From the annual fund to major gifts jesuit advancement association conference june 2007
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From the Annual Fund to Major Gifts Jesuit Advancement Association Conference June, 2007. Here We Go – Our Agenda. Overview of prospect/market research Research and Annual Giving Segmentation Direct Mail and Telemarketing Transition to Major Gifts. Here We Go – Our Agenda. Major Giving

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From the Annual Fund to Major Gifts Jesuit Advancement Association Conference June, 2007

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From the annual fund to major gifts jesuit advancement association conference june 2007

From the Annual Fund to Major GiftsJesuit Advancement Association ConferenceJune, 2007


Here we go our agenda

Here We Go – Our Agenda

  • Overview of prospect/market research

  • Research and Annual Giving

    • Segmentation

    • Direct Mail and Telemarketing

    • Transition to Major Gifts


Here we go our agenda1

Here We Go – Our Agenda

  • Major Giving

    • Understanding propensity and capacity

    • Moves management

      • Cultivation and solicitation

      • Stewardship and recognition

  • Planned Giving

    • Characteristics

    • Marketing


Here we go our agenda2

Here We Go – Our Agenda

  • Integration of Development Functions

    • Bringing it all together into a cohesive effort

  • Summary and Questions


Underlying assumptions overview

Underlying Assumptions (Overview)

  • We need to understand our constituencies

  • Effective prospect research depends on:

    • Understanding key segments

    • Thinking “out of the box”

  • Each organization has multiple donor profiles

    • Key to effective cultivation and solicitation

    • Understanding non-donor segments


Ultimate giving mining your database to maximize gift potential

Ultimate GivingMining your Database to Maximize Gift Potential


From the annual fund to major gifts jesuit advancement association conference june 2007

Traditional View of Donor Development

Prospects (Database)

Donors (First Time or Sporadic)

Major Donors

Planned Givers


From the annual fund to major gifts jesuit advancement association conference june 2007

True View of Donor Development

Prospects (Database)

Donors (First Time or Sporadic)

Loyal Donors

Major

Donors

Planned

Givers

Major & Planned Donors


Ultimate giving

Ultimate Giving

  • Everyone on your database has an ultimate gift

  • Ultimate gifts may be of any size or type

  • Data mining will help you to determine the ultimate giving potential of your prospects

  • Once you know the ultimate giving paths on your database, you may develop cultivation/solicitation strategies suited for gift maximization


Definitions

Definitions

  • Market Research (The Market Research Society)

    • “A systematic way of finding out what people believe, think, want, need or do.”

    • “…and establish policies matched to the public’s needs.”

    • A.k.a. survey research, social research, and ‘prospect research’


Definitions1

Definitions

  • Data Mining: Investigating and discovering trends within a constituent database using computer or manual search methods

  • Predictive (Statistical) Modeling: Discovery of underlying meaningful relationships and patterns from historical and current information within a database; using these findings to predict individual behavior


Applications of market research nonprofit

Applications of Market Research (NonProfit)

  • Targeting donor prospects

  • Test new solicitation strategies

  • Evaluate program performance

  • Evaluate solicitation performance

  • Assess prospect interests

  • Benchmarking

  • Monitor constituent satisfaction


What works for you

What Works for You?

  • What do you analyze?

    • Do you know what is effective?

    • Do you know what non-donors think?

  • Do surveys work for you?

  • What are you doing online?


Predictive modeling who uses it

Predictive Modeling – Who Uses It?

  • Finance

  • Insurance

  • Meteorologists

  • Political Pollsters and Campaigns

  • Retail

  • E-commerce

  • Thousands of Nonprofits


Nonprofit uses

Nonprofit Uses

  • Higher Education

    • Recruitment, matriculation

    • Retention, graduation

    • Fundraising

  • Other Nonprofits

    • Fundraising

    • Membership

    • Interests/marketing/readership


Prospect screening

Prospect Screening

  • When to use?

  • How to use?

    • Have an implementation plan!

    • Secure commitment from all players!

    • Use it! Evaluate it!

    • Do something different!

  • Use alone or in combination?

    • Comprehensive to focused, or vice-versa?


