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Who is Vern Henricks?
Christian Husband Father Community Leader Philanthropist Coach Fundraising & Leadership Consultant Businessman
Ministry or Fundraising?
Is your work a ministry?
Or is it really fundraising in disguise?
Your Ministry Challenges
… … …
The profession of fundraising is a highly ethical profession guided by principles of
honesty, integrity, and quality.
Definition of development
Creating opportunities to connect God's people to God's work.
1 Timothy 6:17-19
Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment.
Command them to do good, to be rich in good deeds, and to be generous and willing to share.
In this way they will lay up treasure for themselves as a firm foundation for the coming age, so that they may take hold of the life that is truly life.
Purpose of development
To connect the followers of Jesus who desire to be good stewards with the ministries and causes that they care about or are called to.
The higher purpose here is that the journey of the steward is more important than our fundraising goals.
It is God's desire that every one of his followers is a wise steward with their money, time, intellect, relationships, position in life, and environment.
To find opportunities for stewards to give to the Lord's work and achieve their stewardship goals.
Giving in the U.S. - 2006
Americans’ charitable giving reached record highs, with individual giving accounting for 83% of the $295 billion given in 2006.
Americans donated 2.2% of their average disposable, or after-tax, income.
The amount of money transferred to ministry was unprecedented in history.
U.S. Charitable giving 2007
Giving USA 2008 Up 3.9% despite worries about gas prices,
mortgage crisis and housing market . Charitable giving in the United States is
estimated to be $306.39 billion in 2007, exceeding $300 billion for the first time in history.
Every type of public charity receiving donations saw gains in 2007.
The Bottom Line
If we are to give our donors an opportunity to make a wise stewardship decision by giving to
our ministries, we must continually communicate the results, impact, and needs
of our ministries on a regular basis. We should assume nothing.
Are You Communicating?
Are you donors truly informed about your ministry?
Do they know what you are accomplishing with their giving?
Do you share the successes and the failures?
Communication Ideas
Newsletter that communicates stewardship ROI? Thank you letter / receipt that communicates
your thankfulness and accountability? eNewsletter that is timely and brief to keep a
donor updated? Annual Report that summarizes the year of
ministry results and financial accountability?
Communicate…ALWAYS
YOUR Ministry of Development is based on your relationships with your donors. Seek to
communicate whenever you can and you will find your donors are with you, no matter the situation,
economy, or trends.
Facts About Finance
10% of the people in America control 90% of the net worth.
93% of the net worth controlled by the 10% of the population is held in non-cash assets.
Most ministries spend the majority of their time and resources going after cash—chasing the 90% who only have 10% and much less discretionary income from which to give.
“After all my calculations I have come to the conclusion that it’s not what you know, but who you know that counts.”
The Desires of Major Donors
To have their time & opinions valued To invest their heart and passion To give their expertise when possible To enjoy the thrill of making a ministries
dream happen
Relationships Are the Key
The ultimate product of major donor ministry is the donor himself/herself. The goal is to see an individual thriving in Christ, happily fulfilling his God-given role as a giver.
When we care more about the donor than the donation, donations tend to follow.
Donations are the by-product, not the end-product, of the relationship.
Friendraising connects people who have a passion for the ministry and a capacity to fund the work of the ministry.
It’s All About Relationships
“…Love the Lord your God with all your heart, with all your soul, and with all your mind…Love your neighbor as yourself…”
- Matthew 22:37,39
Craig LawrenceCo-founder of Lawrence & Schiller
People give most generously when; A vision is compelling. They are provided a way to have a meaningful
part. The ministry provides opportunity to impact
THEIR community.
What Donors Want to Know
Do you care about me or just my money? Do you have a plan and is it sound? Can I trust you’ll do what you say you’ll do? If I invest, will I get a good return on my
investment? Will you report back to me, good or bad? Will you be grateful? Will you give the glory to God?
