Healthcare Prospecting for Major Gift Officers (part 3 of a series)

Healthcare Prospecting for Major Gift Officers (part 3 of a series)

by Tom Wilson Major Gifts Guru

I captured this information from a session at AHP International (San Francisco, September 2009) – “Prospecting for Success: Creating a data-driven program that yields results” by Sally Boucher, WealthEngine & Nancy Lee, Director of Research, Jefferson Foundation, Philadelphia, Pennsylvania.

Other advice

In a 2008 test, 80,000 mailed, half segmented, half not, those segmented increased average gift size from $82 to $120.

Upgrade ask amounts and frequency for those with higher capability ratings, and more recent giving.

What do you do with low capacity ratings? Drop those who do not respond to appeals or live in nonproductive gift codes.

For planned giving look at:

Birthday (60 and older)

Loyal donor (10 year giving or longer)

Multiple property owners

While I only know enough about prospect research, databases, and direct mail to be dangerous, it’s always fascinating to listen to the experts in these areas. As major gift officers, we need to keep our personal relationship skills high as we continue to work smarter through good prospect research.

This article is part of a series. To read the rest of the series, please click the links below:

• Healthcare Prospecting for Major Gift Officers (part 2 of a series)
• Healthcare Prospecting for Major Gift Officers (part 1 of a series)

Permanent Link: Healthcare Prospecting for Major Gift Officers (part 3 of a series)

http://majorgiftsguru.com/2009/11/healthcare-prospecting-for-major-gift_18.html

Advice from Major Gift Donors Who Are Also Fundraising Volunteers (part 3 of a series)

Advice from Major Gift Donors Who Are Also Fundraising Volunteers (part 3 of a series)

by Tom Wilson Major Gifts Guru

I recently served as one of the faculty for PLAN MGO, an immersion training program for major gifts officers. The second day of our classes featured two New England donors who both have extensive experience as volunteer fundraisers. I captured some of their comments:

Russell and Steve responded to each other and questions from the audience

“As a volunteer I can open any door once. After that it’s up to you, the staff to keep things moving forward.”

“Insider tours of a lab, backstage, of the art curation workshop are very effective ways to engage donors and to reward fundraising volunteers like us.”

“Use your volunteers to screen names. One organization got us together to review a list of 900 names. We knew about 260. Then they invited the 260 in to see who they knew. It was an effective technique.”

“I think you major gift officers should be out of the office seeing donors 80% of the time. I know people tell me this is unrealistic. But, that’s your job.”

“People like to be asked for more than dollars.”

“What’s more important in fundraising – need or successful results? If you’ve done exciting bold things this year, then tell your donors, your investors. Then tell us why you need more support in the future. It’s really a balance of both stories. If you have no successes and only needs, why would I give you money? Or, if you have only success but don’t need any more money, why should I give you more? You must have future vision to excite donors. I would start with the impact of past investments and then talk about future needs.”

“To be an effective fundraising volunteer I need to know the donor’s hot buttons.”

“We both know people who have had to reduce gifts this year. Respect their situation, respect their gift history. They’ll be back if you stay with them in these tough times. Treat people with grace and dignity.”

“I trust a good major gifts officer as a colleague with me on behalf of the cause. My job is to transfer my relationship with a prospective donor to the major gift officer.”

Thanks to Russell and Steve for giving their time over lunch on a Saturday to speak to this group of major gift officers. PLAN MGO is to be congratulated on a great session.

This article is part of a series. To read the rest of the series, please click the links below:

• Advice from Major Gift Donors Who Are Also Fundraising Volunteers (part 1 of a series)
• Advice from Major Gift Donors Who Are Also Fundraising Volunteers (part 2 of a series)

Permanent Link: Advice from Major Gift Donors Who Are Also Fundraising Volunteers (part 3 of a series)

http://majorgiftsguru.com/2009/11/advice-from-major-gift-donors-who-are_17.html

An Excellent Major Donor Stewardship Letter

An Excellent Major Donor Stewardship Letter

by Tom Wilson Major Gifts Guru

One of the great joys of the philanthropic fundraising profession is getting to work with dedicated volunteers who give their time, their money, and their passion to a nonprofit cause.

