Securing the Gift (Module VI) Elizabeth s Notes 19% - 38 items on the test

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1 CFRE Test Content Outline Securing the Gift Securing the Gift (Module VI) Elizabeth s Notes 19% - 38 items on the test A. Develop a compelling case for support by involving stakeholders in order to communicate the rationale for supporting the organisation s fundraising programme B. Apply prospect research data to develop a solicitation plan for involvement of individual donors and/or donor groups. C. Design a comprehensive solicitation programme in order to generate financial support for the organisation s purpose D. Prepare donor-focused and segmented solicitation communications in order to influence and facilitate informed gift decisions E. Ask for and secure gifts from prospects in order to generate financial support for the organisation s purpose F. Evaluate the solicitation programme using appropriate criteria and methodology in order to produce accurate analytic reports for effective decision making This module and appendices reviews the components involved in securing gifts, including various ways to solicit donations. (1) Acknowledgement and Recognition System (2) Asking for Gifts (Roles of Volunteers and Staff) (3) Securing Annual Gifts a. Organizational Grants (VI-13-18) b. Major Gift Programs (p. VI-19 and Appendix 68-69) c. Direct Mail (Appendix 72-75) d. Telephone (Appendix 70-71) e. E-Philanthropy (Appendix 77) f. Special Events (appendix 86-89) (1) Acknowledgement and Recognition System (VI-2) Building a sustainable development program means you need to acquire donors and keep them. That means making sure they feel appreciated and underlying that appreciation has to be a solid system for tracking and acknowledging gifts. In addition to acknowledgement and recognition, there are two reasons to include this critical component in planning and execution: 1. To ensure the donor s intention for the use of the funds is clear 2. To capture information gathered during the research and solicitation process to determine how to connect with them. 1/9

2 Gift Recognition Appropriate to Donor s Needs Recognition must be prompt Recognition needs to meet the organization s guidelines and the donor s needs (p. VI-3) Reporting on how the donor s last gift was used gives the organization another opportunity to thank the donor and fulfill stewardship responsibilities. (p. VI-4) o Recognition can be done in person, by phone, by mail, in reports, asking major donors to become involved with your organization, by giving clubs (VI-4) As James Greenfield notes in Fundraising Fundamentals (p. 148), attention to donors through recognition and reward should be a pro-active part of every non-profit organization the budget required to be nice to these best friends is small in comparison to their past and future generosity. Hank Rosso writes that recognition should be as personal as possible, reflective of the uniqueness of the non-profit, and appropriate to the size and importance of the contribution. He also notes that How would you and your family like us to acknowledge your gift? is an appropriate inquiry in the case of a major gift. (p. 99) In addition to promptly sending a thank you letter (possibly in conjunction with a call and/or personal visit), ideas for recognition put forward by Greenfield in Fundraising Fundamentals include: o Asking the donor to be a guest at a VIP table at a benefit event o Inviting them for a tour o Including a personal cover note with their next newsletter or annual report o Inviting them to give a testimonial interview about their gift decision for publication Software Capabilities (VI-2-3) Store raw data about donors and potential donors Manipulate data Create lists and reports Track restricted and unrestricted funds Interface with donor files Recognize different giving levels Quick access to donor history and status 2/9

3 Donor Recognition: The policy and practice of recognizing gifts, first through immediate acknowledgment by card or letter, and subsequently through personalized notes, personal expressions of appreciation directly to donors, published lists of contributors, and in other appropriate ways. (Appendix 2) (2) Asking for Gifts: Roles of Volunteers and Staff (VI-5) Effective major gift solicitation is best handled by a team of two: a volunteer and a senior staff member (CEO). It s important that the volunteer has made his/her own contribution prior to asking others for a gift. (VI-5) Why would people be willing to contribute funds to an organization, and, additionally, ask others to do the same? They desire to give back to an organization they identify with, or have personally benefited from They believe in the organization and its work They want to make a difference, and want other to do the same Hank Rosso notes that volunteers will willingly play many fundraising roles once their commitment to the organization has been confirmed (p. 66). To encourage this commitment, volunteers must be: Meaningfully involved Properly recognized Made to feel that they are an important part of a worthwhile team serving a worthwhile program. Made to feel their involvement is making a difference. The Board s First Role in any Fundraising Effort is: (p. VI-5) (1) Determine, authorize and oversee the need for funds (2) Determine the purpose for and justification of funds used (3) Determine investment strategies and fund managers (4) Approve fund allocations Board (Volunteer) / Staff Partnership (p. VI-6) Volunteers CEO Commit gifts to set the pace The Chief Fundraising Officer Participate in solicitations Responsible for how funds are used Solicit within their sphere of influence Key spokesperson for the organization Highly visible during the campaign 3/9