Custom modeling applications

Custom Modeling Applications

  • Annual giving propensity

  • Target gift amount

  • Major giving propensity

  • Planned giving propensity

    • by planned giving “type”

  • Membership propensity & levels

  • Direct mail vs. telemarketing propensity

  • Acquisition vs. retention


Modeling direct marketing data

Modeling Direct Marketing Data


Wealth screening hard data

Wealth Screening – Hard Data

  • Wealth ID

  • P!N

  • WealthEngine

  • Target America

  • Marts & Lundy

  • Grenzebach & Glier


Wealth screening breakdown

Wealth Screening – Breakdown

  • Stock holdings

  • Real estate holdings

  • Business ownership

  • Large asset ownership

  • Income

  • Corporate and foundation executives


Annual giving it is the cornerstone of most successful major and planned giving programs

Annual GivingIt is the cornerstone of most successful major and planned giving programs


Annual giving a working definition

Annual Giving – A Working Definition

  • Solicitation efforts designed to:

    • Promote introductory giving

    • Promote loyal giving

    • Reach larger groups of individuals

    • Be efficient and cost effective

    • Minimize the intrusion on the donor’s life


The relationships between donor types

The Relationships Between Donor Types

  • Is annual giving the basis of:

    • Major giving success?

    • Capital campaign success?

    • Planned giving success?

  • If yes, are there exceptions?

  • Do we underestimate the value of the $20 annual donor?

    • Do we over-solicit these individuals?


Annual giving applications

Annual Giving Applications

  • Annual giving propensity

  • Target gift amount

  • Membership propensity & levels

  • Direct mail vs. telemarketing propensity

  • Acquisition vs. retention


Rating propensity who is most likely to contribute

Rating PropensityWho is most likely to contribute?


Annual giving model

Annual Giving Model


Annual giving scores

Annual Giving Scores


Targeting right direct mail with a purpose or looking for love in all the right places

Targeting RightDirect Mail with a Purpose, or Looking for Love in all the Right Places


Creative challenge 1

Creative Challenge #1

  • A public university sends one undifferentiated letter to all of its 40,000 non-contributing alumni


The letter

The Letter

STATE University

Dear Graduate:

Like me, you probably look back fondly on your years at State University. Cheering on the Red Rabbits to gridiron victory. Enjoying a malt at the Raven’s Nest. The friendships and romances with your classmates, which, in many cases, lasted a lifetime.

Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of $1,000…


From the annual fund to major gifts jesuit advancement association conference june 2007

But…

STATE University

Dear Graduate:

Like me, you probably look back fondly on your years at State University. Cheering on the Red Rabbits to gridiron victory. Enjoying a malt at the Raven’s Nest. The friendships and romances with your classmates, which, in many cases, lasted a lifetime.

Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of $1,000…

But, prior to 1957, it was “State College and Agricultural Institute.”


However

However…

STATE University

Dear Graduate:

Like me, you probably look back fondly on your years at State University. Cheering on the Red Rabbits to gridiron victory. Enjoying a malt at the Raven’s Nest. The friendships and romances with your classmates, which, in many cases, lasted a lifetime.

Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of $1,000…

However, until 1987, they were known as the “Red Indians”


Unfortunately

Unfortunately…

STATE University

Dear Graduate:

Like me, you probably look back fondly on your years at State University. Cheering on the Red Rabbits to gridiron victory. Enjoying a malt at the Raven’s Nest. The friendships and romances with your classmates, which, in many cases, lasted a lifetime.

Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of $1,000…

Unfortunately, in a nightmarish record of futility, they lost all of their games between 1974 and 1987 (perhaps prompting the change to Red Rabbits)


Abandoning the nest

Abandoning the Nest…

STATE University

Dear Graduate:

Like me, you probably look back fondly on your years at State University. Cheering on the Red Rabbits to gridiron victory. Enjoying a malt at the Raven’s Nest. The friendships and romances with your classmates, which, in many cases, lasted a lifetime.

Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of $1,000…

The Raven’s Nest was abandoned in 1993, and the site now features a tattoo and piercing parlor


It is not happy days

It is Not “Happy Days”…

STATE University

Dear Graduate:

Like me, you probably look back fondly on your years at State University. Cheering on the Red Rabbits to gridiron victory. Enjoying a malt at the Raven’s Nest. The friendships and romances with your classmates, which, in many cases, lasted a lifetime.

Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of $1,000…

And even if it were still open, who calls it a “malt” anymore?


