Major Gift Fundraising and Engagement f or Engineering Constituencies

1. Major Gift Fundraising and Engagement for Engineering Constituencies

2. SPEAKERS Anthony Escobar Major Gift Officer, Cornell University David Wahls Senior Associate Director, Fulton Schools of Engineering at ASU

4. AGENDA Research & Prep Work Practical Tips & Trends Case Studies EI & Strengths Finder Summary Q&A

5. AGENDA Research & Prep Work Practical Tips & Trends Case Studies Emotional Intelligence Summary Q&A

6. Wealth Across the U.S.

7. Minimum Visible Wealth by Age Necessary to be Rated with Giving Capacity of $100K Major Gift Wealth

8. How much are they likely to give? Philanthropic Capacity

9. Determining Rating & Capacity Mr. Smith, Software Engineer (age: 55) • Mrs. Smith, Family Physician (age: 55) Income: Mr. Smith = $100,000 to $150,000 (m = $125,000) Mrs. Smith = $150,000 to $200,000 (m = $175,000) Total 5-Year Income = ($125,000+$175,000) X 5 = $1.5 million Real Estate: Primary residence = $650,000 Summer residence = $250,000 Total real estate = $900,000 Real Estate 5 Year Income Other Assets Total Visible Wealth = $1,500,000 + $900,000 = $2.4 million CAPACITY RATING = $2,400,000 X 3% = $72,000 Visible Wealth

10. Receive high annual cash income • Specialization + Employer Lawyers Physicians • Corporate • Patent • Constitutional • Orthopedic Surgery • Plastic Surgery • Cardiovascular Surgery Specializations • AM Law 200 • National/International Firms • Large healthcare systems • Leading universities Employers Lawyers & Physicians

11. Age: 20s to mid-30s • Recent MBAs • Bonus not a high % of income • Likely to develop MG Capacity • Age: Late 30s to 50s • Lifelong career in finance • Bonus large % of income • Philanthropic Role Models • MG Capacity Financial Services - Investment Banking

12. The 1%, Institutional Investors, Pensions, etc. pool their money into large funds Private Equity Funds Venture Capital Funds Hedge Funds Buy, fix, & sell existing companies Invest in new/growing companies Trade stocks and bonds to beat market return 80% of Profit to Investors, 20% to Fund Managers Financial Services - Private Investment Funds

13. Wealth defined by singular liquidity event • “Liquidity Evaporation” • May transition careers but usually stay in startup environment • Key Wealth Factors: Venture Capital + Exit Strategy Entrepreneurs

14. Entrepreneurs – Start Up Companies

15. Cornell Class of 2002 • Software Engineer @ Apple, helped develop iPhone & iPad • Co-founded Push Pop Press, converting books into iPad/iPhone formats • Facebook “acqui-hired” in 2011 • Founded in 2005 by early employees of PayPal • November 2005: Series A Investment, $3.5M • April 2006: Series B Investment, $8M • October 2006: Google buys for $1.65B Entrepreneurs – Acquisition

16. Founding February 2004: Zuckerberg launches “The Facebook,” funded by Eduardo Saverin Angel Investment September 2004: Angel Investment of $500,000 Venture Capital Rounds May 2005: Series A Investment, $12.7M April 2006: Series B Investment, $27.5M October 2007: Series C Investment: $375M May 2009: Series D Investment: $200M June 2010: Series E Investment: $120M January 2011: Series F Investment $1.5B “Exit Strategy” May 2012: Debut on NASDAQ stock exchange, raising $16B, company valued at over $100B Entrepreneurs – IPO

17. Receive high annual cash compensation • Receive stock awards and options • Public information for the top 5 named executives • (precise estimates of income!) Executives Business Owners • Company value largest factor in determining wealth • NOT usually looking for an asset sale • Often held in the family over generations Other Usual Suspects

18. AGENDA Research & Prep Work Practical Tips & Trends Case Studies Emotional Intelligence Summary Q&A

19. Lawyers Doctors • Do not see themselves as Major Gift Prospects • Timing of Meetings • Historically a difficult group for fundraising and engagement • Salary schedule • Events serve multiple • purposes • Historically a difficult group for fundraising Time Constraints Convenient Meeting Place Clear Plan Be Direct Financial Services Entre- preneurs • Networking • Access to senior leaders • See firm leaders as role models • Networking • Willing to be engaged and take meetings but challenging for fundraising

