The Art of Donor Cultivation and Friend Raising

1. The Art of Donor Cultivation and Friend Raising From Suspect to Prospect to Donor February 17,2003 © Tamarack – An Institute for Community Engagement & Wayne Hussey Consulting Inc. 2003.

2. A way of thinking • None of us will knowingly invest in confusion • We will not knowingly support mediocrity • We will not knowingly compensate for inefficiency • We are not comfortable giving to strangers • We will give funds to those people or organizations that we believe in and trust

3. Need is not enough • With more than 80,000 charities in Canada and even more not for profits we are working in a crowded house • The many charities that are successful in fundraising know that they make friends first and ask for funds second • We all know how to make friends

4. Remember • We meet someone new and begin a careful investigation of whether we have anything in common or not • If we find some commonalities we may continue to engage with that person and the relationship grows due to even more common interests, value and views or remains a simple acquaintance • Relationships require ongoing contact to remain healthy and positive

5. Which way do you want to raise funds • A stranger asks a stranger for a gift and it is usually a difficult situation for both parties – gifts are small and few • A new acquaintance is asked for money which usually strains the relationship – are they interested in me or my money? More gifts but again usually small and one time • A friend asks a friend for support and the gift is almost always made, can be quite large and both parties feel good

6. Information • What do we tell them? • How do we deliver • the message? Identification • Who is a prospect? Interest • It must be built! Investment • Not the end, nor • the beginning • of the end, but the • end of the beginning Involvement • From outsider to insider The Prospect Cultivation Cycle (“I” Cycle)

7. Board Current Donors Sympathetic Sectors Volunteers & Staff Universe of Prospects Demographic & Psychographic The Best Prospects

8. Sources of Donation in Canada (1991-1995) 3.5 3 2.5 Corporations 2 Foundations Individuals 1.5 1 0.5 0 1991 1992 1993 1994 1995

9. Internal constituencies • People we already know will want to give because of their current affiliation with us • Project steering committee • Leadership round tables • Sponsoring or founding members and agencies • Past donors to like projects • Etc.

10. Sympathetic sectors • Corporations with a demonstrated social conscience • Philanthropists with evident support for similar types of projects or aligned with the concept of reducing poverty • Foundations • Service Clubs • Not for profit agencies • Don’t forget the faith community

11. Prospect identification & research • Involves basic and sophisticated processes: • basic info re: background, family, education, clubs, affiliations, financials, directorships, giving interests, gift records, colleagues, associates, advisors • record of contacts with institution • Estimating giving potential involves uncovering information • Measurements of inclination to give are less precise, more subjective, but very important • Overall goal is to be efficient and effective

12. Prospect rating • Involves basic and sophisticated processes: • basic info re: background, family, education, clubs, affiliations, financials, directorships, giving interests, gift records, colleagues, associates, advisors • record of contacts with institution • Estimating giving potential involves uncovering information • Measurements of inclination to give are less precise, more subjective, but very important • Overall goal is to be efficient and effective

13. How do we get this information? • We visit the suspect to determine if they are a prospect - interest • We visit the prospect to qualify if they are a major prospect or not – capacity • Do you like what we are trying to do? • Is now an appropriate time to ask you to share your personal (corporate) resources? • Are you one of the few people who can make a major gift to Vibrant Communities?

14. Prospect rating • Preliminary rating done by staff and validated by volunteers • Staff rating more technical, volunteer rating is more subjective • The more knowledgeable the individual is the better the rating, but it is never exact • Where potential exists, but inclination doesn’t, prospects must be moved through the “cultivation cycle”

15. Cultivating major gifts • What is it? • a systematic, continuing effort to identify, inform, generate interest, secure involvement and ultimately investment • Takes months – even years!! • A continuing cycle of: • learning/gathering information about potential donors • heightening their interest • encouraging meaningful involvement

16. Cultivating major gifts • We track our progress • Each donor is an individual • Tracking confirms progress • It ensures we maintain momentum over long periods • It makes us focus our attention on top prospects • It facilitates meaningful reporting • Through it we develop a written “institutional memory” of interactions with our prospects • Each prospect is assigned to a staff member and volunteer who designs a “personalized Campaign” • Follow-through is critical: typically 2-3 contacts to get a gift

17. Why people give • To make a difference • To fulfill their personal goals or promises • Recognition • They identify with the cause • Familiar with the institution • They know & respect the people involved • They have the means • See an opportunity • Because we ask

18. Why People Give to You “The 3 C’s” Commitment Max. Gift Capability Contact

19. Goals of a visit • To inform • Build interest • To solicit feedback • Seek common goals • To ask for a gift • To secure the gift

20. Starting the process • Find the right ambassador • Write out a cultivation plan • Where and when should the first visit be • How do we communicate that we are not asking for money (at least not now) • What is the outcome we want for the first visit • What is our ongoing communication plan so that they receive some type of communication every month – phone call, fax, email, letters, press coverage

21. Cultivation events • Bringing more than one prospect together for cultivation • Receptions • Tours • Speaking engagements • Celebrations • Etc.

22. Patience is a virtue • We must continuously evaluate what messages we are receiving from our prospects • They will tell us how fast or slow to go • They will tell us what they need from us to garner their trust • They will even tell us when they want to be asked and even for how much

23. The Art of Donor Cultivation and Friend Raising From Suspect to Prospect to Donor February 17,2003 © Tamarack – An Institute for Community Engagement & Wayne Hussey Consulting Inc. 2003.