Twelve “Deadly” Mistakes of Major-Gift Campaigns and How to Avoid Them!

Twelve “Deadly” Mistakes of Major-Gift
Campaigns and How to Avoid Them!
Presented by:
Julia Ingraham Walker
Thursday, April 23, 2009
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April 23, 2009
Julia Walker
Twelve “Deadly” Mistakes of Major-Gift Campaigns and How to Avoid Them!
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Julia Ingraham Walker
Julia Walker has been active in fundraising for over 23 years. She served as vice
president for advancement at Tulane University, where she ran a successful $250 million
capital campaign. Now an independent fundraising consultant, she has helped her clients
raise over $700 million. Her extensive client list includes arts and cultural organizations,
museums, animal welfare groups, universities, and secondary schools.
She presents seminars nationally on topics related to fundraising for capital campaigns
and major gifts. Walker has published two books in the AFP/Wiley Fund Development
Series - Nonprofit Essentials: The Capital Campaign and Nonprofit Essentials: Major
Gifts and has a third book in the Nonprofit Essentials series, Jump-Starting the Stalled
Fundraising Campaign, due out in June.
Post-Katrina, Julia returned to New Orleans to help the region rebuild by raising money
for education, the arts, the Louisiana SPCA, and other nonprofits.
Julia I. Walker
Fundraising Consultant
2619 Nashville Ave.
New Orleans LA 70115
504/861-8760
[email protected]
12 Deadly Mistakes
Of Major Gift Campaigns and
How to Avoid Them
g
Walker
Julia Ingraham
AFP Web/Audioconference
April 23, 2009
About Julia Walker…
• 25 years of fundraising
experience
• Independent Fundraising
Consultant for past 10 years
• Advised in campaigns that
raised over $700M total
• Author of three AFP/Wiley
books on major gifts and
campaigns
1
Today’s Agenda
• Introduction: Fundraising in the new
economic environment
• Part I: Six deadly mistakes in planning and
preparation
• Part II: Six deadly mistakes in campaign
implementation
• Question and Answer session
Introduction: Why you can’t afford to make any mistakes
FUNDRAISING IN THE NEW
ECONOMIC ENVIRONMENT
2
Weak Economic Climate
• Climate of uncertainty hurts giving
• Stock market has been best predictor of
giving in the past
• Most people give out of income
• Proposed changes in gift tax deduction
rates may threaten largest gifts
Changes in
Donor Behavior
• Larger gifts will be harder to close
• Donors will focus their giving on a
smaller number of nonprofits
• Donors will continue to give in areas
ey view
e as a priority
p o y
they
• Donors will give less from current
income and assets
3
How Can You Respond?
• Don’t
Don t stop asking,
asking but stay flexible
• Tighten your case and demonstrate
urgency for your needs
• Focus on keeping current and past
donors
do
o s happy:
appy S
Stewardship
e a ds p is
s King
g
• Put more emphasis on planned giving
6 common mistakes in preparing for your major gift campaign and
how to avoid them
PART I: PREPARATION AND
PLANNING
4
Preparation and
Planning
• Mistake # 1:
Not doing enough sight-raising with
leadership prospects before the
campaign starts
What is Sight-raising?
