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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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It’s not over until it’s over…what to do with your strategic plan!

So you ask…now that the planning is over now what do we do with the plan?

It is time to package it up!

Once the initial goals and objectives are drafted and approved by the planning team and board of directors, the organization needs to look at the two main audiences both internally and externally and in what form they should receive a copy of the plan.

And just like a case for support, there are several ways of packaging and for different reasons and audiences.

From my experience you will want to have an internal plan for executive management staff and board purposes that outlines priorities and goals, key objectives and tasks, along with any new staff requirements needed to achieve the plan, budgets to support the efforts and timelines for turning the vision into reality.  This internal plan becomes the day-to-day operational plan.   This  version while very specific and detailed is less formal than what is presented externally. It can be kept as a very informal, rudimentary working document with an eye towards task management and internal benchmarking.

Externally, while not as specific, this document can be more formally polished and presented to a wide variety of stakeholders according to traditional modes of communication.  These modes might include brochures, articles in newsletters, insider updates, websites, social media and other mediums as desired depending upon the particular cultural needs and expectations of the stakeholders including potential funders, donors and community partners.

Consider:

1. Distributing a full copy to every board and management team member.

2. Distributing all (or highlights from) the plan to everyone in the organization from the newest employee to direct care staff.

3. Posting your mission, vision and values statements on the walls of your main offices.

4.  Consider giving each employee a card with the mission, vision and values statements (or highlights from them) on a card.

5. Publishing portions of your plan in your newsletter, advertising and marketing materials (brochures, ads, etc.).

6. Training board members and employees on portions of the plan during orientations.

7. Including portions of the plan in policies and procedures, including the employee manual.

8. Providing copies of the plan for major stakeholders, for example, funders/investors, trade associations, potential collaborators, vendors/suppliers, etc.

So how have you gone that final step and packaged your strategic plan?

Share your thoughts, suggestions and samples!

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Philanthropy is not a multiple choice question for your nonprofit board of directors

So often I have heard this one line uttered…”But I give of my time and that is my gift!”

Yes and no.

As a Board of Director, you are expected to give of your time.  You are a volunteer.  You have fiduciary responsibilities that you are not usually paid for.  And folks contrary to what you might think, there are no laws against board members receiving compensation.  But for this example, let’s look at your board and mine.  They don’t get paid nor expect to.

This, however, does not make philanthropy an option.

It is a given.

Or it should be.

Today, funders and donors look for 100% giving.  Is your board on board?  Have they given to this fundraising campaign?  Are they supportive and committed to the mission of your nonprofit charity?  The answer to those questions better be “yes!”

I once read these important points by fund development guru Kay Sprinkel Grace…

  • “Philanthropy is not multiple choice; those who join and serve should also give.”
  • “Board members cannot ask others to be donor-investors if they themselves are not.”
  • “Board giving leverages gifts from others, including staff.”
  • “There is joy in that comes from knowing that your financial support is helping achieve an important mission in the community.”

Can we pressure the board of directors to give?  Sure!  But don’t you want them to give out of their heart and desire?  Shouldn’t they want to naturally give to support your charities mission?

And, how do we role model the fundraising process for them…by announcing it at a board meeting and handing out pledge cards.

Shame on us if we do this!  They are our most closest donors so treat them like so.

So philanthropy is not a multiple choice question.  There is only one answer.  And, the answer better be a heartfelt gift or let’s look at board expectations, assessments and attrition.  Lets look at fund development and how we assume and operate.

Do your board members think philanthropy is a multiple choice question?  How are you handling this?  How are you shifting this culture to a “yes” or a “no”?

Share with us what is going on with your board…

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Identifying new potential donor prospects for fundraising

As a consultant, I get asked this question all the time. How do I find new donors for my fundraising efforts?

Well, let me offer a few easy and cost-effective steps that don’t require you to purchase or rent  costly donor lists for your fund development program:

1. At every single board meeting and at every staff meeting, provide a regular opportunity and system for identification through including prospect identification as a standing meeting agenda item.

2. Prepare a sheet of paper which is headed: “Since our last meeting, I have met the following individuals or heard about the following corporations and foundations that might be interested in our work.”

