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It’s all in the asking! Rehearse well before your next major gift ask.

Yep. You can go through the motions with your donor, but if you don’t A S K, you don’t G E T. Simple as that.

So, where do you even start?

Each donor is an individual. And, being an individual, he or she needs an individualized strategy – each solicitation is a campaign on its own.

Deciding who does the asking is key to the process. While a team of two to three people may be present during the solicitation meeting, there is only one person who makes the ask. And, don’t bring along someone who has never met the prospect to the solicitation meeting.

Fundraisers should not do all of the solicitations. Someone else in the organization, such as a Board Member, may be better suited to make the ask because of a “peer” based relationship. And, let’s face it, Board members are volunteers and their income is not impacted by a gift.  

Then you must set a target gift level and for what specific projects or goals. A prospect often can give between two and ten times the amount that he or she has given annually in the past. You would also want to revisit all the original research on a donor’s interest, concerns, and motives. This information will help you to narrow the range of the ask. Once you decide on an ask amount – double that number.

Then you need to select when and where you will do the asking. It is best to meet where the donor feels most comfortable. Also, It's all in the ask. Major gift fundraising.determine whether or not the prospects spouse or partner should be a part of this meeting. Note to self, restaurants are not usually places where you want this all to go down. The awkward question regarding coffee and dessert has ruined many a solicitation.

You should give some thought about whether or not the gifts should be outright gifts of cash, stock, or pledges, and if pledges, what is the timeframe for installments?

What should you bring on a visit? I would bring along a letter with a proposal that should include the project’s need, proposed action for meeting the need, financial information, including costs, and a summary of the benefits the donor will get from giving.

Don’t forget to assign specific roles to each member of the team at the meeting, and then role-play, role-play, and role-play before the actual visit. In other words, rehearse all possible scenarios before your team has ever walked through the prospect’s door

Call the prospect to ask for a time to talk about the case for support and opportunities for investment and how the donor can get more involved and be supportive in a more meaningful way. If you have done your cultivation to this point, they should know why you are calling. Above all else, be honest with them and fully explain why you would like to meet. It also sets the stage for the solicitation process. Then confirm this appointment in writing. Send along some easy-to-read information about the organization’s plans along with the confirmation letter. Reconfirm the meeting by phone or email shortly beforehand.

And, then it is showtime! Lights, camera, action.

If you would like more information on major gifts in small shops, don’t forget to sign-up for my FREE four-part e-course today.

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Let’s ban the title Newsletters – all in favor?

The one best tip I have for nonprofit newsletters – stop calling them newsletters. I am of the mind that this title creates a great deal of confusion both for the nonprofit and the donor.

Why?

First, donors are like investors. They are giving their financial resources to support something, dare I say, a mission in which they strong believe. Investors don’t get newsletters; they get quarterly investors reports showing them the return on their investments. And, sometimes, investors even get conference call options to review the investment reports and ask questions. How novel?Donor newsletters

Secondly, its sets a small nonprofit or an inexperienced development person up to think that what one should include in a newsletter is exactly that – news. So, over the course of my years in the field both as practicing development director and consultant, I have seen way too many newsletters that report on things like what events are coming up, what events have just passed, and little at all about the donor.  And, even more, many of them ask for yet another gift.  More of a “Save the Date and we need more money” vs. “This is what our date made possible and thank you so much.”

Thirdly, the title newsletters suggest long, boring “newsy” stories. You know, stories you would likely find in say a newspaper, for instance. And, we know that best practice has found that these types of stories no longer work. Donors are skimmers; they look for photos, captions, headlines, and short, pithy text. Their eyes scan the copy, and, often, don’t even read it word for word.

So, what do I propose we title this nonprofit donor communication workhorse? Let’s see, how about something along the lines of “Your investment report?” or what about “Your impact statement?” or perhaps even “Your insiders report?”

Or, well, why don’t you think on it, and comment below.

Let’s just call it anything but a newsletter, OK?

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What is cultivation really about?

Cultivate, cultivate, cultivate. The way we talk about donors sometimes makes me think that we are in relationships. And, in a sense, I guess we are.

Cultivation, what is it?

Well for one, it’s about learning more about a donor and his or her interests and how our cause’s mission intersects with their personal passions.

It is not about educating the donor on what our cause does and how they can get involved. It is not sales or persuasion. It is more about matchmaking. You know, just like in “real life” relationships. It is about learning what motivates them to give and why. Learning about what stirs their soul and makes them feel good.

As with all relationships in life, listening is paramount. We must listen authentically to our donors and not have a hidden agenda. You remember those first days of dating when you hinged on every word of your love? It is the same thing. Ask questions and then listen intently.Donor cultivation

For me when I was doing major gift work, I made it an aim to get to know something new about each donor every time I visited with them. I developed long-standing relationships that were genuine and had the organization at its deepest heart.

I have spent countless hours sitting in donor’s homes learning about their lives both big and small. I have had lunch served to me by famous people. I have spent time in a donor’s office getting to know how they got involved and what keeps them involved. I have had donors treat me like family, insisting that I stay for dinner – they made it special just for me.

Each donor will want or necessitate different types and levels of cultivation. Some may want a tour of the facility, and others will want to meet with staff, serve on a board or committee, attend events, or be an advisor.

Most importantly, it is the donor that directs the relationship. The time spent together getting to know each other. This time is set by what makes the donor feel most comfortable.

I never felt as if I could rush this relationship, nor should you. Like all relationships, let it evolve organically over time and it will bear fruit, both for the organization, for yourself and the donor. In fact, the gift will be a transformative moment.

