The Osborne Group, Inc.1 MAJOR GIFTS AND CREATING ORGANIZATIONAL CAPACITY FOR FUND DEVELOPMENT...

The Osborne Group, Inc. 1

MAJOR GIFTS AND CREATING ORGANIZATIONAL CAPACITY FOR FUND DEVELOPMENT GROWTH

BBBS Large Agency AllianceJanuary 22, 2005


Agenda Why focus on

major gifts?

Building a major gift prospect pool

Making effective qualification and discovery visits

Investing in fund development ROI Staffing

Taking it on the road


“Giving USA” 2003$240.72 Billion

2003 contributions: $240.72 billion by source of contributions

Corporations$13.46 5.6% Foundations

$26.30 10.9%

Bequests$21.609.0%

Individuals $179.3674.5%


BBBS Revenue Distribution

By SourceEvents $60,726,000 29%

United Way $43,974,00021%

Government $37,692,000 18%

Foundations $27,222,000 13%

Individuals $16,752,000 8%

Corporate $ 8,376,000 4%

Other $14,658,000 7%


What’s a Major Gift?

For your agency? For a donor? Industry standards?


Today’s Gift Pyramids

Old rule – 80% - 20%

Recent rule – 90% - 10%

Today’s experience – 95% - 1%


Recent Study* 23 campaigns of

more than $100 million 94.4% of the money from 1.7% of the donors.

*Institute of Charitable Giving


Donor Motivation Is personal! Impact – societal,

community From the heart;

shared values Giving back Tradition Recognition, peer

influence (Leadership)

Strategic investment Trust, accountability


The Major Gift CycleIdentify the critical few: those with the greatest capacity to give

Discovery: Learn about them; share the story

Developing a relationship

Engaging and Involving

Asking for a specific amount

Saying thank you

Providing stewardshipand accountability

Preparing to ask


Major Gift Time Line

Identify Learn and Share

Engage and Involve

Prepare to Solicit

Ask and Close

Thank Steward


Filling the Major Gift Pipeline Looking for

individuals with a net worth over and above value of primary home of $1,000,000 Plus

Philanthropic Cares about kids Cares about

community Former Big or

Little Someone who

knows us, knows them or there is a path


Start with Who You Know Bowl for Kids© Raising More Money© Direct mail donors

who have given you $100 or more

Volunteers’ prospects Corporate sponsors Foundations and

family foundations Current and past

leadership donors

Past capital campaign donors

Legacy and major gift donors and their families

Current and past Bigs, past Littles

Current and past staff

Board members, past Board members and volunteers


Best Donors are Past Donors

4 to 11 times the cost to acquire a new donor as it is to keep an old friend!


Organize the List and Make Decisions

How are you qualifying your donors now? Capacity? Inclination? Readiness?

What tools have you found to be the most useful?


Get Donors, Volunteers, Staff Involved

Gathering information Internal screening Peer screening Research


Rating Potential Donors’ Giving Capacity Average American gives 2% of

income

Average wealthy and philanthropic American gives 4% to 7% of net worth (income and assets) over one to five years

Ratings based on 5% of net worth


Composition of Estates With Assets of $600,000 Plus

1. Stock2. Real Estate3. Bonds4. Retirement assets5. Cash6. Life insurance

equity and annuities

7. Other

33% 28% 13% 12% 7% 2% 5%


Rating Potential Donors Exercise Read each scenario and provide a dollar

range rating for each i.e. $250K to $500K Then an inclination rating using High,

Medium, Low or Remote

Name Capacity Inclination

Joe $50k to $100K

Low


Readiness versus Inclination Sally loves BBBS Wants to give Thinks a big gift is

$1,000 Has the capacity

to give $500,000 How inclined? How ready?


