Mastering Major Gifts: Portfolio Building Strategies

1. Building Your Major Gifts Portfolio in Any Size Fundraising Shop Robin L. Cabral, MA, CFRE Development Consulting Solutions, LLC November 7, 2019

2. What We Will Cover Today • Who Am I? • What you will learn: • How to find and identify major gifts prospects • How to rate and rank donors to focus a major gifts portfolio through a series of “Tiers” • How to qualify and cultivate major gifts prospects through discovery visits • What the ideal portfolio size is and how many prospects are needed to meet your revenue goals • How to develop a revenue goal for each donor • How to create a schedule of moves for each identified prospect with each “Tier” of donors • How to effectively manage the major gifts portfolio over time even with time constraints • How to use your Case for Support to create donor offers that will inspire a gift • Conclusion • Q&A

3. Building Your Major Gifts Portfolio in Any Size Fundraising Shop • Owner, Development Consulting Solutions, LLC (Based in both U.S. and Australia) • Member of Fundraising Institute of Australia (FIA), Code of Conduct Compliant • 25+ years working for and with nonprofits • Raised millions in campaigns • Started dozens of major gifts programs • Served as major gifts officer for large, U.S.-based national organization • On a mission to transform organizations through effective philanthropy!

4. Resources • SAMPLE: Discovery Call Questions • RESOURCE: Rating and Ranking Session Steps • SAMPLES: Prospect Rating and Ranking Sheets • SAMPLE: Prospect Rating Privacy Letter • SAMPLE: Pre-Call Letter • SAMPLE: Campaign Brochure • RESOURCE: Caseload Mix Grid • RESOURCE: Moves Management Grid • Webinar Slides Handout

5. Intro Why Major Gifts?

6. Intro Why Major Gifts? • 80% of charitable gifts from individuals • Major gifts often largest gift organization receives • Well-stewarded major gifts donor becomes ambassador for your mission • Focused efforts on cultivation & stewardship = effective results • Retention rate for major gifts donors higher than overall rate • Major gifts donor numbers also growing at higher rate than other donors • Relationship building is key to success!

7. Intro Four Stages on the Way to a Significant Gift • Identification: Using that initial research process to determine if a “suspect” is a “prospect” • Qualification: Conducting an initial face-to-face visit to discuss the donor’s interests, motivation, and affinity to your mission • Cultivation: Further engaging the donor with calls, visits, newsletter, invitations to events, engagement by Board members, and other donors • Solicitation: Determining the amount of the ask, the project involved, making the appointment, and presenting the case and ASK

8. Question… How many have conducted a formal donor rating and ranking session in the past?

9. Finding and identifying major gifts prospects Look in your database! • Your donors: • Know you • Support you • Already believe in your mission • Loyal donors are your constituents • Identify loyal donors through consistent giving • Schedule a visit and ask: • Why do you give to us? • What drew you to our organization? • Begin to get to know your donors’ interests

10. Finding and identifying major gifts prospects Explore your donors’ capacity for larger gifts • Begin with list of top donors • No more than 2-3% of your database • Explore their capacity for giving • Use wealth screening tools • Conduct a simple search • Compile profile from your visit notes

11. Finding and identifying major gifts prospects Find new donors • Explore organizations with similar missions • Ask board members for introductions to possible prospects • Network in your community • Develop an “Elevator Speech”

12. Rating and Ranking Donors Using “Tiers” Conduct a prospect rating session • Prioritize and strategize donors in your portfolio • Invite group of donor peers to “rank and review” session • Choose invitees and send invitation • Choose venue that encourages discussion • Prepare packets. Include: • Privacy Letter (Sample provided with Resources) • Confidentiality statement • Master list of prospects • Ranking sheets (Samples provided with Resources)

13. Rating and Ranking Donors Using “Tiers” During the session • Keep conversation moving and on-target • Explain how information will be used • Include second note taker • Rank all donors by priority (numerical) • Tally donors by numerical ranking • Collect all prospect rating and ranking sheets • Stress confidentiality • Record the information in your CRM • Note: Rating and Ranking Session Steps provided with Resources

14. Case Study: Prospect Research and Donor Rating & Ranking Session Orange County Parent Child Care Center, VT USA

15. Rating and Ranking Donors Using “Tiers” A-ranked donors • Prospects with: • Highest affinity • Capacity • Giving history • Prospects that are: • Genuinely interested in your cause and/or a particular project • Open to your visit • Top 10 donors should receive 50% of effort • Calls, visits, and direct engagement

16. Rating and Ranking Donors Using “Tiers” B-ranked donors • Prospects with: • Capacity • Giving history • Prospects that are: • Engaged with your organization • May be open to your visit • Seem open to cultivation for future ask • Middle tier (about 40 donors) should receive 30% of effort • Engage these donors further with your organization • Invite to committees • Ask for advice • Network • Help them to become “A’s”

