Capacity Ratings: Hands-On Case Studies

Sponsored by

Vanishing EquityBill Powers, Hospital for Special Surgery

~International Entrepreneur

Sharon Das, Rutgers University Foundation~

GenX GivingJessica Davis, NYU Langone Medical Center

~Loyalty, Family Ties and the Art of Cultivation

Matthew Perrin, Natural Resources Defense Council

Disclaimer

All names and otherwise identifiable information have been changed to protect the identity of the donor and protect the interests of the respective institutions.

Case 1:Vanishing Equity

Bill Powers

Hospital for Special Surgery

Background

• The prospect with a strong affinity for the organization was a top executive and insider with a public financial firm.

• Initial rating of $500K to $1M.• A solicitation meeting scheduled with gift officer

in October 2008.• Stock market tanked and the prospect lost

nearly all the value in their stock holdings. • Research recommended that the gift officer

cancel the meeting. • Prospect was put on hold for over a year until

cultivation could be reestablished.

Outcome

• Organization continued to track prospect for the next year with continual news updates on career status.

• After the markets started to improve near end of 2009 and into 2010, the prospect was solicited for a gift.

• The meeting resulted in a $100,000 individual gift and $1M+ gift from the family.

Fundraising Strategy• Example demonstrates the role that research

plays in the fundraising process and with frontline staff beyond identification.

• Top prospects should be tracked by a push technology method: Google alerts, LNDP,NYT, Factiva.

• Use common sense and manageable prospect groups so that staff are not overwhelmed. – For example: create 25 alerts on top prospects as

opposed to 2,500 alerts for each gift officer.

Resources for Tracking

• Free: Google Alerts, Yahoo/Google Finance

• Subscription based: Lexis-Nexis, Factiva, NOZA Gift Alerts, Wealth Engine, Edgar Pro, Capital IQ, NY Times, Crain’s

Case 2:

International Entrepreneur

Sharon Das

Rutgers University

Initial Research Finds…• Born in Asia, now resides in the US• Started college career in the south, but was interested in one of

Rutgers’ engineering programs• No philanthropic giving to other institutions; small political donations• Home valued just under $1 million• Patent Holder (30 global patents)• Chairman of an industry-specific engineering scholarship

organization• Founder and CEO of private company established in mid-70’s

– Several subsidiaries and sister companies established in the US (w/ international connections)

– Customers include some of the top names in his industry– Estimated sales of $50 million; one factory in China– On Inc.’s List of Fastest Growing Companies for both 2008 and 2009

Assigned a pre-qualified rating of $100,000 to $499,999over a 5 year period

Immediate Action

• Assigned to, and heavily engaged by, the engineering fundraiser

• Invited to campus for tour of engineering faculty and buildings

• Had multiple meetings with the Dean• Alum expressed interest in serving on Advisory

Board; was quickly nominated and accepted• $1,000 gift through his company

One Year Later….

Updated Research Finds:

• Company revenue grew 200%

• Opened additional factories in China (per news reports)

• Parent company acquires a Paris-based manufacturing facility that gives his company entré directly into the European market

• Company acquires two factories state-side

• Company engages in philanthropic activity (makes corporate donations, spends thousands in corporate sponsorships)

Engagement and Cultivation Heats Up

• Alum has attended three high-level events on campus, including a “Rediscover Rutgers” event

• Guest speaker at several school events

• Multiple meetings with University President

• Agrees to introduce Rutgers to other CEO’s in his industry and help in gift solicitations for endowments

• Alum makes a $100,000 cash donation to an academic fund

Rating Increased to $500,000 to $999,999over a 5 year period

And Eight Months After That…

Dean asks for, and gets, a $250,000 pledge via the company

Best of all….

A $1.5 million proposal to establish an endowed chair was presented to the alum, and is

under consideration!

