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Mechanisms of ActionThree strategies to connect with your donors and inspire big gifts.
Presenter Eric B. Javier, Principal & Managing Director, CCS FundraisingJune 13, 2018
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Agenda
1. Current Trends
2. Why People Give
3. Strategies
4. Discussion
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Current TrendsS e c t i o n 1
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Last Year, Americans Gave$410.02 Billion!*
*For the first time ever, charitable giving exceeded the $400 billion mark!
70% / $286.65BIndividuals
16% / $66.90BFoundations
9% / $35.70BBequests
5% / $20.77BCorporations
4Source: Giving USA 2018
Overall Distribution Remains Steady
5Source: Giving USA 2018
$127.37B31.0%
$58.90B14.0%$50.06B
12.0%
$45.89B11.0%
$38.27B9.0%
$29.59B7.0%
$19.51B5.0%
$22.97B6.0%
$11.83B3.0%
Religion
Education
Human & Social Services
Foundations
Health
Public Society
Arts, Culture & Humanities
International Affairs
Environmental & AnimalWelfare
Total Giving as a Percentage of GDP Remains at 2.1% for Sixth Consecutive Year
6Source: Giving USA 2018
1.8%
1.9%
1.8%
1.9%
2.0% 2.0% 2.0% 2.0% 2.0%
2009 2010 2011 2012 2013 2014 2015 2016 2017
Individual Giving as a Percentage of DPI Remained Stable
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*Disposable personal income (DPI)
Source: Giving USA 2018
Total Charitable Giving vs. S&P 500
Total Giving3.0%
S & P 50016.9%
8 Source: Giving USA 2018
Americans are Generous
56% of the General U.S Population Give$2,514 Average Amount Given Annually
91% of Wealthy Households Give$25,509 Average Amount Given Annually
83% plan to give as much or more through 2018.
Additional Sources:IUPUI Lilly Family School of Philanthropy: Overview of Overall Giving, 2017Bank of America U.S. Trust Study of High Net Worth Philanthropy 2016
9Source: Giving USA 2018
Why People GiveS e c t i o n 2
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Why people give
• People give because they are asked
• People give to people, most often their peers• People respond to a meaningful mission• People give to create lasting impact
• People respond to specific requests
• People respond to successful programs
• Most people want, and all deserve, recognition for their gifts
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Why people give: CCS Insights
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?
Motivation % all respondents
Impact of my gift 89%
Because I can 79%
Religious practice or moral belief 69%
I owe it to my community 66%
The person who asks 61%
Tax deduction 37%
CCS clients’ aggregated responses, May 2018
Why people give: US Trust Insights
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?
Source: The 2016 U.S. Trust Study of High Net Worth Philanthropy Bank Of America 2016
StrategiesS e c t i o n 3
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Strategy 1
Public Phase
• Public launch• Communications• Participation• Stewardship • Over goal
Leadership & Major
Gifts
• Lead gifts• Board gifts• Steering Committee• Cultivation • 70-80% of goal
Organizati-onal Phase
• Solidify Case• Prospecting• Naming /
Recognition• Campaign Cabinet• 20-30% of goal
Feasibility Study
• Test case• Goal• Timeline• Strategy• Resource / Staffing
Strategic Planning
• Affirm mission• Future vision• Strategies• Financial plan
The Feasibility StudyArc of a campaign
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The Feasibility Study
The Process
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Strategy 1
“Draft” Case
Strategic Interviews
Plan
The Feasibility Study
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Neutral conversations Education
Address concerns and questions
Engage New Leadership
Co-creation of solutions Instill ownership
Results
The Feasibility Study
Examples
Orchestra
Opera
Independent School
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The Challenge Match
Structure Develop in partnership with Board member
or major donor
Challenge can be to reach a dollar amount, number of donors, number of new donors, planned gifts, etc.
Periodically share progress to goal
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Strategy 2
Underlying Principles Context
Joint ownership
Financial and Activity Objectives
The Challenge Match
Options Cornerstone gifts to be matched 2:1 by
leadership gifts
1:1 match for each new gift
Community support to match institutional giving
Current-use gifts “unlock” planned gifts
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Sample Challenge Gift Strategy
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Jump Start Funding 2009 2010 2011 Total Donor A $500,000 $2,500,000 Donor B $500,000 $2,500,000
Total $1,000,000 $5,000,000
RSCC Challenge Donors 2009 2010 2011Year One Donor # 1 $1,000,000 $1,000,000
Donor # 2 $1,000,000 $1,000,000Donor # 3 $500,000 $500,000Donor # 4 $500,000 $500,000Donor # 5 $250,000 $250,000Donor # 6 $250,000 $250,000Donor # 7 $250,000 $250,000Donor # 8 $250,000 $250,000
Subtotal $4,000,000 $4,000,000
Year Two Donor # 9 $1,000,000 $1,000,000Donor #10 $1,000,000 $1,000,000Donor #11 $500,000 $500,000Donor #12 $500,000 $500,000Donor #13 $250,000 $250,000Donor #14 $250,000 $250,000Donor #15 $250,000 $250,000Donor #16 $250,000 $250,000
Subtotal $4,000,000 $4,000,000
Year Three Donor #17 $1,000,000 $1,000,000Donor #18 $1,000,000 $1,000,000Donor #19 $500,000 $500,000Donor #20 $500,000 $500,000Donor #21 $250,000 $250,000Donor #22 $250,000 $250,000Donor #23 $250,000 $250,000Donor #24 $250,000 $250,000
Subtotal $4,000,000 $4,000,000Challenge Donors Total24 Donors $4,000,000 $4,000,000 $4,000,000 $12,000,000
Grand Total $17,000,000
Sample Challenge Visual
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$1,500,000
$500,000
$250,000
$150,000
$100,000
Filled
Unfilled
Matching slot
The Planned Giving Program
Why Planned Giving? Donor loyalty is highly correlated to
planned giving (if you ask)
Planned gift amounts are generally higher than annual individual gifts
Programs offer opportunity for cultivation and stewardship
Provides consistent income and future income for your orchestra
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Strategy 3
The Planned Giving Program
Quick Tips to Get Started Partner with a qualified financial
advisor
Review your database for prospects: consistent donors aged 60+
Develop educational materials and programming to share planned giving options with your constituency
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Inspiring Big Gifts – Planned Giving Examples
New Jersey Symphony$2.5M Donor
3 Ingredients to their gift:
$1.5M cash pledge over 5 years
$1M bequest intention
“Rockefeller model” payout of $50K/annually
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Orchestra of St. Luke’s$18M Campaign
$6M cash for debt reduction
$12M for endowment via planned giving
$5M cash and $7M in planned giving commitments to date
Cleveland OrchestraLegacy challenge
Donor provides cash gifts (up to certain amount) to match every planned giving commitment
Almost 500 planned gifts committed in last campaign
Estimated value known for about 350 of those commitments
DiscussionS e c t i o n 4
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