TAO for high ROI:
Transparent, Authentic, & Open
major gifts practicum
ALADN 2017
Sunday, May 21, 2017
8:30a - noon
Beth Herman, Principal
copyright EBH Consulting LLC
1
Sources
1. Interviewing for Journalists by Sally Adams (2001)
2. Listening, the Forgotten Skill: a Self-Teaching Guide by
Madelyn Burley-Allen (1995)
3. The Seven Powers of Questions by Dorothy Leeds
4. You Just Don’t Understand: Women and Men in Conversation
by Deborah Tannen, Ph.D. (1990)
5. Karen E. Osborne, Principal, The Osborne Group
6. Gretchen Pisano, MAPP, Founder, Sounding Board Ink
7. Martin Seligman, Ph.D, Center for Positive Psychology,
University of Pennsylvania, Learned Optimism and Flourish
copyright EBH Consulting LLC
2
Topics (8:30 – noon)
1. Why do people give?
2. Language and philosophy
3. Communication skills & asking strategic
questions
4. Developing a donor strategy
5. Making “the ask”
6. The stewardship imperative
7. Your action plan
copyright EBH Consulting LLC
3
Spot poll
1. What’s your most pressing concern about
fundraising?
2. What information or experience will make
this session a great use of your time?
copyright EBH Consulting LLC
4
Why do people give?
copyright EBH Consulting LLC
5
Why do people give?
Panas, Linzy & Partners
1. Community
responsibility
2. Civic pride
3. Belief in the mission
4. Gratitude
5. Affiliation/ belonging
6. Peer pressure/social
standing
7. Confidence in
leadership and staff
8. SOMEONE ASKED—
CLEARLY
9. Bonus reason:
Someone “Listened the
gift”
copyright EBH Consulting LLC
6
Language matters
NO
YES
Prospect
Deep Pockets
Tee up the ask
Potential donor
Capacity to give
Prepare the donor for
solicitation
The donor gave it
They’re supporting their
own dreams and the
institution’s highest use
I raised this…
…for my vision
copyright EBH Consulting LLC
7
copyright EBH Consulting LLC
8
Principles
1. “Top down, inside out”
2. The higher you go up the pyramid, the less it
costs to raise a dollar
3. Annual giving fills the campaign pipeline
4. Alumni/parent/friend relations sets the tone,
touches all, secures the future
5. The most likely new donor is a prior
donor…so every contact is critical.
copyright EBH Consulting LLC
9
10
11
gift level
total projected for
gift level
cumulative
total
2
$5,000,000+
$12,000,000
$12,000,000
2
2,500,000
5,000,000
17,000,000
8
1,000,000
8,000,000
25,000,000
13
500,000
6,500,000
31,500,000
15
200,000
3,000,000
34,500,000
40
100,000
4,000,000
38,500,000
70
50,000
3,500,000
42,000,000
80
25,000
2,000,000
44,000,000
150
10,000
1,500,000
45,500,000
4,620
<10,000
4,500,000
$50,000,000
5,000
TOTAL
$50,000,000
copyright EBH Consulting LLC
# donors
needed
12
Gift Table Guidelines
One gift
10% of total
Top 10 gifts
33-40%
Next 100
gifts 33-40%
All others
# of gifts # of
needed probable
donors
identified
2 to 1 ratio
3 to 1 ratio
4 to 1 ratio
4 to 1 ratio
# of
donors
needed
Cum.
total
copyright EBH Consulting LLC
Level
13
OK, so what’s a major gift?
copyright EBH Consulting LLC
14
What is a major gift?
There are many ways to define it.