One of my volunteer fundraising heroes is Dave Karr, leader of the Stayton Public Library Foundation (Oregon). I met Dave a number of years ago when he hired my team to raise money for a library building expansion.

He needed to raise $1.95 million. We told him this would be a challenge, but he agreed to chair the campaign and make a significant personal gift. The campaign reached its goal and then surpassed it to raise $2.8 million to cover increased building costs and to create an operating endowment.

This achievement for the town of Stayton with 7,000 people would be extraordinary for any volunteer fundraiser. For Dave Karr, who has macular degeneration and therefore can’t drive, can’t read papers, can only see his computer screen with a giant magnifying glass, his dedication and energy to “see” the campaign to success was exceptional.

Dave Karr chaired meetings at his home, had people drive him to fundraising calls, hold his arm to get into meetings, and led with energy and dogged persistence to ensure the campaign was a success.

But now, the rest of the story.

A great stewardship letter

I just got a year-end, gift-request letter from Dave in the mail. Here’s what he told me about the impact of the library building expansion project.

• Library visits have increased from 46,050 to 94,657
• Circulation has gone from 108,964 to 133,295
• Internet usage from 9,826 to 22,045

Ongoing donors gifts this past year paid for:

• 4 new library user computers, a microfilm reader / printer
• a defibrillator for the Library
• helped the City of Stayton replace deteriorated windows in the older section of the library
• continued to add funds to the permanent endowment
• helped fund the new Outreach Storyteller Program to promote literacy through visits to local preschools, daycare centers, and Head Start programs – the program provides book boxes for teachers to use in their classrooms and gives up to 4 books a year for each child to keep

“Thanks for your support !”

Of course, Dave included a return envelope and donor card to let people make another investment.

Way to go Dave. I’m proud of you and the entire Board of Stayton Public Library Foundation. I’ve invested before and I’ll invest again.

Permanent Link: An Excellent Major Donor Stewardship Letter

http://majorgiftsguru.com/2009/11/excellent-major-donor-stewardship.html

Healthcare Prospecting for Major Gift Officers (part 2 of a series)

Healthcare Prospecting for Major Gift Officers (part 2 of a series)

by Tom Wilson Major Gifts Guru

I captured this information from a session at AHP International (San Francisco, September 2009) – “Prospecting for Success: Creating a data-driven program that yields results” by Sally Boucher, WealthEngine & Nancy Lee, Director of Research, Jefferson Foundation, Philadelphia, Pennsylvania.

Flag daily gift reports: Any one-time gifts of $5,000 or higher; any one-time gift of $1,000 or higher with wealth indicator; multiple gifts of $1,000 or more; suspects and leads; and newly acquired donors.

Monthly flags: high level job title and alerts in news sources.

We try to capture everyone’s business cards and put that into the database.

HIPAA – use AHP guidelines for HIPAA. Remember you need to mention the opt out and make it visible enough.

Demographic information permitted:

• Name
• Address
• Email
• Phone
• Gender
• Date of birth
• Insurance status
• Dates of service

Evaluate patient census and look for matches with current donors. It will also provide new prospects for you. Remember relationship factors to manage the prospect flow. Someone who has already given is more important. Someone who has attended an event is more important. More recent donors first. $1,000 or more first. Especially important with a small staff. Then work top down.

If the person is not already in your system, look at wealthy cities and zip codes, wealth attributes. Also, look at number of visits. Those who have been in during the last 6 months are more important.

Have immediate alerts are sent to MGOs if an assigned prospect or trustee is in the hospital.

In-facility visitation – make contact with patient and/or family by foundation staff, designated patient services officer, or physician representative; goody bag to be received prior to discharge can include a note pad, lotion, comb, case statement, annual report, patient brochure, reply device (some or all of these).

Post-visit follow up – assign MGO, track in donor management system, if not qualified for personal follow up use direct mail (monthly is ideal).

