Managing Major Gift Programs For Maximum Effectiveness

1. Managing Major Gift ProgramsFor Maximum Effectiveness Presented by: Richard Perry and Jeff Schreifels

2. How To Think About This • Problem/Opportunity • Three Operating Principles • Seven Pillars of a Major Gift Program

3. There is a problem… Value Attrition Benchmarksof 33 National Organizations

6. Example of Value Attrition

7. Three Operating Principles - #1 Treat donors as partners vs. sources of cash.

8. Three Operating Principles - #2 Donors Have Life

9. Three Operating Principles - #3 The role of money in society is to transfer value

10. Money is a result – NOT an objective. Matching the donor’s interests and passions to the needs of the organization brings true donor fulfillment and joy. – AND it brings the money

11. Before You Start… Do you have the right organization?

12. Effective FR Organization

13. The Pillars

14. Pillar #1- The Right Caseload • Build the Caseload: • Determine Criteria for Pool • Qualifying Donors • Tier Donors (A-25, B-50, C-75) • Develop process to bring people on and off caseload

15. Pillar #1 – The Right Caseload Understand: How a caseload grows over time.

16. Pillar #1 – The Right Caseload Understand: The right composition for a caseload.

17. Pillar #2 - Create Goals • Goals create focus and drive planning • Not meant as a way to punish but something to attain • Must be realistic and based on actual behavior and capacity • Must be cash-flowed

18. Pillar #3 – The Right Plan A Plan For Every Donor • A plan for every donor is required if you are to meet your goals • Plan at least one “touch” per month, per donor – sometimes more • Create a healthy mix of reporting back, personal touches, asks

19. Pillar #3 – The Right Plan Elements of the Right Plan: A good Donor Moves-Management Plan includes: • I.D of donor passion and interest. • Figure out donor communication preference. • A financial goal for the donor. • A stream of frequent “Touches” that: • Tell the donor she made a difference through her giving. • Give the donor an insiders view of the organization • Sets up an ask.

20. Pillar #3 – The Right Plan Two Moves Management Tracks

21. Pillar #3 – The Right Plan Program To Sell Project Support Portfolio A system for packaging program • Total organizational budget allocated to major program categories of the organization. • Program activity reported in pre-determined categories. • Program needs communicated in a donor focused process. • Total actual costs, activity and outcome statistics of the program category shown to donor. • Allows non-profit to communicate with donors in a way that suits them and causes them to respond and fund total budget needs

22. Pillar #3 – The Right Plan Three Elements Of An Offer

23. Pillar #4 – Ask For Support • Know your donor • Know your program • Make a perfect match of program to donor • Compose the ask • Practice the ask • Make the ask

24. Pillar #4 – Ask For Support Common mistakes about asking: • No match to donor passion and interest. • Relationship of trust not built. • Not enough feedback given prior giving…

25. Pillar #4 – Ask For Support • Ask not put into the context of a larger vision • MGO is more interested in getting the money than fulfilling donor interests. • Ask is too low. • MGO is not prepared to offer “terms” in payment of pledge. • Ask is packaged too intellectually and philosophically – void of emotion and passion. • MGO is not prepared to handle objections.

26. Pillar #5 – Thank Donors • Call within 3 days of receiving a gift • Receipt and thank you letter within one week • Call from CEO or board member • “Surprise” thank you calls or notes throughout the year.

27. Pillar #6 – Report Back • Invest in it • Evaluate all that you do • More than once per year • Use social media • Surprise your donor-make it personal

28. You made me aware. Donors want to make a difference... You asked me to help. Said it would make a difference. So I want to help again. You didn’t tell me I made a difference…so I gave somewhere else to make a difference. You told me my gift made a difference. I believed you. Gave what I could.

29. Pillar #7 – Love Accountability Measure: • How the same donors last year are performing this year. • How the donors are performing against individual goals. • How many visits, contacts and asks the MGO is making. • Report on unusual gains and losses for any donor on the caseload to make sure other numbers are not being skewed. • MGO performance review.

30. One Gift Hides Poor Performance

31. How New Money Covers Loss Need to make sure there is a focus on donors first then dollars and avoid an incorrect assessment of your situation.

32. Three Resources • Passionate Giving Blog • White Papers from Veritus Group • Packaging Your Budget For Donors • Seven Pillars of a Major Gift Program • Building a Culture of Philanthropy • Six Secrets to Becoming an Extraordinary Major Gift Officer • Qualifying Donors for Major Gift Caseloads • Social Networking and Major Gifts • Transporting Your Donor To The Scene • Marketing Impact Chart Template

33. It’s not only about the money… Veritusgroup.com 267-254-2939 • jschreifels@veritusgroup.com

35. A Look At Our Work For Others…. Two Cases….

36. Case #1Social Service Organization Situation and Challenges: • Large unmanaged caseloads with unqualified donors in a major gift program that was not growing. • More major donors on file than labor to manage them. • No management of MGOs to provide accountability, focus and results. • No 6 & 7 figure asks/gifts although organization needed the funds.

37. Case #1Social Service Organization What We Did: • Provided management structure and accountability which resulted in focus, results, donor retention and management reporting to show all activity. • Modified caseloads so that only qualified donors were on them resulting in better use of labor. • Added major gift talent to service available donors. • Provided moves management strategy to secure better results including upgrading, retention and 6 & 7 figure gifts. • Turned failing MGO around. • Hired new MGOs. • Provided steady operational growth PLUS additional funds for capital project.

38. Case #1Social Service Organization Results • Period growth of 81.46% in operating revenue for a total of $22,013,052. • Period growth of 112.51% in TOTAL revenue for a total of $25,388,328 • Seamless movement from departing MGO (D) to new MGO (E) with increase in revenue. • Successful turnaround of failing MGO (C) in Yr 6. • Raised $3.375 million for a capital project with minimal effect on operating. • Secured multiple 6 & 7 figure gifts. • New MGO already at $1.2 million in caseload value with only 18 months on the job!

39. Case #1Social Service Organization

40. Case #2International Relief & Development Organization Situation and Challenges • Very large caseloads with many unqualified donors and wasted MGO labor. • Very little individual donor planning and no goal setting for each donor. • More major donors on file than labor to manage them resulting in needed funds being “left on the table”. • Few management and performance systems and reports.

41. Case #2International Relief & Development Organization What We Did • Reduced all caseloads to qualified donors with high inclination and high capacity. • Re-organized caseloads into 3 tiers reflecting donor value. • Created goals and plans for each donor. • Assisted in developing strategies and approaches to donors. • Introduced additional management systems and reports, including YTD actual against goal by donor, tracking moves by donor and MGO performance reports. • Recommended hiring 1 additional MGO in the year and another one in the next year.

42. Case #2International Relief & Development Organization Results • Surpassed goal of $22.8 million by $3 million or 13%. • Did this at an ROI of 1:12. • Maintained very high value caseloads – each one over $1 million. • Ramped up MGO to over $1.2 million in one year. • Created case to successfully add a new MGO in next year. • Secured multiple 6 & 7 figure gifts. • Current year revenue at: $26.3 million.

43. Case #2International Relief & Development Organization