3. Hold a series of organizational tours with an emotional hook sharing your case for support. Have board members host these fundraising events and invite their friends to come “take a closer look” with no implied ASK for a gift.

4. Identify natural donor “feeder” systems within your organization. Do you have friends and family members, community partners, an online store, contests, etc. Develop creative fundraising strategies to convert these “transactions” into sustainable organization donors.

While I am a consultant, I have gotten here through sharing of ideas, best practices and key learnings. So share yours…

What else can you think of? I wanna hear what you have to say..comment below!

P.S. – My first online e-course will be debuting this fall. It will be titled… “Get off the fundraising treadmill and set up a major gifts program in your small shop!” In-box me for more information!

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How to raise $75,000 in 7 months through grant writing

I raised $85,000 for an organizations in 7 months. How?

Grant writing!

I bet you didn’t know that was a skill set of DCS, oh but it is!

In the past 7 months that I have worked with an elder care facility, I have been busy raising money through grants.

In fact, lots of money. Over $75,000 to be exact.

How?

Well, grant writing just like any component of fund development takes skill and has a definitive body of knowledge around it.

Can you hire someone who can write, sure! But a fund development professional has the breadth of experience and knowledge that can take effective efforts and make them extraordinary ones.

I start off by conducting a search of all the potential funding sources that exist both privately and corporately using subscriber on-line sources. From there I put together a grants management plan – a road map you might say of the next year ahead.

I know exactly what is due when and what needs to be my priority.

I spend time building relationships in the office and on the board to help match organizational priorities with funding priorities to ensure success. Then I work with your board to see what existing and/or potential relationships that there might be to leverage each funding potential.

It doesn’t end there, reporting is key. And donor-centered, relationship enhancing reporting takes you to another level.

So, yes…you can hire a “copy writer,” “a former newspaper writer,” or any other kind of writer…but why not a fund development professional.

The body of knowledge is powerful of thing.

Don’t waste time and money – instead hire someone who can raise it!

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A day in a small fundraising shop

Often wonder what it is like to be in a small fundraising shop?

Exciting, exhilarating and yet tedious all at the same time.

You need to be a generalist rather than a specialist.  So your skills need to be broad and you need to know a great deal about many things within fund development.

You don’t have prospect researchers on staff and you might not even have a database administrator.

You must be all that and more.

You must see the big picture but yet be willing and able to implement it.

You could be working on a direct mail appeal in the morning and then by afternoon you could be calling on donors.

But most importantly you must be adept at making time work for you and utilizing the Pareto principle, raiser sharp analytic skills will help you hone in on the tasks that absolutely must get done and those that can wait to a slower time, if there is really ever any slower time.

The one thing that you cannot shirk on is donor time each and every day.

Relationship building is the foundation of our programs and if we give that up, our programs will eventually wither and die.

And, don’t under estimate the power of the volunteer to help out with some routine tasks and learn the all important word “no.”

While small shops can be trying at times, they can also be exciting, impactful and rewarding.

One thing for certain is that small shops are a true test of professionalism.

Run one well and you are guaranteed success!

 

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Do you have a fundraising procedure for handling gifts of securities?

Whether part of an existing gift acceptance policy or a separate written document, your organization should prepare a written description of the procedures for handling a gift of securities.

  • Where is the organization’s brokerage account?
  • Who is the organization’s broker?
  • Who pays the broker’s commission?
  • Who is responsible for overseeing the transfer of securities?
  • How do the finance department and the development department interact with regard to the transfer of securities?
  • What is the mechanism for tracking securities that have been transferred to the organization’s brokerage account without a donor’s name?
  • Is the information that the donor needs to transfer securities (name of the organization’s broker, federal ID number, and account number) easily accessible?

Have these items already determined, before you get a telephone call with a gift of stock!

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Have you strategically planned?

Throughout my career, I have found that it is oftentimes not fund development issues that impact the effectiveness of fundraising, but, larger organizational ones.

After doing many development audits and assessments, I can say that the top items that are lacking within an organization are:  a vision for the future, a case for support, and a long-range plan to get there.

In my opinion, nothing is worst than not having these tools in your fundraising toolbox.  In fact, the “new” donors of today, are different in the sense that they want to know what your vision and plans are and how their gift is going to make a difference today as well as tomorrow.

