Internet Donor Comments

How Can We Adapt This Idea for Major Gift Fundraising?

A recent article in The Chronicle of Philanthropy commented on an Internet giving technique the University of Pennsylvania is using. Check out there campaign website by clicking here.

After making an online annual fund gift, a screen appears asking if the donor would like to comment on their motivation for giving. Started in 2003, more than 650 donors have used this comment screen. Fundraising staff responds to comments through email within 24 hours. Some of the donor stories are featured in university publications.

While this is a cool annual giving technique, why can’t we adapt it for major gifts fundraising? The more feedback and stories you get from donors the better.

As long as your major gift donor is Internet savvy, why not encourage them in your mailed thank you note to go online to tell their story. Or, if you’re meeting with them personally, ask if they would be willing to go online to explain their motives for giving. Based upon their expertise, they can do it on their own time, or you can go online with them and write their story up as they tell it to you.

We’re discussing with a few clients how to get a major gift donor blog set up for their organization. Donor stories would be a great sidebar to your organizational blog.

Has anybody tried this? Let me know and I’ll call you up for an interview and follow-up article. Or, you can be a guest author here.

TomWilsonMajorGiftsGuru@gmail.com

Permanent Link: Internet Donor Comments

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Listening for Major Gifts

Another Way of Listening from Cambridge University

In a recent article in Newsweek "The Geography of Personality" I read about the five dimensions of personality and how they vary geographically. Wow. What are the implications for major gifts fundraisers?

The 5 dimensions are:

• Extroversion
• Agreeableness
• Conscientiousness
• Neuroticism
• Openness to new ideas and experiences

These factors can be measured with questionnaires (click here to take the questionnaire yourself) — so far 132,000 people have taken the test online. I took the test and found it fascinating.

This research is being done by Jason Rentfrow of Cambridge University. In the Newsweek article, author Sharon Begley notes: "There is a geographic divide in openess with the Northeast and West Coast much higher than the Midwest and South. Extroversion is highest in the Great Plains, Midwest, and Southeast." More information will appear in an issue of Perspectives on Psychological Science.

These traits work globally as well (so if you're dealing with an international donor or someone from these areas, be sensitive). Robert McCrae of the National Institute on Aging has found German Swiss and Swedes to see themselves as superconscientious; russians as agreeable, Australians extroverted, and Japanesse introverted.

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Endowment Fundraising Challenged by Low Investment Returns

Two recent articles in The New York Times reported on the annual endowment investment returns for Harvard Univerity and Yale University (click on each of their names to see the full article in The Times).

Harvard University reported a gain of 8% to bring their endowment fund to $36.9 billion. Yale University noted a 4.5% gain for a total endowment of $22.5 billion.

Both universities returns are in the top 5% of the 165 largest institutional funds tracked by the Trust Universe Comparison Services. Harvard's annualized return over the last 10 years is 13.8% while Yale is the nation's leader at 16.3%.

Yale also reported $232 million in new gifts to endowment in this past year. It's endowment fund contributes 44% of the operating budget while Harvard's endowment contributed more than a third of its operating budget.

So what implications does this have for major gift fundraisers?

These two universities are great, in part, because of their great endowment funds. A benchmark of having 20% to 30% of your operations coming from endowment proceeds has been exceeded by both of these schools.

This is a tough year for endowment investing. Many organizations won't have a positive return.

How do you raise endowment money when the market is like this?

Remind your donors of your past performances. As Yale has been getting 16% a year averaged over the last 10 years, it retains these excess returns in the endowment as a "rainy day" fund for the future. Instead of dipping into the principal of the endowment when your return is lower than this year's investments, you are using the excess earnings from prior years to support this year's distribution.

Point to your fund's track record over time. Or, if you're new, point to the your investment managers' track record over time.

TomWilsonMajorGiftsGuru@gmail.com

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Museum Capital Campaigns

What Makes Museum Campaigns Challenging?

