Annual Giving: Another Piece of the
Philanthropic Puzzle
Greg Bader, Director of Individual Giving, Denison University
The Challenges We Face
Agenda For The Session
 Annual Giving Defined
 Segmentation and Uniformed Message
 The True Value of Leadership Gifts
 Partners in Leadership Annual Fund Gifts
 Strategies for Success
 Open Forum for Discussion
Annual Giving Defined
 Primarily Unrestricted
 Support Institution's Highest Priorities
 Repeatable Gifts
 Secured from a Broad Donor Base (Alumni, Parents and
Friends)
 Gifts Secured Via Several Methods (Direct Marketing, Phone
Programs, Volunteer Contact, Email/On-Line Initiatives)
Out of our Control
 Housing Crisis – Double Dip Recession
 Economic Challenges (corporate downsizing, debt crisis,
consumer confidence, unemployment rates, )
 Global Unease/Uncertain Environment
 Natural Disasters
 Increased demand for philanthropic dollars
Uncertain Times
We need to begin thinking about branding our Annual Funds as
Strategy Funds.
 Let’s talk with the donor about how we can work to make
their philanthropic goals achievable with our organizations
 Annual Fund messaging should complement institutional
priorities
 Use powerful language to describe the impact of donor
support – help the donor understand the gift’s impact
Within Our Control
 Natural Affiliation/Donor Base
 Marketing/Messaging
 Strategic Use of Limited Resources
 Informed and Passionate Advocates
 Knowledgeable/Dedicated Staff
 Important Mission/Worthy of Philanthropic Support
Continue the Good Fight
Continue to ask
Don’t be afraid to ask
Stewardship
Remind them the importance of giving
Remind them that Annual means every year
Segmentation Will Yield Results
 Consecutive Donors 5+ Years
 Consecutive Donors 2-4 Years
 Reactivated Donors
 New Donors in 2010
 Lapsed Donors 1 Year
 Lapsed Donors 2-5 Years
 Lapsed Donors 6+ Years
 1995-2010 Future Donors
 1926-1994 Future Donors
Build Solicitation Strategy – Coordinated
Campaign
1.
2.
3.
4.
5.



Biographical Mailer/Organizational Update
(August/September)
Move non-responders into a calling pool (October)
Follow-up solicitation letter (November and/or December)
Email Send to remaining Donors (Focused around Dec. 31st)
Anniversary Gift Reminder Piece (filled in if possible based
around the date of their last gift)
Repeat this process in the spring.
Messaging should have a similar theme/look.
May and June should focus on LYBNTs – Last Year, But Not Yet
This Year
Challenge Campaigns Work
One-By-One Challenge
 Focused on participation
 Program ran from April 1st – June 30th
 Goal related to hitting a certain donor count
 No monetary incentive or pool
 Goal: Activate or renew 2,242 donors
 Results: Secured 2,081 by June 30th
 Overall alumni participation increased by 2.9%
Impact of Leadership Giving
Denison
1. Gifts of $1,000 or more
2. Tiered for GOLD
•
•
Years 1-4 = $250
Years 5-9 = $500
10% of the Donors provide 85% of the dollars
4. FY10 – 1,262 donors gave $3.74 million
3.
Partners in Annual Fund Leadership
 Your Executive Vice President/President
 Trustees/National Board
 Vice President of Advancement
 Entire External Relations Team
 Volunteers and Committees
 Marketing/Communications – External Vendor
Why does good prospect management
matter?
 Higher revenue
 Meeting dollar goals
 Cultivation for potential major gifts
 Builds strong partnerships with colleagues
 Reduces stress at the fiscal year-end
Organize with Donor Pyramids
Denison University
Class of ’71
40th Reunion
sample Table of Gifts
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$5000
$5000
$5000
$5000
$5000
$5000
$5000
$5000
$5000
$5000
$5000
$2500
$2500
$5000
$2500
$2500
Plus ___ additional gifts
Totaling $_____
Class of ‘71 Goal: $_________
Participation Goal: __%
$2500
Denison University – Leadership Process
 Ask Amounts at all levels are determined by both the AF and
MGO (Major/Planned Giving) team
 Strategy sessions are held at various points in the year, but leadership
prospects are rated at the beginning of the year for AF gift and then
adjusted throughout the year.
 Review and tracking at combined AF/MGO meetings is a regular
occurrence.
 Program defines assignment (i.e. Reunions default to alumni volunteers)
Denison University
 MGOs are evaluated on AF gifts
 Annual Fund staff tracks progress
 Director manages asks of Trustees, Overseers, Trustee
Emeritus, and coordinates leadership gifts $2,500+
 Quarterly check-ins, but regular individual prospect reviews
Strategies for Tough Times
 We need both endowment and current-use gifts.
 To determine the effectiveness of a long-term current-use gift,
determine the endowment equivalent of that gift.
 A $25,000 regular current-use gift is, in the short term,
equivalent to a $500,000 endowed gift.
 A $1000 donor who is not capable of making a $250,000
endowed gift today, could be encouraged to make an ongoing gift
of $5,000 an it will have a similar impact. Encourage them to put
the school in their estate plans for $250,000 and return for a
major gift in a few years.
Offered by Jon Bridge Denison Class of 1982 – University School, Cleveland, OH
 Alumna Jane Smith is in her late 40s. She has been a $5,000 donor to the annual
fund. She feels, however, that the Annual Fund is a “black hole” and wants to direct
her support elsewhere. She is ready to do something special for the organization and
would like to give $100,000 spread out over a five-year period. She is open to
suggestions but she believes that leadership development is important. How might
you help direct her support?
Pre-Campaign
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Endowment Only
0
$20,0000
$20,000
$20,000
$20,000
$20,000
0
Current Use Gift
$5,000
$20,000
$20,000
$20,000
$20,000
$20,000
0
Impact of the gift to the organization…
Endowment Only
Current Use
Pre-campaign
$5,000
Pre-Campaign
$5,000
Year 1
$1,000
Year 1
$20,000
Year 5
$5,000 ($5% of the $100,000 endowment total)
Year 5
$20,000
Offered by Jon Bridge Denison Class of 1982 – University School, Cleveland, OH
Power of the Multi-Year Ask
 Provides a defined base of support each year
 Default rate for leadership multi-year pledges is
exceptionally low
 Allows for more accurate projecting and forecasting
 It is a lot easier (and cheaper) to remind than solicit
Dual/Multi-Year Asks are Even Better
 Help engage the MGO team
 Reduces donor confusion (endowment vs. unrestricted)
 Eases tracking of pledge fulfillment
 Educates donors about all aspects of giving
 Promotes long-term investment in Annual Fund support
Gift Societies Organize Donors
 Year-to-Year Comparison tracks donor performance within
individual giving levels
 Eases the goal setting process
 Quickly pick-up on leadership LYBNTs
 Assists staff in familiarity with donor giving
patterns/preferences
Annual Fund Buy In
 Spend time with the MGO team
 Provide detailed reports at staff meetings
 Take the opportunity to present at meetings
 Rotate Board leadership through AF
 Build consensus and educate advocates
Questions and thoughts?
Thank you for attending!
[email protected]
740-587-5734