Major Gift Maxim

We don’t have control over capacity

We have very moderate impact on inclination

Readiness is our JOB


Wealth Screening Opportunity National initiative User friendly Powerful tool


Types of Visits Qualifying and

Discovery Cultivation

(developing and advancing relationship)

Recruitment

Solicitation Stewardship

(connecting with impact of past gifts, advancing relationship)


Preparing for the Visit

First impressions Do your homework Check the facts Listen to others Choose the setting Set your agenda


The Donor Puzzle© Motivation Knowledge Philanthropic

decision makers Natural partners Issues Involvement and

contribution preferences

Stewardship preferences


Elements of Successful Qualification and Discovery Do your

homework Set agenda Ask questions

about: Work Life Philanthropy

LISTEN

Share your case for support

Ask for feedback Discuss next

steps IF this is a real (now qualified) prospective donor


Visit Maxims

People remember more of what they say than what you say

People believe what they say more than what you say

You ask questions and share 30% of the time

You LISTEN 70% of the time


Key Take-Aways Qualified – yes or

no If yes, capacity and

inclination rating Perhaps readiness

rating Possible giving

interests, values, process

Next steps


Is This a Qualified Prospect?

LISTEN to the exchange What did you learn about:

Capacity? Philanthropy? Inclination? Readiness?


As Relationship DevelopsDetermine:

“Right” purpose “Right” amount “Right” solicitors “Right” time “Right” place “Right” participants “Right” materials


The Role of the Annual Fund in Major Gifts Bumping folks up Learning the donor’s decision-

making and negotiation processes Learning more about giving interests Opportunity to engage other

decision makers Preparing donors for a

comprehensive ask


Getting Appointment Tips Agenda: Face to face

meetings, ambitious and inviting itineraries

Skills: Confident tone, brevity, specific time, persistence

Call to appointment slot ratios

Setting aside blocks of calling time (with plenty of lead time)

Personal assistants hold the keys to the inner sanctum

Planning two trips at once (options for donors)

Analyzing your statistics (by region, time of day, day of week, etc.)

Handling objections/three no’s


Three InvitingReasons for the Appointment

Advice Input Expertise Action Involvement Solicitation Stewardship Information


Making a Visit

Former Big Board member recommended;

doesn’t know her well Declined invitation to out of town

RMM event Lives in upscale neighborhood Owns her own business


Investing in Fund Development

ROI People Time Infrastructure Organizational Will


AHP Study 2004Lessons for Us

24 highest performing hospitals Focus on major gifts Leverage leadership and board

relationships The highest performing hospitals

secured 51% of their revenue from major gifts


Highest ROI% of Revenue from Major Gifts

51% 35% 16% 11%

Highest Fundraising Performers

Top 25% Second25%

Third25%

Bottom25%


Ideal Balanced Portfolio!

60%20%

5%

10%5%

Major Gifts

Annual Gifts

Corporate

Foundation

Planned Gifts


Starts With Leadership CEO Board Chief Development Officer Senior Staff


Staffing The Functions Chief Development Officer

Strategy Management Major Gifts/staff CEO

Special Events Fundraising Cultivation Bowl for Kids Sake

Individual Giving Annual Appeals Raising More Money Leadership Gifts

Corporate and Foundation Giving/Grant-writing

Data entry, Reporting and Research

Development Assistant and Stewardship


BBBSA Fund Development Organization

Jake FriedDevelopment Asst.

M ajor G ifts Officer<vacant>

Director M ajor G ifts<vacant>

Fund Developm entResearcher

<vacant>

Stewardship Specialist<vacant>

Karen M uddDirector Developm ent

G ift and BiographicalInform ation Specialist

<vacant>

Director PhilanthropyInform ation Services

Lesley Pratt

Laura ClancyAssociate Director CFR

Director of Corporate& Foundation Relations

<vacant>

Associate DirectorAgency FundDevelopm entJon G lasoe

Debbie EverittDirector Agency Fund

Developm ent(Raising More M oney)

M anager of Alum niPrograms<vacant>

John MalcolmVP of Philanthropy

Judy VredenburghPresident & CEO


A Model for Large Agencies

Development Asst./S tew ardship Specialist

Database M anager/Researcher

Director of IndividualG iving/RMM

Director of Corporate& Foundation Relations

Director of Events/BFKS

Chief Developm entO fficer

CEO/Executive Director


How National Will/Does Help Training Tools Consultation

Wealth screening Partnerships Gift sharing


What Will You Do Differently? What ideas did

you find the most useful?

What do you want to know more about?

What will you try?

The Osborne Group, Inc.1 MAJOR GIFTS AND CREATING ORGANIZATIONAL CAPACITY FOR FUND DEVELOPMENT...

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