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What We Do In Development and How We Go About Doing It

The Philosophy of Development A Few Thoughts on:. What We Do In Development and How We Go About Doing It. Donald R.Gray Advancement Academy Conference April 27, 2003. Would you mind turning off your ringer? (in other words, please turn off or mute cell phones and pagers ).

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What We Do In Development and How We Go About Doing It

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  1. The Philosophy of Development A Few Thoughts on: What We Do In DevelopmentandHow We Go About Doing It Donald R.Gray Advancement Academy Conference April 27, 2003

  2. Would you mind turning off your ringer? (in other words, please turn off or mute cell phones and pagers)

  3. Universal Vision Statement for Philanthropy: “You want to compose a good world. It is an honorable and noble profession” -Maya Angelou

  4. Mrs. Evelyn Kaufman Stow High School English Teacher, 1958 (that’s Stow, Ohio, NOT Vermont) • Words reflect who you are to others and to yourself. • Words also reflect how you choose to be seen by the world. • So choose them carefully!!!!!!!

  5. Gifts and Donations A GIFTis a tangible symbol of feelings between people A DONATIONis a tangible symbol of support to a cause Donald Gray--What is Development?

  6. Developmentand Fund Raising A GIFT is to DEVELOPMENT(givers) as A DONATION is to FUND RAISING(donors) Donald Gray--What is Development?

  7. Inappropriate Terms • hit up • put the arm on … • squeeze • loaded • milk • … should give • … ought to give • … owes us • pass the hat • get into his/her pockets

  8. Annual Donations frequently given/asked discretionary income unrestricted fund mailings, events, phone 2-5% of income 90% gifts; 10% dollars 1st step to major gift very, very important Annual vs Major Gifts Donald Gray--What is Development?

  9. Importance of Annual Fund in Major Gift Activity • For all givers to universities who make a first “major gift” of $25,000 or more, • 75% made a first donation to the university of $250 or less in response to the annual fund • 83% have made smaller level donations (annual fund donations) for at least 5 years; almost 60% for at least 11 years Donald Gray--What is Development?

  10. The Right Way to View Annual Fund • Concept of Annual Fund as Living Endowment ($1million annually equates to an endowment of $20-25 million) • Annual Fund is the spring that feeds the river of Major Gifts that flows into the estuary of Planned Giving Donald Gray--What is Development?

  11. Annual Donations frequently given/asked discretionary income unrestricted fund mailings, events, phone 2-5% of income 90% gifts; 10% dollars 1st step to major gift very, very important Major Gifts infrequently given/asked from assets: stop/think relationship required targeted/restricted projects 10-20x annual fund gift 10% gifts; 90% dollars often repeated over time critical to success Annual vs Major Gifts Donald Gray--What is Development?

  12. The Math of Major Gift Work • For each major gift (>$25K), you need three prospective major givers • On average, a major gift is closed after 9 meaningful contacts, or between 6 mos-2yrs • Thus to get 5 new major gifts requires 3 x 9 x 5 = 135 meaningful contacts. Donald Gray--What is Development?

  13. ULTIMATE GIFTS • Once in a Lifetime Gift • Combination of Giving Methods; Many People Involved • Total Commitment to Institution’s Mission • Long, Emotional Relationship (and several previous major gifts) • Often Involves Major Naming Opportunity • 1,000-2,000x Annual Gift/10-20% Net Incoming-Producing Assets Donald Gray--What is Development?

  14. $100,000 annual income (gross)$2 million net income-producing assets • Annual Donation: $2,000-5,000 to all charitable organizations (2-5% of annual income) • Major Gift: $40,000-80,000 (2-4% of net assets) • Ultimate Gift: $200,000-400,000 (10-20% of net assets) Donald Gray--What is Development?

  15. Having fun with Bill Gates: net assets approximately $85 billion • Annual Donation: Who knows? Anything he chooses • Major Gift: $1.7 billion - $3.4 billion • Ultimate Gift: $8.5 billion - 17 billion • Question: How much would a person with $1 million in net assets need to give to equal a relative $1 million gift from Bill? Donald Gray--What is Development?

  16. $11.76 In raising funds from individuals, never overlook the concept of relative wealth.

  17. Top Three Reasons People Give Major and Ultimate Gifts • Belief in Mission and Stability of the Organization • Sense of Civic Responsibility • High Regard for Staff and Volunteer Leadership Donald Gray--What is Development?

  18. St. Peter Recently departed non-philanthropist “Charitable giving isn’t the ultimate test of one’s humanity but it does give us some numbers to play with.”

  19. “It just feels good” Donald Gray--What is Development?

  20. Bottom Three Reasons People Give Major and Ultimate Gifts • Guilt and Obligation • Promotional Materials and Proposals • Tax Considerations Donald Gray--What is Development?

  21. Successful Development THE MYSTICAL MINGLING OF A JOYFUL GIVER AN ARTFUL ASKER A GRATEFUL RECIPIENT

  22. The Cycle of Successful Development Attention Initial Contact Interest Desire Additional Gift Interest ID maybe Action ShowCreativity yes no,no,no acknowledge Creating the Joyful Giver Making the Artful Ask Invoking the Grateful Recipient

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