20. Engagement Opportunities • Advisory councils or other high level volunteer opportunities • Speaking roles in classes aligned with areas of expertise (context knowledge) • Speaking roles with student clubs or informal career talks/lunches with both undergrads and grad students • Networking and Events that serve a dual purpose (e.g. lectures for CLE or CME) • Specific stewardship benefits at various giving levels • Access to senior leaders at the college and university • Firm-based engagement and cultivation activities (law and financial services) • Bestowing an award (department, college or university level) • And others . . . Practical Tips & Trends

21. Lawyers Doctors PARENTS! Child applies and enrolls at the university Financial Services Entrepreneurs

22. Special considerations • Geographic Location – Ex. NYC v. Boston • Utilizing faculty • Working with financial planners • Educating about philanthropy • Young Professionals: matching gift programs Practical Tips & Trends

23. AGENDA Research & Prep Work Practical Tips & Trends Case Studies Emotional Intelligence Summary Q&A

24. Break up into individual groups: • Attorneys - Estate Planning and Patent • Physicians – Lead physicians for partnership, development of products, clinical trials, lead gifts • Financial Services – Wall Street/Banking • Entrepreneurship – CEO’s and Founders • Objectives: • Share real stories about successful donor-centric interactions that led to investments. • Learn techniques for getting the first visit, advancing your relationships and closing gifts. • Discuss leading questions that are most useful in engaging prospects in a meaningful discussion about their relationship with your school. • Leave with 1-2 strategies that you want to try out. Case Study : Discussions

25. Please share a personal story of a donor relationship which led to a significant investment with the group. • What has worked best for you to get in the door with the constituency involved? (e.g., phone calls, introductory letters from dean, other introductory letters or emails, volunteers) • What clues did you use to determine your donors’ interests? • How did you leverage knowledge of the donors work and passions to steward their relationship? • Who was involved in the solicitation? Why? Was that the right mix? • How did you know the donor was ready to be asked? How did you set the amount? • How was the gift a “win” for the donor? • What materials are important to present during a solicitation for each group? Immediately following? Case Study : Discussions

26. How have you used these groups as volunteers • Advisory boards • What strategies might work to encourage board members to assist with fundraising? • Have you used volunteers to make major gift solicitations? What are some of the pros and cons of involving volunteers? • What have you done to train volunteers or board members regarding their role as major gift fundraisers? • Do you use job descriptions for your volunteers? • What are the biggest challenges you face in working with volunteers? What are some strategies for overcoming these challenges? • How can you motivate your volunteers to: • Identify and evaluate prospective donors • Open doors • Set an example • Provide visionary leadership • Review strategies and provide practical • Participate in solicitation strategies • Thank donors Case Study : Discussions

27. Case Study 1: Investment Banking

28. Investment Banking Industry Scholars • Historically poor tracking of alumni through the University database • 0 Managing directors, VP or C suite individuals identified • Little if any directed alumni giving toward investment banking or support for students generated from Wall Street • Students cold calling individuals for job calls • Use of LinkedIn, company information to verify Finance, Engineering and Math graduates on Wall Street • Identified 82 individuals for possible connection – 12 in Managing Director levels and above • Creation of initial contacts in the industry to build out network contacts – late night drinks, early morning coffee, meetings at Banks • Key is to stay on the individuals – Investment bankers have busy schedules, use e-mail and look for the gate keeper - investment bankers will turn you down to see how resilient you are • Leveraging existing relationships and support • Identification of lead volunteers and industry mentors • Social events with key alumni and individuals – sponsored by lead volunteers • Dean and faculty travel and support • Summer intern lunches with alumni Case Study 1: Investment Banking

29. Investment Banking Industry Scholars Results • Connection with 4 unknown Managing Directors and above • Creation of a network of alumni across the industry • New York, San Francisco, London, China, Chicago • Continuation of alumni events in New York • Mentoring and networking opportunities for Young alumni and seasoned professional networks established and run by young alumni in the area • Attachment to the larger Klein Awards in Economic forecasting • $3.5M Generated with a secured pipeline of investments – year 1 • $3M Chair - stock • $400K Scholarship – stock • 2 - $50K endowed scholarships from individuals under 30 • Make sure to look at matching funding from investment banks, it can be as high as 2 or 3 times for younger employees and directors and above have designated amounts to give for charity Case Study 1: Investment Banking

30. Case Study 2: Entrepreneurs

31. CEO Panel • Limited access to time • Conference calls – use of time effectively for planning visits to campus • Tie into events when around your campus • Passing on knowledge is a key motivating factor • Creation or connection to student entrepreneurial groups • Leverage Alumni network to include other individuals and key investors Case Study 2: Entrepreneurs