17. Rating and Ranking Donors Using “Tiers” C-ranked donors • Prospect with capacity • Prospects that are: • Somewhat engaged with your organization • Respond to annual appeals • May be moved along the spectrum • Next 100 should receive 10% of effort • Keep them engaged with: • Newsletters • Direct Mail • Cultivation and Other Events

18. Rating and Ranking Donors Using “Tiers” Donor Ranking Exercise • Review following donor descriptions • Using criteria provided today, rank them (A, B, or C) • Suggest strategy or “next step” for each

19. Rating and Ranking Donors Using “Tiers” Donor Ranking Exercise 1. Mr. and Mrs. Andrews, a young professional couple with no children, attend your organization’s annual auction. Two months later, they respond to your annual appeal with a $100 donation. 2. Mrs. Jones, a widow in her sixties, has been a consistent yet moderate donor to your organization for ten years. A recent wealth screening shows her to have significant capacity, and she has made a few five- and six-figure gifts to organizations like yours. 3. Mr. Smith is in his seventies, lives alone, and has two adult children and several grandchildren of various ages. He seems to have significant capacity and has been an occasional donor to your annual appeal.

20. Rating and Ranking Donors Using “Tiers” Donor Ranking Exercise (cont’d) 4. Mr. and Mrs. Phillips are new in town, are in their fifties, and have two children in college. They are invited to attend your annual auction by a Board member, and they show a real interest in your organization. 5. You are introduced to Mr. Thompson, a businessman in his thirties, at a gala for an organization other than your own. During the ensuing conversation, he expresses an affinity for your organization’s cause. 6. Susan and Jane, a couple in their mid-fifties, have been donors and volunteers for your organization for several years. They inform you that they have mentioned your organization in their wills.

21. Rating and Ranking Donors Using “Tiers” Donor Ranking Exercise Debrief How did you rank each donor scenario Who was in your top “A” tier of donors and why? What was your suggested strategy or “next steps” for each of you top “A” tier of donors?

22. Question… Who has been on discovery visits in the past and what has been most successful for you?

23. Qualifying and cultivating major gifts prospects through discovery visits The discovery visit • Identify highest-ranked donors to visit • Create key talking points • What do you want to accomplish? • Consider sending “pre-call” letter (Sample provided with Resources) • Call donor and ask for visit • Face-to-face is preferable

24. Qualifying and cultivating major gift prospects through discovery visits At the visit • First - Thank the donor! • Ask questions about their interest in your organization • What interests them? • How would they like to be recognized? • What, if anything, would prompt a larger gift? • (Sample Discovery Call Questions provided with Resources) • Highlight personal impact of their gift • Let them know what projects are coming up • Ask if they need more information or follow-up

25. Qualifying and cultivating major gift prospects through discovery visits After the visit • Write visit report and attach to donor file in your CRM • Send hand-written thank you note • Thank them for time and support • If follow up was requested - follow up! • Review your notes • Decide next steps

26. Qualifying and cultivating major gift prospects through discovery visits Rejection for a visit does happen • If the donor says no, don’t take it personally • Keep the donor engaged with your organization • Timing is EVERYTHING

27. Case Study: Donor Discovery Visits Holy Cross Family Ministries, MA USA

28. Qualifying and cultivating major gift prospects through discovery visits Discovery Role Play Exercise • Congratulations! You have chosen to contact your top “A” tier donor and conduct an initial visit. Consider the following questions: • 1. How do you approach asking for the visit? • 2. Once the visit is scheduled, how do you prepare? • 3. How will you begin your visit? • 4. During the visit, what questions will you ask? • 5. What information will you bring with you?

29. Qualifying and cultivating major gift prospects through discovery visits Discovery Role Play Exercise (cont’d.) • 6. What is your goal for this visit? How do you want to leave things? • 7. How long will your visit be? • 8. After your visit, how will you follow up? • 9. What are your next steps?

30. Qualifying and cultivating major gift prospects through discovery visits Discovery Role Play Exercise Debrief • How did you decide to ask for the visit? • How did you begin your visit? • What questions did you ask? • What information did you decide to bring with you? • What was your goal for the visit? • How did you plan to follow-up and what are your next steps? • Any other interesting observations?

