Prospect and Moves Management for Major Gifts

1. Prospect and Moves Management for Major Gifts Robin Kraujalis, CFRE Assistant Director of Development Saint Louis Zoo

2. What is a Major Gift? Amount + Purpose = Extraordinary

3. SAME Reasons for giving Fundraising cycle DIFFERENT One-on-one Donor-focused Longer timeframe Many steps How are major gift fundraising techniques the same? Different?

4. Reasons for Giving - Why do people make major gifts? • They have assets • They have philanthropic needs & interests • Their needs match your mission • They can impact/satisfy needs • They have trust and respect for the organization, solicitor and staff

5. Friend Raising Cycle Qualify Potential donors Generally self-qualify Membership levels Request upgrade Stewardship Strategy Zudus Invitations Events Benefits Member Group strategy Membership levels Benefits Family Naturalist Keeper Curator MPS Zoo parents Recognition Cultivation Thank you letter Annual report listing Donor boards Marketing Public relations Events Tours Dinners Solicitation Membership renewals Membership brochures Adoption renewals

6. Donor-Focused Development • Each donor is different-unique-and, therefore, each donor must be cultivated differently, using different techniques, skills and benefits. • Understanding each person’s motivations enables us to identify their needs and ultimately, to ask them for a gift that is meaningful and appropriate (extraordinary).

7. Moves Management • Each contact with the donor is an opportunity to learn more about their needs and interests and to move the relationship forward in a positive way. • We need to determine where the person is in the gift-giving cycle (readiness to give) and where we want to move them next.

8. Prospect research/management is critical to moves management Prospect research helps us: • Prioritize • Strategize • primary players • interests • where they are in gift-giving cycle, next move • Track our progress

9. Major Donor Cultivation Cycle Qualify Identify Find initial information Estimate initial capability Major gifts Holding area for suggested names Strategy How to involve prospect Get to know prospect: interests capability Stewardship Keep donor informed Keep donor interested feed back loop MPS Zoo Friends and Members Cultivation Recognition Involve prospect Volunteer solicitor Determine Zoo interests Determine ask amount ----------------------- “Background” vs. “Foreground” Moves Thank donor Naming opportunities Campaign events (groundbreaking, press announcements) Campaign listing Plaques Solicitation Specific amount Specific project

10. Major Gift Cultivation Cycle • Five I’s (G. T. Smith) • Identification • Information • Interest • Involvement • Investment

11. Major Gift Cultivation Cycle • Dunlop’s Version • Identification • Information • Awareness • Knowledge • Caring • Involvement • Commitment

12. Case Study Creating a prospect and moves management system for the Saint Louis Zoo’s major gifts program and our Zoo 2004 campaign. • Getting started • Key information • Keeping track • Strategic planning

13. Identify your prospects for major gifts & moves management • Your members and other contributors • Board members • Volunteers • Contributors to other organizations • People with assets and influence in your community • Data screening service

14. Qualify (Prioritize or Rate) Your Prospects • Readiness • Capability

15. Rating System: Saint Louis Zoo • Readiness/Involvement: A Very involved. Minimal cultivation needed. B Somewhat involved. Some cultivation needed. C Minimal or no known involvement

16. Prospect Rating: Saint Louis Zoo • Readiness • Board membership • Volunteer activity • Event attendance • Gifts to your organization • Gifts to organizations with similar mission • Relationship to you or others who can influence a gift.

17. Prospect Rating: Saint Louis Zoo Capability (Maximum Potential Gift) 1 $500,000+ 2 $100,000 - $499,999 3 Less than $100,000 4 Unknown

18. Prospect Rating: Saint Louis Zoo Capability for Major Gifts • 3% of estimated net worth • 20 times consistent annual gift • Up to 10% of annual income

19. Prospect Rating: Saint Louis Zoo Estimating Net Worth • 10 x salary • 4 x real estate holdings • Selling price of company x holdings x 25% to 50% • Estate x 60% x portion of estate = inheritance

20. Prospect Rating: Saint Louis Zoo • External Rating with Volunteers • Verify internal (staff) rating and research • Identify primary players and connections • Identify donors’ interests and needs • Identify volunteers!

21. Moving on to Moves Management • Strategy • Prioritize the prospect pool • Top down, inside out • Meet with primary players • Who can most influence a gift? • Determine next move • Where is the donor in the gift-giving cycle (readiness)? • Where do they need to go next?

22. Next Move SUSPECT Where they are in the gift-giving cycle (readiness to give): may have interest in giving Move: need to qualify, do further research, invite to a campaign event or dinner

23. Next Move PROSPECT Where they are in the gift-giving cycle (readiness to give): qualified prospect Move: explore needs and interests, e.g. invite for tour of the Zoo

24. Next Move POTENTIAL DONOR Where they are in the gift-giving cycle (readiness to give): has an interest in giving Move: present case and ask, e.g. invite for lunch and presentation

25. Next Move DONOR Where they are in the gift-giving cycle (readiness to give): has given. Move: build relationship and involvement, reinforce decision to give.

26. Managing the Moves -Key Indicators • Cultivation or Proposal Status • Action Steps or Ticklers • Rating • Solicitors or Key Players

27. Managing the Moves -Key Reports • Volunteer & Staff Tickler Reports • Monthly Status Reports • Number & Type of Actions Completed • Number of Gifts Received, Avg. Gift, Yield • Rating & Status Report • Progress Toward Goal

28. Managing the Moves -Tools for Strategic Planning • Once you these key indicators, you can use this information for planning: • How many steps, on average, does it take to secure a gift? • What is the average amount given? • How many actions or solicitations can a development officer complete in a year? How many will it take to reach our goal?

29. Managing the Moves -Tools for Strategic Planning (continued) • Do we need more staff? Or volunteers? • Who are our most effective solicitors? • Which prospects are yielding the best gifts? • Were our ratings accurate? • Which prospects should we focus on next?

30. “Group” Moves Management • Applying strategies to groups of prospects can also be effective, for example: • Civic Progress • Trustees • Next 100 • Cover and Close • Home Stretch

31. “Group” Moves Management • Key Indicators • Prospect Priority Classification • Trustee • 1st priority, 2nd priority and so on • Proposal Type • Trustee • 2nd gift • Proposal Deadline

32. Case Study - Individual Prospect Qualify Identify Find initial information Estimate initial capability Major gifts Holding area for suggested names Strategy How to involve prospect Get to know prospect: interests capability Stewardship Keep donor informed Keep donor interested feed back loop MPS Zoo Friends and Members Cultivation Recognition Involve prospect Volunteer solicitor Determine Zoo interests Determine ask amount ----------------------- “Background” vs. “Foreground” Moves Thank donor Naming opportunities Campaign events (groundbreaking, press announcements) Campaign listing Plaques Solicitation Specific amount Specific project

33. Moves Management - Conclusion • Effective for Managing Major Gift Prospects or Groups of Major Gift Prospects (and Staff and Volunteers!) • Requires Thoughtful Strategy and Effective System for Tracking Key Information • Requires Discipline - For Updating, Maintaining & Reviewing Information • Requires Research & Development Officer Cooperation

34. Credits • The Stelter Company, Skills Plus Relationship Building Workshop • David R. Dunlop, “Special Concerns of Major Gift Fundraising.” • Steve Wilkerson, Pierpont & Wilkerson