A method of making larger gifts
possible, through:
• Building an expectation that bigger
gifts will be part of your campaign
Communicating
u cat g tthat
at e
expectation
pectat o to
• Co
all your leadership groups, including
boards, committees, and prospects
5
How to Raise Sights
• Focus on the top-end of the gift table
with your leadership
• Communicate large new gifts quickly to
your co
you
constituents
s ue s
• Establish a “reach” gift level among your
board members and early supporters
More on Sight-Raising
• Solicit a challenge gift and use it to
match new gifts above a certain level
• Solicit top prospects first to set the pace
• Set your top recognition levels at a point
that pushes expectations higher
6
Preparation and
Planning
• Mistake # 2:
Not asking for large enough gifts at the
top of the scale
$3M Gift Table (A)
Gift Level Prospects Donors Dollars
$1 000 000
$1,000,000
3
1 $1,000,000
$1 000 000
$500,000
3
1
$500,000
$250,000
6
2
$500,000
$100,000
9
3
$300,000
$50,000
18
6
$300,000
$25,000
24
8
$200,000
$10,000
60
20
$200,000
Totals
123
41 $3,000,000
7
$3M Gift Table (B)
Gift Level Prospects Donors Dollars
$
$500,000
3
1
$500,000
$
$250,000
6
2
$500,000
$100,000
15
5
$500,000
$50,000
30
10
$500,000
$25,000
$
,
60
20
$500,000
$
,
$10,000
150
50
$500,000
Totals
264
88 $3,000,000
Recognition Options
for a $3M Campaign
New Building (external name)
Lobby
Exhibition Hall
Conference Room
Director’s Suite
Rooms
(8 @ $50,000 each)
Endowment
$1,000,000
$500,000
$250,000
$250,000
$100,000
$400,000
$500,000
8
Preparation and
Planning
• Mistake # 3:
Not identifying and cultivating enough
prospects to meet your needs
Identify New Prospects
•
•
•
•
Conduct electronic prospect screening
Hire a research staff person
Search Foundation Directory on line
Conduct volunteer screening sessions
9
More on Prospects
• Ask your board and volunteers to review
lists of local business leaders
• Collect names of visitors, patients,
parents, and other service users
uy o
or trade
ade lists
sso
of peop
people
e with ssimilar
a
• Buy
characteristics to your donors
Preparation and
Planning
• Mistake # 4:
Not developing a strong enough case
to show why you need the money
10
Tighten Your Case
•
•
•
•
Ask current donors why they give
Focus on one or two themes
Develop stories around themes
Create supporting materials
A Good Case…
• Shows urgency
• Explains why a donor should give
• Is NOT just a list of needs
11
Preparation and
Planning
• Mistake # 5:
Focusing campaign volunteer
leadership on too few people
Broaden Campaign
Leadership
•
•
•
•
Appoint 3 co-chairs instead of 1 chair
Look for business and social diversity
Consider term limits for co-chairs
Develop campaign committee separate
from board development committee
12
How to Use Volunteers
1. For national campaigns, identify city
or regional chairs
2. Identify and group volunteers by
industry, i.e. oil and gas or banking
3. Link volunteers to sources of funding,
e.g. corporations, foundations,
i di id l
individuals
4. Bring in younger volunteers for
Internet campaigns
Preparation and
Planning
• Mistake # 6:
Spending more on campaign costs and
overhead than you need to.
to
13
Keep Costs Down
•
•
•
•
•
•
Ask volunteers to help with events and PR
Use a folder with a logo for printed materials
Run a contest for campaign name and logo
Cut travel costs, use more e-mail and phones
Create PowerPoint presentations for calls
Plan events in volunteers’ homes for free
How to Pay
for your Campaign
Costs run from 2 to 20% of $$ raised
• Pay costs out of funds raised
• Raise special gifts for campaign costs
• Devote a portion of endowment income for a
period of years to cover campaign costs
• Use unrestricted bequests to cover costs
• Hold a special event or fundraiser to pay costs.
14
6 common mistakes in the implementation of your major gift
campaign and how to avoid them
PART II: IMPLEMENTATION
Campaign
Implementation
• Mistake # 7:
Not planning different approaches for
different constituencies
15
Identify New Audiences
• Develop an Internet campaign to reach
new donors and broaden base
• Add a planned giving component, reach
out to older donors
ssess national
a o a do
donor
o base, add
• Assess
regional or city-based committees
• Establish programs for younger donors
Campaign
Implementation
• Mistake #8:
Asking too soon
16
Timing is Everything
• It can take from 12 to 24 months to
close a major gift from a new prospect
• Asking too soon lowers the gift level
• Involve the prospect in the work of your
organization to establish a connection
Cultivation Ideas
• Offer a tour of your facilities
• Invite prospects to meet w/ executive
director and users of your services
• Hold small group dinners at board
e be s homes
o es
members’
• Host reception in a donor’s board room
17
Campaign
Implementation
• Mistake # 9:
Not asking at all
It’s Time to Ask
• People don’t give if they aren’t asked
• Develop a system for prospect
management and use it to track activity
• Train volunteers on how and when to ask
• Team up experienced askers with newer
volunteers to build stronger teams
18
Campaign
Implementation
• Mistake # 10:
Poor closing techniques once the
solicitation has been made
Closing the Gift
If a gift has been promised,
promised have one
solicitation team member:
1. Repeat the gift amount
2. Repeat the timing and the particulars of
eg
gift
the
3. Set a specific date for a next action,
such as sending a pledge letter.
