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(Article from GGTS Bulletin on Public Relations & Development)
Development professionals often field the question “How can you ask people for money” from friends, acquaintances or others not directly associated with philanthropy. To be certain, asking for gifts is a critical, necessary component of the cycle of major gift development. Development professionals, key volunteers, even Presidents and Chief Executive Officers who tremble or stumble at this critical juncture of the major gifts cycle can shortchange their organizations with regard to private gift resources. But in the wide spectrum of pursuit of major gifts, “asking” represents a small dimension of the required steps along the major gifts continuum. This articles focuses on the rationale, objectives, and strategies required to bring a major gift prospect to the “readiness” stage for making an ask – the art of cultivation.
Rare is the major gift that comes from the first contact with a prospective donor. Top prospects require continuous attention and encouragement, direct and indirect, and always carefully planned. Such strategies may involve six to eight contacts with each top prospect, maybe more, over a specific period. Each contact represents an initiative on the part of the organization to deepen the relationship and expand the interest and support of major donors.
In today’s fast paced world, so many of our activities have become commercialized, computerized and even dehumanized. This societal trend has even permeated into development programs. Some organizations have euated new approaches and techniques in the never-ending task of seeking support from current or prospective donors by considering them as “customers”. The important and long lasting relationships between an organization, its leadership, and the donor are not best described by the commercial word “ccusto\mer”.
Successful cultivation strategies that are effective and timeless in appeal to donors are personal in nature, donor-centered and relationship-based. The following six elements will provide focus and guide development officers through cultivation journeys for major gift prospects.
FIRST ELEMENT – Understand the Motivations of Major Donors
Some time ago, the late Rev. Paul C. Reinert, S.J., Chancellor Emeritus at Saint Louis University, presented a keynote address at a Gonsser Gerbert Tinker Stuhr LLP Workshop. Fr. Reinert was a nationally recognized leader in higher education and had extensive experience in development. During his presentation, he outlined seven fundamental reasons to the basic question, “Why do people give?” They included:
v Belief in the mission of the organization
v Confidence in the administrative leadership
v A balanced budget
v Personal need
v Personal involvement
v Example of others
v The magic of ideas
Fr. Reinert’s perspective underscores the philosophy of our firm: that few donors give to an organization for tax reasons or just because the organization needs money. We see increasing support being obtained by organizations that have a clear mission and well-stated plans and goals. These organizations show how their program will benefit society at large, and invite prospective donors to help benefit society by channeling their gifts through the organization’s programs. Gift dollars have little value themselves; they are merely the means by which the mission and vision become implemented. Those organizations whose programs become an extension of the donor’s interest and goals in life receive the largest gifts. Organizations need reminders to sell programs and results, not needs. People don’t give to needs – in actuality it is the donor who has the needs. Major donors are looking for those organizations that can most effectively help in furthering their own personal goals.
Cultivating strategies should incorporate one or a combination of several of these seven motivating reasons.
SECOND ELEMENT – Define your Cultivation Objectives
The pursuit of major gifts is the hallmark of all successful development programs. Organizations that apportion the proper attention to such programs are rewarded with the transforming impact that major gifts provide. Adhering to the philosophy that major donors make gifts to satisfy their own needs, development programs must define the objectives of a cultivation program in order to move forward.
Much has been written about the “moves management” concept – an intentional system created and implemented to help development professionals navigate donors through the stages of information collection, relationship development, gift commitments and stewardship. A fundamental baseline in major gifts work remains that organizations cannot obtain a major gift from a prospect that doesn’t have the capacity to make one. Second, contrary to our dreams, big gifts rarely come from strangers. They come from insiders, those close friends who have a deep commitment to the organizations. The more influential and affluent people who know about the cause and become involved, the more likely the organization will receive major gifts.
A proactive effort must be made to learn who has the capacity to make such gifts among your constituency, and then begin a process of compiling information that will assist in developing the relationship and approach. Donor profiles must be created, maintained and expanded, including the prospect’s interest, financial and biographical highlights, relationship to the organization, hobbies, memberships, agents of influence, associations and other relevant data. Based on this “intelligence gathering” development professionals are much better positioned to form cultivation strategies to engage a prospect in various aspects of organizational life. Appropriate and meaningful involvement assists donors to gain satisfaction by making gifts in areas important to the organization and to the donor.
Cultivation Objective #1 – Probe Donor Motivations and Needs
Use early cultivation visits to probe donor motivations and needs. What involvement has the donor had with your organization? What involvement might be of interest? Does the prospect demonstrate philanthropic interest in various aspects of the organization? Is there a certain member of the development staff, administrator, program director, or Board member, who is held in high regard, or might be influential? What program, activity, service or aspect of organizational life has a special appeal for the prospect? This information will be of value when the prospect is ready to entertain a request for support.
Cultivation Objective #2 – Convey Organizational Priorities
Another step involves taking every opportunity to communicate the organization’s goals and objectives. Organizational planning has become a well-established function in the non-profit world, having been in place in various forms for many decades. Strategic planning created a path for achievement and success in the future, highlighting priorities, goals, objectives, timeframes, responsibilities, utilization of resources, implementation of desired outcomes and evaluation. Fundraising priorities must emanate from the strategic plan. For development purposes, the process culminates in preparing the case statement, which is in effect an abbreviated and synchronized integration of mission, vision, and strategic plan. Provide an opportunity to gather feedback from prospects about organizational objectives. True charitable giving is a response to the call of mission and purpose.