Physician referrals – a physician leader helps sell to the medical staff, recruit a core group of physicians, train, follow through when they refer a donor, and then report results.

Direct mail (Penn Medicine) uses quarterly discharge list from IT to:

• Filter out current donors
• Filter out poor performing zip codes
• Filter out Medicaid or self pay
• Screen list segment by capacity and other wealth indicators

This article is part of a series. To read the rest of the series, please click the links below:

• Healthcare Prospecting for Major Gift Officers (part 3 of a series)
• Healthcare Prospecting for Major Gift Officers (part 1 of a series)

Permanent Link: Healthcare Prospecting for Major Gift Officers (part 2 of a series)

http://majorgiftsguru.com/2009/11/healthcare-prospecting-for-major-gift_15.html

Advice from Major Gift Donors Who Are Also Fundraising Volunteers (part 2 of a series)

Advice from Major Gift Donors Who Are Also Fundraising Volunteers (part 2 of a series)

by Tom Wilson Major Gifts Guru

I recently served as one of the faculty for PLAN MGO, an immersion training program for major gifts officers. The second day of our classes featured two New England donors who both have extensive experience as volunteer fundraisers. I captured some of their comments:

Steve

“Realize you major gift officers are in the relationship business.

“Be known as a great listener.

“I see a trend where really large organizations are getting more professionals to do the fundraising. That’s okay, but it’s driving folks like me to smaller organizations where I can still make a difference. I’m not so valuable any more at the big organizations. Our family will still give to them even if they are following what I call the university model of fundraising. I want a total relationship with organizations we give to. I want a place where I can play a transformational role. Right now that’s with a local women’s shelter. I like this place because we’re changing lives.

“Here are 10 best practices for nonprofits and fundraising

1) “I like organizations that are fast, flexible, and entrepreneurial.

2) “I like to envision a 'career' path as a volunteer leader for me and for others. I challenge people to be a leader right now, even if they are young. We need more than $, we need great people.

3) “I want a respectful partnership with the professionals and the volunteers at the organization. The leaders need to articulate this respect.

4) “The underserved inspire my giving

5) “Stewardship is important. Thank us over time. I treat my fellow donors as investors. I want them to get an investor’s report from the nonprofit.

6) “A good solicitor understands needs and believes in the cause. You must have an emotional attachment to the organization. I want to learn something as I do my volunteer work.

7) “I expect the nonprofit CEO to be inspirational. Get me involved in your vision for the future. You can make changes as the plan unfolds, but show me a path.

8) “I want to see a maximum amount of contributed dollars going to services not to management and fundraising.

9) “Do your homework. Do the research to make me comfortable in asking a donor for a gift. And be patient with my process. I want to build a relationship before the ask so it may take a couple of meetings before I make the ask.

10) “Use my time effectively and wisely.”

He also added one additional comment – “make fundraising fun. People want to have an enjoyable time with good people.”

“My three building blocks of life are: 1) family, 2) friends, and 3) community.”

This article is part of a series. To read the rest of the series, please click the links below:

• Advice from Major Gift Donors Who Are Also Fundraising Volunteers (part 1 of a series)
• Advice from Major Gift Donors Who Are Also Fundraising Volunteers (part 3 of a series)

Permanent Link: Advice from Major Gift Donors Who Are Also Fundraising Volunteers (part 2 of a series)

http://majorgiftsguru.com/2009/11/advice-from-major-gift-donors-who-are_12.html

Major Donor Motivations for Giving

Major Donor Motivations for Giving

by Tom Wilson Major Gifts Guru

One of my favorite studies on major donor motivations is the Prince & File book, The Seven Faces of Philanthropy.

Published in 2001, this study was done as a collaboration between a major gift fundraiser and a university school of business faculty member. They surveyed donors with a cash net worth of $1 million or more who had made gifts of $50,000 or more in the past year.

The data can be found in the chart above.

Religious 21% – this is less than the 35% that Giving U.S.A. finds for the entire donor universe. Please realize this number can vary in different parts of America. For example, in my work in Utah I this percentage is much higher because of the strong Mormon tradition of tithing. In the Pacific Northwest the percentage is probably far lower as Oregon and Washington are among the least churched states in the union.