Many years ago I worked as the corporate and foundation fundraiser for Field Museum of Natural History. Over the years I've helped several museums with their capital campaigns. I'm writing today from current client Yellowstone Art Museum in Billings, Montana.

What makes these museum campaigns's challenging? What advantages do museums have?

Many times the challenge is similar to many arts and cultural organizations — the need for operational fundraising is so acute that all fundraising energy goes into annual memberships, exhibit sponorships, special events, and annual donations. Unless outside help is brought into the museum for the campaign in the form of a consultant and eventually additional staffing, the campaign doesn't have enough dedicated infrastructure support to succeed.

What kind of additional fundraising staffing? At least one additional major gifts officer to serve as campaign director and at least one administrative assistant to serve as campaign coordinator.

The good news is that most museums have an ambundance of high energy from current and past board members, volunteers, the general membership, and staff around the mission of the museum. While new donors are always needed in every capital campaign, many museums just need to tap into their long history of people committed to the cause.

By the way, Yellowstone Art Museum has raised $4.3 million toward their phase 1 objective of $6 million; well on the way toward their overall goal of raising $17 million by 2014.

TomWilsonMajorGiftsGuru@gmail.com

Permanent Link: Museum Capital Campaigns

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How Do You Develop a Compelling Case for Your Capital Campaign?

Developing a Capital Campaign Case

How Do You Develop a Compelling Case for Your Capital Campaign?

I will presenting a session on effective case development at the upcoming AHP International Conference in Chicago on September 25, 2008.

Some of the items I will discuss include steps to building a strong case from the inside out.

• Review your organization's most recent strategic plans for a sense of vision and projects that are inspiring and need funding,
• Conduct background interviews with your organizations administrative leaders to seek project ideas as well as compelling reasons why the project will help the community
• Interview key board members and some long time donors to hear from them about their passion for the organization's mission and to find out who your project champions will be for the projects in your case
• Review all recent printed materials from your organization including press releases, major grant proposals, etc. to see what you've already been saying about your selves; their could be some real gems in print already

Now that you've got a strong background of information, start drafting your case outline. I like to outline first rather than write a full narrative. A good outline can be used in PowerPoint presentations for Leadership Briefings, can be reviwed quickly by people you interviewed to help build the case, and it keeps everyone focused on key items versus details of the narrative. Once the outline is done, it only takes a few hours to write a 2-page executive summary, the copy for a brochure, or a full grant proposal.

More to come on this issue

TomWilsonMajorGiftsGuru@gmail.com

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Fundraisers Need to Understand Donor-advised funds

To Be an Effectie Major Gifts Fundraiser Understand Your Donors

Donor-advised funds used to be created only through community foundations. Then, professional investment management funds got in the business. They brought their sales skills and relationships with people of wealth together to build their own advised funds. They have changed our fundraising world.

To talk with donors about options as they consider gifts to endowment funds and to discuss with them possible planned estate giving we, as major gift officers, need to understand how donor-advised funds work. Why are donors so attracted to them?

A recent article in The New York Times provides some answers. Author Geraldine Fabrikant noted that Fidelity Charitable Gift Fund is the nation's largest with $4.7 billion in assets. Here are some factors why donor-advised funds are attractive.

• For people giving less than $1 million the costs of setting up and using the fund are less than a traditional private foundation
• With a down economy, the efficiency of having someone else management the assets and administrate the fund are even more attractive
• Privacy — with a formal foundation you file tax forms that others can view to determine the asset size of your foundation; a donor-advised fund is shielded from outside review
• While private foundations are required to give away 5% of their assets, the experience with donor-advised funds is 20% (this implies that people with donor-advised funds are not as interested in perpetuating the fund as those with a private foundation)
with href="https://www.vanguardcharitable.org/">Vanguard Charitable Endowment Program, advised funds of $1 million or more can use the services of the Investment Fund for Foundations to more widely diverse fund investments — at Fidelity, donors with funds of $1 million or more can manage the assets themselves (something some donors absolutely love)
• Setting up and running a foundation takes time and energy for not only investments but also in making grants — Foundation Source handles many of these tasks online

Sarah Libbey, president of Fidelity Charitable Gift Fund, notes that the number of new donor-advised accounts is about the same this year as last but contributions to existing funds is down 40% this year.