Giving Vehicles
Cash Non-Cash
Autos, boats, planes, RV’s, collectibles Stock Real Estate Business Interests Estate
Five R’s of Fundraising - Pat
McGlaughlin
The Relational Donor Cycle Research (who, what, when, where, why) Romance (education, motivation, love) Request (the marriage of values-theirs &
yours) Recognition (thanks…sincerely) Recruitment (ask them to help you)
Summary
Get Involvement / Giving Identify others (5-10) Peer to Peer Request for support (3-5) Timely Follow-up
What is Servant LeadershipRobert Greenleaf
“The servant-leader is servant first. It begins with the natural feeling that one wants to serve, to serve first. He or she is sharply different from the person who is leader first, perhaps because of the need to assuage an unusual power drive or to acquire material possessions.”
– Robert Greenleaf
Servant LeadershipKen Blanchard
"I truly believe that Servant Leadership has never been more applicable to the world of leadership than it is today. Not only are people looking for a deeper purpose and meaning when they must meet the challenges of today's changing world; they are also looking for principles and philosophies that actually work. Servant Leadership is about getting people to a higher level by leading people at a higher level.“
– Ken Blanchard
Forging an Emotional Bond With Your Best Donor
Prospects
“Fundraising is often a cry of need. Asking for gifts isn’t what gains support from substantial donors. Believing in your cause is what motivates them. People give because they care and because they feel their gift will make a difference.”
—Quorum-Alliance Consultants
Motivations for Giving
1) Meet critical needs2) Giving back to society3) Those with more should help others4) Bring about a desired impact5) Set an example6) Being asked7) Religious beliefs8) Identify with the cause9) Expected in social network10) Leaving a legacy
The Center on Philanthropy – December 2007
Would give more if;
Less spent on administration Able to determine impact of gifts More financially secure Better financial return on investment Knew of more organizations Able to volunteer skills in nonprofits Not already financially committed Understood goals of nonprofits Name would not be made public More information on giving vehicles
The Center on Philanthropy – December 2007
Ways to Engage a Prospect
Involve the donor’s family Honor a donor’s life’s work Respect the donor’s values Answer the donor’s questions Honor the donor’s name Showcase the donor’s talents and
experiences Give a donor financial security Have the right person(s) ask
Appreciation makes people feel
more important than
almost anything you can give them.
Prospect Cultivation
Research their ability to give Determine their knowledge of the
institution Learn how involved they are Evaluate the strength of their
relationships Assess how motivated they are to give Identify potential conflicts and seek
resolution Establish ways to engage them in your
work On visits—learn about;
1. How they feel about your organization2. Their business and how they made their money3. Their family and how involved they are in
decisions
Identify the special needs of the organization
Discuss the problems being addressed Describe why your organization is
deserving Illustrate what will be achieved by this
project Detail how you hope to accomplish your
goals Explain what you need
(time/money/people) Explain how you will evaluate your
success
Elements of Cultivation
Success is the sum of small efforts, repeated day in and day out.
--Robert Collier
Ways to Offend
Misspell his/her name Fail to make past connection Fail to be appreciative Fail to listen Omit the spouse Mismatch the project with the donor Ask for the wrong amount
Be Prepared—planning is good, but action is better
Be Confident—you are working for a good cause
Be Happy—see development as a joy, not a task
Be Passionate—believe in your cause Be Sincere—prospects are friends and want to
help Be Grateful—Express appreciation for past
support Be Complimentary—recognize them for their
efforts Be Careful—use terms and words selectively Be Quiet—Listen twice as much as you talk Be Efficient—Leave with the next steps
planned
Good Relationship Elements
Cultivation Phrases
I/We need your help/advice… I/We would be grateful if… I/We would be remiss if I/we…. I/We want to give you first right of refusal… I/We would like your consideration…
Follow Up of the visit
Record everything immediately after the visit Send visit thank you note ASAP Communicate results of visit Discuss new information received Follow up on mutually agreed next steps Identify future opportunities with prospect
It is not the prospect’s responsibility to get back with you.It is your responsibility to follow up with the prospect.
...the only thing that stands between a person and what they want in life is the will to try it
and the faith to believe it possible!.
--Unknown
Servant LeadershipStephen Covey
"The deepest part of human nature is that which urges people—each one of us—to rise above our present circumstances and to transcend our nature. If you can appeal to it, you tap into a whole new source of human motivation.
– Stephen Covey
Thank You!
Vernon J. HenricksPresident, The Henricks Group – 785.564.2121
Vice President, Manhattan Christian College – [email protected]
