Major Gifts- Donor Cultivation System

The most effective major gifts programs are those that are well thought out, systematic and properly executed, day in and day out. The Corporation for Public Broadcasting (CPB) has created an excellent guide to help their member stations implement and manage a major gifts program. The guide should be adaptable for any organization involved in fundraising.

The guide is entitled “The Donor Cultivation System.” It is explained on the CPB website as,

“a collection of tools and instructions on how to use them that will take you from identifying donors through cultivating them to getting the gift. There are three principal tools in this system:

1. Prospect ratings tools

2. Moves management tools

3. Prospect call sheets

Some of these tools have more than one component. For instance, the moves management tools include a ratings grid for clustering your prospects—identifying those with the greatest potential—and a spreadsheet for tracking moves. These tools work together as part of a system, and the system is an integral part of this site.”

To access the guide, just click on the title to this post.

Fundraising- Major Gifts- Jerry Panas: “The Fundraiser’s Credo”

Jerry Panas is an exceptional fundraising consultant with a unique understanding of what motivates donors to make major gifts. He has written a number of helpful books and articles … all of which are worth reading. One of my favorites is entitled “Asking.” It is a practical, easy to read resource for both professionals and volunteers involved in major gift fundraising.

Some of his articles are available from “Contributions” magazine. “Contributions” is a free online magazine which covers topics such as “board development, major gifts fundraising, prospect and donor research, direct mail fundraising, volunteer management, nonprofit marketing, Internet and email fundraising, proposal writing, planned giving, and corporate and foundation fundraising.”

One of Mr. Panas’ articles, available from “Contributions,” is entitled “The Fundraiser’s Credo.” Mr. Panas has developed what he refers to as “the absolute truths about fundraising and philanthropy.” Here are a few that he writes about in the article:

“You must ask for the gift.

It is absolutely amazing what you don’t raise when you don’t ask! In every study we’ve conducted, the reason most often cited for why a person hasn’t made a gift is “because I’ve never been asked.”

…

Individuals give emotionally, not cerebrally.

Your donors give to dreams and dazzling visions. Giving is visceral. The larger the amount, the more likely it’ll go from the heart directly to the checkbook.

…

It’s harder to get an appointment than it is to get the gift.

Actually, more strategy, planning, and innovation are needed to get the visit than to sell the program. I know now that securing the visit means you’re 85 percent on your way to getting the gift. This means you need to use all your ingenuity and resolution, artful persistence, in getting the visit. The gift will follow.

The decision to give is spontaneous.

You’ve made a dazzling presentation. There’s almost an immediate spark of electricity. You can feel it. The amount may still be in doubt, the timing may be a question, the manner in which the gift will finally be made may require further study – but the decision is made.

…

The commitment regarding the major gift won’t likely be made on the first visit.

If you get a gift on the first visit, chances are you’re not getting as much as you should. You’re leaving money on the table. Spend much of your time during the first call showing the drama, the power, and the excitement of the program. Sell the dream.

Don’t sell the needs of the institution.

People have needs. Institutions don’t have needs. They have answers and solutions. Sell the answers and solutions. Your donors don’t give because you have needs. They give because you have solutions. They give to opportunities. Bold, visionary, exhilarating opportunities.”

To access the complete article, just click on the title to this post. To find more information about Mr. Panas, just copy and paste this link- http://www.jeroldpanas.com/

Fundraising- Integrated Development Plan

The Corporation for Public Broadcasting has created an excellent resource website to help its affiliated stations plan and execute fundraising initiatives focused on major gifts.

Part of the information provided emphasizes the importance of the creation of an Integrated Development Plan (IDP). According to its website,

“Development plans come in all shapes and sizes but the best ones share four common elements, which are outlined below. Choose whatever format works for you and is consistent with the rest of your station's planning, but be sure to include these elements. It may be useful to tie them together with a narrative so that the budget is useful even for those who have not been closely involved in its preparation.

Four elements of an Integrated Development Plan:

1. Case Materials
Your internal case materials are a critical part of your Integrated Development Plan because they provide the link between your development plan and your station's strategic plan. …

2. Budget
The best plan in the world will fail if it is not based upon a realistic projection of revenues and expenses. Setting goals and allocating resources is a critical part of the planning process and often the subject of lots of internal negotiation. … Be sure to pay particular attention to the personnel costs as you plan your budget. Major giving is a labor intensive process.

3. Operational Plan
At the heart of your Integrated Development Plan is an Operational Plan that takes each of your goals and breaks them into a series of "SMART" (specific, measurable, attainable, results-oriented and time-determined) Objectives and Action Steps. …

4. Annual Calendar
One of the best ways to ensure coordinated planning among all of your development activities is to use [a] Fundraising Calendar Template to plan, schedule and track all of your activities.”

The website also has resource links to serve as examples and guides in developing each of the elements listed above. Overall, the materials should be suitable for adaptation for use with any organization.

