2010 Education Foundations Conference Oshkosh, Wisconsin November 18, 2010 Donald R. Gray

1. The Art & Soul of Generosity 2010 Education Foundations Conference Oshkosh, Wisconsin November 18, 2010 Donald R. Gray

2. Universal Vision Statement for Philanthropy “You want to compose a good world. It is an honorable and noble profession” … Maya Angelou

3. Mrs. Evelyn Kaufman Stow High School English Teacher 1958 • Your words define who you are • - to others • - to yourself. • Choose them carefully!!!!!!!

4. A Few Words About • Philanthropy • Good word • Has become distorted • $$$$$ • Generosity • All inclusive • Captures what we do • Abundance

5. Gifts and Donations A GIFTis a tangible symbol of feelings between people A DONATIONis a tangible symbol of support to a cause

6. Developmentand Fund Raising A GIFT is to DEVELOPMENT(givers) as A DONATION is to FUND RAISING(donors)

7. Inappropriate Terms • hit up • shake ‘em down • put the arm on … • squeeze, milk, dun • loaded • should, ought, owes us • pass the hat • get into his/her pockets • low-hanging fruit

8. Annual vs Major Gifts • Annual Donations • frequently given/asked • discretionary income • unrestricted fund • mailings, events, phone • Internet, social networking • 2-5% of income • 90% gifts; 10% dollars • 1st step to major gift • very, very important

9. 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 of $250 or less in response to the annual fund • 83% have given at this level) for at least 5 years; almost 60% for at least 11 years

10. Annual Donations frequently given/asked discretionary income unrestricted fund mailings, events, phone Internet, social networking 2-5% of income 90% gifts; 10% dollars 1st step to major gift very, very important Major Gifts infrequently given/asked from assets: stop/think relationship required targeted/restricted projects 10-20x annual fund gift 10% gifts; 90% dollars often repeated over time critical to success Annual vs Major Gifts

11. The Math of Major Gift Work • For each major gift (>$25K), you need three possible or probable major givers • On average, a major gift is closed after 9 meaningful contacts, or between 6 mos-2yrs • Thus to get 5 new major gifts requires 3 x 9 x 5 = 135 meaningful contacts.

12. ULTIMATE GIFTS • Once in a Lifetime Gift • Combination of Giving Methods; Many People Involved • Total Commitment to Institution’s Mission • Long, Emotional Relationship (and several previous major gifts) • Often Involves Major Naming Opportunity • 1,000-2,000x Annual Gift/10-20% Net Incoming-Producing Assets

13. Oseola McCarty(1908-1999) • Life Savings: $150,000 • Size of Gift: $150,000 • Reason for Giving • To help others avoid a life as hard as hers • Purpose of Gift • Scholarships for poor student at the University of Southern Mississippi Ted Turner, in giving $1 Billion to UNICEF: “If that little woman can give away everything she has, then I can give away a billion dollars.”

14. Top Four Reasons People Give Major and Ultimate Gifts • Belief in Mission and Stability of the Organization • Sense of Civic Responsibility • To Invest in Projects with Significant Social Return • High Regard for Staff and Volunteer Leadership

15. “It is one of the beautiful compensations of this life that no one can sincerely try to help another without helping himself” - Ralph Waldo Emerson

16. Bottom Three Reasons People Give Major and Ultimate Gifts • Guilt and Obligation • Promotional Materials and Proposals • Tax Considerations

17. Successful Development THE MYSTICAL MINGLING OF A JOYFUL GIVER AN ARTFUL ASKER A GRATEFUL RECIPIENT

18. The Cycle of Successful Development Initial Contact Creating the Joyful Giver Attention Interest Additional Interest Desire maybe Identification Action Making the Artful Ask ShowCreativity yes Invoking the Grateful Recipient acknowledge NO

19. Want to Learn More? Fundraising and Development for Nonprofits June 1-3, 2011 Madison, Wisconsin Web site: exed.wisc.edu/devconf