Create the Future: The Wisconsin Campaign

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AIEA Development/Major Gifts Workshop
The Art Soul of Development Monday, Feb 19, 2007
Don Gray
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Universal Vision Statement for Philanthropy
You want to compose a good world. It is an
honorable and noble profession
Maya Angelou
3
Mrs. Evelyn Kaufman Stow High School
English Teacher, 1958

• Your words define who you are
• - to others
• - to yourself.
• Choose them carefully!!!!!!!

4
Gifts and Donations
A GIFT is a tangible symbol of feelings between
people A DONATION is a tangible symbol of support
to a cause
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Development and Fund Raising
A GIFT is to DEVELOPMENT (givers) as A DONATION
is to FUND RAISING (donors)
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Inappropriate Terms

• hit up
• put the arm on
• squeeze, milk, dun
• loaded
• should, ought, owes us
• pass the hat
• get into his/her pockets
• Hold onto your wallets
• Low-hanging fruit

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Annual vs Major Gifts

• Annual Donations
• frequently given/asked
• discretionary income
• unrestricted fund
• mailings, events, phone
• 2-5 of income
• 90 gifts 10 dollars
• 1st step to major gift
• very, very important

8
Importance of Annual Fund in Major Gift Activity

• For all givers to universities who make a first
  major gift of 25,000 or more,
• 75 made a first donation of 250 or less in
  response to the annual fund
• 83 have given at this level) for at least 5
  years almost 60 for at least 11 years

9
The Right Way to View Annual Fund

• Concept of Annual Fund as Living Endowment
  (1million annually equates to an endowment of
  20-25 million)
• Annual Fund is the spring that feeds the river of
  Major Gifts that flows into the estuary of
  Planned Giving

10
Annual vs Major Gifts

• Annual Donations
• frequently given/asked
• discretionary income
• unrestricted fund
• mailings, events, phone
• 2-5 of income
• 90 gifts 10 dollars
• 1st step to major gift
• very, very important

• Major Gifts
• infrequently given/asked
• from assets stop/think
• relationship required
• targeted/restricted projects
• 10-20x annual fund gift
• 10 gifts 90 dollars
• often repeated over time
• critical to success

11
The Math of Major Gift Work

• For each major gift (gt25K), you need three
  prospective major givers
• On average, a major gift is closed after 9
  meaningful contacts, or between 6 mos-2yrs
• Thus to get 5 new major gifts requires 3 x 9 x 5
  135 meaningful contacts.

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ULTIMATE GIFTS

• Once in a Lifetime Gift
• Combination of Giving Methods
• Many People Involved
• Total Commitment to Institutions Mission
• Long, Emotional Relationship (and several
  previous major gifts)
• Often Involves Major Naming Opportunity
• 1,000-2,000x Annual Gift/10-20 Net
  Incoming-Producing Assets

13
Oseola McCarty(1908-1999)

• Life Savings 150,000
• Size of Gift 150,000
• Reason for Giving
• To help others avoid a life as hard as hers
• Purpose of Gift
• Scholarships for poor students at the University
  of Southern Mississippi

Ted Turner, in giving 1 Billion to UNICEF If
that little woman can give away everything she
has, then I can give away a billion dollars.
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100,000 annual income (gross)2 million net
income-producing assets

• Annual Donation 2,000-5,000 to all charitable
  organizations (2-5 of annual income)
• Major Gift 40,000-80,000 (2-4 of net assets)
• Ultimate Gift 200,000-400,000 (10-20 of net
  assets)

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Having fun with Bill Gates net assets
approximately 85 billion

• Annual Donation Who knows? Anything he chooses
• Major Gift 1.7 billion - 3.4 billion
• Ultimate Gift 8.5 billion - 17 billion

• Question How much would a person with 1
  million in net assets need to give to equal a
  relative 1 million gift from Bill?

