Building Donor Relationships:It’s a Process, Not an Event!

Larry P. Stelter President/CEO The Stelter Company larry@stelter.com

Presentation Objectives

Prospect identification Obstacles to your success Donor-focused behavioral model Face-to-face communication system Key to success

A. Identification of Prospects

1. Giving history of your donors - consistent2. Age of donors – 60+3. Research income & wealth of donors4. Targeted groups – seniors, women &

advisors5. Lapsed, older donors –still love you but

on fixed income

B. Obstacles to your success

1. Procrastination

2. Turnover of fundraising staff

3. Immaturity of donor base

4. Patience & involvement of board

5. Technical paralysis

6. Communicating your mission

C. Communication Methods:

1. Direct mail & expectations A. Educates & builds awareness of giving

options - NCPG survey - 5% in 1992 and 34% in 2000 heard about planned giving from charities via direct mail-63% for CGA

B. Lead generation - measurement of success (MOS) - follow-up on response cards

Communication Methods: C. Motivate to seek more advise from

professional advisors - MOS - recognition club growth and networking - NCPG survey - 21% heard about PG options from advisors

D. “Break the ice” - MOS - make calls - NCPG survey - 11% heard about PG options from charity representative

Communication Methods:

2. Wills/estate planning seminars3. Recognition clubs – charitable intent4. Gift receipt enclosures – buck slips5. Organizational magazine articles6. Internet - 55+ are fastest growing

group to use the net - wealthy, educated & they have the time

Online Giving Trends

$250 million was contributed in 2000 up from $10 million in 1999 $1.9B estimated given in 2003; $3B in ‘04 Harvard Univ. predicts that by 2010, 1/3 of all gifts will be given online, representing approximately $64 billion

Why Use the Internet?

Seniors are online:

55 to 64 age group – 57% regular users

65 to 74 age group – 36% regular users

75+ age group – 16% regular users

Get in front of all your prospects more frequently at low cost & limited effort

Baby boomers (40 to 57 years of age) are already into the web

Planned Giving Web Essentials

Content, content, content – rules the web

Embed interactivity in content – calculations and material requests

Update your content frequently

Make it easy to contact you via the web

Create internal navigation

Measure your marketing results

Essential #1 – Content Rules

Senior visitors have time to read – let them choose how much to read Offer the visitor enough content so they will stay and/or return Change articles for return visits Email address book - let them know when new content is available – new testimonial or law change – avoid email fatigue

Essential #2 – Interactivity

Offer gift calculator on home page Embed gift calculation opportunities within content Give visitor opportunity to request additional material – ebrochures Involve visitors with quizzes, interactive decision tree and gift matrix Make it easy for them to contact you

Essential #3- Navigational Loops

Create loop to recognition page Connect to “sample bequest language” Connect to “contact us” pages Loop to testimonial/donor profiles pages Loop to “giving online” page Connect to “professional advisors” content

Internet Marketing Challenges

Poor navigation – clicks & words

Too many clicks to find it

Key words don’t define link

Inadequate marketing

How to measure results?

Challenge #1– Poor Navigation

You missed the internet marketing meeting or webmaster doesn’t like you

Your webmaster doesn’t know your department exists or doesn’t realize its value

Visitor can’t find development page - let alone planned giving content

Challenge #2- Labels

Word links don’t define where you want your visitor to go next

Alumni and friends – events, calendar or gifts?Make a donation – too aggressive if first linkPlanned giving – how many visitors understand this term?

Challenge #2 - Label Options Supporting _________ Give later Foundation Ways to give Giving opportunities Future gifts Philanthropy

Challenge #3 – Promote It Must promote by traditional means the existence of the internet option Use your current PG newsletter & reply card to promote availability of more information Use “free ride” space for promoting 1. Organizational newsletters

2. Buck slips or gift receipt enclosures 3. Postcards

Challenge #4 -Measurement

Measurement – Returning Visitors In 2004, total number of new visitors increased by 63% In 2004, the number of returning visitors accounted for 31% of visits Average visitor stay time:

11 minutes in 200214.5 minutes in 2003over 20 minutes in 2004

Measurement – Real Gifts

$1.5M bequest from 75 Yr. Old - $50/yr donor

$4,000,000 gift from “Legacy” page - 65

$325,000 CRUT from advisor & alum – 63

$2.5M deferred CGA – university donor

$100,000 CGA - 84 year old, non- donor alum

$1.5M CGA – hospital donor – 87 years old

$200,000 CGA – Harley-Davidson

Communication methods

Personal contactingFollow ups to marketing efforts

Personal interviews with donors/clients

Stewardship after giving decisions

Brain-to-Brain Communication

Sender Receiver

6.