32. CEO Panel Key Medical Device Alumnus • Goal of inspiring more students to create companies • Set up scholarship for Innovation Scholars • Includes mentoring on campus, Silicon Valley or industry specific entrepreneur mentor, trip to Silicon Valley • Includes other Silicon Valley Entrepreneurs in trip to campus • Group discussions with BioMedical Engineers Case Study 2: Entrepreneurs

33. Case Study 3: Estate Planning Attorneys

34. Estate Planning Attorneys • Establish connection • Network among estate and gift planning • Connections come from prospects, alumni, estate giving advisory group • Information on connections and how individuals can give through the University • Joint presentations • Faculty present to community members about poignant research topics • Connections with retirement communities • Cautions on endorsement or agreements Case Study 3: Estate Planning Attorneys

35. Case Study 4: Physicians

36. Some suggestions for getting visits and commitment to engagement activities • Cultivation events around major medical conferences • Small dinners with a dean/senior officer • Leverage CME lectures and events • Speaking engagements with pre-med students • Shadowing programs or other special academic enrichment programs at a hospital • Connections to a physician’s research and similar research taking place at the university • Get to know the office manager – he/she is the gatekeeper to a physician’s calendar Case Study 4: Physicians

37. AGENDA Research & Prep Work Practical Tips & Trends Case Studies Emotional Intelligence Summary Q&A

38. Daniel Goleman, PhD • What is Emotional Intelligence? • The way we manage emotions – both our own and those of others • Self awareness • Picking up cues about how others are feeling • Knowing how to tune into others • Demonstrating empathy • Three types of Empathy • Cognitive: understanding how others think • Emotional: feeling with someone; creates rapport with someone • Empathic Concern: tuning into people and if you can do something for them, you help them • Focus and Notice • Compassion – we are naturally wired to be compassionate • On ourselves v. others • Pre-occupation and self absorption • Taking Notice Emotional Intelligence

39. How does this apply to fundraising? • Everyday we attempt to engage prospects – both with philanthropic dollars and volunteer opportunities • We meet with all different types of personalities who view themselves differently; sometimes we may even feel the need to “act” in our positions • We understand that the more time spentwith a prospect through personal contact (meetings, events, campus visits, etc) the more likely they will be engaged Emotional Intelligence

40. What is the role of gift officers? A different frameworkfrom which to think about your approach with prospects Baseline Assumptions Lack of time Self absorbed & Narcissistic What’s in it for me? ROI Competition for attention from other charities Some key questions: How do we help prospects focus and take notice? How do we build trust? How can we turn a donor from viewing a contribution from a narcissistic focus to that of altruistic joy? What are the aims we have in having a relationship with a prospect? Emotional Intelligence

41. What is the role of gift officers? Sincerity: a genuine interest in what they do, their interests, and how they think and willingness to equally share of your own personal experiences and stories Honesty: why do we want a prospect to be engaged? What do we hope to receive from them and what can they expect in return? Transparency: being an honest broker for the institution and the donor Effective Communication: intentions made clear, value propositions are strong (both in verbal and written communications) Empathy: understanding their concerns and frustrations and a willingness to listen and to help (if needed or requested) Emotional Intelligence

42. Russ Prince and Karen File • Prince and File share their approach for cultivating relationships with donors by identifying donors’ motivations for philanthropy. • Communitarian – Doing Good Makes Sense [for the Community] • Devout – Doing Good is God’s Work • Investor – Doing Good is a Business Proposition • Socialite – Doing Good is Fun • Altruist – Doing Good Feels Right • Repayer – Doing Good in Return • Dynast – Doing Good is a Family Tradition Seven Faces of Philanthropy

43. Russ Prince and Karen File • How can knowing your donors’ motivations help you structure the relationship, and their ultimate investment, in a way that maximizes the impact of their philanthropy? • What clues can you use to determine your donors’ motivations? • What tools do you have available for making matches between donor interests and ASU priorities? • How can you adjust your case for support to address donors’ motivations and interests? 7 Faces of Philanthropy

44. AGENDA Research & Prep Work Practical Tips & Trends Case Studies EI & Strengths Finder Summary Q&A

45. Give yourself every opp to succeed; be smart. really understand the constituency you are working with and make notes of commonalities for others in your portfolio; read the latest news pertinent to their area Rely on colleagues in law school med and biz school for engagement ideas and best practices Take risks Present something out of left field  Think critically about the value proposition you present; is it strong enough? Don't undervalue your own experiences but rather use them as baselines / references Speak their language and show understanding and empathy. Use methods that they are accustomed to (spreadsheet) Have confidence in yourself and your strengths; understand how they work in tandem with others Summary

46. AGENDA Research & Prep Work Practical Tips & Trends Case Studies Emotional Intelligence Summary Q&A