2010 Education Foundations Conference
Oshkosh, Wisconsin
November 18, 2010
Donald R. Gray
Universal Vision Statement for Philanthropy
“You want to compose a good
world. It is an honorable and
noble profession”
… Maya Angelou
Mrs. Evelyn Kaufman
Stow High School English Teacher
1958
•
Your words define who you are
- to others
- to yourself.
• Choose them carefully!!!!!!!
A Few Words About
• Philanthropy
– Good word
– Has become distorted
– $$$$$
• Generosity
– All inclusive
– Captures what we do
• Abundance
Gifts and Donations
A GIFT is a tangible symbol of feelings
between people
A DONATION is a tangible symbol of support to
a cause
Development
and Fund Raising
A GIFT is to DEVELOPMENT
(givers)
as
A DONATION is to FUND RAISING (donors)
Inappropriate Terms
•
•
•
•
•
•
•
•
•
hit up
shake ‘em down
put the arm on …
squeeze, milk, dun
loaded
should, ought, owes us
pass the hat
get into his/her pockets
low-hanging fruit
Annual vs Major Gifts
• Annual Donations
–
–
–
–
–
–
–
–
–
frequently given/asked
discretionary income
unrestricted fund
mailings, events, phone
Internet, social networking
2-5% of income
90% gifts; 10% dollars
1st step to major gift
very, very important
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
Annual vs Major Gifts
• Annual Donations
–
–
–
–
–
–
–
–
–
frequently given/asked
discretionary income
unrestricted fund
mailings, events, phone
Internet, social networking
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
The Math of Major Gift Work
$ For each major gift (>$25K), you need three
possible or probable 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.
ULTIMATE GIFTS
• Once in a Lifetime Gift
• Combination of Giving Methods; Many
People Involved
• Total Commitment to Institution’s 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
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
student 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.”
Top Four Reasons People Give Major
and Ultimate Gifts
• Belief in Mission and Stability of the
Organization
• Sense of Civic Responsibility
• To Invest in Projects with Significant Social
Return
• High Regard for Staff and Volunteer
Leadership
“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
Bottom Three Reasons People Give
Major and Ultimate Gifts
• Guilt and Obligation
• Promotional Materials and Proposals
• Tax Considerations
Successful Development
THE MYSTICAL MINGLING
OF
A JOYFUL GIVER
AN ARTFUL ASKER
A GRATEFUL RECIPIENT
The Cycle of Successful Development
Initial Contact
Creating the
Joyful Giver
Attention
Interest
Additional
Interest
Desire
Identification
Action
Making the
Artful Ask
Show
Creativity
yes
Invoking the Grateful
Recipient
acknowledge
NO
Want to Learn More?
Fundraising and Development for Nonprofits
June 1-3, 2011
Madison, Wisconsin
Web site: exed.wisc.edu/devconf