Filters - assumptions or preconceived notions

They can interfere with getting the intended message to the receiver

Filters may relate to:AgeAppearanceStatusEthnicityGenderColor – blue or red states

Proactive vs. Reactive

Proactive BehaviorFully responsibleConsciousThoughtfulPlannedConsistent with Values & Beliefs

Reactive BehaviorUnconsciousConditionedWithout ThoughtOutside influencesProvoked by Emotions

7.

Emotional Communication - Reactive

Reactive is usually not carefully thought through by respondent Can also be verbal attack at someone or something seen as a threat Words that describe emotional behavior:

AggressiveAngry/MadSadExcited

Nurturing Communication - Proactive

Nurturing phrases acknowledge the other person’s position without evaluating Lets the other person know you are truly listening, which is the first step in building trust. Examples:

“The way I hear it is…”“You seem to be troubled by…”

Nurturing Communication - Proactive

Summarize the content of the message AND the feelings of the other person, especially when there seem to be emotions interfering with the communication process Examples:

“You sound pleased with the way it turned out.”“It sounds like you’re concerned about that.”

Nurturing Communication - Proactive

Nurturing phrases are often accompanied by questions. This is helpful in encouraging others to say more about their position and why they feel the way they do. Examples:

“I’m glad to help with that. How would you…?”“I think I understand. Could you expand a bit more?”

Rational Communication - Proactive

Involves stopping and thinking about your response Deal with the emotions first – people can’t be rational until they are through the emotion Rational communication may include:

Providing information in an objective wayAsking questions to clarifySummarizingOffering an opinion and then asking for a reaction

Understanding Behavior Makes Us More Proactive

If I know what to look and listen for, I can PREDICT how you’ll react.

If I understand myself, I can better CONTROL the messages I send.

Developing the Relationship

Finding out whether you and your donor can trust and respect each other to take the relationship to a level that will allow you to provide the donor with what he/she wants.

Discovering who the person is inside and how the donor got to be where he/she is, both personally and professionally.

DISCOVERING THEIR PASSION!!

D. Donor Behavioral Model

More Powerful

Less Powerful

Favorable Environment

Hostile Environment

“D”Dominance

“I”Influence

“C”Conscientiousne

ss

“S” Steadiness

“Dominance” 10%

OBSERVED BEHAVIOR

WANTS

Authority Prestige Control Status Choices Quick Decisions

Task oriented

Extrovert

Direct

Risk Taker

Doesn’t listen

Knows it all

“Influence” 30%

OBSERVED BEHAVIOR

WANTS

People Oriented

Extrovert

Expressive

Meanders

Very agreeable

Social

Recognition

Popularity

Approval

Quick Decisions

“Steadiness” 35%

OBSERVED BEHAVIOR

WANTS

People Oriented

Introvert

Hate Conflict

Great Helpers

Security

Status Quo

Loyalty

Appreciation

Slow Decisions

“Conscientiousness” 25%

OBSERVED BEHAVIOR

WANTS

Task Oriented

Reserved

Direct

Analytical

Cautious

High compliance

Autonomy

Facts

Personal Attention

Loves to be Correct

Consistency

Very Slow Decisions

Trust Builders

Dominance – High D

Minimize chitchatGet down to businessJust a few comments on surroundingsStick to businessFormal is safe

Influence – High IBe warm and friendlyComment on & compliment their surroundingsBeing social is more important than businessBe informal

Trust Builders

Conscientiousness–High C

Be straightforward A little chitchat, then businessCommon experiences are less important than common valuesBe more formalHave an agenda

Steadiness – High SDon’t rush to businessTalk about family and long-term relationshipsCommon interests are importantBe patient – they may be slow to warm upBe informal & casual

A Donor- centered System

Donors talk MORE than you do.

