Managing Major Gift Programs
For Maximum Effectiveness
Presented by:
Richard Perry and Jeff Schreifels
April 23, 2014
How To Think About This
1. Problem/Opportunity
2. Three Operating
Principles
3. Seven Pillars of a
Major Gift Program
There is a problem…
Value Attrition Benchmarks
of 33 National Organizations
Cume
Giving
Level
Value Lost By Class Year
Year
Year
Year
1
2
3
$
1,000
-58.62%
-45.83%
-61.45%
$
2,500
-57.26%
-40.61%
-60.85%
$
3,000
-61.32%
-45.55%
-55.29%
$
10,000
-50.71%
0.92%
-27.10%
Example of Value Attrition
Three Operating Principles - #1
Treat donors
as partners
vs.
sources
of cash.
Three Operating Principles - #2
Donors
Have
Life
Three Operating Principles - #3
The role
of money
in society
is to
transfer
value
Money is a result – NOT an objective.
Matching the donor’s interests and passions
to the needs of the organization brings true
donor fulfillment and joy.
– AND it brings the money
Before You Start…
Do you have
the right
organization?
Effective FR Organization
The Pillars
Pillar #1- The Right Caseload
450
Build the Caseload:
• Determine Criteria for Pool
• Qualifying Donors
• Tier Donors (A-25, B-50, C75)
• Develop process to bring
people on and off caseload
Caseload Pool
Donors that meet a predetermined metric
150
Qualifed Caseload
Group of donors that want to relate
Pillar #1 – The Right Caseload
Understand:
How a
caseload
grows over
time.
Pillar #1 – The Right Caseload
Understand:
The right
composition
for a
caseload.
Pillar #2 - Create Goals
•
•
•
•
Goals create focus and drive planning
Not meant as a way to punish but something to attain
Must be realistic and based on actual behavior and capacity
Must be cash-flowed
Pillar #3 – The Right Plan
A Plan For Every Donor
Name
Paul Smith
Betty Richards
Goal
$
Interest
Passion
Disaster
5,000 Services
Single
$ 25,000 Mothers
Comm
Pref
Jan
Feb
Mar
Invite to
EDS
Briefing
YMAD +
person
helped
letter
Visit prog
site - opp YMAD
Bday Card briefing
plus ask
Internal doc
on
expansion
plans +
YMAD
Invite to
architect
briefing+
dinner
Visit in
home
present
final plan
and ask
Email
YMAD
touch
Email
Internal
memo
Personal
Visits
YMAD
touch lunch at
Applebees
Tour House
of Hope meet
Sally/kid
Apr
May
Jun
Thanks
and
YMAD
Jul
Aug
Sep
Oct
Nov
Dec
Ride along
YMAD
YMAD YMAD with Invite to
in EDS
touch and vehicle for possible
Board
book on
demo
thanks
special ask Luncheon the poor
Research
Invite to
on plight Bday Card
"Founders of single and
luncheon moms
YMAD
Ground
breaking
ceremony,
visit w/new
mom
YMAD and
YMAD with gift of H of
possible
H child
special ask drawing
• A plan for every donor is required if you are to meet your goals
• Plan at least one “touch” per month, per donor – sometimes more
• Create a healthy mix of reporting back, personal touches, asks
Pillar #3 – The Right Plan
Elements of the Right Plan:
A good Donor Moves-Management Plan
includes:




I.D of donor passion and interest.
Figure out donor communication preference.
A financial goal for the donor.
A stream of frequent “Touches” that:



Tell the donor she made a difference through her
giving.
Give the donor an insiders view of the organization
Sets up an ask.
Pillar #3 – The Right Plan
Two Moves
Management
Tracks
Pillar #3 – The Right Plan
Program
To Sell
Project Support Portfolio
A system for packaging program
1.
Total organizational budget allocated to major program
categories of the organization.
2.
Program activity reported in pre-determined categories.
3.
Program needs communicated in a donor focused process.
4.
Total actual costs, activity and outcome statistics of the
program category shown to donor.
5.
Allows non-profit to communicate with donors in a way that
suits them and causes them to respond and fund total budget
needs
Pillar #3 – The Right Plan
Three Elements Of An Offer
Pillar #4 – Ask For Support
• Know your donor
• Know your program
• Make a perfect match of program to
donor
• Compose the ask
• Practice the ask
• Make the ask
Pillar #4 – Ask For Support
Common mistakes
about asking:
1.
2.
3.
No match to donor
passion and interest.
Relationship of trust
not built.
Not enough feedback
given prior giving…
Pillar #4 – Ask For Support
4.
5.
6.
7.
8.
9.
Ask not put into the context of a larger
vision
MGO is more interested in getting the money than
fulfilling donor interests.
Ask is too low.
MGO is not prepared to offer “terms” in payment of
pledge.
Ask is packaged too intellectually and
philosophically – void of emotion and passion.
MGO is not prepared to handle objections.
Pillar #5 – Thank Donors
• Call within 3 days of receiving a
gift
• Receipt and thank you letter
within one week
• Call from CEO or board
member
• “Surprise” thank you calls or
notes throughout the year.
Pillar #6 – Report Back
•
•
•
•
•
Invest in it
Evaluate all that you do
More than once per year
Use social media
Surprise your donor-make it personal
Donors want to make a difference...
You made
me aware.
So I want
to help
again.
You told me
my gift made
a difference.
You asked
me to help.
Said it would
make a
difference.
I believed
you. Gave
what I
could.
You didn’t tell
me I made a
difference…so
I gave
somewhere
else to make a
difference.
Pillar #7 – Love Accountability
Measure:





How the same donors last
year are performing this year.
How the donors are
performing against individual
goals.
How many visits, contacts
and asks the MGO is making.
Report on unusual gains and
losses for any donor on the
caseload to make sure other
numbers are not being
skewed.
MGO performance review.
One Gift Hides Poor Performance
How New Money Covers Loss
Need to make sure there is a focus on donors first then dollars
and avoid an incorrect assessment of your situation.
Three Resources
1.
2.
3.
Passionate Giving Blog
White Papers from Veritus Group

Packaging Your Budget For Donors

Seven Pillars of a Major Gift Program

Building a Culture of Philanthropy

Six Secrets to Becoming an Extraordinary Major Gift
Officer

Qualifying Donors for Major Gift Caseloads

Social Networking and Major Gifts

Transporting Your Donor To The Scene
Marketing Impact Chart Template
It’s not only about the money…
t.
Veritusgroup.com
267-254-2939
[email protected]
A Look At Our Work For Others….
Two Cases….
Case #1
Social Service Organization
Situation and Challenges:
1.
2.
3.
4.
Large unmanaged caseloads with
unqualified donors in a major gift program
that was not growing.
More major donors on file than labor to
manage them.
No management of MGOs to provide
accountability, focus and results.
No 6 & 7 figure asks/gifts although
organization needed the funds.
Case #1
Social Service Organization
What We Did:
1.
2.
3.
4.
5.
6.
7.
Provided management structure and accountability which
resulted in focus, results, donor retention and
management reporting to show all activity.
Modified caseloads so that only qualified donors were on
them resulting in better use of labor.
Added major gift talent to service available donors.
Provided moves management strategy to secure better
results including upgrading, retention and 6 & 7 figure
gifts.
Turned failing MGO around.
Hired new MGOs.
Provided steady operational growth PLUS additional
funds for capital project.
Case #1
Social Service Organization
Results
1.
2.
3.
4.
5.
6.
7.
Period growth of 81.46% in operating revenue for a
total of $22,013,052.
Period growth of 112.51% in TOTAL revenue for a
total of $25,388,328
Seamless movement from departing MGO (D) to
new MGO (E) with increase in revenue.
Successful turnaround of failing MGO (C) in Yr 6.
Raised $3.375 million for a capital project with
minimal effect on operating.
Secured multiple 6 & 7 figure gifts.
New MGO already at $1.2 million in caseload value
with only 18 months on the job!
Case #1
Social Service Organization
Case #2
International
Relief & Development Organization
Situation and Challenges
1.
2.
3.
4.
Very large caseloads with many unqualified
donors and wasted MGO labor.
Very little individual donor planning and no goal
setting for each donor.
More major donors on file than labor to manage
them resulting in needed funds being “left on the
table”.
Few management and performance systems
and reports.
Case #2
International
Relief & Development Organization
What We Did
1.
2.
3.
4.
5.
6.
Reduced all caseloads to qualified donors with high
inclination and high capacity.
Re-organized caseloads into 3 tiers reflecting donor
value.
Created goals and plans for each donor.
Assisted in developing strategies and approaches to
donors.
Introduced additional management systems and reports,
including YTD actual against goal by donor, tracking
moves by donor and MGO performance reports.
Recommended hiring 1 additional MGO in the year and
another one in the next year.
Case #2
International
Relief & Development Organization
Results
1.
2.
3.
4.
5.
6.
7.
Surpassed goal of $22.8 million by $3 million or 13%.
Did this at an ROI of 1:12.
Maintained very high value caseloads – each one over
$1 million.
Ramped up MGO to over $1.2 million in one year.
Created case to successfully add a new MGO in next
year.
Secured multiple 6 & 7 figure gifts.
Current year revenue at: $26.3 million.
Case #2
International
Relief & Development Organization