Building Donor Relationships: It

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Building Donor RelationshipsIts a Process,
Not an Event! Larry P. Stelter
President/CEO The Stelter Company
larry_at_stelter.com
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Presentation Objectives

• Prospect identification
• Obstacles to your success
• Donor-focused behavioral model
• Face-to-face communication system
• Key to success

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A. Identification of Prospects

• 1. Giving history of your donors - consistent
• 2. Age of donors 60
• 3. Research income wealth of donors
• 4. Targeted groups seniors, women advisors
• 5. Lapsed, older donors still love you but on
  fixed income

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B. Obstacles to your success

• 1. Procrastination
• 2. Turnover of fundraising staff
• 3. Immaturity of donor base
• 4. Patience involvement of board
• 5. Technical paralysis
• 6. Communicating your mission

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C. Communication Methods

• 1. Direct mail expectations
• A. Educates builds awareness of giving
  options - NCPG survey - 5 in 1992 and 34 in
  2000 heard about planned giving from charities
  via direct mail-63 for CGA
• B. Lead generation - measurement of success
  (MOS) - follow-up on response cards

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Communication Methods

• C. Motivate to seek more advise from
  professional advisors - MOS - recognition club
  growth and networking - NCPG survey - 21 heard
  about PG options from advisors
• D. Break the ice - MOS - make calls - NCPG
  survey - 11 heard about PG options from charity
  representative

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Communication Methods

• 2. Wills/estate planning seminars
• 3. Recognition clubs charitable intent
• 4. Gift receipt enclosures buck slips
• 5. Organizational magazine articles
• 6. Internet - 55 are fastest growing group to
  use the net - wealthy, educated they have the
  time

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Online Giving Trends

• 250 million was contributed in 2000 up from 10
  million in 1999
• 1.9B estimated given in 2003 3B in 04
• Harvard Univ. predicts that by 2010, 1/3 of all
  gifts will be given online, representing
  approximately 64 billion

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Why Use the Internet?

• Seniors are online
• 55 to 64 age group 57 regular users
• 65 to 74 age group 36 regular users
• 75 age group 16 regular users
• Get in front of all your prospects more
  frequently at low cost limited effort
• Baby boomers (40 to 57 years of age) are already
  into the web

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Planned Giving Web Essentials

• Content, content, content rules the web
• Embed interactivity in content calculations
  and material requests
• Update your content frequently
• Make it easy to contact you via the web
• Create internal navigation
• Measure your marketing results

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Essential 1 Content Rules

• Senior visitors have time to read let them
  choose how much to read
• Offer the visitor enough content so they will
  stay and/or return
• Change articles for return visits
• Email address book - let them know when new
  content is available new testimonial or law
  change avoid email fatigue

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Essential 2 Interactivity

• Offer gift calculator on home page
• Embed gift calculation opportunities within
  content
• Give visitor opportunity to request additional
  material ebrochures
• Involve visitors with quizzes, interactive
  decision tree and gift matrix
• Make it easy for them to contact you

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Essential 3- Navigational Loops

• Create loop to recognition page
• Connect to sample bequest language
• Connect to contact us pages
• Loop to testimonial/donor profiles pages
• Loop to giving online page
• Connect to professional advisors content

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Internet Marketing Challenges

• Poor navigation clicks words
• Too many clicks to find it
• Key words dont define link
• Inadequate marketing
• How to measure results?

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Challenge 1 Poor Navigation

• You missed the internet marketing meeting or
  webmaster doesnt like you
• Your webmaster doesnt know your department
  exists or doesnt realize its value
• Visitor cant find development page - let alone
  planned giving content

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Challenge 2- Labels

• Word links dont define where you want your
  visitor to go next
• Alumni and friends events, calendar or gifts?
• Make a donation too aggressive if first link
• Planned giving how many visitors understand
  this term?

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Challenge 2 - Label Options

• Supporting _________
• Give later
• Foundation
• Ways to give
• Giving opportunities
• Future gifts
• Philanthropy

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Challenge 3 Promote It

• Must promote by traditional means the existence
  of the internet option
• Use your current PG newsletter reply card to
  promote availability of more information
• Use free ride space for promoting
• 1. Organizational newsletters
• 2. Buck slips or gift receipt enclosures
• 3. Postcards

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Challenge 4 -Measurement
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Measurement Returning Visitors

• In 2004, total number of new visitors increased
  by 63
• In 2004, the number of returning visitors
  accounted for 31 of visits
• Average visitor stay time
• 11 minutes in 2002
• 14.5 minutes in 2003
• over 20 minutes in 2004