1.
2.
3.
4.
By gift size
By frequency or rarity
By the impact on the institution or project
By the impact on the donor
copyright EBH Consulting LLC
15
Three types of gifts
(courtesy David R. Dunlop)
Type of gift
Scope
Sample amount
Fundraising
method
Regular
1X
$10,000
Speculative.
Minimal prep—ask
and close in one
step
Special
10 to 25 X
$100,000 to
$250,000
Campaign or
Project. Equal time
spent on prep and
ask
Ultimate
500 to 1000 X
$5M to $10M
Nurturing
fundraising
copyright EBH Consulting LLC
16
Principles
• Regular, special and ultimate gifts require
different fundraising methods
• Planned gift (n.): A current or deferred gift of
cash, stock, or other property designed to
maximize tax and financial benefits to the
donor and overcome one or more stumbling
blocks to giving.
copyright EBH Consulting LLC
17
copyright EBH Consulting LLC
18
Planned Giving
for Dummies
There are four ways to give money:
1. Give it outright
2. Give the asset, keep the income
(gift annuity, charitable remainder trust)
3. Give income, keep the asset (charitable lead trust)
4. Give it after you die
OR… Some combination of these
copyright EBH Consulting LLC
19
The donor engagement cycle
(college’s point of view)
1.
2.
3.
4.
5.
6.
7.
8.
Identification
Qualification: find the Critical Few
Strategy
Cultivation
Engagement
Solicitation
Commitment
Stewardship
copyright EBH Consulting LLC
20
The donor engagement cycle
(donor’s point of view)
1.
2.
3.
4.
5.
6.
7.
Awareness
Knowledge
Interest
Involvement
Commitment
Advocacy…and, if we do our jobs well…
Repeated commitments over time
copyright EBH Consulting LLC
21
Factors affecting likelihood to give
1.
2.
3.
4.
5.
Stage of life
Charitable nature
History with the organization
Competing charitable interests
Outstanding charitable, business, personal
commitments
6. Liquidity
7. Relationships with board members, executives,
staff, and clients
copyright EBH Consulting LLC
22
“All man’s life among men is the
struggle for the ear of another.”
--Milan Kundera, The Unbearable Lightness of Being
copyright EBH Consulting LLC
23
As a leader…
“Your first and foremost job is to take charge of
your own energy, and then to help orchestrate
the energy of those around you.” --Peter
Drucker
EBH Consulting LLC 2012
96% of communication
is wordless
EBH Consulting LLC 2014
In-Person Communication
• 70% body language
• 20% tone of voice
• 10% words
What energy are you bringing to each interaction?
How do you prepare to give the gift of deep listening?
copyright EBH Consulting LLC
26
Emotions Are Contagious
• The brain has an “open loop” system
• We are “wired” to pick up subtle clues from one another
• Energy is viral – be intentional about what you give life to.
Resonance is Contagious … So Is Dissonance
Resonance: The ability to evoke or suggest images, memories, and
emotions.
Dissonance: A tension or clash resulting from the
combination of two disharmonious or unsuitable elements.
copyright EBH Consulting LLC
27
The Stress Syndrome
The Sacrifice of
being a leader
causes