You ASK more than tell.

You talk about gift-giving options

later.

You tailor your communication

style to the needs of the donor.

E. Face-to-face Communication System

1. Opening the meeting

2. Probing for personal needs

3. Explaining donor benefits

4. Nurturing concerns and objections

5. Understanding the “win-win” commitment

6. Preserving the relationship

Donor Meeting Preparation

Analysis donor’s behavioral style What else do you know about the

donor Set realistic meeting objectives Plan the questions you’ll ask Plan for emotional responses,

issues or concerns

Step 1: Opening Donor Meetings

Check personal appearance before visit

Ask for permission to enter/where to sit

Address the donor formally Add special care for those donors

living alone Perform “sensory” checks

Step 1: Opening Donor Meetings

If hearing is a problem, don’t yell Be sensitive to those who are

forgetful Be patient with repeated stories Adjust your approach to behavioral

style of donor State the purpose of the meeting Get permission to ask questions.

Step 2: Probing for personal needs

People do things for their own reasons!

We must discover:

Emotional Needs

Financial Issues

Decision making Process

Probing for Emotional Needs

What are the reasons people become donors to your organization?

Emotion = $$

Develop the emotional need before presenting gift-giving options.

Probing for Financial Issues

The size of the Emotional Need determines the size of the gift. (Postpone if you can until you’ve explored emotional needs.)

Discussing Financial Issues requires HIGH TRUST.

Probing for the Decision Making Process

Know all the “players.” How? When? Who? Decision Making Roles:

Gatekeepers Champions Influencers Decision makers

Tools For Probing

Rephrasing Reflecting Feelings &

Content Open Questions Closed Questions One Word Questions

Step 3: Explaining Donor Benefits

What you need before you present: Complete list of issues and

needs important to donor An understanding of the decision

process Mutual expectation that the

donor will agree if all the issues and needs are met satisfactorily

Donor-Centered Benefit Statements

Present only options that will solve issues or needs expressed by the donor.

BENEFIT STATEMENTS relate your offerings to what the donor really wants

Creating a Benefit Statement:

Personal needs – “Mr./Mrs. Smith, I know that ____________ is important to you.”

Feature – “I’m proposing that ______.”

Benefit to Smiths – “What this will do for you is ______________________.”

Step 4: Nurturing Concerns & Objections

NASA is a process for helping donors understand and resolve their concerns

Nurture

Ask Questions

Solution

Agreement

The NASA System

Defensiveness is often our first impulse when we hear objections. We may feel the objection is directed at us personally. The donor must overcome his/her own objections.

NASA Steps

Nurture – first actively listen, then respond from your nurturing position. Build trust by taking care of their emotions first. Never defend. Ask questions – make sure you understand and that they know you understand. You may have to ask a variety of questions to fully uncover concerns. Solve – provide a solution that is concise and relates to “what’s in it for the donor.” Agree – never move forward until the other person has agreed that your solution is satisfactory.

Step 5: Understanding the “Win-Win” Commitment

Summarize how gift will meet the donor’s needs.

Review the major benefits and the good that will result from the contribution.

Request the commitment, then WAIT for the answer.

Manage any resistance, and ask again. Thank the donor again!

When to Ask

When Steps 1-4 have been handled correctly

When donor understands and accepts:Benefits of making a commitmentHow emotional & financial needs are satisfiedGift alternatives

When all resistance has been managed

Questions used to gain commitments:

“Have I provided you with enough information to assist you with that bequest decision?”

“Is there any particular method we have discussed that appeals to you?”

Step 6: Preserving the Relationship

Thank the donor repeatedly Let the donor express his/her excitement

(use active listening) Set up a follow up plan

Check in frequently to update donor Find additional ways to keep donor

involved Use NASA if concerns arise

Provide recognition/additional “thank you”

Follow-up Ideas

Time management & contact management software

Setting re-entry conditions –

“What would you like me to do next?”

“What is the next step you will take?”

F. Success can be achieved by:

Realizing the POTENTIAL before you Finding the right PROSPECTS Having a PASSION for your organization Discovering the PROSPECT’S PASSION Using a PROVEN PROCESS Being PERSISTENT with your follow-ups