Altruistic 9% – only a small percentage give just because they are generous and kind hearted.

Dynasts 8% – family traditions of giving. When I worked in Chicago many years ago many of my donors gave because their grandfathers had been on the board. Family giving was expected. In the Western United States with so much new wealth, the first generation is just learning to be philanthropic.

Repayer 10% – giving to a charity who helped the donor. I knew one minister who had gotten a scholarship to Yale Divinity School who has given, and intends to give, $100 a month to help future students.

Investor 15% – saving taxes and helping charity. When I started in fundraising 30 years ago we thought most of philanthropy was motivated by getting a tax break. The tax rate was 78% at the time. As taxes have been cut, giving keeps going up. So, we found that avoiding taxes is only a minor motivator for donors.

Communitarian 26% – the highest motivation for donors is to give back to communities where the donor has made their money. In the Western U.S. where dynasts and religious giving may be lower than other regions, communitarian giving is very high.

Socialite 11% – giving for social reasons and to party. This is why we’ll always have special events (oh well).

If you’d like a copy of the chart above, just send me an email.

Permanent Link: Major Donor Motivations for Giving

http://majorgiftsguru.com/2009/11/major-donor-motivations-for-giving.html

Healthcare Prospecting for Major Gift Officers (part 1 of a series)

Healthcare Prospecting for Major Gift Officers (part 1 of a series)

by Tom Wilson Major Gifts Guru

I captured this information from a session at AHP International (San Francisco, September 2009) – “Prospecting for Success: Creating a data-driven program that yields results” by Sally Boucher, WealthEngine & Nancy Lee, Director of Research, Jefferson Foundation, Philadelphia, Pennsylvania.

A major gifts program drives high ROI (Return on Investment). Average data for mature programs show an ROI of 80% for the entire program 80% according to Greenfield – Fund Raising: Evaluating and Managing the Fund Development Process. Aspects of a mature program are: Direct mail acquisition 15% ROI Special events 50% ROI Direct mail renewals 80% ROI Foundation / Corporate 80% ROI Major Gifts 90% ROI

As you look at prospective donors to identify and qualify them consider the following data:

• Job titles
• Wealthy zip codes
• Charitable giving
• Foundation assets
• Political giving
• Real estate (especially if they have multiple properties)
• Stock holdings

Predictive modeling works with organizations with a track record of giving. Look at your best donors: How many events have they attended versus nondonors? Zip code patterns – are there places where you can detect a pattern of stronger first gifts than from other areas? If so, then concentrate more of your work in that geography. With a large enough file with enough giving histories you can run your entire file to see who is most likely to give in the future.

This article is part of a series. To read the rest of the series, please click the links below:

• Healthcare Prospecting for Major Gift Officers (part 3 of a series)
• Healthcare Prospecting for Major Gift Officers (part 2 of a series)

Permanent Link: Healthcare Prospecting for Major Gift Officers (part 1 of a series)

http://majorgiftsguru.com/2009/11/healthcare-prospecting-for-major-gift.html

Advice from Major Gift Donors Who Are Also Fundraising Volunteers (part 1 of a series)

Advice from Major Gift Donors Who Are Also Fundraising Volunteers (part 1 of a series)

by Tom Wilson Major Gifts Guru

I recently served as one of the faculty for PLAN MGO, an immersion training program for major gifts officers. The second day of our classes featured two New England donors who both have extensive experience as volunteer fundraisers. Some of their comments are captured here.

Russell

"Rather than just asking for a major gift I always ask people for an even greater gift to our cause – their time.

"Capital campaigns are like sprints. Keep the energy and finish quickly. I don’t like long campaigns.

"Never let a donor pay off a 5-year pledge. By year 2 you need to be meeting with the donor to tell them the impact of their current pledge. In year 3 start gathering ideas from the donor on their future interests in your organization. Year 4 bring back some projects that incorporate these interests with your organization’s plans for the future. Ask advice on how to design the program. In year 5 ask for a new 5-year pledge to fund their new ideas. If they pay the pledge off early, hurry up this process.

