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Presentation Objectives

Building Donor Relationships: It’s a Process, Not an Event! Larry P. Stelter President/CEO The Stelter Company larry@stelter.com . Presentation Objectives. Prospect identification Obstacles to your success Donor-focused behavioral model

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Presentation Objectives

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  1. Building Donor Relationships:It’s a Process, Not an Event!Larry P. Stelter President/CEO The Stelter Company larry@stelter.com

  2. Presentation Objectives • Prospect identification • Obstacles to your success • Donor-focused behavioral model • Face-to-face communication system • Key to success

  3. A. Identification of Prospects 1. Giving history of your donors - consistent 2. Age of donors – 60+ 3. Research income & wealth of donors 4. Targeted groups – seniors, women & advisors 5. Lapsed, older donors –still love you but on fixed income

  4. B. Obstacles to your success 1. Procrastination 2. Turnover of fundraising staff 3. Immaturity of donor base 4. Patience & involvement of board 5. Technical paralysis 6. Communicating your mission

  5. C. Communication Methods: 1. Direct mail & expectations A. Educates & builds awareness of giving options - NCPG survey - 5% in 1992 and 34% in 2000 heard about planned giving from charities via direct mail-63% for CGA B. Lead generation - measurement of success (MOS) - follow-up on response cards

  6. Communication Methods: C. Motivate to seek more advise from professional advisors - MOS - recognition club growth and networking - NCPG survey - 21% heard about PG options from advisors D. “Break the ice” - MOS - make calls - NCPG survey - 11% heard about PG options from charity representative

  7. Communication Methods: 2. Wills/estate planning seminars 3. Recognition clubs – charitable intent 4. Gift receipt enclosures – buck slips 5. Organizational magazine articles 6. Internet - 55+ are fastest growing group to use the net - wealthy, educated & they have the time

  8. Online Giving Trends • $250 million was contributed in 2000 up from $10 million in 1999 • $1.9B estimated given in 2003; $3B in ‘04 • Harvard Univ. predicts that by 2010, 1/3 of all gifts will be given online, representing approximately $64 billion

  9. Why Use the Internet? • Seniors are online: • 55 to 64 age group – 57% regular users • 65 to 74 age group – 36% regular users • 75+ age group – 16% regular users • Get in front of all your prospects more frequently at low cost & limited effort • Baby boomers (40 to 57 years of age) are already into the web

  10. Planned Giving Web Essentials • Content, content, content – rules the web • Embed interactivity in content – calculations and material requests • Update your content frequently • Make it easy to contact you via the web • Create internal navigation • Measure your marketing results

  11. Essential #1 – Content Rules • Senior visitors have time to read – let them choose how much to read • Offer the visitor enough content so they will stay and/or return • Change articles for return visits • Email address book - let them know when new content is available – new testimonial or law change – avoid email fatigue

  12. Essential #2 – Interactivity • Offer gift calculator on home page • Embed gift calculation opportunities within content • Give visitor opportunity to request additional material – ebrochures • Involve visitors with quizzes, interactive decision tree and gift matrix • Make it easy for them to contact you

  13. Essential #3- Navigational Loops • Create loop to recognition page • Connect to “sample bequest language” • Connect to “contact us” pages • Loop to testimonial/donor profiles pages • Loop to “giving online” page • Connect to “professional advisors” content

  14. Internet Marketing Challenges • Poor navigation – clicks & words • Too many clicks to find it • Key words don’t define link • Inadequate marketing • How to measure results?

  15. Challenge #1– Poor Navigation • You missed the internet marketing meeting or webmaster doesn’t like you • Your webmaster doesn’t know your department exists or doesn’t realize its value • Visitor can’t find development page - let alone planned giving content

  16. Challenge #2- Labels • Word links don’t define where you want your visitor to go next • Alumni and friends – events, calendar or gifts? • Make a donation – too aggressive if first link • Planned giving – how many visitors understand this term?

  17. Challenge #2 - Label Options • Supporting _________ • Give later • Foundation • Ways to give • Giving opportunities • Future gifts • Philanthropy

  18. Challenge #3 – Promote It • Must promote by traditional means the existence of the internet option • Use your current PG newsletter & reply card to promote availability of more information • Use “free ride” space for promoting 1. Organizational newsletters 2. Buck slips or gift receipt enclosures 3. Postcards

  19. Challenge #4 -Measurement

  20. Measurement – Returning Visitors • In 2004, total number of new visitors increased by 63% • In 2004, the number of returning visitors accounted for 31% of visits • Average visitor stay time: • 11 minutes in 2002 • 14.5 minutes in 2003 • over 20 minutes in 2004

  21. Measurement – Real Gifts • $1.5M bequest from 75 Yr. Old - $50/yr donor • $4,000,000 gift from “Legacy” page - 65 • $325,000 CRUT from advisor & alum – 63 • $2.5M deferred CGA – university donor • $100,000 CGA - 84 year old, non- donor alum • $1.5M CGA – hospital donor – 87 years old • $200,000 CGA – Harley-Davidson

  22. Communication methods • Personal contacting • Follow ups to marketing efforts • Personal interviews with donors/clients • Stewardship after giving decisions

  23. Brain-to-Brain Communication Receiver Sender FILTERS 6.

  24. Filters - assumptions or preconceived notions • They can interfere with getting the intended message to the receiver • Filters may relate to: • Age • Appearance • Status • Ethnicity • Gender • Color – blue or red states

  25. Proactive Behavior Fully responsible Conscious Thoughtful Planned Consistent with Values & Beliefs Reactive Behavior Unconscious Conditioned Without Thought Outside influences Provoked by Emotions Proactive vs. Reactive 7.

