The Sweet Spot: Asking for Major Gifts and Getting Them

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The Sweet Spot Asking for Major Gifts and
Getting Them with Roberta A. Healey
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Roberta A. Healey

• 30 years -- non-profit management and
  development
• Senior Member, Farr Healey Consulting, LLC
• Chief Development Officer -- faith-based
  organizations
• Board President -- Association of Fundraising
  Professionals
• Founding Member of American Association of Homes
  and Services for the Aging
• Adjunct Faculty at Villanova University

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TONIGHTS GOALS

• To learn
• Where Major Gifts fit in the overall context of
  philanthropy
• Why donors -- of several distinct types -- decide
  to offer their welcome support
• How to customize cultivation for the individual
  donor
• How to make the ask
• How to follow up -- whether the initial response
  is yes or no

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Annual Giving

• Any organized effort by a gift-supported
  organization to obtain gifts on a yearly basis,
  usually to support operations.
• Individuals
• Organizations

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Major/Capital Giving

• Funds provided for buildings, including
  construction and equipment, endowment and
  scholarship.
• Individuals
• Organizations

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Planned Giving

• The integration of sound personal, financial and
  estate planning concepts with the individual
  donor's plans for lifetime testamentary giving.
• Individuals

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Pyramid of Giving
Planned Gifts Few
donors, large gifts
Major Gifts Smaller number of donors, larger
gifts
Annual Gifts Large number of donors gifts
usually smaller
Original Pyramid of Giving James M. Greenfield
CFRE
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Identifying Individual Prospect and Donor
Characteristics
Understanding Motivation
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External Environment US Societal Transformations

• Longevity and Technology are redefining
  community. 
• Economic Instability
• Increasing Cynicism
• Bonds of Community Decreasing 

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Adult Generations in the US Booster Mature

• Feel they have earned the rewards of life by hard
  work and careful planning
• Work is an unavoidable obligation
• Look on the futures a rainy day to work for
  patient abut the time it takes to achieve results
• Education is a dream not a birthright
• Tends to trust large traditional institutions
• Security Safety Stability
• We
• No Sweat

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Adult Generations in the US Boomer Midlife

• Feel entitled to the rewards of life because they
  have earned them
• Work is an exciting adventure
• Orientation to the present not the future. Looks
  for tangible immediate outcomes
• Education is a birthright
• Limited trust in large traditional institutions
• Identity Personal Growth Meaning
  Materialism
• Me
• No Problem

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Adult Generations in the US Buster Young Adult

• Defining idea is diversity style is
  entrepreneurial
• Feel entitled to rewards because they are needed
• Work is a difficult challenge education is way
  to get where you are going.
• Future is uncertain but manageable
• Large institutions are suspect and traditions
  questionable
• Identity Relationships Community
• Us
• No Fear

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Seven Faces of PhilanthropyJossey Bass, 1994
Russ Alan Prince and Karen Maru File
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Fitting it all together
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Prospect/Donor Characteristics

• Younger Prospect/Donor
• Specific goals and definite ideas
• More likely to remain engaged with project
• Want to have an impact, support their societal
  priorities
• Augment estate, meet tax planning goals
• Seek leverage require feedback

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Cultivation Considerations

• Younger Prospect/Donor
• Straightforward approach
• Explain financial benefits to donor
• Emphasize investment strategies and stewardship
  of gifts
• Show how gift can help the family establish its
  legacy

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Prospect/Donor Characteristics

• Older Prospect/Donor
• Mission oriented
• Loyal to charities that have been helpful to
  their families
• Want to do the right thingsupport the less
  fortunate and betterment of others
• Seek security and immediate income benefits
• Focus on economic benefits

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Cultivation Considerations

• Older Prospect/Donor
• Softer approach
• Explain financial benefits and contribution to
  the future stability of charity.
• Reinforce pride in doing something good.
• Show how to endow annual support through a
  planned gift.

