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NACCDO/PAN Iowa City May 4, 2008 Donald R. Gray

The Art & Soul of Development. NACCDO/PAN Iowa City May 4, 2008 Donald R. Gray. Universal Vision Statement for Philanthropy. “You want to compose a good world. It is an honorable and noble profession” … Maya Angelou.

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NACCDO/PAN Iowa City May 4, 2008 Donald R. Gray

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  1. The Art & Soul of Development NACCDO/PAN Iowa City May 4, 2008 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. Gifts and Donations A GIFTis a tangible symbol of feelings between people A DONATIONis a tangible symbol of support to a cause

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

  6. 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

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

  8. 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

  9. The Right Way to View Annual Fund • Concept of Annual Fund as Living Endowment ($1million annually equates to an endowment of $20-25 million) • Annual Fund is the spring that feeds the river of Major Gifts that flows into the estuary of Planned Giving

  10. Annual Donations frequently given/asked discretionary income unrestricted fund mailings, events, phone 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 prospective 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. $100,000 annual income (gross)$2 million net income-producing assets • Annual Donation: $2,000-5,000 to all charitable organizations (2-5% of annual income) • Major Gift: $40,000-80,000 (2-4% of net assets) • Ultimate Gift: $200,000-400,000 (10-20% of net assets)

  15. Having fun with Bill Gates: net assets approximately $85 billion • Annual Donation: Who knows? Anything he chooses • Major Gift: $1.7 billion - $3.4 billion • Ultimate Gift: $8.5 billion - 17 billion • Question: How much would a person with $1 million in net assets need to give to equal a relative $1 million gift from Bill?

  16. $11.76 In raising funds from individuals, never overlook the concept of relative wealth.

  17. 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

  18. St. Peter Recently departed non-philanthropist “Charitable giving isn’t the ultimate test of one’s humanity; but it does give us some numbers to play with.”

  19. “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

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

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

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

  23. Personal Skills Required for Good Development • Healthy ego • Passion for your institution • People orientation • Goal orientation • Empathy • Resilience • Aggressive patience • Creativity

  24. Exercise: Rate Self and Development Officer (or Supervisor) on: • Consideration: 0 5 10 No consideration whatever Excessively considerate • Courage 0 5 10 Total coward No fear whatever

  25. My RatingColleague Rating COURAGE CONSIDERATION 0 = lowest possible rating 10 = highest possible rating

  26. Courage/Consideration Development Profiles 10 I II 5 Courage III IV - no/few results - no friends/no donors - little/no activity - descriptors - incompetent - dead weight - counterproductive 0 5 10 Consideration

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

  28. The Non-Cycle for Quartile IV (low courage; low consideration) ? Creating the Joyful Giver (doubtful) Initial Contact (procrastination) Goes nowhere: no courage to get the job done; not enough consideration to care anyway Identification (maybe)

  29. Courage/Consideration Development Profiles 10 I II - some results - offended givers - lots of activity - descriptors - pushy - offensive - used car salesman 5 Courage III IV - no/few results - no friends/no donors - little/no activity - descriptors - incompetent - dead weight - counterproductive 0 10 Consideration 5

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

  31. The Manic Arc for Quartile 1 (high courage; low consideration) Attention Interest Go right to the Ask Desire Initial Contact Action Making the Insensitive Ask Identification Donor Offended End of Cycle

  32. Courage/Consideration Development Profiles 10 I II - some results - offended givers - lots of activity - descriptors - pushy - offensive - used car salesman 5 Courage III IV - some results - confused givers - lots of calls/few “moves” - descriptors - nice person - good friend - professional wimp - no/few results - no friends/no donors - little/no activity - descriptors - incompetent - dead weight - counterproductive 0 5 10 Consideration

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

  34. The Linearity of Partial Development for Quartile 3(low courage; high consideration) Attention Interest Desire Creating the Joyful Giver Initial Contact Never quite gets around to making the ask; thus there is no Cycle Identification

  35. Courage/Consideration Development Profiles 10 I II - good results - joyful givers - lots of activity - descriptors - professional - successful - respected - trustworthy - some results - offended givers - lots of activity - descriptors - pushy - offensive - used car salesman 5 Courage III IV - some results - confused givers - lots of calls/few “moves” - descriptors - nice person - good friend - professional wimp - no/few results - no friends/no donors - little/no activity - descriptors - incompetent - dead weight - counterproductive 0 5 10 Consideration

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

  37. The Magic Dozen(What I have learned in 24 years) • It is about the giver; it is NOT about you • It is about the relationship cycle; It is NOT about the money • Givers don’t give because you need the money • Givers give because they “follow their bliss” • The successful equation: Your Priorities = the Giver’s Bliss • You must earn the right to ask • The giver has the right to enjoy the giving • Have hope! Do not have expectations • Volunteers are GREAT in helping with the Cycle • Discard the “friend raiser” vs. “fund raiser” myth • Development is a team effort, more art than science • What we do: “crystallize and materialize dreams”

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