  26. Emotional Communication - Reactive • Reactive is usually not carefully thought through by respondent • Can also be verbal attack at someone or something seen as a threat • Words that describe emotional behavior: • Aggressive • Angry/Mad • Sad • Excited

  27. Nurturing Communication - Proactive • Nurturing phrases acknowledge the other person’s position without evaluating • Lets the other person know you are truly listening, which is the first step in building trust. • Examples: • “The way I hear it is…” • “You seem to be troubled by…”

  28. Nurturing Communication - Proactive • Summarize the content of the message AND the feelings of the other person, especially when there seem to be emotions interfering with the communication process • Examples: • “You sound pleased with the way it turned out.” • “It sounds like you’re concerned about that.”

  29. Nurturing Communication - Proactive • Nurturing phrases are often accompanied by questions. • This is helpful in encouraging others to say more about their position and why they feel the way they do. • Examples: • “I’m glad to help with that. How would you…?” • “I think I understand. Could you expand a bit more?”

  30. Rational Communication - Proactive • Involves stopping and thinking about your response • Deal with the emotions first – people can’t be rational until they are through the emotion • Rational communication may include: • Providing information in an objective way • Asking questions to clarify • Summarizing • Offering an opinion and then asking for a reaction

  31. Understanding Behavior Makes Us More Proactive • If I know what to look and listen for, I can PREDICT how you’ll react. • If I understand myself, I can better CONTROL the messages I send.

  32. Developing the Relationship Finding out whether you and your donor can trust and respect each other to take the relationship to a level that will allow you to provide the donor with what he/she wants. Discovering who the person is inside and how the donor got to be where he/she is, both personally and professionally. DISCOVERING THEIR PASSION!!

  33. D. Donor Behavioral Model More Powerful “D” Dominance “I” Influence Hostile Environment Favorable Environment “C” Conscientiousness “S” Steadiness Less Powerful

  34. Authority Prestige Control Status Choices Quick Decisions Task oriented Extrovert Direct Risk Taker Doesn’t listen Knows it all “Dominance” 10% OBSERVED BEHAVIOR WANTS

  35. “Influence” 30% OBSERVED BEHAVIOR WANTS People Oriented Extrovert Expressive Meanders Very agreeable Social Recognition Popularity Approval Quick Decisions

  36. “Steadiness” 35% OBSERVED BEHAVIOR WANTS People Oriented Introvert Hate Conflict Great Helpers Security Status Quo Loyalty Appreciation Slow Decisions

  37. “Conscientiousness” 25% OBSERVED BEHAVIOR WANTS Task Oriented Reserved Direct Analytical Cautious High compliance Autonomy Facts Personal Attention Loves to be Correct Consistency Very Slow Decisions

  38. Dominance – High D Minimize chitchat Get down to business Just a few comments on surroundings Stick to business Formal is safe Influence – High I Be warm and friendly Comment on & compliment their surroundings Being social is more important than business Be informal Trust Builders

  39. Conscientiousness–High C Be straightforward A little chitchat, then business Common experiences are less important than common values Be more formal Have an agenda Steadiness – High S Don’t rush to business Talk about family and long-term relationships Common interests are important Be patient – they may be slow to warm up Be informal & casual Trust Builders

  40. A Donor- centered System • Donors talk MORE than you do. • You ASK more than tell. • You talk about gift-giving options later. • You tailor your communication style to the needs of the donor.

  41. E. Face-to-face Communication System • Opening the meeting • Probing for personal needs • Explaining donor benefits • Nurturing concerns and objections • Understanding the “win-win” commitment • Preserving the relationship

  42. Donor Meeting Preparation Analysis donor’s behavioral style What else do you know about the donor Set realistic meeting objectives Plan the questions you’ll ask Plan for emotional responses, issues or concerns

  43. Step 1: Opening Donor Meetings Check personal appearance before visit Ask for permission to enter/where to sit Address the donor formally Add special care for those donors living alone Perform “sensory” checks

  44. Step 1: Opening Donor Meetings If hearing is a problem, don’t yell Be sensitive to those who are forgetful Be patient with repeated stories Adjust your approach to behavioral style of donor State the purpose of the meeting Get permission to ask questions.

  45. Step 2: Probing for personal needs People do things for their own reasons! We must discover: • Emotional Needs • Financial Issues • Decision making Process

  46. Probing for Emotional Needs • What are the reasons people become donors to your organization? Emotion = $$ • Develop the emotional need before presenting gift-giving options.

  47. Probing for Financial Issues • The size of the Emotional Need determines the size of the gift. (Postpone if you can until you’ve explored emotional needs.) • Discussing Financial Issues requires HIGH TRUST.

  48. Probing for the Decision Making Process • Know all the “players.” • How? When? Who? • Decision Making Roles: • Gatekeepers • Champions • Influencers • Decision makers

  49. Tools For Probing • Rephrasing • Reflecting Feelings & Content • Open Questions • Closed Questions • One Word Questions

  50. Step 3: Explaining Donor Benefits • What you need before you present: • Complete list of issues and needs important to donor • An understanding of the decision process • Mutual expectation that the donor will agree if all the issues and needs are met satisfactorily

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