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Lecture #6 The Development Process. “…People Give to People…” Myth: People Give to causes that need money Truth: People give to people who ask them to give to causes Individuals give from three sources: Discretionary or disposable income Their assets Estates. - PowerPoint PPT Presentation
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Lecture #6The Development Process
“…People Give to People…”
Myth: People Give to causes that need money
Truth: People give to people who ask them to give to causes
Individuals give from three sources:• Discretionary or disposable income• Their assets• Estates
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Lecture #6 The Development Process
Annual Fund
Endowment, Capital
Buildings, Equipment, Endowment
Special Programs & Projects
Ongoing Programs
& Services
Estate Planning
AssetsIncome, Assets
Current Income
Benefit:
Source:
Donor
Major Gifts Program
Capital Campaign
Planned Giving
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Lecture #6 The Development Process
Objectives of the Annual Fund:– To solicit and secure a new gift, repeat, and upgrade– To build and develop a base of donors– To establish habits and patterns of giving by regular solicitation– To seek to expand the donor base through new prospects– To raise annual unrestricted and restricted money– To inform, involve, and bond the constituency to the org.– To use the donor base as a vital source of information to
identify potential large donors– To promote giving habits that encourage the contributor to
make capital and planned gifts– To remain fully accountable to the constituency through annual
reports (discussed more in a future lecture)
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Lecture #6 The Development Process
No organization is similar; therefore needs different strategies and tactics to build and sustain a successful development program.
The Development Officer’s Job…• to “Right Size” it for your organization’s needs
Answer the following questions for direction:• What are the needs of your organization?• What are the resources available to you?• What champions to you have?
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Lecture #6 The Development Process
Stages of Development - moving up the Donor Pyramid
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Lecture #6 The Development Process
1. Identify potential prospects– Compile and develop lists of predisposed individuals– Similar organization’s annual reports, book of lists,
professional organizations, natural constituencies, etc.
7http://www.nps.gov/partnerships/fundraising.htm
8http://labspace.open.ac.uk/mod/resource/view.php?id=448021
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Lecture #6 The Development Process
2. Convert potential prospects into qualified prospects
– Test the list effectiveness by identifying linkages– Engage volunteers, staff (e.g. rating session)– May be combined with step 1
Who do you know?
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Lecture #6 The Development Process
3. Convert qualified prospects into initial donors
– Build on linkages, test interest by asking for gift– Solicit by personal contact (telephone, direct mail,
special event)– Acknowledge gift (opportunity to validate the linkage;
negate buyers remorse)
11http://labspace.open.ac.uk/mod/resource/view.php?id=448021
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Lecture #6 The Development Process
4. Convert initial giver into donor of record– Build on interests and linkages– Report to the donor how the organization used their
gift– Invite to renew, Acknowledge
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Lecture #6 The Development Process
5. Increase the gift– Research, building on linkages and interests– Inform (report on use), involve in organization– Invite to renew at a higher level (use gift club
concept)– Acknowledge
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Lecture #6 The Development Process
6. Secure Special Gift (e.g. $1,000)– Continue research through linkages, involve, build
on interests– Align interests with a special need of organization – Personally solicit (face-to-face) , invite to gift club
membership– Acknowledge
15http://labspace.open.ac.uk/mod/resource/view.php?id=448021
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Lecture #6 The Development Process
7. Secure Major Gift (e.g. $10,000+)– Validate donor as a major gift prospect via linkages
and donor research (i.e. capacity)– Involve the donor in the institution via planning, case
evaluation (“testing the case statement”)– As a loyal donor, ask him/her to participate in
cultivation events or help in identifying new prospects; join board committee
– Share needs of the organization; align solicitation to donor’s desires, face-to-face solicitation by CEO/Board Chair, acknowledge
– Reward/Recognize
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Lecture #6 The Development Process
7. Secure Major Gift (e.g. $10,000+)– Validate donor as a major gift prospect via linkages
and donor research (i.e. capacity)– Involve the donor in the institution via planning, case
evaluation (“testing the case statement”)– As a loyal donor, ask him/her to participate in
cultivation events or help in identifying new prospects; join board committee
– Share needs of the organization; align solicitation to donor’s desires, face-to-face solicitation by CEO/Board Chair, acknowledge
– Reward/Recognize
18http://labspace.open.ac.uk/mod/resource/view.php?id=448021
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Lecture #6The Development Process
8. Secure Big Gift– Continue to involve and engage through linkages
and interests– Employ donor as an important advocate; invite to
serve as volunteer leader (board member); – Foster a desire to give and ask by involving in
cultivation events and engaging his/her personal contacts
– Ask, Acknowledge, Reward/Recognize
20http://labspace.open.ac.uk/mod/resource/view.php?id=448021
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Lecture #6 The Development Process
9. Secure Planned Gift– Continue involvement with the purpose to strengthen
bond between the donor and the organization– Create feelings of belonging to and identifying with
the organization– Foster mutuality of interests– Giving in perpetuity (endowment) or legacy
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Lecture #6 The Development Process
HOWEVER:
• Evolves over a very long time horizon (e.g. 10 - 20 years)– Through many Development Professionals
• Very time consuming– As donor progresses up the pyramid, the tactics become more
personal (hence dedicated MGO)
– Greater access; involving the time/energy of organizational leadership outside of the Development Office
• 80/20 rule: 20% of your donors will provide 80% of the funding – Most of your donors will only progress so far in up the donor pyramid
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Lecture #6 The Development Process
http://www.youtube.com/watch?v=sd5H_2r-QW8&list=UUdnth3tXfhMjHgIchCw-CTQ&feature=share&index=2
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