Raising Money From High Net Worth Individuals
-
Upload
thomas-mueller -
Category
Documents
-
view
1.523 -
download
3
Transcript of Raising Money From High Net Worth Individuals
![Page 1: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/1.jpg)
Raising money from High Net Worth Individuals
Simon Burne
August 2010
![Page 2: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/2.jpg)
• Major donor fundraising is just as much about the donor as it is the project
• You don’t need bricks and mortar
• People make this more complicated than it needs to be!
• Knowing what to do; deciding what to do; being disciplined = success!
• 7 Steps & Moves management are all you need.
![Page 3: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/3.jpg)
• More professionals and fewer volunteers
• Increasingly volunteers cultivate & professionals ‘close’
• Higher expectations
• Doing more with less
• Involved in higher solicitations
![Page 4: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/4.jpg)
Challenges Good News
• Multi-year pledge reluctance
• Economic environment uncertainty
• Foundations stretched
• Corporations dropping out
• Everyone is doing it!
• Still giving
• Relationships and Leadership counts
• Stewardship is key
• Trust and confidence in your organisation is key
• More potential donors
![Page 5: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/5.jpg)
Seven Step Strategy
![Page 6: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/6.jpg)
Seven Step Strategy PLUS
1.
Discover
2.
Research
3.
Introduce 5.Ask
6.Thank
7.Maintain
LeadershipRole
Suspects Prospects
![Page 7: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/7.jpg)
Some rules of thumb
• Ten suspects will yield one prospect
• Seven prospects will yield one gift
• 50% of major donors will give again
![Page 8: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/8.jpg)
How many donors do I need??
Gift Size Number Value
Donors
£5m 1 £5m
£3m 2 £6m
£2m 4 £8m
£1m 6 £6m £100k-£1m 20 £5m
Total 33 £33m
![Page 9: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/9.jpg)
How many donors do I need??
Assumptions
Prospect Conversion 8 to 1
External Conversion 25 to 1
Prospect Research
Wealth Band Matches Conversion Gift Level Total
£50m+ 2 0 500,000 125,000
£25-50m 6 1 250,000 187,500
£10-25m 10 1 100,000 125,000
£5-10m 112 14 50,000 700,000
£1-5m 768 96 10,000 960,000
Influential 355 44 10,000 443,750
Total 1253 157 2,541,250
![Page 10: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/10.jpg)
Critical success factors
• Powerful Case for Support – just what do you want the money for?
• Excellent research
• Excellent cultivation
• Making the ask
• Loving your donors
• Asking again
![Page 11: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/11.jpg)
Finding your prospects
![Page 12: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/12.jpg)
Developing a Prospect Hypothesis
• Describe the sorts of people who:
• Have the right levels of wealth
• Have evidence of philanthropy
• Have some connection to the cause
• Are active in fields other than their work
• Have business interests whose brands fit with you
![Page 13: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/13.jpg)
Researching your prospects
• Start with your database – they already love you!
• Use research companies or employ a researcher
• Use all published information
• As names come up, ask your trustees and existing supporters if they know them
![Page 14: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/14.jpg)
Cultivation
• How to meet them?
• Go where they go
• Hold an event they would like
• Use celebrities
• Ask for a meeting
• Events
• Staff well
• Brief and debrief fully
![Page 15: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/15.jpg)
Cultivation
• Assign a staff member to each MD
• Provide them with the information they ask for
• Invite them to a project visit
• If they come, you’ve got them!
![Page 16: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/16.jpg)
The ask
• Many volunteers hate this
• Best done by a professional
• Know the right level of ask
• If in doubt, ask them
![Page 17: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/17.jpg)
Follow up
• Thank
• Inform
• Involve
• Report
• Surprise
• Celebrate
![Page 18: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/18.jpg)
What is leadership?
• Wealthy donors influencing other wealthy people to give
• Wealthy donors who will use their networks
• People will follow leaders – lead gifts are critical
• Big donors will push average gifts up – small donors will pushaverage gifts down
![Page 19: Raising Money From High Net Worth Individuals](https://reader031.fdocuments.in/reader031/viewer/2022020217/55643204d8b42ace308b47e1/html5/thumbnails/19.jpg)
Secrets of a Leadership Forum
• Excellent Chair who has made a big gift
• Clarity of purpose
• Clarity of targets
• Time limited
• High-powered
• Exclusive