Presentation Transcript

1. Establishing, engaging and sustaining a consistent donor base Rob Wellbaum, CFRE Interim Vice President for Development September 2011
2. Our Common Bond
3. Status of Giving in the US According to Giving USA, figures on American philanthropy in 2010 showed: Americans gave more than $290.89 billion to charity, which was up 3.8% in 2010. The greatest portion of charitable giving (73%) or $211.77 billion, was given by individuals. Charitable bequests totaled $22.83 billion or 8% of total giving. Charitable bequests rose an estimated 18.8%. The sum of gifts by individuals and charitable bequests is 81% of total giving. Foundations gave $41 billion, accounting for 13% of all philanthropy in the USA. Corporate giving, which is usually tied to corporate profits, rose an estimated 10.6% to $15.29 billion. Corporate giving accounted for just 5% of all charitable giving.
4. 2010 Contributions by Recipient
5. Status of Giving in the US Giving USA reported that 60 percent of public charities saw decreases in 2010. Exceptions: religion human services environment animal organizations Giving to arts, culture, and humanities organizations were hit particularly hard by the recession. By 2050, an estimated $41 trillion will transfer from one generation to the next, with gifts to nonprofit organizations projected to exceed $6 trillion.
6. Giving USA 2010 Survey Build a more compelling case for giving in light of a more competitive fundraising environment. Charities built strong messages around the consequences of not supporting their cause, such as highlighting the loss of education or art programs, the closing of a center, or reductions in services. Improve communications with donors through quarterly newsletters and regular email announcements. Partner with other organizations to raise visibility and gain a broader audience. Improve efforts in getting small annual gifts from members and acknowledging donor gifts within one or two days. Increase advocacy work and draw attention to a need or crisis.
7. Individuals’ Motivations for Giving Because they were asked Presented with a giving opportunity that motivated them Support what they believe in, they want to make a positive difference Give because they cannot say “No” to the person asking. Give because it was easy or convenient to give. Tax benefits of giving, giving substantially increases in the last quarter of the year. People sometimes give because it's expected, culture or peer pressure. Approach giving as they do investing, maximize the leverage and impact of their gift. People give because they want to leave a legacy.
8. Organizations Have No Needs, but Opportunities.People have needs, organizations have opportunities to address those needs. Seek Investment, Not Charity. Ask people to invest in the mission of your organization, invest in the lives of the people you serve. Organizations can put philanthropic dollars to work! People want to feel and know that their gift is making a tangible impact….return on investment. Position Your Organization Philanthropically. There is a lot of competition for people’s philanthropic dollars. You do not have to be in someone’s top 5 giving priorities, but you need to position yourself so you are on their list when they are making their gift decisions. You need to communicate with them prior to them making these decisions. Donors Will Tell You What They Want and How they Feel. You'll never know how your donors or prospects feel about your organization until you ask them.
9. Listen to your Donor Community and What They have to Say. People like to be sought for their counsel, but when you ask you must listen. All donors are different, try to listen and respond in a manner that speaks to their heart. Make Your Case Larger than the Institution.Articulate your vision for the future in terms of people, impact and outcomes. Not raising funds for the institution’s own sake but for the people it serves. Design Your Case or Appeal to Move People Intellectually and Emotionally. Your case must inspire and challenge prospective donors to play a role in making it all happen.
10. GET PEOPLE INVOLVED: The way to raise real money is to provide real involvement, put people before dollars. “Investment follows involvement.” Create Authentic Involvement. Ask for insights and opinions. Invite people to do something important for you. Enable them to develop a strong sense of “buy in” in your organization. The Process of Planning is More Important than the Plan Itself. Planning for your organization's future presents an opportunity for involvement. People become motivated to work for and invest in plans they helped develop. Share Your Plans Without Asking for Money.Share your hopes, your dreams and your plans with your shareholders in a setting that is not asking for money. Cultivate relationships by seeking their input and feedback on your plans.
11. SET THE PACE FOR GIVING: Specifically ask for the Gift you think is Appropriate. General appeals will always produce lower results. Segment your appeal to ask for an amount that is appropriate for that donor. Few Will Do the Most.The 80/20 rule is now a 90/10 rule. Focus additional efforts on donors that will produce the greatest results. The Early Donor Sets the Pace. "He who gives early gives twice." His/her contribution sets an example for others to follow. Identify and solicit likely larger donors first. Their giving will encourage others to give. Trustees/Board Members Have an Opportunity, Not an Obligation. Don't pressure them into giving, but rather create opportunities for them to become actively involved and genuinely interested in your organization's success. Staff Giving Lends Credibility. Voluntary staff contributions convey a sense of the value of your organization. Set the example. Make Great Investments Possible. Provide donors flexible payment periods and opportunities to make non-cash gifts.
