Accounting Departments

1. Accounting Departments Whither Private Fund Raising & Development? or Nobody Told Me I’d Be Raising Money!

2. As A Leader For My Department, I Expected to: • Recruit the Best Students • Hire and Retain the Best Faculty • Encourage Junior Faculty • Cajole Senior Faculty • Worry About Ratings • Agonize Over Threatened Budgets • Play Politics With My Dean Don Gray, UW Foundation

3. But Nobody Told Me I’d Have to Raise the Money for All This Stuff • Recruit the Best Students • Hire and Retain the Best Faculty • Encourage Junior Faculty • Cajole Senior Faculty • Worry About Ratings • Agonize Over Threatened Budgets • Play Politics With My Dean Don Gray, UW Foundation

4. So How Can I • Have the right attitude towards raising this money? • Understand what it’s all about? • Internalize how to do it? • Motivate others to help me? • Learn to like doing it? Don Gray, UW Foundation

5. So How Can I • Have the right attitude towards raising this money? • Understand what it’s all about? • Internalize how to do it? • Motivate others to help me? • Learn to like doing it? Don Gray, UW Foundation

6. “You want to compose a good world. It is an honorable and noble profession.” - Maya Angelou Don Gray, UW Foundation Don Gray, UW Foundation

7. Gifts and Donations AGIFTis a tangible symbol of feelings between people ADONATIONis a tangible symbol of support to a cause Don Gray, UW Foundation

8. Development and Fund Raising AGIFTis toDEVELOPMENT as ADONATIONis toFUND RAISING Minor Point (or is it?): a person making agiftis agiver a person makingadonationis adonor Don Gray, UW Foundation

9. Inappropriate Terms • hit up • put the arm on … • squeeze • loaded • … should give • … ought to give • … owes us • pass the hat • get into his/her pockets Don Gray, UW Foundation

10. So How Can I • Have the right attitude towards raising this money? • Understand what it’s all about? • Internalize how to do it? • Motivate others to help me? • Learn to like doing it? Don Gray, UW Foundation

11. ANNUAL FUND DONATIONS • Frequently Given and Asked For • From Discretionary Income; Little Decision Making; Decision is Immediate; Spouse Often Not Involved • 2-5% of Annual Gross Income (To All) • Sustaining/Operational Fund • Direct Mail/Events/Telethon • 90% of gifts; 10% of dollars • Most major gifts come from annual fund donors Don Gray, UW Foundation

12. Importance of Annual Fund in Major Gift Activity • For all givers to universities who make a first “major gift” of $25,000 or more, • 75% made a first donation to the university of $250 or less in response to the annual fund • 83% have made smaller level donations (annual fund donations) for at least 5 years; almost 60% for at least 11 years • Concept of Annual Fund as Living Endowment ($100K annually equates to an endowment of $2 million) Don Gray, UW Foundation

13. MAJOR GIFTS • Infrequently Given and Asked For • Made from Assets; Stop/Think Gift; Longer for Decision; Spouse Involved • Requires Development of Relationship • Special, Targeted Projects • 10-20x Annual Gift or 2-4% of Net Income- Producing Assets • 10% of gifts; 90% of dollars Don Gray, UW Foundation

14. Accounting Department Advantages in Major Gift Work • Accountants understand giving • Accountants seldom give to any place within a university other than to their accounting departments • Accounting firms tend to have matching gift programs • All partners are capable of major giving • Accounting firms need your graduates as employees • Many accountants end up as CEO’s or CFO’s Don Gray, UW Foundation

15. Top Three Reasons People Give Major Gifts • Belief in Mission and Stability of the Organization • Sense of Civic Responsibility • High Regard for Staff and Volunteer Leadership Don Gray, UW Foundation

16. “Charitable giving isn’t the ultimate test of one’s humanity but it gives us some numbers to play with.”

17. Bottom Three Reasons People Give Major Gifts • Guilt and Obligation • Promotional Materials and Proposals • Tax Considerations (probably more important for accountants than others) Don Gray, UW Foundation

18. So How Can I • Have the right attitude towards raising this money? • Understand what it’s all about? • Internalize how to do it? • Motivate others to help me? • Learn to like doing it? Don Gray, UW Foundation

19. Successful Development THE MYSTICAL MINGLING OF A JOYFUL GIVER AN ARTFUL ASKER A GRATEFUL RECIPIENT Don Gray, UW Foundation

20. The Cycle of Successful Development Creating the Joyful Giver Attention Initial Contact Interest Desire Additional Gift Interest maybe Action Identification Making the Artful Ask ShowCreativity yes Invoking the Grateful Recipient no,no,no acknowledge Don Gray, UW Foundation

21. So How Can I • Have the right attitude towards raising this money? • Understand what it’s all about? • Internalize how to do it? • Motivate others to help me? • Learn to like doing it? Don Gray, UW Foundation

22. Enlisting Support to Help • Educate your faculty on benefits of a successful program • Choose your external advisory board carefully, looking for the 5 W’s • Convince your dean that your success is his/her success • Be successful Don Gray, UW Foundation

23. The Five W’s of Being an Effective Advisory Board Member Wisdom Work • Wow Advisory Board Wealth Wallop Don Gray, UW Foundation

24. So How Can I • Have the right attitude towards raising this money? • Understand what it’s all about? • Internalize how to do it? • Motivate others to help me? • Learn to like doing it? Don Gray, UW Foundation

25. Learning to Enjoy Development • Realize that everyone “out there” loves you • You make great friends • You make alumni/friends feel good • You take your department to a new level • You truly do “compose a good world” by attracting the funds that can your department responsive to student, faculty, and program needs. • It is indeed noble work Don Gray, UW Foundation

