Major Gift Fundraising: Ways High Net Worth Individuals Approach Philanthropy John Godfrey, CFRE 21...

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Major Gift Fundraising: Ways High Net Worth Individuals Approach Philanthropy

John Godfrey, CFRE21 August 1What you will discover

... what I am going to cover2What is an HNWI anyway?

A high-net-worth individual (HNWI) is a person with a high net worth. In the western, and primarily American, private banking business, these individuals typically are defined as having investable finance (financial assets, excluding primary residence) in excess of US$1 million.- Wikipedia, the free encyclopaedia

HNWIs have assets of more than $1 million (excluding primary residence, collectibles and consumables)- Bain India Philanthropy Report 2011

3What are they like?

Hyper agencyPersonal passionGiving backAncestral prideCSRintroduce the following concepts hyperagency, personal passion giving back, local identity,CSR

4Hyper agency

Hyperagency means being able to construct a self in a world that transcends the established institutional limits and, in fact creates the limits for others.(Schervish PG 2004)

... that HNWIs have a strong belief in their ability to do things and often have the access to other key people to achieve this5Personal passions

... some HNWIs are personally passionate about causes such as the arts, environment, education et cetera but by aligning with this they may be able to obtain support 6Giving back

.many HNWIs are influenced by a belief in giving back to society that has made them wealthy (this is most typical of new wealth) 7Ancestral pride

in many cases giving back includes giving back to the HNWIs own locality the town or village or region from where they came 8Corporate Social Responsibility

most especially in Asia where HNWIs tend to be the creators or owners of large industries. their philanthropy and CSR tend to be interchangeable 9The HNWI tool-kit

Theory of changeSocial entrepreneurshipVenture philanthropyPatient capitalthere are some tools and terminologies are particularly applicable in this area theory of change, social enterprise, venture philanthropy, blended/hybrid philanthropy and patient capital 10Theory of change

NeedInputsActivitiesOutputsOutcomesImpact

A theory of change is basically an argument for how your nonprofit turns community resources (money, volunteers, clients, staff, materials) into positive change in the community.

1. Need - problem you are solving2. Inputs - what it takes to do what you do3. Activities - what it is you do4. Outputs - what quantifiable things happens when you do it5. Outcomes - what happens when these quantifiable things happen6. Impact - the difference this makes to the wider community 11Social entrepreneurship

A social enterprise (as created by a social entrepreneur) can be either for profitable non-profit but it's basic characteristic is that it exists to meet a social problem or need 12Corporate Social Responsibility

most especially in Asia where HNWIs tend to be the creators or owners of large industries. their philanthropy and CSR tend to be interchangeable 13Venture Capital

Think of venture philanthropy as philanthropy for bankers. Swap the word donation or gift for investment and you get the general idea 14Patient Capital

not all philanthropists are bankers and not all bankers are fixated on instant returns. Patient or lazy capital recognises that social needs and social enterprise takes time to deliver results(and sometimes these results cannot be quantified). 15Three Pillars

Case for supportLeadership Prospects16With all this in mind, the basic principles of major gift fundraising still apply. You will need a case for support, leadership, and prospects Copyright 2011 Artful Fundraising Pty LtdEssentials of Major Gift FundraisingVisionary Case for Support

17case for support should be compelling, oriented toward the donor and will include your theory of change Copyright 2011 Artful Fundraising Pty LtdEssentials of Major Gift FundraisingThe Leadership TriangleChairYouCEO18HNWIs will want to engage with your founder, chairman, CEO. Your role is the fundraiser is to support this. Copyright 2011 Artful Fundraising Pty LtdEssentials of Major Gift FundraisingA Prospect Pool

19the 3 of separation and the prospect onion principle - the HNWIs that will give support would be those that already have, or could be recruited through those who have an existing connection with you Copyright 2011 Artful Fundraising Pty LtdEssentials of Major Gift FundraisingProspect onion

20Copyright 2011 Artful Fundraising Pty LtdEssentials of Major Gift FundraisingThe 4Rs

ResearchRapportRequest resourceReport, retainthe basic fundraising cycle applies to HNWIs. You will need to research, build rapport, ask for resources and retain through providing reports. I call these the 4Rs 21Research

22Develop Relationship & Rapport

23Ask for Resources

24Report & Retain

25Questions

26Feedback and further discussion

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