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Customize the Cultivation Conversation and the
Gift Opportunity

• Booster
• Boomer
• Buster
• Features
• Benefits
• Recognition

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• Making the Ask
• and
• Getting to Yes

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The Big Moment The Ask

• We would like you to consider.
• We only ask this of our top donors.
• This gift is the cornerstone of the students
  (patients, clients) future.
• We think you share the vision.
• We dont take this kind of request lightly but
  think you feel as passionately about this as we
  do.
• Your leadership investment will open doors and
  pave the way for others to follow in your example
  of generosity.

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Short and sweet then say . . .
NOTHING!
Give them time!
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To a fundraiser

• No .
• doesnt mean No
• No
• means -- Not Yet

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• Turning
• Stumbling Blocks
• Into
• Building Blocks

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Case 1

• Thats too much money youre asking for.

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Case 1

• We only ask this of our top donors.
•  I hope you take that as a compliment. Our
  intent was to make sure you were among the first
  donors given an opportunity to take a significant
  leadership role in this project.
•  I hope you agree a gift like this is a once in a
  lifetime opportunity. It will literally transform
  the lives of many families for generations to
  come.
• You are but one of the very few people we can
  turn to and ask for this very important gift.

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Case 2

• Im not interested in supporting the ______.

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Case 2

• We have been talking about this for a while and
  from our previous conversations I thought you
  were interested. Please share with me where your
  main interest is today.
•  As you know, we are working on several major
  program and physical improvements. Please tell me
  which one is your priority interest today.
•  As you know, you and your family are very
  important donors. We always want to hear your
  ideas and input. Please tell me what programs
  you have the greatest interest in supporting?
•  I am very grateful for your honesty. Can we
  talk for a few minutes about the project you are
  most interested in?

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Case 3

• You flatter me, but Im not as wealthy as Warren
  Buffett or Bill Gates.

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Case 3

• We understand it is a very large amount and you
  are one of the few benefactors we could ask to
  consider a leadership gift of this size.
•  Is it the size of the gift or the fact that we
  asked you now that seems most troubling?
•  I think you know your investment in this project
  will pave the way for others to follow your
  leadership and generosity.
•  I can only imagine the demands on your financial
  resources. I believed from our earlier
  conversations that you planned to take a
  significant role in making this project a
  reality.

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Case 4

• I cant give you an answer now.

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Case 4

• We recognize that this is an important decision
  and we certainly want you to take the time you
  need to consider this gift opportunity. What can
  we provide to help you consider your decision?
•  Knowing you need time to discuss this with
  ________ (whomever is significant in the
  decision), I hope you will tell me your personal
  feelings and reactions about the gift idea we
  just discussed.
•  I know you need to consider this together. What
  questions do you have today that would help you
  get started thinking about this?  
• I know you will spend a lot of time discussing
  this as you make your decision. We hope you will
  keep in mind the joy your gift will bring to all
  those people you have had such an interest in for
  such a long time.

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Stewardship ChecklistWhen the Answer is Yes

• Reconfirm the importance of the gift
• Set date for next meeting/gift receipts
• Discuss recognition and publicity internal
  external
• Schedule donor visit to your organization
• Contact reports
• Several thank yous leadership, volunteers,
  awardees
• Call periodically to check in
• Send articles about the gift
• Invitations to events
• Annual Reports
• Cards birthday, anniversary, etc.
• Send progress updates emphasize the importance
  of the gift.

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Success!

• Gifts meet your donors needs and goals
• Gifts meet your needs and goals
• Everyone, especially you, is well pleased!

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Thank You

• Robbe.healey_at_farrhealey.com
• 610-996-4650

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• STILL TO COME
• More Opportunities in this years Governance
  Matters Series
• 1 more webinar
• 2/10 -- Train Your Trustees Short Fundraising
  Exercises for Board Meetings Irene
  McHenry and David Tomlin
• 3 Regional workshops
• 2/7 -- Friends School, Mullica Hill
• 4/4 -- Mary McDowell Center for Learning
• 4/18 -- San Francisco Friends School
• Audio/video recordings at www.friendscouncil.org