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11.76
In raising funds from individuals, never overlook
the concept of relative wealth.
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Top Three Reasons People Give Major and Ultimate
Gifts

• Belief in Mission and Stability of the
  Organization
• Sense of Civic Responsibility
• High Regard for Staff and Volunteer Leadership

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St. Peter
Recently departed non-philanthropist
Charitable giving isnt the ultimate test of
ones humanity but it does give us some numbers
to play with.
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It is one of the beautiful compensations of this
life that no one can sincerely try to help
another without helping himself - Ralph Waldo
Emerson
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Bottom Three Reasons People Give Major and
Ultimate Gifts

• Guilt and Obligation
• Promotional Materials and Proposals
• Tax Considerations

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Successful Development
THE MYSTICAL MINGLING
OF
A JOYFUL GIVER
AN ARTFUL ASKER
A GRATEFUL RECIPIENT
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The Cycle of Successful Development
Creating the Joyful Giver
Attention
Initial Contact
Interest
Additional Interest
Desire
maybe
Action
Identification
Making the Artful Ask
Show Creativity
yes
Invoking the Grateful Recipient
acknowledge
NO
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Story Time!SuccessesChallengesFrustrationsHum
or
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The Cycle of Successful Development
Identification
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Good Ideas for Identification of Individuals

• Alumni of your programs

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Good Ideas of Identifying Corporations/Foundations
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The Cycle of Successful Development
Creating the Joyful Giver
Attention
Initial Contact
Interest
Desire
Action
Identification
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How can you get people involved?
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The Cycle of Successful Development
Creating the Joyful Giver
Attention
Initial Contact
Interest
Desire
Action
Identification
Making the Artful Ask
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How do you know when it is time to ask?
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Is there a right way to make an ask?
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Making the Artful Ask Attitude is Everything
Grovel
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Making an Artful Ask

• bestow honor/praise
• show organizational pride (knowledge, commitment,
  passion)
• be considerate ask for consideration
• state specific amount
• state specific purpose
• be quiet

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Is This an Artful Ask?

• Joe, we know you have a lot of money. Your career
  as a successful banker is because of the
  education you received at the good ol U. We need
  your money because our banking curriculum is in
  disrepair. We think you should establish a chair
  in banking. You get a whopping tax deduction, and
  all of us can use that, cant we? By the way,
  hows your golf game?

• bestow honor/praise
• show organizational pride
• be considerate ask for consideration
• state specific amount
• state specific purpose
• be quiet

35
Is This An Artful Ask?

• Joe, you are one of the most successful and most
  highly respected professionals in the field of
  banking, and you bring honor to the university in
  so many ways. It would be a distinct privilege
  for us to have your name and reputation forever
  imprinted on our outstanding and growing finance
  department. Would you consider a gift of 1
  million, payable over a number of years
  convenient for you, to establish the Joe
  Goodfellow Chair in Banking?

• bestow honor/praise
• show organizational pride
• be considerate ask for consideration
• state specific amount
• state specific purpose
• be quiet

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Adages about Asking (all true)

• You almost never get the gift you do not ask for
• You (or someone) must ask
• You must earn the right to ask
• Q Why didnt you make a gift?
• A No one asked me
• Three Nos is halfway to a Yes
• Timing might be bad
• Project might be wrong project
• Amount might have missed the mark
• Wrong person might have asked
• More engagement is needed

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The Cycle of Successful Development
Creating the Joyful Giver
Attention
Initial Contact
Interest
Additional Interest
Desire
maybe
Action
Identification
Making the Artful Ask
Show Creativity
yes
Invoking the Grateful Recipient
acknowledge
NO
38
How do you say Thank You
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In a Nutshell

• Good development is noble and honorable
• Choose your words carefully
• Its not about the money
• Remember the Mystical Mingling of Joyful Giver,
  Artful Asker, Grateful Recipient
• Development is 90 art, 10 science
• People give to help other people
• People do not give to needs
• Earn the right to ask
• The giver has the right to enjoy the giving
• Its all about the Cycle
• If it aint fun, it aint workin