build the case and lay the groundwork for the ask. Not asking questions-finding out what their needs and wishes are. Answering unasked questions. Asking for the gift too soon. Not asking for the gift or not asking for the correct amount. Is the request reasonable?

44 Top Solicitation Mistakes (cont.) Not being flexible, not having alternatives. Not talking about the benefits of the gift Forgetting to summarize before moving on to the solicitation. Not following up in a timely fashion. Not saying Thank You in every instance.

45 Exercise #2 Set up agenda Where will meeting take place? Who will attend? Who will ask? Anticipate prospect s questions Review contents of solicitation kit Verbalize specific dollar amount Remain silent after the ask Encourage pledging over specific time Make sure to ask with a close-ended question Remember objections are opportunities to share more information Get commitment in writing No does not mean never, just not now

46 Exercise #2 Name of Donors: John and Jane Doe Age: John 67, Jane 65 Purpose: Ask for $25,000 Need: 24 hour Homeless for Children

47 Six Characteristics of Successful Stewardship 1. Attention to detail 2. Accuracy in reporting 3. Timely and effective communications 4. Clearly demonstrated outcomes 5. Focus on People 6. Passion (and some fun)

48 DONOR RECOGNITION AND STEWARDSHIP Thank you visits from CEO/Pres./E.D Thank you calls=staff, board Giving societies with benefits Newsletters, websites and publications Donor profiles Donor recognition events Plaques, honor walls, dedications Be Creative!

49 Exercise #3 The power of a thank you How will you thank them? Publicly?, Privately? Create a meaningful way to personally acknowledge donors How will you maintain the donor relationship?

50 Workshop Summaries Develop a case for support Set annual goals and develop gift tables Focus on your top prospects/donor Rate prospects for capacity and inclination Prioritize your prospects Conduct prospect research Use moves management Build relationships Ask for $$$ Steward your donors! Evaluate your success

51 Q&A

52 THANK YOU