Strategic planning not only charts that future course, but, it also ensures that your organization will remain relevant to your community and constituents, as well as to your donors.  It is the framework for ALL of your organizational activities and is the backbone of your fund development program.

How can you raise money without knowing who you are, where you are going, and how you will get there?

Without a compass to provide direction, you will be lost in the woods.  And the same holds true for your strategic plan.

It is the vision for the future and the compass to get you there.  I should add that strategic planning is more than that as well.  It is also just as much about process is as it is about product.  In fact, launching a strategic planning process engages all of your key constituents and stakeholders in your organization and creates greater community ownership and donor investment.  Let’s face it, our organizations are not “ours” but belong to the community and those we serve.  By engaging them in the process, you ensure that they have a voice.

It is also about organizational commitment, dialogue, change, and learning.  And, we all know that those organizations that are “learning” organizations are by far the most successful.

So, if you are looking for direction for your fundraising efforts, start at the beginning.  Who are you?  Are you relevant?  Where are you going?  And, do you have a plan?  We must remember that the “fundraiser” is limited by how effective an organizations’ overall health and well-being is.  Don’t set their expectations to high without giving them the proper tools to do the work.

How has your strategic planning efforts enhanced your donor relations in your organization?

 

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It’s elementary my dear, building your elementary school alumni effort!

I was recently approached by my local Catholic elementary schools to put together some thoughts about building an alumni base that could possible provide scholarship fund assistance.

Some elementary schools have very robust elementary alumni efforts and some, like my particular community, are non-existent.

These days, elementary schools are faced with the need to provide scholarships and tuition assistance.  They just can’t keep pace with the changing reality and demographics.  Many must change their current model in order to remain robust and relevant.  So in an effort to assist, I have put together some simple steps towards this aim that I want to share with you.

Here are some simple steps you can take to start building your elementary school alumni efforts:

1. Develop alumni mailing lists

  • Develop a database for current students contact information
  • Research past student attendance and other available records for known graduates and alumni
  • Utilize social media strategies (Twitter/Facebook) to obtain names and contact information
  • Post “ads” in local church bulletins

2.  Create an official alumni group/committee with a specific mission, vision,  and strategy.

  •  Determine structure of this group.  If multiple elementary schools are considering forming one alumni association, perhaps look at “donor designation” fund models for structural examples
  • Determine if you want to have annual alumni association dues

3.  Develop strong and compelling “case for support” or your rationale for elementary education in your community.

  • Let them know that the school in their “dusty memories” hasn’t stopped growing and striving for success
  • Show them computer labs and any other technological advances the school has made.  Establish special project funds i.e. “technology fund”
  • Establish an Alumni scholarship fund.  For just a few dollars, alumni can make sure that any child who wants to attend the school, regardless of economic status, will have the chance. Gifts can be made in the name of a family member, a corporation, or anonymously. Regardless of how the gift is presented, it does give the alumnus a sense of true inclusion in the on-going development of the school

4.  Develop and conduct an initial mailing and/or social media contact to all known alumni, introducing them to the forming association, requesting them to update and verify their contact information, and inquiring if there are any interested volunteers for the committee.

5.  Plan and host a “launch” event with broad appeal to attract as many alumni as possible through advertising in local paper, radio, TV, social media and personal networks and invites.

  • Celebrate long-time teachers and invite all past-students to celebrate
  • Catholic elementary school reunion, milestone or anniversary
  • Advertise in local paper, radio, and TV

6.  Create alumni web-page for Catholic elementary schools

  • Develop a website that could host this page
  • Share alumni news, post old photos, current photos, post old athletic records, etc.
  • Share alumni year-books
  • Sell alumni – wear on website, etc.

7.  Create alumni social media presence for elementary schools

8.  Create printed and e-mail alumni newsletter with return envelope that is mailed at least three times per year.

9.  Create direct mail program with at least two mailings per year.

10.  Organize special yearly events to support the Alumni Scholarship Fund.

  • Can host special reunions for those classes celebrating their 25th, 50th, etc. reunion
  • Special anniversaries or milestones, etc

While not all-inclusive, I think that these steps provide any elementary school with a springboard for launching their alumni efforts.

What are your thoughts and suggestions? Email them to me at [email protected].

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