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Measurement Real Gifts

• 1.5M bequest from 75 Yr. Old - 50/yr donor
• 4,000,000 gift from Legacy page - 65
• 325,000 CRUT from advisor alum 63
• 2.5M deferred CGA university donor
• 100,000 CGA - 84 year old, non- donor alum
• 1.5M CGA hospital donor 87 years old
• 200,000 CGA Harley-Davidson

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Communication methods

• Personal contacting
• Follow ups to marketing efforts
• Personal interviews with donors/clients
• Stewardship after giving decisions

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Brain-to-Brain Communication
Receiver
Sender
FILTERS
6.
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Filters - assumptions or preconceived notions

• They can interfere with getting the intended
  message to the receiver
• Filters may relate to
• Age
• Appearance
• Status
• Ethnicity
• Gender
• Color blue or red states

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Proactive vs. Reactive

• Proactive Behavior
• Fully responsible
• Conscious
• Thoughtful
• Planned
• Consistent with Values Beliefs

• Reactive Behavior
• Unconscious
• Conditioned
• Without Thought
• Outside influences
• Provoked by Emotions

7.
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Emotional Communication - Reactive

• Reactive is usually not carefully thought
  through by respondent
• Can also be verbal attack at someone or
  something seen as a threat
• Words that describe emotional behavior
• Aggressive
• Angry/Mad
• Sad
• Excited

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Nurturing Communication - Proactive

• Nurturing phrases acknowledge the other persons
  position without evaluating
• Lets the other person know you are truly
  listening, which is the first step in building
  trust.
• Examples
• The way I hear it is
• You seem to be troubled by

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Nurturing Communication - Proactive

• Summarize the content of the message AND the
  feelings of the other person, especially when
  there seem to be emotions interfering with the
  communication process
• Examples
• You sound pleased with the way it turned out.
• It sounds like youre concerned about that.

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Nurturing Communication - Proactive

• Nurturing phrases are often accompanied by
  questions.
• This is helpful in encouraging others to say
  more about their position and why they feel the
  way they do.
• Examples
• Im glad to help with that. How would you?
• I think I understand. Could you expand a bit
  more?

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Rational Communication - Proactive

• Involves stopping and thinking about your
  response
• Deal with the emotions first people cant be
  rational until they are through the emotion
• Rational communication may include
• Providing information in an objective way
• Asking questions to clarify
• Summarizing
• Offering an opinion and then asking for a
  reaction

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Understanding Behavior Makes Us More Proactive

• If I know what to look and listen for, I can
  PREDICT how youll react.
• If I understand myself, I can better CONTROL the
  messages I send.

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Developing the Relationship

• Finding out whether you and your donor can trust
  and respect each other to take the relationship
  to a level that will allow you to provide the
  donor with what he/she wants.
• Discovering who the person is inside and how the
  donor got to be where he/she is, both personally
  and professionally.
• DISCOVERING THEIR PASSION!!

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D. Donor Behavioral Model
More Powerful
D Dominance
I Influence
Favorable Environment
Hostile Environment
C Conscientiousness
S Steadiness
Less Powerful
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Dominance 10
OBSERVED BEHAVIOR
WANTS

• Task oriented
• Extrovert
• Direct
• Risk Taker
• Doesnt listen
• Knows it all

• Authority
• Prestige
• Control
• Status
• Choices
• Quick Decisions

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Influence 30
OBSERVED BEHAVIOR
WANTS

• People Oriented
• Extrovert
• Expressive
• Meanders
• Very agreeable

• Social
• Recognition
• Popularity
• Approval
• Quick Decisions

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Steadiness 35
OBSERVED BEHAVIOR
WANTS

• People Oriented
• Introvert
• Hate Conflict
• Great Helpers

• Security
• Status Quo
• Loyalty
• Appreciation
• Slow Decisions

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Conscientiousness 25
OBSERVED BEHAVIOR
WANTS

• Task Oriented
• Reserved
• Direct
• Analytical
• Cautious
• High compliance

• Autonomy
• Facts
• Personal Attention
• Loves to be Correct
• Consistency
• Very Slow Decisions

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Trust Builders

• Dominance High D
• Minimize chitchat
• Get down to business
• Just a few comments on surroundings
• Stick to business
• Formal is safe

• Influence High I
• Be warm and friendly
• Comment on compliment their surroundings
• Being social is more important than business
• Be informal

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Trust Builders

• ConscientiousnessHigh C
• Be straightforward
• A little chitchat, then business
• Common experiences are less important than common
  values
• Be more formal
• Have an agenda

• Steadiness High S
• Dont rush to business
• Talk about family and long-term relationships
• Common interests are important
• Be patient they may be slow to warm up
• Be informal casual

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A Donor- centered System

• Donors talk MORE than you do.
• You ASK more than tell.
• You talk about gift-giving options later.
• You tailor your communication style to the needs
  of the donor.