Commentary — as someone who has done a lot of foundation grantsmanship, and as someone who has worked with many donors on endowment and planned estate gifts, this article was fascinating. We've got to track (I've got to track) this rapidly changing world of donor-advised funds better. I urge you to click on the highlighted links about to better understand what is going on in your donors' world.

TomWilsonMajorGiftsGuru@gmail.com

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Why Capital Campaigns Are Important

Capital Campaigns Can Boost Your Major Gifts Fundraising Program

If you've not gone through a capital campaign with your organization in the past two years, you need to start preparing for one now.

You should always be in campaign mode — doing a campaign, wrapping one up, or preparing for one. We all read about these mega campaigns for $250 million, for $1 billion. How do they work?

First of all they're comprehensive campaigns, not just capital campaigns for bricks and mortar. They include all annual giving, special project funding, building projects, endowment, and planned estate giving. They count everything for 5 to 8 years. And, they focus fundraising through the lens of the campaign to energize the entire staff, the fundraisers, the fundraising volunteers, and most importantly the donors. They have excitement, energy, urgency, deadlines, additional resources, and provide a sense of direction to everyone.

So how do campaigns boost major gift fundraising? To help achieve camapign goals donors get caught up in the energy of the campaign, they find projects that interest them, and they make major 5-year pledges to the campaign. All of this is major gift fundraising work — and all of it is more fun and exciting in a campaign than in just everyday, year in and year out, fundraising.

TomWilsonMajorGiftsGuru@gmail.com

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Hospital Fundraising Case for Support

In a recent article in AHP Journal, author Michael Vanderhoel who is president of the Virginia Mason Foundation in Seattle, reflects on new ways of positioning hospital cases for support.

He notes the case at his hospital has evolved from support because they are a pillar of the community, to new technology and disease focused facilities and other capital projects to a focus on donors investing in the transformation of health care for their community.

I've heard Michael speak at conferences about Virginia Mason's transformation. He has a wonderful partner in his hospital's CEO. His concepts are truly inspirational.

While many of us don't have a CEO who is willing to tackle healthcare transformation at our institutions, Michael's concepts can challenge our way of thinking and presenting our organizations to donors.

TomWilsonMajorGiftsGuru@gmail.com

Permanent Link: Hospital Fundraising Case for Support

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How Will the Economy Impact Corporate Giving to Nonprofit Organizations?

A recent short in The Chronicle of Philanthropy asked Mark Shamley, chief executive of the Association of Corporate Contributions Professionals to reflect on the turbulent economies effect on corporate giving.

Mr. Shamley stated: "In-kind contributions and cause-related marketing to remain flat, and event/dinner sponsorship to take a hit."

He views event and dinner sponsorships to be "noncore giving" for most companies and therefore the first area to be cut in tough times.

Commentary: As a former corporate major gifts fundraiser, I was amazed to learn of this corporate giving organization. Check out their website by clicking on their name highlighted above. One of the most interesting things about blogging is learning new items like this.

TomWilsonMajorGiftsGuru@gmail.com

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Jewish Mega Gift Fundraising Trends

How many of the mega gifts of $10 million or more go to Jewish causes? And where do the rest go?

These issues were summarized in a recent report sponsored by The Institute for Jewish & Community Research: Mega-Gifts in Jewish Philanthropy: Giving Patterns 2001-2003. This report analyzed more than 1,000 gifts of $1 million or more that totalled $7 billion of giving.