19
Closing the Gift
If the gift is still under consideration:
1. Identify the key issue(s) outstanding
2. Agree on the steps to be taken towards
a resolution of the key issue(s)
3 Agree on a specific next step: “Why
3.
Why
don’t you and your wife come to see the
site next week. Would Tuesday work?”
Closing the Gift
• Follow up with the prospect every 2 to 3
weeks or so until the gift is settled
• Continue cultivation and keep
communication lines open
a e ge to
o motivate
o a e the
e do
donor
o
• Use a cchallenge
• Consider using a deadline, such as a
recognition event, to motivate donor
20
Campaign
Implementation
• Mistake # 11:
Not communicating a clear message
about campaign needs across the
organization
Campaign
Communications
• Focus on one or two clear messages
across the organization
• Use website, newsletters, magazines,
and other mailings to support message
a e the
e organization’s
o ga a o s needs
eeds sound
sou d
• Make
compelling through stories and human
interest
21
More on Campaign
Communications
•
•
•
•
Focus more on electronic media
Use Powerpoint presentation for visits
Post campaign video on website
Conduct a “viral”
viral campaign using social
networking sites
Campaign
Implementation
• Mistake # 12:
Taking donors for granted once a gift
is closed
22
Stewardship is King
• It costs more to find and cultivate new
donors than it does to keep old ones.
• In difficult economic times, those who
believe in your cause are more likely to
stick with you
• Good stewardship means more than
sending a thank you letter
Make a Stewardship Plan
• Communicate on a regular basis about
the progress of your campaign
• Tell donors what happened to their gifts
• Use stories and examples to humanize
e impact
pac o
of g
giving
g
the
• Invite donors to a special event
• Meet all recognition promises
23
Asking Donors
for a Second Gift
• Ask current donors for a second gift towards
the end of your campaign
• Ask donors to add a year onto pledge
commitments to meet your goal
g
levels
• Ask donors to consider recognition
above the one they are in
• Consider using a challenge to motivate
second gifts, especially from your board
In Summary
• Take good care of past & current donors
• Major gifts are still out there but may be
harder to close
• Keep asking and stay positive
• Provide training for staff and volunteers
• Tighten your case, focus on the message,
and get your message out
24
QUESTIONS AND ANSWERS
More Questions?
Contact:
Julia I. Walker, Fundraising Consultant
2619 Nashville Ave.
New Orleans, LA 70115
504 861-8760 (office)
504 444
444-3467
3467 ((cell)
ll)
[email protected]
www.walkercapitalcampaigns.com
25
Coming Next –
May 6, 2009
W
Weaving
i Ethics
Ethi Into
I t Your
Y
Organization’s
O
i ti ’
Fundraising
PAULETTE V. MAEHARA, CFRE, CAE
PRESIDENT & CEO
AFP
For a complete listing of the 2009 AFP Webconference Series, please visit our
website at www.afpnet.org in the education and career development section.
26
CERTIFICATE OF PARTICIPATION
I was a participant in the AFP Webconference held
April 23, 2009
1:00 – 2:30 PM Eastern
Twelve “Deadly” Mistakes of Major-Gift
Campaigns and How to Avoid Them!
Presented by
Julia Walker
Full participation in this session is applicable for 1.5 points in Category 1.B – Education of
the CFRE International application for initial certification and/or recertification.
Signed_______________________________________________
This is for your records only.
AFP Bookstore Order Form
***REDUCED PRICES***
Books by Julia Walker
Look for Julia’s new book Jump-Starting the Stalled Fundraising Campaign
available June 2009!
Nonprofit Essentials: Major Gifts
ISBN: 0471738379, Paperback, 240 pages, April 2006
List price $43.00 USD, AFP price $34.00 USD
Part of the AFP/Wiley Fund Development Series, Nonprofit Essentials: Major Gifts is a professional
guide to major gift fundraising, concisely presented in a format that is accessible, lively, and easyto-read. With in-depth advice from experienced fundraiser Julia Walker, this book takes the reader
from the early stages of establishing a program through the core elements of all major gift
programs: identifying and rating prospects; preparing the case; training volunteers; cultivating
donors; making the ask; and providing recognition and stewardship for the gift. Its nuts-and-bolts
presentation focuses on how to create a prospect-centered program that develops the capacity to
engage and solicit donors, effectively based on their unique interests and needs.
Nonprofit Essentials: The Capital Campaign
ISBN: 0-471-68429-5, Paperback, 177 pages, December 2004
List price $50.00 USD, AFP price $40.48 USD
Preparation. Planning. Execution. It's all here!