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E. Face-to-face Communication System

1. Opening the meeting
2. Probing for personal needs
3. Explaining donor benefits
4. Nurturing concerns and objections
5. Understanding the win-win commitment
6. Preserving the relationship

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Donor Meeting Preparation

• Analysis donors behavioral style
• What else do you know about the donor
• Set realistic meeting objectives
• Plan the questions youll ask
• Plan for emotional responses, issues or concerns

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Step 1 Opening Donor Meetings

• Check personal appearance before visit
• Ask for permission to enter/where to sit
• Address the donor formally
• Add special care for those donors living alone
• Perform sensory checks

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Step 1 Opening Donor Meetings

• If hearing is a problem, dont yell
• Be sensitive to those who are forgetful
• Be patient with repeated stories
• Adjust your approach to behavioral style of
  donor
• State the purpose of the meeting
• Get permission to ask questions.

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Step 2 Probing for personal needs

• People do things for their own reasons!
• We must discover
• Emotional Needs
• Financial Issues
• Decision making Process

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Probing for Emotional Needs

• What are the reasons people become donors to your
  organization?
• Emotion
• Develop the emotional need before presenting
  gift-giving options.

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Probing for Financial Issues

• The size of the Emotional Need determines the
  size of the gift. (Postpone if you can until
  youve explored emotional needs.)
• Discussing Financial Issues requires HIGH TRUST.
  

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Probing for the Decision Making Process

• Know all the players.
• How? When? Who?
• Decision Making Roles
• Gatekeepers
• Champions
• Influencers
• Decision makers

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Tools For Probing

• Rephrasing
• Reflecting Feelings Content
• Open Questions
• Closed Questions
• One Word Questions

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Step 3 Explaining Donor Benefits

• What you need before you present
• Complete list of issues and needs important to
  donor
• An understanding of the decision process
• Mutual expectation that the donor will agree if
  all the issues and needs are met satisfactorily

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Donor-Centered Benefit Statements

• Present only options that will solve issues or
  needs expressed by the donor.
• BENEFIT STATEMENTS relate your offerings to what
  the donor really wants

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Creating a Benefit Statement

• Personal needs Mr./Mrs. Smith, I know that
  ____________ is important to you.
• Feature Im proposing that ______.
• Benefit to Smiths What this will do for you is
  ______________________.

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Step 4 Nurturing Concerns Objections
NASA is a process for helping donors understand
and resolve their concerns Nurture Ask
Questions Solution Agreement
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The NASA System

• Defensiveness is often our first impulse when we
  hear objections.
• We may feel the objection is directed at us
  personally.
• The donor must overcome his/her own objections.

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NASA Steps

• Nurture first actively listen, then respond
  from your nurturing position. Build trust by
  taking care of their emotions first. Never
  defend.
• Ask questions make sure you understand and
  that they know you understand. You may have to
  ask a variety of questions to fully uncover
  concerns.
• Solve provide a solution that is concise and
  relates to whats in it for the donor.
• Agree never move forward until the other
  person has agreed that your solution is
  satisfactory.

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Step 5 Understanding the Win-Win Commitment

• Summarize how gift will meet the donors needs.
• Review the major benefits and the good that will
  result from the contribution.
• Request the commitment, then WAIT for the answer.
• Manage any resistance, and ask again.
• Thank the donor again!

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When to Ask

• When Steps 1-4 have been handled correctly
• When donor understands and accepts
• Benefits of making a commitment
• How emotional financial needs are satisfied
• Gift alternatives
• When all resistance has been managed

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Questions used to gain commitments

• Have I provided you with enough information to
  assist you with that bequest decision?
• Is there any particular method we have discussed
  that appeals to you?

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Step 6 Preserving the Relationship

• Thank the donor repeatedly
• Let the donor express his/her excitement (use
  active listening)
• Set up a follow up plan
• Check in frequently to update donor
• Find additional ways to keep donor involved
• Use NASA if concerns arise
• Provide recognition/additional thank you

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Follow-up Ideas

• Time management contact management software
• Setting re-entry conditions
• What would you like me to do next?
• What is the next step you will take?

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F. Success can be achieved by

• Realizing the POTENTIAL before you
• Finding the right PROSPECTS
• Having a PASSION for your organization
• Discovering the PROSPECTS PASSION
• Using a PROVEN PROCESS
• Being PERSISTENT with your follow-ups