Stress

Hormones Activated:
Epinephrine and
Norepinephrine


Stress arouses the
Sympathetic
Nervous
System

Hormones Activated:
Corticosteroids
________________
© Richard E. Boyatzis and Annie McKee, 2005.


Blood pressure
increases
Large muscles
prepare to fight
or run
Brain shuts down
non-essential
neural circuits
Less open, flexible
and creative
Leads to reduction
in healthy
immune system
Inhibits creation of
new neurons
Over stimulates
older neurons
leading to shrinkage
of neurons
copyright EBH Consulting LLC
Results

Brain loses
capability to learn

We feel anxious,
nervous,
even depressed

Perceive things
people say or do
as threatening
and negative

More stress
is aroused
28
Renewal: Engaging the Parasympathetic Nervous System
Wanting to understand,
care for another person,
and to initiate some
action contributing to
their well-being
Feeling hopeful,
optimistic, at peace or
exciting but look
forward to the future
Neural circuit activated:
limbic system to the left
pre-frontal cortex
Aroused Compassion
Systolic and
diastolic blood
pressure decreased
Release of Oxytocin
and Vasopressin
Adrenal-pituitary axis
activated; arousal of
the PNS
Increased secretion of
immunoglobulin A and
natural killer cells
________________
© Richard E. Boyatzis and Annie McKee, 2005.
copyright EBH Consulting LLC
29
Paired demo: energetic
communication
EBH Consulting LLC 2012
‘Nuff said
copyright EBH Consulting LLC 2013
When in doubt, “drop in”
EBH Consulting LLC 2012
“conversational style”
--Deborah Tannen, Ph.D.
1. High considerateness speakers:
– considerate to others by not imposing
– expect longer pauses between turns
2. High involvement speakers:
– show enthusiastic involvement
– overlap can be perceived as dominating
copyright EBH Consulting LLC
33
In a donor visit, what do we listen for?
copyright EBH Consulting LLC
34
What do we listen for?
• Thoughts on your institution: attitudes,
disappointments, connections, loyalties,
aspirations—STORIES
• Work, mission, values
• Family and obligations
• Philanthropy and giving interests
• Involvement preferences
• What else?
copyright EBH Consulting LLC
35
What do we listen for?
The 4.5 Rights © The Osborne Group
• Amount—income, assets, obligations
• Purpose—the dream
• Solicitor(s)—and natural partners
• Timing—and approach
• Other details…gift vehicle, decision-makers
copyright EBH Consulting LLC
36
Good listening…
1. Takes in information while remaining nonjudgmental and empathetic
2. Acknowledges the speaker—but not in a
distracting or artificial way
3. Invites communication to continue
4. Carries the person’s idea one step forward
copyright EBH Consulting LLC
37
Are you a good listener?
1.
2.
3.
4.
Most fundraisers excel at presentation
Learning = power
Listen 75%, talk 25%
Ask yourself, “Am I learning anything from
this conversation?”
5. When emotions are triggered, WAIT.
Jumping in may distort message, damage
trust.
copyright EBH Consulting LLC
38
5 listening skills
1.
2.
3.
4.
5.
6.
Concentration
Acknowledgment
Research
Sensing
Structuring
And I would add…memory/ retention
copyright EBH Consulting LLC
39
“If you ask the right questions, everyone is
amazing.”
----Michael Kimball, author of Us
copyright EBH Consulting LLC
40
Closed vs. open questions
CLOSED: saves time, but ends discussion
• May we have your permission to come ask for a gift
to the upcoming campaign?
• So you are saying that you can’t afford to donate this asset?
• When might we have your decision?
OPEN: “How”, “What”, “Could”, “Tell me”…?
• Tell me about your business. How do you make it all work?
• Of all we’ve discussed, what is most important?
• What other options might be possible?
copyright EBH Consulting LLC
41
Caveats
• Hold feeling and motivation questions until
the relationship is firmly established
• Fact-finding questions are safest until the
donor knows you
• Even then…proceed with care. Be curious but
don’t “grill”
copyright EBH Consulting LLC
42
QUICK BREAK (10 minutes)
copyright EBH Consulting LLC
43
What is a strategy?
1. A focused, customized plan for achieving
engagement and giving goals with a donor
2. The discipline to stop and think about every
step it might take to bring your donor to
“yes”
3. A working hypothesis that you may revise
many times
copyright EBH Consulting LLC
44
Ask yourself…
1. Will the initiative deepen the donor’s
relationship to the institution (not just to