• For gifts of $1 million or more, 9% of the dollars went to Jewish auses
• For gifts of $10 milion or more, 5% went to Jewish causes
• Jews give 16% of all mega gift dollars in America

"The ethos of wealth in America encourages people to 'give back' to others by sharing the results of their hard work and good fortune with the society that made that success possible....the propensity and ability of many more Americans to make large gifts is an important shift that impacts American philanthropy as a whole."

Thanks to The Institute for sponsoring this important research.

TomWilsonMajorGiftsGuru@gmail.com

Permanent Link: Jewish Mega Gift Fundraising Trends

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How Annual Fundraising Can Help Your Major Gifts Fundraising Program

In CASE Currents, a recent article, "Cinderella Doesn't Live Here: strategic planning and long-range vision -- not fairy godmothers -- are the keys to turn your annual fund into a pipeline for major gifts" talks about the importance of taking the long view of your annual fund program. Lori Yersh of McGill University notes: "The annual fund is the most obvious place to go to develop major gifts, but it is also the most overlooked."

Rather than looking at renewal and retention rates of just the first year of a donor's life with your organzation, the article suggests you look at the 5-year patterns of renewal, retention, and life-time impact of new donors. Article author Brian Daugherty of San Diego State University tells this story: "A trio of griends who met through SDSU activities and athletics, has recently made a commitment of $900,000 or more. They each began giving to the university with gifts of less than $200. it took from five to 10 years before they made their first $1,000 gift and between 25 and 35 years until their most recent commitment."

The reminder for all of us is to be patient, get people started giving now with the objective of a life-time relationship of increased engagement and giving. If you're a major gifts fundraiser, your best friend is the annual gifts fundraiser. They are your future. Make sure to invest in these programs. Also work hard to boost your first-time donor renewal rate from a traditional 35% to 50% rate to 70% or 80%. Really roll out that red carpet to welcome new donors; to discover who they are; and how to make them feel welcome in your donor community.

TomWilsonMajorGiftsGuru@gmail.com

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Ways to Recruit Nontraditional Major Gift Officers

Finding Nonprofit Leaders May Provide a Model for Fundraising

Businessweek noted a trend by several corporations in nurturing nonprofit leaders to meet a critical need now and in the future for new talent. A study by the Meyer Foundation and CompassPoint Nonprofit Service found that 3/4 of nonprofit executive directors plan to leave their jobs by 2011.

As a consultant to many organizations, I can certainly feel this acute need for talent for major gift fundraisers right now. Every conference has organization's seeking new staff.

American Express, Bank of America, and IBM have launched programs. The Gap Foundation has one in the works. IBM is working with the Bridgespan Group to help develop their program. The goal, according to Amex CEO Kenneth L. Chenault is to: "leverage our existing tools to make a major impact in the nonprofit world."

Talk to your local corporations and foundations to see if they could help implement similar programs for major gift officers. While new leadership development programs for nonprofit executives are wonderful, one of the major stress points for them is fundraising. If we can build a more robust program to attract, train, and retain major gift officers the entire nonprofit sector can be helped.

TomWilsonMajorGiftsGuru@gmail.com

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Large Endowment Funds Had a Tough Year

Challenges to Endowment Fundraising

The Wall Street Journal reported on a recent report by The Northern Trust about endowment returns for 90 endowments of $1 billion or more. The average loss this past year was 3.1%. So far Harvard University is beating the trend with a 7% to 9% return (final numbers still pending).
A down year in the market makes endowment fundraising challenging for major gift officers. If a fund is supposed to give out 5% of market value a year, what do you do when the fund is down 3% (or more)?

One answer is the usual policy of averaging your endowment market value for distribution over 12 trailing quarters. This helps to soften short term market weakness. This means for this year your organization's endowment proceeds (and foundation granting proceeds) won't be hurt too much. But if we get two or three years of flat or down numbers, endowment distributions will be hurt. Make sure you understand that your endowment distributions are not based on this year's growth but rather the market value over time.

TomWilsonMajorGiftsGuru@gmail.com

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