Finally, a clear and compelling guide to the key components shared by all campaigns. Illuminating case studies, practical tools,
proven strategies, and helpful hints displayed throughout the book highlight solutions to common stumbling blocks that can trip up
even the experienced campaign professional. Emphasis is given to new tools available through the Internet, such as Web sites for
prospect research and the use of electronic media to help make your organization’s case stand out among the competition.
Title of Book
Nonprofit Essentials: Major Gifts
Nonprofit Essentials: The Capital Campaign
Author
Item Number
Price
Walker
0471738379
$34.00
Walker
0-471-68429-5
Qty
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$40.48
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Weaving Ethics Into Your Organization's Fundraising
Paulette V. Maehara, CFRE, CAE
Wednesday, May 6, 2009
Everyone understands that ethics is critical to fundraising. After all, without public trust and confidence,
fundraising simply cannot occur. But too often we look at ethics in a very limited fashion: “It’s a list of things
we can and cannot do,” or “That’s the job of the fundraiser.” In an increasingly connected world where
accountability, ethics and transparency are not just buzz words but fundamental aspects of a donor’s (and
society’s) expectations, we must reexamine what it means to be ethical. Paulette Maehara, CFRE, CAE, the
president and CEO of the Association of Fundraising Professionals, will explore how organizations can take a
holistic look at ethics, identify how organizations can use ethics to reach out to the public to generate support
and discuss the current pressing ethical issues--such as donor control and percentage-based compensation--that
often seem to arise.
Learning objectives:
Participants will learn:
1. How donors and others view ethics as it relates to nonprofits and what their ethical expectations are of
charities
2. How fundraisers can employ ethics and their ethical values into their organization’s fundraising
3. How fundraisers can integrate ethics into their organization’s daily operations
4. How to discuss some of the critical ethical issues—such as percentage-based compensation and donor
control—with donors and others
Target Audience:
All levels
About the Presenter:
Paulette Maehara, CFRE, CAE, is the president and CEO of the Association of Fundraising Professionals.
Her background combines extensive fundraising knowledge with strong association management experience.
Maehara has been selected by The NonProfit Times as one of the Top 50 Most Influential People in
Philanthropy for the last ten years, 1999-2008, and she was one of just 100 women chosen to participate in the
2000 Leadership America Program.
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May 6, 2009 Paulette V. Maehara, Weaving Ethics Into Your Organization's Fundraising
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2009 WEB/AUDIOCONFERENCES
Educating Fundraisers in the 21st Century
• JANUARY 15, 2009, THURSDAY
Recession-Proof Your Annual Campaign
Stanley Weinstein, ACFRE
• JANUARY 27, 2009, TUESDAY
Raising Big Money Through Golf Events in a Down
Economy
Phil Immordino
• FEBRUARY 5, 2009, THURSDAY
Developing Major-Gift Donors Who Deliver!
Laura Fredricks, JD, LLC
• FEBRUARY 26, THURSDAY
Introducing “Donor Touchpoint Management”―A
Marketing Approach to Donor Relations
Janet Hedrick, CFRE
• JUNE 25, 2009, THURSDAY * 3:00 PM EASTERN*
Making the Most of Email Marketing:
Optimizing Your Message for Today’s Medium
Allison Van Diest
• JULY 8, 2009, WEDNESDAY
Forty Ways to Maximize Fundraising Through Your Website
Allan Pressel
• JULY 23, 2009, THURSDAY
A Blueprint for Fundraising Success in Any Economy:
Creating a Sustainable, Comprehensive Development Model
Kent Dove, CFRE
• AUGUST 12, 2009, WEDNESDAY
Creating a Successful Fundraising Culture:
Twelve Tools for Motivating Your Board
Carole V. Rylander, CFRE
• MARCH 12, 2009, THURSDAY
The Seven Things Everyone Wants: What Freud and
Buddha Understood (and We’re Forgetting) About Online
Outreach
Katya Andresen
• SEPTEMBER 2, 2009, WEDNESDAY
Prospect Research: How to Use Philanthropy Data for the
Most Effective Fundraising
Kathleen Rogers
• MARCH 24, 2009, TUESDAY
Mobilizing Generation 2.0
Ben Rigby
• SEPTEMBER 17, 2009, THURSDAY
Keeping the Plates Spinning: Time Management and Goal
Setting for Development Professionals
Marc A. Pitman, CFCC
• APRIL 7, 2009, TUESDAY
Avoiding Legal Pitfalls: What Fundraisers Need to Know
Paula Goedert
• APRIL 23, 2009, THURSDAY
Twelve “Deadly” Mistakes of Major-Gift Campaigns and
How to Avoid Them!