31. Question… If you currently have a donor portfolio, what is your portfolio size?

32. Determining the ideal portfolio size and number of prospects to target revenue What size portfolio is ideal?  • Most nonprofit experts suggest an average ideal portfolio size for a dedicated major gifts officer = 150 donors • BUT this depends on: • Your nonprofit size and structure • Who is managing the portfolio • In a small shop, directors take on many roles • Executive directors or directors of development can wear many hats • Ideal portfolio DOD 15 – 25 • Ideal portfolio CEO 10 - 15 • Portfolios can and should differ for each development staff member • Managers should not have full caseloads • Key is major gifts relationships need to be carefully managed

33. Determining the ideal portfolio size and number of prospects to target revenue Not every organization fits the industry standard • Start small • Staff time dedicated to major gifts should reflect portfolio size • A tier system (A, B, C) helps make portfolio manageable • It’s about relationships - not process! • Personal contact = great results • Make time for visits, calls, and other contacts • Schedule time for strategy for top tiered donors • Donor identification, contact, and strategy will bring results

34. Determining the ideal portfolio size and number of prospects to target revenue Industry Standards – Portfolio Caseload and Mix* Remember! These are just guidelines…every nonprofit shop is different! (Veritus Group, 2014) *Provided with Resources

35. Question… Do you have a revenue goal for each identified major donor and following “moves”?

36. Developing a revenue goal for each donor Ensure that your donors are qualified • Rank the donor • Identify affinity for your organization • Explore and confirm the donor’s capacity • Review your notes • Visit the donor • Is the timing right for an ask?

37. Developing a revenue goal for each donor Analyze past behavior • Timing of gifts • Giving to certain funds or projects • Previous pledges • Outstanding pledges • Giving history and patterns

38. Developing a revenue goal for each donor Investigate wealth capacity • Don’t rely on wealth research engine entirely - use that information as guideline • Consider rating and ranking data from ranking session and discussions • Does the donor have outstanding pledges elsewhere? • Does the donor have children in college? • Investigate gifts made to other organizations

39. Developing a revenue goal for each donor Set the goal for the donor • Create range of minimum and max for next gift • Set target ask within that range • Ask for increase • Don’t be afraid to ask for “stretch gift” • Consider asking for pledge

40. Creating a “schedule of moves” for each donor How to get started with a strategy • Identify your donor • Determine interest and capacity • Set concrete goals • Create actionable steps to reach those goals • Follow your strategy • Listen to your donor – revise strategy as necessary • Record your results • Track your data • Note: Moves Management Template provided with Resources

41. Effectively managing major gifts portfolio over time - even with time constraints It takes time – manage it carefully! • Major gifts program takes 12-18 months to show real results • Qualify your prospects • Tier your prospects and expend efforts accordingly • Create plan and goal for each donor • Develop relationships with your donors by setting next schedule of moves • Document this process

42. Effectively managing major gifts portfolio over time - even with time constraints It takes time – manage it carefully! (cont’d) • Review your donor tiers twice a year to… • Move some along • Eliminate some • Add new prospects • Work closely with top tier donors toward solicitation of larger gift

43. Question… Do you have a formal written Case for Support for your organization?

44. Using your Case for Support to create donor offers that will inspire a gift Tell your story • Know your organization’s programs and impact they make on real people • Identify problem that your organization aims to solve • Show how they solve it • Create audience tension • Provide reasons to act for the rationale • Individual stories illustrate personal impact • Design materials that will appeal to the donor: • Campaign Brochure • Video • PowerPoint Presentation

45. Using your Case for Support to create donor offers that will inspire a gift Sample Case Story:https://vimeo.com/262471327/80917228 (Sample provided with resources)

46. Using your Case for Support to create donor offers that will inspire a gift Identify the cost of making a difference • Know the people your organization serves: • How many? • Who are they? • What are their needs? • Work with your finance team to identify program costs • Also consider overhead costs • Illustrate: • Impact of donor’s gift (Example: Additional people served) • Concrete outcomes of project

47. Using your Case for Support to create donor offers that will inspire a gift What is your cause? • Examples of Causes: • Eliminating hunger • Reducing homelessness • Providing higher education • Successful Case for Support puts human face on your cause • What makes your organization different? • Why should a donor support you? • Tell YOUR story!

48. Using your Case for Support to create donor offers that will inspire a gift Include: • Your vision • Your plan • Your costs • Urgency • Call to action

49. Conclusion - What did you learn? How to… …find and identify major gifts prospects …rate and rank donors to focus a major gifts portfolio through a series of “Tiers” …qualify and cultivate major gifts prospects through discovery visits …determine the ideal portfolio size for YOUR nonprofit shop and the number of prospects you need to meet your revenue goals …develop a revenue goal for each donor …create a schedule of moves for each identified prospect with each “Tier” of donors …effectively manage the major gifts portfolio over time even with time constraints …use your Case for Support to create donor offers that will inspire a gift

50. Take it back… How will you use this information to manage the major gifts portfolio in your fundraising shop?