Build the Relationships and The Money Will Come

1. Build the Relationships and The Money Will Come Tennessee Valley Institute for Nonprofit Excellence Breakout Session – 10 – 11:15 a.m. August 12, 2010 Kay Sprinkel Grace, Presenter

2. Overview of Session Welcome and introductions Relationships and major giving: it is about connections Getting people engaged in major giving The role of mission, vision and values in relationship building What major donors (at all levels) are looking for Moving from transaction to transformation Stewardship: the key to continued relationships Questions, summary and close

4. Building the Relationship: Key Principles • The most powerful innovation is in attitude about community resource development (people and money) • Knowing that people give to you because you meet needs, not because you have needs (they invest in results) • A gift to you is really a gift through you into the community • Pride, not apology when asking; opportunity not obligation • 21st century philanthropy is viewed by increasing numbers of donors as social investment

5. Relationships and Major Giving • Major giving defined: a relative concept • Key premise: fund raising is not about money, it is about relationships (why do we forget this?) • Loyalty and long term investing is based on the values-based relationship people develop with an organization and the extent to which they are enrolled in your vision and aligned with your mission • This does not happen without deliberate, intentional, systematic relationship-building

6. Getting Engaged in Major Giving • Making major giving a priority • The data don’t lie: individuals give the most (83% of all GIVING USA data) • Internal commitment to creating a culture of philanthropy • External commitment to donor-investors and the community to utilize large investments in a way that leverages impact • Getting board members involved • Through AAA or other engagement strategy

7. Identification Qualification Development of Strategy Cultivation Evaluation Solicitation Follow up Stewardship Renewal Each step builds, confirms or sustains the relationship What it Takes to Build Relationships

8. The Role of Mission, Vision and Values in Relationship Building The basis of the relationship from initiation to culmination

9. Mission • Remember that mission is “why” not “what” • Remember that it is bigger than your organization – it describes the human or societal need you meet and it should resonate in a way that engages people in a relationship with you • We have to master the mission in a way that inspires others to desire a relationship with your organization • It is critical to make the mission manifest through your programs and outreach: How does this mission statement engage?

10. Mission Example • Vector Health Programs (medical agency treating hands) • “Next to the human face, hands are our most expressive feature. We talk with them. We work with them. We play with them. We comfort and love with them. An injury to the hand affects a person professionally and personally. At Vector Health Programs, we give people back the use of their hands.”

11. Vision • Vision is a key to relationship building • What is your vision for your community if your organization is successful? • Sharing and articulating the vision • How the vision relates to the culture of philanthropy, volunteer recruitment, constituency development, donor cultivation, the asking process and donor stewardship

12. “Head Start” Organization in New Orleans • Our vision is that every child in the greater New Orleans area will be ready when it is time to start school.

13. Values • Where do values come from? • Deriving the shared values from donors and volunteers to forge relationships • Linking values to philanthropy, development and fund raising • Values as the basis for messages • Using values-linked feedback and stewardship to keep board, non-board volunteers and donors in a strong relationship with your organization

14. Philanthropy Based in values Development Uncovers shared values Fund Raising Gives people opportunities to act on their values

15. Expressing Values • A thank you card sent to institutional and individual donors to a special campaign for a Stanford University library flooding emergency: • “Your gift to the Stanford University Libraries helps us assemble the sources, the arguments, the hypotheses, the wisdom and controversies of the ages. For all those here, and those yet to come, please accept our gratitude.” • Michael Keller, Librarian

16. A Review of the Key Steps in Major Gift Procurement Through the lens of relationships Cultivation Solicitation Stewardship

17. Cultivation • Not “random acts of kindness” • Deliberate, systematic relationship building • “Horizontal” and “vertical” cultivation strategies • Building a Cultivation Calendar • Using resources and intuition to move people from cultivation to solicitation to stewardship

18. Cultivation • Purpose is to build the relationship and uncover shared values • “Moves management” based on knowing when to shift into solicitation process • Be sure leadership understands, participates and funds cultivation activities • Your imagination (and budget) are your only limitations in creating a systematic cultivation process

19. What Major Donors Seek in the Organizations They Relate To • Issues • Ideas • Involvement • Impact • Investment • Kay Sprinkel Grace and Alan Wendroff, 2001 • High Impact Philanthropy (John Wiley & Sons)

20. Solicitation • An evolutionary step if you have built the relationship • It is not about you: it is about the donor • Plan carefully • Teams of two are most effective • Master a process that will frame your time and message (Opening, Involvement, Presentation, Close is one framework) • Be adept at anticipating and handling objections • Close appropriately based on the outcome of the ask (yes, no, maybe)

21. Moving from Transaction to Transformation Keeping the donor-investor “in the loop” and sustaining the relationship

22. Transactional Bell Curve: The Way We Have Asked High Impact Philanthropy Kay Sprinkel Grace, Alan Wendroff

23. Transformational Infinity Loop:A New Approach to Asking High Impact Philanthropy Kay Sprinkel Grace, Alan Wendroff

24. Stewardship: The Key to Continued Relationships What it is; what it requires

25. Maintaining the Relationship Requires Information About… • Program impact • Financial performance • Return on donor investment relative to the donor’s values • Responsiveness to changes in organization and marketplace • Willingness to plan continually based on shifts in the marketplace and have solid systems and structures to support change

26. Infinity Loop: Keeping Your Donor-Investors Engaged 2. You Tailor Your Case 1. You Make Your Case 3. Your Donor Investors Champion Your Case High Impact Philanthropy Kay Sprinkel Grace, Alan Wendroff Adapted by Papilia, 2003

28. What Board Members Need to Become Partners and Champions of Philanthropy • This is the starter list: • Transparency • Accountability • Disclosure • Clarity • To understand the mission, vision and values • To believe in what you are doing • Are these true for your board? What else would you add?

29. A Closing Thought…. • “The vineyards of philanthropy are pleasant places, and I would hope good men and women will be drawn there. Most of all, I would hope it will be better understood that if these vineyards are to thrive and bear their best fruit, they must always have first-class attention.” • Harold J. “Si” Seymour, Designs for Fundraising

30. Build the Relationships and The Money Will Come Tennessee Valley Institute for Nonprofit Excellence Kay Sprinkel Grace, Presenter http://www.kaygrace.org/kaysprinkelgrace@aol.com 415-831-2923