4 Preparing volunteers for solicitation (page VI-7) Before beginning their work, volunteers should receive an orientation to the overall organization, as well as training specific to the jobs they will do. General Orientation o Intro to the organization and its history o Mission, vision and purpose o Organization s functional areas o Campaign plans and case statements Additional Orientation o Training in soliciting gifts and other campaign specifics What volunteers need to know and do (p. VI-6) Volunteers need to make their personal contribution to the campaign. They also need to know and/or have: Their role in the overall development program The motivations, needs, values and potential linkages of those being approached How the gift they are asking for will be used, what it will accomplish The donor s history, rating assignment sheets, and how to use them Techniques for asking for gifts, handling objections and closing the gift Reporting mechanisms used by the organization Specific instructions of what they are to do, by when, with deadlines The time for discussion of each prospect and related materials Opportunities to rehearse and review the solicitation process in detail role plays can be effective. Staff members support volunteer fundraisers by...(p. VI-8) Providing training Preparing campaign materials, letters, invitations, etc. Information management and reporting Gently applying pressure as needed Offering hep as needed 4/9

5 Roles & Responsibilities of a Volunteer Solicitor (Appendix 65) People give to people, not causes. Volunteer Solicitors should attempt the following: (1) Speak authoritatively about the organization or campaign (2) Articulate the case for support enthusiastically (3) Respond confidently to all basic questions (4) Suggest possible benefits (5) Believe in the campaign and the goal (6) Make a meaningful donation to the organization There is more specific information about the role of volunteers in the Volunteer Involvement Module. (3) Securing Annual Gifts (VI-9) Annual Gifts (VI-9) The more we know about an individual s motives, the more likely we can offer meaningful giving opportunities. Knowing the reason why a donor gives can help you determine the most effective solicitation method and ask. Using several fundraising methods in tandem is most effective. Using personal solicitation is 16 times more effective than mail solicitation. Annual Fund: Any organized effort by a non-profit institution or program to secure gifts on an annual basis, either by mail or through direct solicitation, or both. It is frequently called Annual Appeal or Annual Giving Program. (Appendix 1) The annual fund is the building block for all fundraising. It serves to establish a base of donors that can serve as an effective device to involve, inform and bond a constituency to the organization. It can further serve as an instrument that compels accountability to the cause the organization is serving. (Achieving Excellence in Fundraising, Second Edition, Henry Rosso & Associates, p. 72) Without an annual campaign, an organization often finds itself involved in crisis fundraising... With a successful fundraising program built around an annual campaign... there will be a carefully thought-out, planned and implemented approach to raising money in an orderly and timely manner. (Achieving Excellence in Fundraising, Second Edition, Henry Rosso & Associates, p. 72) 5/9

6 Primary Objectives of the Annual Fund according to Hank Rosso: (Achieving Excellence in Fundraising, Second Edition, Henry Rosso & Associates, p. 73) To solicit and secure a new gift, repeat the gift, and upgrade the gift To build and develop a base of donors To establish habits and patterns of giving by regular solicitation To seek to expand the donor base by soliciting gifts from new prospects To raise annual unrestricted and restricted money To inform, involve and bond the constituency to the organization To use the donor base as a vital source of information to identify potential large donors To promote giving habits that encourage the contributor to make capital and planned gifts To remain fully accountable to the constituency through annual reports If you have done your homework and prepared your solicitation strategy, you will answer the following vital questions for the prospect: WHO Who is asking? What organization and what person? WHAT What is the amount? How much are they asking for? WHY Why are they asking me? For what purpose? Timing - why now? Every donor will ask themselves these questions prior to making a gift. If the questions are answered appropriately, a prospect will decide to make a gift. Making a donation can be: (p. VI-12) (1) Spontaneous (donation at the cash register) (2) Responsive (donation to a direct response solicitation mail, , phone) (3) Deliberately planned (e.g. gift of stock) The more funding sources in an organization s donor base, the less likely the organization is to be affected by events that might have an impact on any one of those sources... (Achieving Excellence in Fundraising, Second Edition, Henry Rosso & Associates, p. 159) 6/9