you?)
2. Will it increase your knowledge of her
financial capacity?
3. Will it clarify her interests and her
involvement preferences?
4. Does it lead directly toward a financial
commitment?
copyright EBH Consulting LLC
45
“A donor’s relationship to the institution
should be a cable, and each of us is but one
strand. A relationship built upon only one
facet of a donor’s identity is built on shaky
ground indeed.”
–David R. Dunlop [Cornell, ret.]
copyright EBH Consulting LLC
46
Group work
1. Pick a scribe…and someone else to report out
2. Take 10 minutes with a partner or team to
develop a strategy for the case study
3. We’ll discuss the strategy as a group
copyright EBH Consulting LLC
47
copyright EBH Consulting LLC
48
Major gift realities*
1. 18-24 months from first contact to $100,000 gift
2. 7-8 contacts per potential donor (1 per quarter)
3. 3-5 potential donors needed per each major gift
secured
4. We often receive 75-85% of requested amount
5. So…it can take 40 contacts to get a $100k gift!
*Penelope Scarpucci and Scott R. Lange,
Senior Consultants, Marts & Lundy, Inc.
copyright EBH Consulting LLC
49
The Relationship
Manager’s Role
•
•
•
•
•
•
•
Designs and orchestrates the strategies…
…but may not be a protagonist in every initiative
Coordinates with all natural partners
Ensures everything gets done—on time
Writes contact reports
Evaluates initiatives
Regroups to ensure completion and solicitation
copyright EBH Consulting LLC
50
Making the ask
1.
2.
3.
4.
5.
6.
1
Know yourself and your attitudes about $
Know your donor
Determine the link
Test amounts and ideas
Recruit, prepare, and rehearse the team
Prepare the donor
copyright EBH Consulting LLC
51
Making the ask
2
7. Set the stage and don’t rush
8. Ask
9. Be quiet
10.Listen carefully
11.Discover objections
12.Negotiate and close
13.Say thank you
copyright EBH Consulting LLC
52
Most common failures to close
(courtesy Gary Evans, Lafayette College)
1.
2.
3.
4.
5.
6.
7.
Fear of rejection
Did not request a specific amount
No trial closing
Did not find the real objection
Talked past the natural closing
Did not find—and confirm—agreement
Failed to present “the dream”
copyright EBH Consulting LLC
53
copyright EBH Consulting LLC
54
Explaining a setback
--Martin Seligman, Ph.D.
Pessimistic
•Permanent
Optimistic
•Temporary
“My president is a weak fundraiser”
“We could have prepared better”
•Pervasive
•Localized
“This place has no major gift culture”
“The project wasn’t right for him.”
•Personalized
•Externalized
“I’m not brave enough.”
“She won’t give six figures to anyone”
copyright EBH Consulting LLC
55
Why use volunteers?
1. Add credibility
2. Become informed advocates
3. Advise on “marketability” of objectives
4. Identify and advise on potential donors
5. Solicit or co-solicit major gifts
6. Involve new faces, host meetings and events
7. Continuity and ownership
and…
8. A larger personal gift, we hope!
copyright EBH Consulting LLC
56
Librarians, faculty, and staff
= natural partners
1.
2.
3.
4.
5.
Know the product best
Understand the institution
Provide information on clients they served
Provide credibility
Provide ongoing stewardship and
accountability for gifts
copyright EBH Consulting LLC
57
The stewardship imperative
1.
2.
3.
4.
5.
Always the best place to start
Best potential donor = has given before
Best thanks = proper use of the gift
7 Thank you’s—appropriate, customized
Stewardship—or lack of it—reflects on your
institution
copyright EBH Consulting LLC
58
Our major donors don’t need more money—
they need effectiveness and significance in their
lives. Our work with them should advance
their moral biographies. Your moral biography
is the legacy that integrates happiness for you,
for your heirs, and for the world around you.
--Paul G. Schervish—Director, Boston College
Center on Wealth
and Philanthropy
copyright EBH Consulting LLC
59
TAKE-AWAYS
1. How will you use what you learned in the
coming weeks?
2. Write down three things you will do in the
coming week to move your practice along
copyright EBH Consulting LLC
60
Here for you
Leadership and fundraising consultant /trainer
/coach, helping change agents lead self and others
with peaceful productivity…
so you can change the world.
Customized staff and board retreats, strategic
planning, and executive coaching.
“Productivity fueled by humanity.”
www.ebhermanconsulting.com
EBH Consulting LLC 2014