Cultivation Objective #3 – Secure Personal Involvement
A well-documented axiom in the development process is tht the most generous gifts come from individuals, corporate and foundation representatives who are personally involved with the organization. A well-oiled cultivation program puts prospect involvement at the center of the major gifts cycle. Look for opportunities to involve your prospects in meaningful ways – service on the Board of Trustees, Development Committee, Major or Planned Gifts Committee, Advisory Councils, special task forces, and speaking engagements. Though we sometimes miss t his opportunity in our fundraising efforts, there is a deep significance and value in developing linkage between the donor and the beneficiary. Some campaigns and major gift initiatives revolve around buildings, equipment, and programming – but ultimately, fellow human beings are the objective and recipient of philanthropy. Seek ways to connect the donor and those who benefit from the donor’s generosity.
THIRD ELEMENT – manage the Process, Pressing Toward the Mark
Next, begin a process of creating an individualized plan for each prospect under management. A “one size fits all” approach does not apply. Plan action steps, utilizing information obtained from prior cultivation visits and profiles, to set a course of several contacts over a specific timeframe. Travel plans should be made accordingly so donor cultivation is conducted in an efficient and cost-effective manner. Action steps may range from personal visits in the prospect’s home, place of business, or on-site; phone calls on special occasions; sending special materials of interest; invitations to organization events, luncheons; letters of congratulations for special achievements, and tours of departments or programs.
Those involved in donor contacts must keep careful notes of their activities for reference on future actions, and to constantly monitor and evaluate progress. Research and planning are important preliminary steps, but action is key. Don’t be guilty of “paralysis by analysis” when contemplating scheduled moves. Make them. What was learned form a visit? What was discussed that requires action on your part? What is the purpose and nature of the next contact and who has responsibility? There is no substitute for persistence, patience and intentional follow-through. Regular meetings of the major gifts team should be held to review progress and discuss next steps to be taken with each prospect.
FOURTH ELEMENT – Remain on the Lookout for “Stealth Wealth”
In its February 19th issue, The Chronicle of Philanthropy reported the results of its fourth annual survey of the nation’s largest gifts to charitable organizations. The survey found that the 60 largest gifts and pledges totaled $5.9 billion, compared with $4.6 billion from 2002 totals, an increase of mega giving of 28%. The statistics, of course, were skewed by the $1.9 billion bequest gift by the late Joan B. Kroc, heir of the McDonald’s fast-fpopd chain to 10 organizations, including $1.5 billion to the Salvation Army.
In the same issue, less prominently displayed, was the feature “Elderly Farmer’s Surprise Bequest Is the Talk of an Oregon Town.” The story portrayed the life of Wesley Howard, who passed away in March 2003 at the age of 87. The newspaper reported that Mr. Howard spent nearly his entire life on his family’s 68-acre farm in Medford, where he lived alone in a dilapidated farmhouse with few modern conveniences and no indoor plumbing. He cooked his own meals on a woodstove, and hung his wash on a clothesline to dry. He didn’t interact with many community residents, never married, and most people assumed he was barely managing to get by. After his death, townsfolk were astonished to learn that Mr. Howard had bequeathed his entire estate, valued at approximately $11.35 million, to be converted into the Howard Memorial Sports Park to benefit the community’s youth. The facility includes fields for Little League and Babe Ruth teams, soccer fields, basketball and volleyball courts, among others.
Very few organizations have access to the nation’s most publicly affluent and wealthy individuals. But many organizations have a Wesley Howard on their databases – q quiet, unassuming individual living well below their means and giving an outward appearance of barely scraping by, but with accumulated resources to share. Getting to know your constituents, and their interests, could lead you to discover your own Wesley Howard.
FIFTH ELEMENT – Keep the President/CEO Involved in all Phases
The president must also take an active role in the cultivation process of major donors – not just swoop in during the ask phase. Presidents/CEO have incredible demands on their time, and juggle many other organizational priorities – programming, budgets, shrinking state appropriations, and staffing, to name a few. Yet Presidents/CEOs must carve out time for involvement in the cultivation cycle of major donor prospects. Some organizations subscribe to the policy of using the President/CEO only when it’s time to ask – and a significant one at that. Many major gift prospects want and deserve a sustained relationship with the organization’s chief executive officer that is not just predicated upon a major ask activity. Few lifelong relationships are based on access to the President/CEO only when the time for a major gift request rolls around again.
SIXTH ELEMENT – Understand the Role of the Chief Development Officer
Major gifts, indeed ultimate gifts, are in many cases the culmination of a lifetime of events, activities and involvement for donors. Development professionals are the instigator, the motivator, and a conduit in the process, but not the process itself. Given the mobility of today’s development professionals, where longevity can be a rare commodity, it is important for professionals to remember their role. One veteran development officer likened this to “stepping on stage in the middle of the play.” Donors are the main act, and the donor timeline likely far precedes the tenure of the development officer. Development officers are key to keeping the relationship moving forward, always striving for fulfillment – both for the donor and the organization.
Conclusion:
Presenting a gift request to a prospective major donor is the culmination of a series of well-thought, coordinated action steps. Against today’s backdrop of smaller staffs, challenging goals and tighter budgets, achieving development success requires that staff time and attention be devoted to those prospects capable of making major gifts. Moving prospects through a proper cultivation cycle takes resourcefulness, patience, persistence, and follow-through. The reward will be major gifts to transform the organization and bring satisfaction to donors.
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