Lecture #6 The Development Process

1. Lecture #6The Development Process “…People Give to People…” Myth: People Give to causes that need money Truth: People give to people who ask them to give to causes Individuals give from three sources: • Discretionary or disposable income • Their assets • Estates

2. Lecture #6 The Development Process Donor Source: Current Income Income, Assets EstatePlanning Assets Benefit: Ongoing Programs & Services Special Programs & Projects Buildings, Equipment, Endowment Endowment, Capital Annual Fund Major Gifts Program Capital Campaign Planned Giving

3. Lecture #6 The Development Process Objectives of the Annual Fund: • To solicit and secure a new gift, repeat, and upgrade • To build and develop a base of donors • To establish habits and patterns of giving by regular solicitation • To seek to expand the donor base through new prospects • To raise annual unrestricted and restricted money • To inform, involve, and bond the constituency to the org. • To use the donor base as a vital source of information to identify potential large donors • To promote giving habits that encourage the contributor to make capital and planned gifts • To remain fully accountable to the constituency through annual reports (discussed more in a future lecture)

4. Lecture #6 The Development Process No organization is similar; therefore needs different strategies and tactics to build and sustain a successful development program. The Development Officer’s Job… • to “Right Size” it for your organization’s needs Answer the following questions for direction: • What are the needs of your organization? • What are the resources available to you? • What champions to you have?

5. Lecture #6 The Development Process Stages of Development - moving up the Donor Pyramid

6. Lecture #6 The Development Process • Identify potential prospects • Compile and develop lists of predisposed individuals • Similar organization’s annual reports, book of lists, professional organizations, natural constituencies, etc.

7. http://www.nps.gov/partnerships/fundraising.htm

8. http://labspace.open.ac.uk/mod/resource/view.php?id=448021

9. Lecture #6 The Development Process • Convert potential prospects into qualified prospects • Test the list effectiveness by identifying linkages • Engage volunteers, staff (e.g. rating session) • May be combined with step 1 Who do you know?

10. Lecture #6 The Development Process • Convert qualified prospects into initial donors • Build on linkages, test interest by asking for gift • Solicit by personal contact (telephone, direct mail, special event) • Acknowledge gift (opportunity to validate the linkage; negate buyers remorse)

11. http://labspace.open.ac.uk/mod/resource/view.php?id=448021

12. Lecture #6 The Development Process • Convert initial giver into donor of record • Build on interests and linkages • Report to the donor how the organization used their gift • Invite to renew, Acknowledge

13. Lecture #6 The Development Process • Increase the gift • Research, building on linkages and interests • Inform (report on use), involve in organization • Invite to renew at a higher level (use gift club concept) • Acknowledge

14. Lecture #6 The Development Process • Secure Special Gift (e.g. $1,000) • Continue research through linkages, involve, build on interests • Align interests with a special need of organization • Personally solicit (face-to-face) , invite to gift club membership • Acknowledge

15. http://labspace.open.ac.uk/mod/resource/view.php?id=448021

16. Lecture #6 The Development Process • Secure Major Gift (e.g. $10,000+) • Validate donor as a major gift prospect via linkages and donor research (i.e. capacity) • Involve the donor in the institution via planning, case evaluation (“testing the case statement”) • As a loyal donor, ask him/her to participate in cultivation events or help in identifying new prospects; join board committee • Share needs of the organization; align solicitation to donor’s desires, face-to-face solicitation by CEO/Board Chair, acknowledge • Reward/Recognize

17. Lecture #6 The Development Process • Secure Major Gift (e.g. $10,000+) • Validate donor as a major gift prospect via linkages and donor research (i.e. capacity) • Involve the donor in the institution via planning, case evaluation (“testing the case statement”) • As a loyal donor, ask him/her to participate in cultivation events or help in identifying new prospects; join board committee • Share needs of the organization; align solicitation to donor’s desires, face-to-face solicitation by CEO/Board Chair, acknowledge • Reward/Recognize

18. http://labspace.open.ac.uk/mod/resource/view.php?id=448021

19. Lecture #6The Development Process • Secure Big Gift • Continue to involve and engage through linkages and interests • Employ donor as an important advocate; invite to serve as volunteer leader (board member); • Foster a desire to give and ask by involving in cultivation events and engaging his/her personal contacts • Ask, Acknowledge, Reward/Recognize

20. http://labspace.open.ac.uk/mod/resource/view.php?id=448021

21. Lecture #6 The Development Process • Secure Planned Gift • Continue involvement with the purpose to strengthen bond between the donor and the organization • Create feelings of belonging to and identifying with the organization • Foster mutuality of interests • Giving in perpetuity (endowment) or legacy

22. Lecture #6 The Development Process HOWEVER: • Evolves over a very long time horizon (e.g. 10 - 20 years) • Through many Development Professionals • Very time consuming • As donor progresses up the pyramid, the tactics become more personal (hence dedicated MGO) • Greater access; involving the time/energy of organizational leadership outside of the Development Office • 80/20 rule: 20% of your donors will provide 80% of the funding • Most of your donors will only progress so far in up the donor pyramid

23. Lecture #6 The Development Process Top Ten Fundraising Tips http://www.youtube.com/watch?v=sd5H_2r-QW8&list=UUdnth3tXfhMjHgIchCw-CTQ&feature=share&index=2