26. Techniques of Making an Artful Ask February 5, 2001 Donald R. Gray University of Wisconsin Foundation

27. The Cycle of Successful Development Creating the Joyful Giver Attention Initial Contact Interest Desire Additional Gift Interest maybe Action Identification Making the Artful Ask ShowCreativity yes Invoking the Grateful Recipient no,no,no acknowledge Don Gray, UW Foundation

28. Major Issues in Asking • When is the timing right? • How much do you ask for? • Who makes the ask? • Where is the best location to make an ask? • How do you make an artful ask? • Common pitfalls in making an ask? • How do you respond to objection? • How do you follow up? • What do you do if the answer is “no”? • What do you do if the answer is “yes”? Don Gray, UW Foundation

29. When is the timing right? • Should be a natural flow in the process (cycle) • Listen for signals: Listen, Listen, Listen • Develop a “touch” for knowing • Remember: this is an art, not a science Don Gray, UW Foundation

30. How much do you ask for? I haven’t got a clue! • If you’ve had good prior contact, you’ll have a good idea • Ask for somewhat more than you expect • Ask specific amount or list of levels • Expect to discuss • Form of gift (payment period; endowment or annual; combo with planned gift; etc.) Don Gray, UW Foundation

31. Who makes the ask? • Whoever is most appropriate • Consider team approach • Caution when using volunteers: • need training • often are uncomfortable Let’s see, now, who gets this assignment? Don Gray, UW Foundation

32. Where is the ask made? • Wherever the potential giver is most comfortable • Avoid noisy restaurants • Best places: donor’s home, with spouse; office; club; dean’s or president’s office; favorite place on campus • Pay attention to setting; make it classy home office campus restaurant ? Don Gray, UW Foundation

33. How do you make an Artful Ask Don Gray, UW Foundation

34. Making the Artful Ask Attitude is Everything

35. bestow honor/praise on potential giver show your organizational pride (knowledge, commitment, passion) be considerate; ask for consideration state specific amount state specific purpose shut up How do you make an Artful Ask Don Gray, UW Foundation

36. bestow honor/praise show organizational pride be considerate; ask for consideration state specific amount state specific purpose shut up Joe, we know you have a lot of money. Your career as a successful accountant is because of the education you received at good ol’ State U. We need your money because our accounting curriculum is in disrepair. We think you should establish a professorship in accounting. You get a whopping tax deduction, and all of us can use that, can’t we? By the way, how’s your golf game? Is This an Artful Ask? Don Gray, UW Foundation

37. bestow honor/praise show organizational pride be considerate; ask for consideration state specific amount state specific purpose shut up Joe, you are one of the most successful and most highly respected professionals in the field of accounting, and you bring honor to State U in so many ways. It would be a distinct privilege for State to have your name and reputation forever imprinted on our outstanding and growing accounting department. Would you consider a gift of $250,000 to establish the Joe Goodfellow Professorship in Accounting? Is This An Artful Ask? Don Gray, UW Foundation

38. Would you hire Snoopy’s brother Spike as your development director?

39. What are the common pitfalls in asking? • We talk too much • Ask sounds cold or inconsiderate • We use words like “should” and “ought” • We ask apologetically and are embarrassed • Eye contact breaks down • The ask is rushed • We break the silence too soon after ask is made Hee Haw Don Gray, UW Foundation

40. How do you respond to objections? • “I’m a bit strapped right now. You know, kids in college, building a new house, the divorce is killing me, etc.” • “I give to so many different causes, I don’t know how I can expand to include the university” • “Oh my goodness, I don’t have that kind of money?” • “The last time I gave to your institution I didn’t even get a thank you letter!” • “What possible impact can my modest gift make?” Don Gray, UW Foundation

41. How do you follow up? • Seldom will you close a major gift on the asking call • Plan ahead for following up • Before the meeting ends, make sure the potential giver knows the next step: who will contact whom; when; contingencies Don Gray, UW Foundation

42. What do you do if the answer is “no”? • Realize there are many reasons for a “no”: • timing is bad • project is wrong • amount of ask is wrong • wrong person asked • not enough time “creating joyful giver” • Three “no’s” is halfway to a “yes” • Be considerate, thank the person, continue contact, listen for signals Ugh Don Gray, UW Foundation

43. What do you do if the answer is “yes”? • Make sure all appropriate people say “thank you” • Design a creative plan to continue saying “thanks” • Continue visiting the giver and listening for next opportunity • Keep working the Cycle!!!!! Yippee Don Gray, UW Foundation

44. Conclusion • For successful development at your department, you are • the catalyst • the cheerleader • the visionary • It’s your vision, your knowledge, your passion, and your enthusiasm that will make it succeed • Good luck and go forth joyfully, artfully, and gratefully. It is noble work! Don Gray, UW Foundation

46. But Be Careful: Different Strokes • Traditionalists (born prior to WWII) • Boomers (born 1945 - 1965) • X (Next) Gens (born 1966-1988) • Echo Boomers (young-uns) Each of these groups thinks differently and requires special understanding Don Gray, UW Foundation

47. Traditionalists • Major life events forming their values and thought patterns: • The Depression • World War II • The Atom Bomb • Attitudes toward giving • Sense of “giving something back” • Great loyalty to institutions they love • Quid pro Quo less important • Understand philanthropy Don Gray, UW Foundation

48. Boomers • Major life events forming their values and thought patterns: • Assassinations • Vietnam • Watergate • Questioning of Institutional Values • Attitudes toward giving • Show me why I should give • What’s in it for me? • Think social investment Don Gray, UW Foundation

49. X (Next) Generation • Major life events forming their values and thought patterns: • Computers and Technology • Economic Boom (never seen a bear market) • Impatient Society • Attitudes toward giving • Not yet sure, but • Will probably involve technology • Will inherit trillion • Think venture capital for social improvement Don Gray, UW Foundation