To learn more just click on the title to this post.

Fundraising- Grant Writing Basic Training

If you are new to writing foundation grant proposals or need a refresher, then the short course provided by the Foundation Center may be helpful. The Foundation Center is a nonprofit organization which conducts research and provides extensive resources and training related to foundations.

The Center’s free online tutorial covers the essentials of proposal writing, including- gathering background information, components of a proposal, executive summary, statement of need, project description, budget, and organizational information. Additionally, the elements of a letter proposal are covered.

Remember to always check the proposal requirements of the foundation you are submitting your proposal to in order to insure compliance with their rules.

To access the tutorial, just click on the title to this post.

Fundraising- The 20 Biggest Fundraising Mistakes, Part II

Last week’s post contained a link to a Guidestar article discussing David Lansdowne’s first ten of the twenty biggest fundraising mistakes he wrote about in his book entitled “The Relentlessly Practical Guide to Raising Serious Money.”

Here are the next ten:

“11. Failing to Have a Strong Rationale

12. Failing to Cultivate Donors

13. Failing to Set a Realistic Goal

14. Failing to Train Solicitors Adequately

15. Failing to Thank Your Donors

16. Failing to Focus on Your Top Prospects First

17. Failing to Ask for a Specific Gift

18. Failing to Focus on the Best Sources and Methods

19. Failing to Find the Right Person to Ask

20. Failing to See Your Top Prospects in Person.”

The article concludes with the following observation:

“Harold Seymour, legendary fundraiser, puts it best: 'For clinking money, you can shake the can. For folding money, you should go ask for it. For checks and securities and gifts in pledges, you have to take some pains—make the appointment, perhaps take someone along, count on making two or more calls, and in general give the process enough time and loving care to let it grow and prosper.'"

The article also contains a discussion about each of the mistakes and how to avoid them. For access, just click on the title to this post.

Fundraising- The 20 Biggest Fundraising Mistakes, Part I

David Lansdowne is a professional fundraiser who wrote a book entitled “The Relentlessly Practical Guide to Raising Serious Money.” Guidestar has available two articles based upon excerpts from the book which identify 20 of the biggest mistakes fundraisers can make.

Here’s what is covered in the first article:

“Call them what you will—gaffes, blunders, oversights, or errors—mistakes creep into everyone's professional life. But in fundraising—unlike other fields—where thousands if not millions of dollars are often at stake, mistakes can be especially hazardous.

Who hasn't forfeited a significant gift, or received but a token one, due to some serious miscalculation?

While there may be hundreds of them, 20 potentially costly fundraising mistakes stand out. They can't really be ranked, since circumstances alter their impact. But here they are in an effort to ward you away from them.

1. Thinking Your Organization Will Attract Support Simply Because It's a Good Cause …

2. Thinking That Others Can Raise the Money …

3. Believing That Because People Are Wealthy They Will Contribute to You …

4. Thinking You Can Whisk Wealthy Prospects In at the Last Minute …

5. Failing to Research and Evaluate Prospects …

6. Failing to Ask …

7. Thinking That Publicity Will Raise Money …

8. Failing to Recruit the Right Trustees …

9. Believing You Can Raise Money by the Multiplication Table …

10. Failing to Have Deadlines …”

The article discusses each of the mistakes and provides suggestions on how to avoid them. If you would like to read more, just click on the title to this post.

Fundraising- Helpful Hint #3- Major Gifts- Moves Management

If you are attempting to increase the results of your major gift fundraising program, Blackbaud, the parent company of a variety of fundraising software solutions including Raisers Edge, has a series of helpful white paper reports available. Their article entitled “Embracing Technology for Moves Management® Success,” is a particularly good place to start.

The article offers the following explanation of the Moves Management process:

“Do you visit prospects, create gift proposals, solicit individuals or organizations for donations, and cultivate and steward donors? The actions you take to bring in donors, forge relationships and keep the contributions coming are known as Moves, and Moves Management, simply put, is the system of policies, procedures and practices that directs these actions.

An effective Moves Management program will improve your bottom line and facilitate a number of internal processes. Look for an enhancement of:

• Constituent relationship management (CRM): Finding, analyzing and tracking constituent information to form personal, lifelong relationships with your donors.
• Solicitation strategy: Increasing the success of your efforts by targeting prime donor prospects.
• Program and pipeline management: Move prospects through successive pipelines: identify, qualify, cultivate and solicit — with the intent of progressively turning them into donors and predicting future gifts.
• Strategic analysis and execution: Evaluating your program in light of specific goals and objectives to ensure optimal results.

A successful Moves Management program increases the success rate of every solicitor action, communication and appeal. As with any new policy, procedure or process, however, it is important to begin with a foundation of solid goals and objectives.”

If you would like to read the entire article, just click on the title to this post.