Share with me in the comments below your most poignant donor cultivation story.

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The importance of gift range charts to major giving

There are two things that you need to consider when developing a major gift strategy. The first is deciding on what level of gift you want to solicit in person, and the second is prioritizing the list of prospects from the screening process to ensure that there are enough prospects for each level of gifts needed.importance-of-a-fundraising-plan-13-638

What is the goal of your campaign? Once you have that in place, you can develop a gift chart that will demonstrate the number of gifts needed at each gift level and the corresponding number of prospects needed to obtain one gift at each level. As one moves down the gift chart, the ratio of prospects to gifts drops. Naturally, it becomes much easier to solicit at the lower gift levels.

This gift range chart allows you to ensure that you have an adequate number of prospects to reach your ultimate goal. Not ensuring an adequate base of prospects is the number one cause of campaign failure. You can take the information gained through the screening process to determine if the gift levels are realistic and if enough prospects are available at each gift range level.

For your free e-course on establishing a major gifts effort in a small fundraising shop, sign up here!

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How to qualify major gift prospects

The world is full of prospects. Now who to see first. Well, those that are most likely to make an individual donation.

Without a crystal ball, how do you even begin to determine those most likely to make a donation?

Well, first you look at linkage. Is there a strong connection between your organization and the prospect? Are they active in the organization? Do they know someone actively involved in the organization? These linkages are what matters. A genuine link to the organization.

The next thing to look at is their ability. Do they have the financial ability to make a sizable gift? There are ways both formal and informal that can help you determine if someone can make a gift.

The last thing one needs to determine is if the prospect has any interest in your organization. And, by interest, I mean belief in and passion for the mission. Again, some of this information is available online.Qualifying major donors

I would also recommend that you conduct a silent prospecting rating session with your closest board, staff, and volunteers. Prepare lists of the top one hundred prospects and have them review the lists for linkage, ability, and interest.

Then you take this prioritized list of prospects and determine initial cultivation and strategies for each. You can then segment each category of prospects into tiers. Tier 1 prospects are your major donors already close to the organization and have been supporting it for quite some time. Tier 2 donors are those with the capacity and interest to make a gift but lack connection. Further cultivation may be necessary for these individuals. And, Tier 3 donors are potential donors who very little is know of them. They folks would require additional prospect research and more in-depth cultivation.

So there you have my primer on major donor qualification. While, I know that asking is critical, I would hesitate to skip this careful planning step. In doing this step, you are determining who is more likely to support the organization immediately, and that will make for a much more effective and efficient solicitation process.

For your free e-course on establishing a major gifts effort in a small fundraising shop, sign up here! 

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Are you wishing on a capital campaign?

Oh no! We need a new building. The offer letter is on the table.

What now? We need money!

But wait, we haven’t done any fundraising in the past. We need millions tomorrow to move into our new facility and to make all the necessary upgrades. Time, we don’t have time!

Does this scenario sound familiar?

It very well may. It is an accurate one of many who forge ahead without contemplating the planning and preparation necessary for a successful capital campaign. And, let’s face it, there is a great deal of planning and preparation necessary. You can’t just flop campaigns of this magnitude together. They take strategic thinking and planning. Capital Campaigns are the science behind fund development.Are you wishing on a capital campaign?

For instance, one question that is always top of mind for me as a consultant, “Do you have any major donors?” or even, “Any major donor prospects?” “What relationship-building strategies have you been engaged in with your current donors and prospects?” “For those current donors and prospects, what cultivation activities have you been pursuing with them?” and “At what stage of cultivation are you at with each of your prospects?”

Fundraisers can’t be expected to swoop in and create money where it is not possible. And, surely they can’t do it in the time frame that a capital campaign demands. It is setting the fundraiser, and, ultimately, the organization and the organization’s mission up to fail.

Here are some things to think about up front to ensure the success of a campaign:

  • What is the expertise level of current development staff? Do you have ample development staff on board to handle a campaign?
  • Do you need campaign counsel to oversee the stages of a capital campaign effort (highly recommended, of course)?
  • Do you have a large enough major gift pool of loyal and personally significant givers?
  • Do you have a large enough major gift prospect pool?
  • At what stage of cultivation is each major gift prospect at within this pre-determined pool?
  • How comprehensive has your donor stewardship plan been in the past?
  • Do you have a long track record of raising funds within the community?
  • Does your organization have a long-standing reputation?
  • Are there other similar services or projects that exist in the community and, if so, how is yours different?
  • Do you have a clearly outlined case for support document that highlights a substantial community need?
  • Have you previously conducted a feasibility study for this campaign to determine the feasibility of a major fundraising effort to support the case for support.
  • Do you have the internal structures in place to mount a large-scale campaign such as up-to-date database software, cleaned-up and segmented database, acknowledge and pledge receipting process, finance and bookkeeping systems, and overall campaign management supports?

These are just a few questions that are top of my mind as I sit and think about an organization seeking to mount a significant capital campaign. This list of questions is not exhaustive but illustrates the types of systems and processes that need to be in place before a significant campaign is mounted.

The morale of this story? One can’t embark on a such a significant endeavor such as a capital campaign without planning. Failing to plan, is failing to succeed. And, failing to succeed, in most cases, falls on the backs of the fundraiser who is “put in charge” of the effort. Rarely is failure seen as a team-effort.

For your free half-hour capital campaign consultation, contact me via email to schedule your time today. We can discuss the above question, plus more and determine how prepared are you for a possible effort.

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