7 Organizational Grants Seeking organizational grants is about personal relationships Write a letter of inquiry prior to submitting the grant proposal. This gives you an opportunity to establish a conversation about the project and begin the relationship-building process. Elements of a Grant Proposal (p. VI-13-14) (1) Proposal summary (2) A problem/needs statement a. Purpose for the request, target market, statement of need, expected results (3) Project goals/objectives (4) Methodology a. How the project will be conducted, who will be involved (5) Evaluation a. How the project will be measured against objectives (6) Budget (7) Include supporting materials a. Audited financial statements, Annual Report, Board of Directors info, letters of support for the project See sample grant proposal on p. VI Major Gifts (VI-19) Major gifts... typically can make a real difference to an organization require personal cultivation and solicitation usually come from individuals, corporations or foundations that have previously given annually and have been significantly involved in the organization Major gift strategies are based on cultivation and solicitation Research Matching donor needs and interests with giving opportunities Strong case statement Personal contact Appropriate follow up Acknowledgment and recognition 7/9

8 Major donors are focusing more on an organization s critical success factors: (p. VI-20) (1) Organization strength (2) Committed volunteers (3) Donations from 100% of the Board (4) Whether the person requesting the donation is already a donor Present a plan that meets the organization s needs and the donor s personal needs. This can lead to an ongoing relationship and continued giving. Six Steps to a Model Solicitation When Asking for a Major Gift (p. VI-21) (1) Build rapport a. Casual conversation to learn about the donor and put him/her at ease. Do more listening than talking. (2) State the case for support a. Organization s strengths and how it will meet constituent s needs (3) Encourage involvement a. Ask open-ended questions. LISTEN. Ask for advice about the organization, its programs or even the solicitation. (4) Summarize benefits and close a. Summarize the case and ask for the gift. (5) Be quiet a. Let the prospect be the first to speak. (6) Respond appropriately a. Confirm that you understand the commitment. Clarify if no refers to the amount, the timing, the project, etc. Asking for Major Gifts (Appendix 68): (1) Pick the right prospect (2) Solicit in person (3) Convince yourself first (and make your donation before you ask for a donation) (4) Know your cause (5) Know your job (6) Know your prospect (7) At the meeting... explain that you re a volunteer; talk about community issues; (8) Ask for a specific amount and secure a promise (9) Have a contingency plan if the donor says no or offers a small gift 8/9

9 Components of a Direct Mail Program (Appendix 72) Mailing Lists (current and previous donors, prospects, members, rented or traded lists) o Renewal Packages sent to current or previous donors Segment lists by first year donors, donors who have given for many years, lapsed donors inactive last year, lapsed donors inactive for several years Outer Envelope (most critical piece - if it doesn t get opened, the prospect won t see the ask) Appeal Letter (capture the reader s attention within 15 seconds; the first paragraph and the PS are the attention getters) Enclosure (a related insert newspaper article, photo, brochure, short story, etc.) o Consider the additional cost before including an enclosure Response Form (purpose is to secure the gift; contains codes to help analyze the results) Reply Envelope (makes it easy for the donor to make a donation) The most frequent mail periods are: September November and March May (Appendix 76) Ten Rules of e-philanthropy (see Appendix 77) Special Events (Appendix 86) Build public awareness Cultivate donors and prospects Allows for focused fundraising Builds constituency (involves different volunteers; opportunity for name recognition and award presentation) Achieves psycho-social benefits (builds morale; a feel-good opportunity; name recognition and association) Costs and Evaluation of an Event (Appendix 88) No budget theory: all costs will be underwritten; must have a budget and a list of needs prior to asking for underwriting or in-kind support After the event, evaluate it: should this event continue? How should it change? Consider the cost and revenue as well as the public awareness, visibility and new constituents it provides See Appendix for additional event considerations 9/9