Prospect and Moves Management for Major Gifts Robin Kraujalis, CFRE Assistant Director of...

Prospect and Moves Management for Major Gifts

Robin Kraujalis, CFRE

Assistant Director of Development

Saint Louis Zoo

What is a Major Gift?

Amount +

Purpose =

Extraordinary

How are major gift fundraising techniques the same? Different?

SAME• Reasons for giving• Fundraising cycle

DIFFERENT• One-on-one• Donor-focused• Longer timeframe• Many steps

Reasons for Giving - Why do people make major

gifts?• They have assets

• They have philanthropic needs & interests

• Their needs match your mission

• They can impact/satisfy needs

• They have trust and respect for the organization, solicitor and staff

Friend Raising Cycle

Strategy

Solicitation

CultivationRecognition

Stewardship

Potential donors

MemberFamily

NaturalistKeeper

Curator

MPS

QualifyGenerally self-qualifyMembership levelsRequest upgrade

Group strategyMembership levelsBenefits

Membership renewalsMembership brochuresAdoption renewals

MarketingPublic relationsEventsToursDinners

Thank you letterAnnual report listingDonor boards

ZudusInvitationsEventsBenefits

Zoo parents

Donor-Focused Development

• Each donor is different-unique-and, therefore, each donor must be cultivated differently, using different techniques, skills and benefits.

• Understanding each person’s motivations enables us to identify their needs and ultimately, to ask them for a gift that is meaningful and appropriate (extraordinary).

Moves Management

• Each contact with the donor is an opportunity to learn more about their needs and interests and to move the relationship forward in a positive way.

• We need to determine where the person is in the gift-giving cycle (readiness to give) and where we want to move them next.

Prospect research/management is critical to moves management

Prospect research helps us:

• Prioritize

• Strategize – primary players– interests– where they are in gift-giving cycle, next move

• Track our progress

Major Donor Cultivation Cycle

Qualify

Strategy

Cultivation

Solicitation

Recognition

Stewardship

IdentifyHolding area forsuggested names

Find initial informationEstimate initial capability

How to involve prospectGet to know prospect: interests capability

Involve prospectVolunteer solicitorDetermine Zoo interestsDetermine ask amount-----------------------“Background” vs.“Foreground” MovesSpecific amount

Specific project

Thank donorNaming opportunitiesCampaign events (groundbreaking, press announcements)Campaign listingPlaques

Keep donor informedKeep donor interested

feed back loop

MPS

Major gifts

Zoo Friendsand Members

Major Gift Cultivation Cycle

• Five I’s (G. T. Smith)– Identification– Information– Interest– Involvement– Investment

Major Gift Cultivation Cycle

• Dunlop’s Version– Identification– Information– Awareness– Knowledge– Caring– Involvement– Commitment

Case Study

Creating a prospect and moves management system for the Saint Louis Zoo’s major gifts program and our Zoo 2004 campaign.

• Getting started

• Key information

• Keeping track

• Strategic planning

Identify your prospects for major gifts & moves management

• Your members and other contributors

• Board members

• Volunteers

• Contributors to other organizations

• People with assets and influence in your community

• Data screening service

Qualify (Prioritize or Rate) Your Prospects

• Readiness

• Capability

Rating System: Saint Louis Zoo

• Readiness/Involvement:

A Very involved. Minimal cultivation

needed.

B Somewhat involved. Some cultivation

needed.

C Minimal or no known involvement

Prospect Rating: Saint Louis Zoo

• Readiness– Board membership– Volunteer activity– Event attendance– Gifts to your organization– Gifts to organizations with similar mission– Relationship to you or others who can influence

a gift.