Case 3: “Gen X Giving”

Jessica Davis

NYU Langone Medical Center

Motivated Couple

• Gift officer wants to know how much a couple will likely give

• They have very positive feelings towards the Medical Center and reached out via the staff

• The donors want to give a certain percent of their wealth – but didn’t specify %

Background

• Young couple (under 35)• No major gifts found, but probably support their alma

maters (both attended private universities)• He: Current: VP at a private equity firm. Previously

worked at a major investment firm for 5+ years (title unknown)

• She: Current: VP of a large private financial services firm. Former VP of a major investment firm (the same one as where her husband worked for 5+ years)

• Total time employed: 10+ years each• Rent in a luxury building in Manhattan

Now What?

• Not a lot of hard data!• What can we estimate?

Let’s be conservative:• Liabilities: rent likely $5,000+, based on comps; student

loans? Lifestyle? No mortgage! • Income: 6+ figures with potential for bonus. • Stock: Both likely have a diversified investment portfolio

with long-term holdings, based on career information

What is their giving vehicle? Cash? Stock?

Outcomes

• This couple “looked like” other young financially strong donors – giving in the range of $10K-$50K

• Perhaps more likely to give with stock• GO wanted $1M – I thought closer to $25K,

based on other donors

Result: stock transfer of low 6 figures

Case 4: Loyalty, Family Ties and the Art of Cultivation

Matthew Perrin

Natural Resources Defense Council

Background• Born and lives in New York City• Early 30s, single and without children• Graduate of elite liberal arts college and self-employed graphic

designer • Democrat

Relationship with NRDC: • Direct mail member since1998 with consistent and increasing support

since 2005 from $1,000 annually to $5,000 in 2008. • Active on NRDC Facebook’s page and as E-activist.• Pattern of giving prompted research in 2009

Jane Donor

Family• Middle child - brother, age 35 (investment bank); sister, age 20 (in college)• Parents divorced; father is remarried• Father is a partner in private equity firm with $25 billion AUM and garners press

attention for role in financial community

Charity• Attends numerous benefits at $1K level (mostly arts and hospitals; occasionally

serves on Committees); no board memberships• Only support of environment: small benefit support for an environmental

organization in 2002• Father’s foundation has $200 million in assets and is focused on education,

hospitals, and the arts (but no environmental). He is a board member of several organizations.

• Brother gives to many of the same charities as the father, but at membership level; does not serve on any boards

Family and Charitable Interests

• Jane probably has access to family money and has much greater giving potential.

• It is highly likely that Jane can and will incorporate the environment into the foundation’s giving strategy.

• She may have a say in her father’s grant making, based on other giving patterns. Goal: encourage Jane to direct foundation grants to NRDC as she might not have personal assets for giving.

• Jane is young and voluntarily engaged with NRDC in an increasingly active manner. Cultivate accordingly!

Action PlanGive Jane the opportunity to more personally interact with NRDC.

First Step: Gift Officer to call Jane and invite Jane to donor luncheon.

Assessment and Strategy

Short term• Jane appreciated the attention and talked extensively about her activism. She

attended a luncheon in 2009. • She declined benefit committees stating she already served on too many.• Gift Officer successfully asked for $25,000 3 months later.

Later• At a 2009 meeting, Jane revealed that she had access to a foundation funded

by her father who she said was “famous” on Wall Street and she could give NRDC more substantial funding in the future. (Which we knew!)

• Jane is invited on donor trip with Senior staff.• Jane gave $100,000 in 2010 and in 2011. She joins an advisory board.

Jane is now well connected to the NRDC and the organization is positioned for continued funding from her.

Research will be refreshed on regular basis and Development will calibrate asks as relationship develops.

Results

Sharon Das, Rutgers University Foundationsdas@winants.rutgers.edu

Jessica Davis, NYU Langone Medical Centerjessica.davis@nyumc.org

Matthew Perrin, Natural Resources Defense Councilmperrin@nrdc.org

Bill Powers, Hospital for Special Surgerypowersb@hss.edu

Contact Info