All alumni are equal

All Alumni Are Equal…

STATE University

Dear Graduate:

Like me, you probably look back fondly on your years at State University. Cheering on the Red Rabbits to gridiron victory. Enjoying a malt at the Raven’s Nest. The friendships and romances with your classmates, which, in many cases, lasted a lifetime.

Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of $1,000…

Do you really think a 30 year old and a 50-year reunion class alum should be asked for the same gift amount?


Improvements

Improvements…

STATE University

Dear <Name>:

Like me, you probably look back fondly on your years at <State University. > Cheering on the <Team Name> to gridiron victory. <Enjoying a malt at the Raven’s Nest.> The friendships <and romances> with your classmates, which, in many cases, lasted a lifetime.

Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of <$1,000>…

Using strategic customization, we can isolate variables that impact response rate and reflect “predictors” from statistical modeling


Improvements1

Improvements…

STATE University

Dude:

Was college great or what? I’m still partying man!

You knew this was coming, didn’t you? That’s right, we’re asking for money. Welcome to the real word!

But the thing is, it’s not really that much. And by giving $50, you could be helping some slacker who has even less money that you did when you were 18.

With much less complexity, we can mail two or three basic versions of the letter, testing dollar asks based on age or other financial/class year criteria.


Alternatives

Alternatives

  • Letter 1 to graduates of less than 10 years

  • Letter 2 to graduates of 11-25 years ago

  • Letter three to graduates of more than 25 years

  • How do we use differences in their experiences, ages, to create messages more appropriate to them?


And the point is

And the point is…

  • Graduates spent 4 (or more years) becoming individuals

  • Lived in different times at school with varying world events

  • Totally different life stages, from finding a first job (or second) to pondering retirement

  • So why use the same letter with the same ask?


Major giving everyone wants major giving success but are you willing to walk before you run

Major GivingEveryone wants major giving success, but are you willing to walk before you run?


Major giving a working definition

Major Giving – A Working Definition

  • Solicitation efforts designed to:

    • Promote significant giving

    • Promote loyal giving

    • Reach one donor at a time

    • Develop a personal relationship

    • If desired by the donor, to publicly recognize their special commitment


Propensity capacity

Upgrade

Top Prospects

LIKELIHOODAGL, MGL & PGL

Low Yield

Projects

CAPACITY- TGR & WealthPoint

Propensity & Capacity


What do you know

What Do You Know?

  • If you have propensity and capacity?

    • Segmentations

    • Messages

    • Frequency of solicitation

    • Exclusion/inclusion

    • More than giving history and wealth tells you


Model major giving propensity

Model - Major Giving Propensity


Why capacity matters

Why Capacity Matters?

  • In the giving equation, is it less important?

  • Three reasons people do not give:

    • Not asked

    • Do not support your mission

    • Not asked for an appropriate gift


Target gift model

Target Gift Model


Target gift distribution

Target Gift Distribution


What can you avoid

What Can You Avoid?

  • Over-solicitation

  • Ineffective solicitation

  • Short-term needs vs. long-term prospects

  • Minimizing lifetime value

  • Projection of your opinion


Moves management building relationships that last a lifetime

Moves ManagementBuilding Relationships That Last a Lifetime


Defining moves management

Defining Moves Management

  • Correspondence

  • Phone calls and meetings

  • Visits to organization/volunteer activities

  • Proposals and concept papers

  • Ask for involvement

Strategically developed, personalized activities designed to cultivate and strengthen relationships:


Or more simply put

People

Actions

CRM Database

Moves Management

Prospect Research

Or, More Simply Put…

CRM

CRM Database

Feedback

Constituent Relationship Management Solution

Prospect Research

Moves Management

Actions


External prospect research

External Prospect Research

Electronic

Screening

Traditional

On-Line

Historical review (affinity)

Public records research

Peer group evaluation

Development officer feedback

Surveys

  • Wealth

    identification

  • Influence and

    power identification

  • Generic modeling

  • Custom modeling

Lexis-Nexis

Hoovers.com

Bizjournals.com

Bigcharts.com

tenkwizard.com

Google.com


Not all prospects are equal

Not All Prospects are Equal

A development officer’s pipeline is established by identifying, rating and ranking a prospect’s:

  • Wealth indicators

  • Improvement

  • Capacity and propensity scores

  • Responses to personal interactions


Debunking the myths of planned giving myths mysteries and meaningful planned giving research

Debunking the Myths of Planned Giving Myths, Mysteries, and Meaningful Planned Giving Research


Sharing knowledge

Sharing Knowledge

  • Planned giving facts

  • Methodology of determining donor profiles

    • On your own

    • Market research

  • Understanding the Donor Lifecycle

    • Annual, major and planned giving

  • Understanding Planned Giving Behavior

    • Myths and realities will be addressed throughout


Planned giving facts

Planned Giving Facts

  • Wealth transfer (Boston College study)

    • $41 trillion to be transferred from one generation to next in 50 years

    • Estimate that $6 trillion will be given to charities


Planned giving facts1

Planned Giving Facts

  • NCPG research

    - 42% of Americans have wills

    • 8% say they have charities in their wills

    • 97% do not revoke charitable will provision

    • 14% say that they have considered this provision without being asked

  • 89% of planned gifts are bequests

  • 73% do not inform charities of will provision


Planned giving facts2

Planned Giving Facts

  • Why people give

    • 97% say they care about the charity

    • 87% desire to do something special

    • 35% tax planning

    • 22% know charity’s representative


Planned giving facts3

Planned Giving Facts

  • Extremely passive solicitation methods

  • Appeals are broad based and require request for more information

  • Expectations are unreasonably low

    • Far less than 1% give using this methodology


Age distribution major giving

Age Distribution – Major Giving


Age distribution planned giving

Age Distribution – Planned Giving


Planned giving by gift type

Planned Giving by Gift Type

  • Each “type” has different traits

    • Annuities

    • Charitable remainder trusts

    • Bequests

  • Mass Marketing – one to one

    • Opportunity to target planned giving prospects


Planned giving propensity

Planned Giving Propensity


Variables and planned gift types

Variables and Planned Gift Types?

  • Age?

  • Wealth?

  • Credit Usage?

  • Past Giving Behavior?

  • Type of Organization?

  • Relationship to Organization?

  • Marital Status?


Direct mail

Direct Mail

  • Remember importance of annual giving

    • Multiple opportunities to spread the word

  • Set sights on higher response rate

    • 1% unreasonably low

  • Direct mail is passive by nature

    • Plan follow-up for highly-rated prospects

  • Information vs. solicitation

    • Asking is not the sole purpose


Telemarketing

Telemarketing

  • Personal, relationship building calls

  • Use as a follow-up to direct mail

  • Thank you calls as cultivation tools


Integrating development functions

IntegratingDevelopmentFunctions


Integrating development functions1

Integrating Development Functions

  • Having a plan for all of your constituents

  • Communication among entire staff

  • Tracking Results

  • Analyzing Results

  • Being an Instrument of Change


What you can do

What You Can Do

  • How many “we have always done it that way” programs do you have?

  • Evaluate the success of each of your direct marketing efforts

    • Cost per dollar raised

    • Upgrades

    • Response rate

    • Retention rate


What you can do1

What You Can Do

  • Do your direct mail letters really speak to your constituencies?

  • Do you contact your best prospects too frequently?

  • Do you manage your vendors and consultants?

    • Do their strategies match your institution?

    • Custom vs. cookie-cutter approach?


What you can do2

What You Can Do

  • Review your prospect assignments

    • How many assigned?

    • Is the number of prospects reasonable?

    • Are prospects being moved through the stages?

    • Are prospect contacts being tracked?

    • What are you doing with unassigned major gift prospects?


What you can do3

What You Can Do

  • Is your planned giving program too passive?

  • You do not need to wait until you have a planned giving officer to have a planned giving program!

  • People skills vs. technical skills


What you can do4

What You Can Do

  • At the end of the day:

    • Have a plan for donor retention

    • Have a plan for donor acquisition

    • Have a plan for moves management

    • Have a plan for reaching everyone on your database

      • Including ‘no contact’ individuals


What you can do for you

What You Can Do For You

  • Remember the mission

  • Take chances to grow professionally and personally

  • Be passionate about your work

  • Have fun


Summary questions cary colwell cary colwell@blackbaud com 1 843 216 6200

Summary & QuestionsCary [email protected]


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