Julia Walker
• MAY 6, 2009, WEDNESDAY
Weaving Ethics Into Your Organization's Fundraising
Paulette V. Maehara, CFRE, CAE
• MAY 20, 2009, WEDNESDAY
Giving Circles and Fundraising in the New Philanthropy
Environment
Angela Eikenberry and Jessica Bearman
• OCTOBER 8, 2009, THURSDAY
How Great Teams Turn Conflict into Strength
Diana McLain Smith
• OCTOBER, 28, 2009, WEDNESDAY
Getting Your Message to the Media on a Dime!
Kathy Compton
• NOVEMBER 5, 2009, THURSDAY
Title - TBA
Speaker
• DECEMBER 9, 2009, WEDNESDAY
How to Have Conversations With Donors About Planned
Gifts
Kathryn W. Miree
• JUNE 10, 2009, WEDNESDAY
Evaluating Your Development Program: How Do You
Measure Up?
Linda Lysakowski, ACFRE
Web/Audioconferences will be held at 1:00-2:30 p.m. Eastern / 12:00-1:30 p.m. Central
11:00 a.m.–12:30 p.m. Mountain / 10:00-11:30 a.m. Pacific / 9:00-10:30 a.m. Alaska (*except on June 25, 2009)
FEES: $145 (U.S.) per member session; $295 (U.S.) per nonmember session
Special AFP Member Bundle - $99 per session when registering for 10 or more programs at one time!
AFP 2009 WEB/AUDIOCONFERENCE SERIES
‰ January 15, 2009
‰ January 27, 2009
‰ February 5, 2009
‰ February 26, 2009
‰ March 12, 2009
Stanley Weinstein, Recession-Proof Your Annual Campaign
Phil Immardino, Raising Big Money Through Golf Events in a Down Economy
Laura Fredricks, Developing Major-Gift Donors Who Deliver!
Janet Hedrick, Introducing “Donor Touchpoint Management”—A Marketing Approach to Donor Relations
Katya Andresen, The Seven things Everyone Wants: What Freud and Buddha Understood (and We’re Forgetting) About
Online Outreach
‰ March 24, 2009
Ben Rigby, Mobilizing Generation 2.0
‰ April 7, 2009
Paula Goedert, Avoiding Legal Pitfalls: What Fundraisers Need to Know
‰ April 23, 2009
Julia Walker, Twelve “Deadly” Mistakes of Major-Gift Campaigns and How to Avoid Them!
‰ May 6, 2009
Paulette V. Maehara, Weaving Ethics Into Your Organization’s Fundraising
‰ May 20, 2009
Angela Eikenberry & Jessica Bearman, Giving Circles and Fundraising in the New Philanthropy Environment
‰ June 10, 2009
Linda Lysakowski, Evaluating Your Development Program: How Do You Measure Up?
‰ June 25, 2009
Allison Van Diest, Making the Most of Email Marketing: Optimizing Your message for Today’s Medium
‰ July 8, 2009
Allan Pressel, Forty Ways to Maximize Fundraising Through Your Website
‰ July 23, 2009
Kent Dove, A Blueprint for Fundraising Success in Any Economy: Creating a Sustainable, Comprehensive Development
Model
‰ August 12, 2009
Carole Rylander, Creating a Successful Fundraising Culture: Twelve Tools for Motivating Your Board
‰ September 2, 2009 Kathleen Rogers, Prospect Research: How to Use Philanthropy Data for the Most Effective Fundraising
‰ September 17, 2009 Marc A. Pitman, Keeping the Plates Spinning: Time Management and Goal Setting for Development Professionals
‰ October 8, 2009
Diana McLain Smith, How Great Teams Turn Conflict into Strength
‰ October 28, 2009
Kathy Compton, Getting Your Message to the Media on a Dime!
‰ November 5, 2009 To be Announced
‰ December 9, 2009
Kathryn Miree, How to Have Conversations With Donors About Planned Gifts
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Association of Fundraising Professionals
Twelve “Deadly” Mistakes of Major-Gift
Campaigns and How to Avoid Them!
April 23, 2009
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