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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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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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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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Let’s talk about board of directors giving…

Does you board of directors give?

This all important topic that is so hard to broach.

First, lets start where it all starts…

Does your organization have board of directors expectations that you share with them even before they are elected?

Do you have them sign and commit to those expectations?

Do you evaluate them on those expectations?

I am certainly not an advocate for board giving at a certain amount. Let’s face it, a major gift differs from one person to the next and that is plain respect. However, what I do advocate for is 100% giving by all board members at a level that they are most comfortable giving, but, with the condition that it should reflect the organization’s position as one of their top philanthropic choices.

Board giving is critical not just because funders require it, but, for the pure fact that one cannot ask another without having made their own gift.

And, if your board as the fiduciary “trustee” of the organization does not make a gift, what does that say about their commitment to the mission.

Something else to think about?

Our board members are our closest constituent group. So when they do give, how do we treat them? Do we treat them as the important donors that they are?

That is another question for another blog!

But, don’t forget to sign up for my e-mail newsletter for your free board of directors composition matrix template. You will find it most helpful and the weekly tips will accelerate your fund development!

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