Major Gift Fundraising

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Major Gift Fundraising

• Presented by Keith Hopkins
• Hopkins Fundraising Consulting

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Four methods of Fundraising

• Impersonal methods
• Direct Mail
• Phonathons
• Special Events
• Grant Seeking
• Direct Asking

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Impersonal Methods

• Advantages
• Fairly easy
• You reach the maximum number of donor prospects
• Disadvantages
• Expensive
• Poor response rates (1-2)
• Smaller gifts

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Special Events

• Advantages
• Generate excitement
• Easiest ask for volunteers
• Disadvantages
• Time consuming
• Grow tired over time
• Can be expensive
• Limited return on investment

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Grant Seeking

• Advantages
• Can result in large gifts
• Positive endorsement of your mission/programs
• Disadvantages
• Time consuming
• Unreliable source for consistent funding

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Advantages of Direct Asking

• Less time intensive
• Involves volunteers more directly in the
  solicitation process
• More personalresulting in immediate feedback
• Least expensive method of fundraising
• Typically results in larger gifts

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Disadvantages of Direct Asking

• Requires great attention to detail
• Must overcome the reluctance of volunteers to be
  involved in active solicitation
• Typically requires some training for volunteers

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August, 2007 Chronicle of Philanthropy

• Many organizations are placing new emphasis on
  seeking big gifts from individuals instead of
  from special events, direct mail, or other more
  costly ways to raise money.

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How to Make the Ask

• Step One Prospect Identification
• Identify the number of prospects that you can see
  face to face each year.
• Rank your donors from largest to smallest gifts.
• Typically the top 10 to 30 of your donor base
• Do not overlook those with a long giving history
  who may not fall into your top 20

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How to Make the Ask

• Step Two Prospect Evaluation
• Evaluate your prospect pool by asking the
  following questions
• What is their linkage to the organization?
• What is it about our organization that captures
  their interest/passion?
• What project/program that we offer matches that
  interest/passion?

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• What size gift should we ask the prospect to
  consider?
• Who is the right person to ask?
• When is the right time to ask?
• (Educationinvolvementcultivationassetsright
  time)

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How to Make the Ask

• Step Three Identify your askers and link your
  askers to your donor prospects
• Your askers should meet the following criteria
• Well liked and respected
• Passionate about the mission
• Know the prospect

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• Good communicators
• Extroverted and willing to participate
• They have personally given
• Provide them with solicitation training
• Assure them that the staff will handle all
  pre-call and post-call details
• Have volunteer solicitors self select the donor
  prospects they can help solicit

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How to Make the Ask

• Step Four Share donor profiles with askers
• Make sure your askers know the following
• Why this gift opportunity is a match for the
  donor
• The purpose of the gift
• The impact of the gift
• How the gift can be paid (methods and timing)
• Benefits to the donor (i.e. naming opportunities,
  special recognition)

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How to Make the Ask

• Step Five Get a meeting with the prospect
• Typically the toughest part of the process
• Start by sending a cultivation letter
• Include third party endorsements if possible
• Always indicate that a personal call will follow
  the letter

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• Have the person least likely to be turned down
  make a call to set up a personal appointment
• Seek a short meeting (home or office)
• Do not make the presentation or ask for money on
  the phone.

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How to Make the Ask

• Step Six Prepare for the meeting (this is the
  most critical step)
• Review the donor profile
• Know the gift request amount
• Know the impact of the gift

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• Meet with your volunteer (calls should always
  occur in teams of two if possible)
• Develop a script for the call
• Role play
• Prepare supporting materials
• Audiovisual?
• Recent news articles
• Gift commitment vehicle

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How to Make the Ask

• Step Seven The Donor Meeting
• If youre nervousthis is probably a good sign
• 8 steps to a good meeting
• Brief introductions
• Promise to keep the meeting short
• Tell the story using stories
• Ask the volunteer to tell why theyre involved
• Identify challenges

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• Present solutions
• Describe the community impact
• Make the ask

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• Jim, youve been such a strong supporter of our
  programs over the past few years, that we thought
  youd want to be one of the first to hear of our
  new plans. Can you and Elaine support this
  effort with a 3,000 gift?

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• Sarah, over the next several months, well be
  meeting with some of our strongest supporters to
  seek their help in funding this important
  program. Were approaching you now to seek your
  consideration a 10,000 gift for this effort.

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• After the askbe quiet and listen
• Listen for
• Clues about potential obstacles to giving
• Other areas of interest the donor may have
• Questions they may have

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How to Make the Ask

• Step Eight Celebrating a Yes
• If you get a yes
• Thank the donor
• Get the commitment in writing
• Is there anyone else we should be talking to?
• Can they help to arrange an introduction?

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• Report back on the impact of their gift
• If possible, have those impacted by the gift
  thank the donor.

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How to Make the Ask

• Step Nine Responding to Objections
• If you get a no
• Three typical responses
• Objection to the project
• Probe for other areas of interest
• Use the opportunity to get feedback

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• Objection to the timing of the ask.
• Emphasize flexibility of charitable commitments
• Seek permission to return at a more opportune
  time
• Objection to the amount you have asked for
• Apologize
• Restate your interest in their participation
• What could you give to support this effort?

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How to Make the Ask

• Step Ten Responding to Delay
• If you get a maybe
• Usually this comes in the form of
• I need to think about this. OR I need to speak
  with my wife/husband about this.
• Show understanding
• Set a date for a follow-up meeting (within 2
  weeks)

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• Should anyone else attend the next meeting?
  (spouse/attorney?)
• Is there any information I can provide to help
  you make your decision?

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Follow up Steps

• Always send a thank you note
• Organizational staff
• Volunteers involved in the ask
• Board chair
• Speedy acknowledgement of the gift (receipt)
• Periodic report cards
• Continued cultivation

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A Final Note

• Before you begin any of thisseek gifts from your
  leadership first.
• Executive staff
• Board leadership
• Donors are always impressed by leaderships
  personal financial commitment to the
  organization.
• Andits much easier to ask a donor to join you
  in making a gift.

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Resources

• Asking by Panas
• Dear ChrisAdvice to a Volunteer Fundraiser by
  Verdery
• Relationship Fundraising by Burnett
• The Ask by Fredricks
• Any and all books on sales

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Questions?

• Contact me
• Keith Hopkins
• 616-575-5200
• keith_at_hopkinsfundraising.com