"Events – follow up after the event. Touch each person. If you feed ‘em, ask ‘em.

"I see too many times where everyone is scared to call on 'Mr. Big' to get a lead gift. Don’t be afraid. Mr. Big may be wondering why nobody has asked yet. He wants to be included. And, always remember it’s easier to get a $250,000 gift than a $25,000 gift.

"Believe in yourself. Realize all of us are self employed. Sure, some of us get a pay check from a company or nonprofit organization, but we all work for ourselves.

"I always tell people 'give until it feels good.'”

This article is part of a series. To read the rest of the series, please click the links below:

• Advice from Major Gift Donors Who Are Also Fundraising Volunteers (part 2 of a series)
• Advice from Major Gift Donors Who Are Also Fundraising Volunteers (part 3 of a series)

Permanent Link: Advice from Major Gift Donors Who Are Also Fundraising Volunteers (part 1 of a series)

http://majorgiftsguru.com/2009/11/advice-from-major-gift-donors-who-are.html

Advice to a New Major Gifts Officer (part 3 of a series)

Advice to a New Major Gifts Officer (part 3 of a series)

by Tom Wilson Major Gifts Guru

I was recently hired by a mid-sized nonprofit to run its major gifts operation. Although I've worked in development before, I have never held this particular role. I'm writing to ask you for any advice you might have for a new major gifts officer.

In the first 3 articles in this series I talked about finding out about your top donors to build a major gifts annual giving society. The next step is to visit donors to sharpen gift club benefits, to review lists of names to see who else could join, and to determine how each donor could help in this recruitment.

Of course file contact reports after each visit. Follow up to close new gifts you have detected and to recruit volunteer leaders for your gift club.

The next startup step is to focus internally.

What is your case for support? In tough times why should a donor choose to give to you instead of their other causes? What makes you unique to the donors? As the new kid on the block, what can you learn from your organization’s leaders and program managers that would amaze and delight donors?

Go interview senior management, long-term board members, and staff leaders of your service delivery programs to build your case for support. Write up each interview to reflect on what you’ve heard. As you meet with people, ask them for images (pictures, graphs, diagrams) to show your nonprofit in action.

Also read all recent accreditation reports, major grant proposals, annual reports, direct mail letters, press releases, and other official documents that help tell your organization’s story.

Then start writing an outline case for support (or use PowerPoint) to come up with 20 to 30 slides to tell your story. Your case should include:

• how you benefit and impact the community with photos of peoples' lives you impact
• why you’re unique and special and therefore worthy of support
• the challenges the organization faces that could be solved through more resources (money and influential volunteers)
• then your fundraising programs and opportunities for donors to help

Remember in outlining – 5 to 7 words per bullet point, 3 to 5 bullet points per slide (or page), a picture or graphic chart for each page, a story for each page that brings one of your points to life. Go for simplicity and clarity.

Once you have gone through 5 drafts circulate it to your internal interviewees to seek their advice and improvements. Then go back to your best donors to see how they would improve it.

Now you’re ready to share it with potential donors.

Good luck in this new job. Keep me posted on your progress. For my readers, what others suggestions would you provide?

This article is part of a series. To read the rest of the series, please click the links below:

• Advice to a New Major Gifts Officer (part 1 of a series)
• Advice to a New Major Gifts Officer (part 2 of a series)

Permanent Link: Advice to a New Major Gifts Officer (part 3 of a series)

http://majorgiftsguru.com/2009/11/advice-to-new-major-gifts-officer-part_04.html

Inside Story on a $1.5 Billion Capital Campaign (part 4 of a series)

Inside Story on a $1.5 Billion Capital Campaign (part 4 of a series)

By Tom Wilson Major Gifts Guru

Notes from an AHP International presentation (9/09) from David Woodruff,

Executive Director and COO for Development for Massachusetts General Hospital

Final Comments as You Plan a Campaign

Ask the tough question – “Is a campaign necessary?”

