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