Major Gift Fundraising: Strategy and Planning

Ann Marie Byrd, Development Director, Catholic Charities Spokane Andrew Olsen, CFRE, Sr. Development Advisor, Russ Reid
September, 2012

Weve been going through a drought BUT THE RAIN IS COMING SOON!
The Situation: Giving has not yet returned to 2007 levels, but the rain is coming
2011 - $293 billion donated 2010 - $291 billion donated 2009 - $280 billion donated 2008 - $306 billion donated 2007 - $307 billion donated
Statistics acquired from Giving USA 2011 report

How this impacts YOU

Typical long term donor value

Donors who have given less than $10,000
LTDV = $200 to $500 over a five year period

Donors who have given more than $10,000

LTDV = $3,500or 18 to 20 times greater than regular donor

Cost of fundraising impact

Special event cost of fundraising is approximately 50% - 70% Direct Response cost of fundraising is approximately 30%40% Major Donor cost of fundraising is approximately 5%10% These estimates include staff costs too. The benefits of a Major

Gifts programs are evident.

Pyramid of giving

The importance of a Major Gift program

Six reasons you should have a major gifts program

1. Adds revenue to the bottom line 2. Greater donor involvement 3. Decreases overall cost of fund raising by reducing dependence on special events, government funds and direct mail 4. Great return on investment 5. Major gifts can represent 20 50% of your overall fundraising revenue 6. Positive impact on GIK, public relations, planned giving, Capital Campaign support, significant year-end giving, generating committed volunteers

Where is your development program?

A Limited Program
Limited staff. Ad hoc fundraising. Limited Board involvement. Your Case=Immediate Needs. One major funding stream. .

A Growing Program
Development staff grows. Fundraising as Science. Increased Board involvement. Your Case=We Do This. New fundraising strategies tried.
Development Committee formed.

A Robust Program
Many are involved. Fundraising as Art & Science. Leadership is maximized. Your Case = Vision & Impact. Diverse income generation: Mass fundraising, Major Gifts, Planned Giving, Special Events, Institutional Funding, and

Development is staff driven. Volunteers become involved.

Begin Where You Are!

Churches and Civic Groups. Donors qualifying donors. New prospects everyday.

Traditional view of major gift development

Identify

Steward

Qualify

Solicit

Cultivate

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Major donor development model

Identify/Qualify

Create meaningful giving experience

Build trusting relationship

Evaluation and commitment

Identify philanthropic passion

Match passion to program

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Building the major donor development program

Support flows to promising programs rather than needy institutions. Si Seymour

Major donor development model courtesy of Advancement Resources, LLC

Identifying major donor prospects

Who are your best major donor prospects?
Current major donors Long-term donors who give at lower levels, but have greater capacity New donors that come on with mid-level gifts People who support you in other ways (non-$), but who are making

gifts to other similar organizations in the community

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Qualifying major donor prospects

This is an active engagement process
Call Visit Ask questions Uncover hidden passions Confirm the donors CIA Capacity to make a major gift Interest in your cause Affinity for your organization

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Building trusting relationships

Key #1: This relationship isnt about you or your organization
Its about your donor and all the good she wants to accomplish in the

world
Key #2: The meaning of trust
Integrity Honesty Mutual understanding Follow through

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Identifying philanthropic passion

What do you want to do with your resources to make an impact in

this world?
What are you passionate about? How do you want people to remember you/your family? If money were no object, what would you want to do to improve

the community/world, etc.?

What caused you to begin supporting us?

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Matching passion to program

Each donor should receive a custom proposal, based on the

intersection of her philanthropic passion and your program goals

Hunger Children Technology Education Immigrant populations

You arent in the restaurant business dont just shove a generic

menu in front of every donor

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Evaluation and commitment

Once youve matched passion to program, you need to present a

proposal that answers these questions for the donor:

Who What population will this impact What Whats the problem and whats your solution? When When will it begin, and when will we know if it was a success? Why Why is this necessary, and why now? How How will you solve this problem? What will the program look

like?
How Much How much will it all cost, and over what timeframe?

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Evaluation and commitment (continued)

Can I trust this organization? Do they value me, or just my money? Is this the right project for me? Is the timing right? Will this enhance my legacy or my standing in the community? Will my family/friends support my decision?

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Creating a meaningful giving experience

Its not about the money its about the impact Look for ways to involve the donor Identify appropriate feedback and recognition mechanisms

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Tipping points
Retirement Sale of a business or property Death of spouse, parent or child IPO Graduation of youngest child from college

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13 Major Donor Engagement Strategies

Invite major donor prospects to participate in your mission Spend one-on-one time with major donors Host small group events with 4-6 major donor prospect couples /

individuals
Ask them for feedback on a program they fund or one youre

looking to launch / change

Create special invitation only pre and post-event receptions for

major donors and major donor prospects

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13 Major Donor Engagement Strategies (cont.)

Invite them to meet personally with your ED or Board Chair Create a special Executive Directors monthly communication just

for major donors and major donor prospects

Establish a major donor club with varying gift levels and benefits Feature a major donors giving story in your newsletter Place an appreciation article in a local publication of value to your

donor

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13 Major Donor Engagement Strategies (cont.)

Create a special members-only portal on your website for major

donor communication and updates

Send them personalized video updates and thank you messages

from the field

Ask for another gift

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Catholic Charities of Spokane

TY notes signed by Exec Dir, personal note for gifts of $200+ $500 - $999 get personal call from member of Admin team;

$1,000+ get call from Exec Dir

Regular updates on how gifts are impacting programs (for

restricted giving)
Personal visit for $5,000+ gifts Birthday cards, special articles, etc. Special events and private social gatherings

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Thank You
Andrew Olsen, CFRE Sr. Development Advisor, Russ Reid aolsen@russreid.com 626.463.9459 Ann Marie Byrd Director of Development Catholic Charities of Spokane abyrd@ccspokane.org 509.358.4266