The good part of campaigning is that it sets an institutional goal and challenge. Woodruff noted: “For MGH we’re so big we needed the energy of a campaign to unite the Hospital.”

For Massachusetts General Hospital campaigns:

• Force strategic thinking and promotes cross fertilization of disciplines
• Unifies themes and a marketing image
• Builds institutional constituencies versus the departments
• Encourages institutional investment in development
• Demonstrated community impact – has turned out to be very important
• Position your heritage and your vision for the future.

What types of projects got included in their campaign?

1) Institution-wide priorities

2) Physician and departmental leadership

3) Existing core of volunteers

4) Market appeal

5) Implementation of a multi-disciplinary approach

Challenges ahead – keeping the annual fund moving for unrestricted giving; building a culture of volunteer fundraising (they only have a 14 member board with half of them physicians), moving beyond grateful patients to potential donors in the community.

“We try to show how Mass Gen benefits the economy and the community. We know we haven’t told our story to enough of the right people. We’ve got to let people know of our phenomenal accomplishments.”

This post is part of a series. To read the other posts in the series, please click the links below:

• Inside Story on a $1.5 Billion Capital Campaign (part 1 of a series)
• Inside Story on a $1.5 Billion Capital Campaign (part 2 of a series)
• Inside Story on a $1.5 Billion Capital Campaign (part 3 of a series)

Permanent Link: Inside Story on a $1.5 Billion Capital Campaign (part 4 of a series)

http://majorgiftsguru.com/2009/11/inside-story-on-15-billion-capital.html

Advice to a New Major Gifts Officer (part 2 of a series)

Advice to a New Major Gifts Officer (part 2 of a series)

by Tom Wilson Major Gifts Guru

I was recently hired by a mid-sized nonprofit to run its major gifts operation. Although I've worked in development before, I have never held this particular role. I'm writing to ask you for any advice you might have for a new major gifts officer.

In the first article of this series I suggested you set up an annual giving major gifts club. I also recommended that you look at your top donors of the past year or two to look for giving patterns and levels to set your club at.

Once you’ve made your analysis, go to the top two or three tiers of donors (for our example the top 8 giving $2,500 or more) to ask their advice. Let them know of your plans and have them react to the gift club level. Show them the current members list at each of your proposed levels to see what they would recommend.

Your initiative thought of seeing your major gift donors is correct. But, why do they want to see you? Have an authentic agenda to make your get-acquainted visits more comfortable for them. By discussing your new gift club you have an authentic reason to meet with your best donors. Find out:

• Why they give?
• What motivates them philanthropically?
• Ask how they could be helpful in developing your gift club benefits that would attract new donors?
Which of them is willing to ask others for money?
• If they don’t like to ask, could they host a home or club event to share your story?
• And, who else should you be calling on? Who could be invited to cultivation events?

As you meet with people, create a list of all donors (top down) for the last 3 years so donors can review the list (200-300 names). By showing a list of names you’ll get your current donors to qualify the people who have already given some type of gift before. Can they give more? Who is connected enough to help you get a meeting. And, in looking at a list, new names will surface.

In Gladwell’s The Tipping Point he talks about the law of the few – mavens, connectors, salespeople. You want to determine which attributes your best donors have.

• Who are the real champions and visionaries?
• Who may be weak on the message but are connected to everyone and can open any door?
• And, who are the few who can close the deal and help you meet your fundraising goals?

Sometimes one person will do all 3 jobs – but my experience indicates that’s about 1% of your donors. Some can do 2 of the 3 tasks and almost everyone can do 1 of the 3. Just listen hard to determine where they are comfortable. Be patient. Sometimes it takes multiple interactions to develop a relationship and to build trust.

Work top down. Build relationships with the biggest donors first as they will know other people like themselves.

This article is part of a series. To read the rest of the series, please click the links below:

• Advice to a New Major Gifts Officer (part 1 of a series)
• Advice to a New Major Gifts Officer (part 3 of a series)

Permanent Link: Advice to a New Major Gifts Officer (part 2 of a series)

http://majorgiftsguru.com/2009/11/advice-to-new-major-gifts-officer-part.html