12. Fund Raising is not a dirty word: The fund raiser is an investment counselor, not a salesman. People Give to People.This is a relationship business. The Right Person Makes the Difference. Find the right person to ask them for the gift. Peer to peer. The One Who Asks Must First Give. Actions speak louder than words. For Larger Gifts, See the Prospect Face to Face. Get as personal as you can. Engage the donor in person whenever possible. Qualify the Prospect as Best You Can.Consider what the prospect is capable of giving, not just what you think they are likely to do. Tailor your request to the donor's means, reasons for giving and giving history. Tenacity Prevails. "If at first you don't succeed, try, try again." Don’t write someone off, because they said no. What does “No” mean. T.A.P. - Timing, Amount, Project
13. PRACTICE STEWARDSHIP: The task is not to get an one-time donation, but to develop a donor relationship…Advocate. Giving is Relational, not Transactional. You want the donor to feel an emotional connection to the organization and the donation….not just write the check. The Donor Deserves Good Stewardship. Sincerely thank the donor, recognize the donor, fulfill promises on how the gift is to be use, and report the outcome of their investment. The Best Advocate is Both Donor and Volunteer.Engage your donors to become more involved and advocates for your organization. The advocate gives and asks others to give, works and asks others to work.
14. Fundraising - How do we get started?
15. Mission and Vision Horst Schulze - Know who you are, who you want to be and what your promise is Who are you? What is your mission? Why is what you do important? How will donor support enhance your mission? What are your priorities and opportunities for donor support? Build your Case for Support?
16. Who is your Audience…Prospects Campers/Alumni Former Camp Counselors Parents and Families Guest Groups Volunteers Church Partners
17. Engaging your Audiences Data is Key! How are you collecting data? How are you updating data? What data are you collecting and on whom are collecting it? How are you using your data? Are you sufficiently recording gifts and tracking this information? Is your data secure? Communication and engagement strategy for each group Opportunities for involvement during and after their camp experience Opportunities to engage in stewardship or service activities Make “their” camp a part of their lives…ownership!
18. Types of Giving Programs Level 1 Giving - On-Site Giving: Engage your constituents while they are on-site. Love offering, service project, t-shirt sale with the profits benefiting a tangible project. A majority of donors’ first gift will be spontaneous. Have materials, a display, gift envelops or “Wish List” available for when they visit. Establish a gift club. Ask your guests to consider a small membership fee to a gift club. Provide them a sticker for their car and invite them to any special events. Give them priority registration for future camps.
19. Types of Giving Programs Level 2 Giving - Annual Giving Program: Engage your constituents on an annual basis through letters, phone calls, peer to peer visits, reunion class, email and social media. Getting the first gift is the hardest. When donors make their year-end gift decisions, you must be at the table. Continue to build your membership club through direct appeals. Begin to ask donors to give beyond their initial membership. As you build your donor base, ask your donors to continue to support you each year. Support your annual appeals with special events, ask for gifts during certain milestones in the life of the camp, host reunion groups or family weekends, and ask for reunion gifts on the anniversary of campers’ camp experience.
20. Types of Giving Programs Level 2 Giving - Annual Giving Program (cont.): Ask those closest to you to serve on a volunteer development board. Volunteers can write a letter on your behalf and be an advocate for your organization to their peers. Involve current camp counselors to contact previous camp employees to ask to give, share stories and thank for previous support. Support your efforts with gift information on your web-site. Enable donors to easily make on-line gifts, as well as information on giving opportunities, your “wish list”, as well as how they can support you long-term through planned gifts.
21. Types of Giving Programs Level 3 Giving – A Campaigns: Once you have a growing donor base, you may want to initiate a short-term capital campaign. These would usually be used to fund capital construction projects, land acquisition, one-time special projects or create an endowment fund to support future operations. Capital and endowment campaigns require a pool of donor prospects from which to recruit lead and substantial gifts that will take the campaign two-thirds or three-fourths of the way to the campaign goal before turning to the final public phase to complete the campaign. Unless you have a pool of donors with an established track record, it will be difficult. Most donors at this level strongly identify with organization and have chosen to focus on your program as a giving priority in their life.
22. Types of Giving Programs Level 4 Giving - Planned Gifts: Donors at this level identify your organization as one of their most significant priorities and want to assign a substantial share of their wealth or assets to make a difference and leave an enduring legacy. These types of gifts will require the services of a professional on the donor’s end, as well as the organization’s end. The nature of these gifts will vary based on the intent and needs of each individual donor
23. Types of Planned Gifts Simple Will Bequest Name as beneficiary and/or owner of a lift insurance policy Name as beneficiary of a retirement account, make a gift from a retirement account Gift of appreciated assets Retained life estate Charitable Gift Annuity or Trust
24. Auburn Campaign History 1960 Auburn University Foundation is formed 1965 Auburn Annual Fund was established 1978-85 Auburn Generations Fund Campaign Goal $61.7 million Results $111 million 1990-96 Campaign Auburn: The Next Generation Goal $175 million Results $201.6 million
25. Auburn Campaign History Cont. 2001 Auburn receives three transformational gifts Name the College of Engineering Name the School of Pharmacy Gift to build and name a new art museum Oct. 2001 Auburn launches its third campaign “The It Begins at Auburn” campaign Goal $500 million Results $608.8 million Next Campaign Likely implementation in June 2012
26. Sources of Funds
27. Final Thoughts People give to and support what they value and believe in People give to make a difference in the lives of others People give to organizations in which they believe in the leadership People give to well run organizations People give to organizations that have made a difference in their life