Prospect Rating: Saint Louis Zoo

Capability (Maximum Potential Gift)

1 $500,000+

2 $100,000 - $499,999

3 Less than $100,000

4 Unknown

Prospect Rating: Saint Louis Zoo

Capability for Major Gifts

• 3% of estimated net worth

• 20 times consistent annual gift

• Up to 10% of annual income

Prospect Rating: Saint Louis Zoo

Estimating Net Worth

• 10 x salary

• 4 x real estate holdings

• Selling price of company x holdings x 25% to 50%

• Estate x 60% x portion of estate = inheritance

Prospect Rating: Saint Louis Zoo

• External Rating with Volunteers– Verify internal (staff) rating and research– Identify primary players and connections– Identify donors’ interests and needs– Identify volunteers!

Moving on to Moves Management

• Strategy– Prioritize the prospect pool

• Top down, inside out

– Meet with primary players• Who can most influence a gift?

– Determine next move• Where is the donor in the gift-giving cycle

(readiness)?

• Where do they need to go next?

Next Move

SUSPECT

Where they are in the gift-giving cycle (readiness to give): may have interest in giving

Move: need to qualify, do further research, invite to a campaign event or dinner

Next Move

PROSPECT

Where they are in the gift-giving cycle (readiness to give): qualified prospect

Move: explore needs and interests, e.g. invite for tour of the Zoo

Next Move

POTENTIAL DONOR

Where they are in the gift-giving cycle (readiness to give): has an interest in giving

Move: present case and ask, e.g. invite for lunch and presentation

Next Move

DONOR

Where they are in the gift-giving cycle (readiness to give): has given.

Move: build relationship and involvement, reinforce decision to give.

Managing the Moves -Key Indicators

• Cultivation or Proposal Status

• Action Steps or Ticklers

• Rating

• Solicitors or Key Players

Managing the Moves -Key Reports

• Volunteer & Staff Tickler Reports

• Monthly Status Reports– Number & Type of Actions Completed– Number of Gifts Received, Avg. Gift, Yield– Rating & Status Report– Progress Toward Goal

Managing the Moves -Tools for Strategic Planning

• Once you these key indicators, you can use this information for planning:– How many steps, on average, does it take to

secure a gift? – What is the average amount given?– How many actions or solicitations can a

development officer complete in a year? How many will it take to reach our goal?

Managing the Moves -Tools for Strategic Planning

(continued)

• Do we need more staff? Or volunteers?

• Who are our most effective solicitors?

• Which prospects are yielding the best gifts?

• Were our ratings accurate?

• Which prospects should we focus on next?

“Group” Moves Management

• Applying strategies to groups of prospects can also be effective, for example:– Civic Progress– Trustees– Next 100– Cover and Close– Home Stretch

“Group” Moves Management

• Key Indicators– Prospect Priority Classification

• Trustee

• 1st priority, 2nd priority and so on

– Proposal Type• Trustee

• 2nd gift

– Proposal Deadline

Case Study - Individual Prospect

Qualify

Strategy

Cultivation

Solicitation

Recognition

Stewardship

IdentifyHolding area forsuggested names

Find initial informationEstimate initial capability

How to involve prospectGet to know prospect: interests capability

Involve prospectVolunteer solicitorDetermine Zoo interestsDetermine ask amount-----------------------“Background” vs.“Foreground” MovesSpecific amount

Specific project

Thank donorNaming opportunitiesCampaign events (groundbreaking, press announcements)Campaign listingPlaques

Keep donor informedKeep donor interested

feed back loop

MPS

Major gifts

Zoo Friendsand Members

Moves Management - Conclusion

• Effective for Managing Major Gift Prospects or Groups of Major Gift Prospects (and Staff and Volunteers!)

• Requires Thoughtful Strategy and Effective System for Tracking Key Information

• Requires Discipline - For Updating, Maintaining & Reviewing Information

• Requires Research & Development Officer Cooperation

Credits

• The Stelter Company, Skills Plus Relationship Building Workshop

• David R. Dunlop, “Special Concerns of Major Gift Fundraising.”

• Steve Wilkerson, Pierpont & Wilkerson