CREATING A FRAMEWORK FOR DONOR-CENTERED DEVELOPMENT Pam Velo, CAP GIFT Consultant Velo Philanthropic Advising
IMPORTANCE OF DONOR RELATIONSHIPS IN COMMUNITY FOUNDATIONS Interest in and commitment to community Educated philanthropists Resource for the community Growing the next gen of philanthropists Increased gifts and bequests to community foundation
A WORD ABOUT BEQUESTS GIFT Community Foundation Estate Gift Survey Two thirds of Indiana CFs reported the number and amount of gifts from 2008 2012 Average size estate gift was $246,582 Over the next 10 years, $104 billion will be transferred in Indiana How will you cash in on that windfall?
ASSET DEVELOPMENT IN COMMUNITY FOUNDATIONS More of an OFFER than an ASK NFP Fundraising VS CF Asset Development Must convince a donor to give to its specific cause Annual appeals, continually asking Lots of events Relationship management Offer to assist donor with fulfilling their charitable wishes or legacy Building long-term relationships Small, intimate gatherings Stewardship and service
Prospect Identification/ Qualification Board member referral Professional advisor referral Giving history Event guest Relationship to CF Wealth screening DONOR LIFECYCLE Cultivation Early PR Peer to Peer Events Committees Advanced Relationship Visits Passions Linkage Capacity Propensity Stewardship Timely thank you. IRS-proof receipt! Annual reports of impact Planned touches Unplanned opportunities Next gift opportunity? Build, maintain and enhance relationships! Solicitation Natural partner Proposal Gift agreement
2004 Advancement Resources DONOR DEVELOPMENT
4 PILLARS OF DONOR-CENTERED ASSET DEVELOPMENT
GETTING TO KNOW YOUR DONORS Listen! What does the donor want from the CF? Identifying donor values and interests Identifying donor philanthropic goals Communicating effectively Documentation
HELP DONORS ACHIEVE THEIR PHILANTHROPIC GOALS Education Information on community issues Organizations in their interest areas Speakers of interest Sweet spot co-investing Include next gen members Educate next gen Governance advice Family meeting facilitation Informal gathering for donor peers Staff preps information on topic Staff sends information Facilitate a peer discussion Community volunteer CF volunteer Event attendance CF Ambassador
THANKING AND CELEBRATING DONORS Prompt and sincere thanks Phone calls from staff and Board Handwritten notes In-person visits Recognition
DONOR-ADVISED FUND (DAF) GRANTMAKING Their charitable interests Their grantmaking goals Their grantmaking strategies Their grant impact THEN Co-investing with the CF Gifts to unrestricted Additional gifts
EXISTING DONORS AS PROSPECTS FOR GIVING TODAY AND IN THE FUTURE Personalized, reliable and consistent service Prompt and genuine thanks Communication of gift impact Community foundation engagement More and larger gifts Permanent or new funds Planned gifts Gifts to unrestricted fund Ambassadors for CF
NEVER ASK FOR ANOTHER GIFT UNLESS Prompt, sincere thanks for their gift Confirmation that it is being used as intended Communicate the results of donor gifts prior to asking for another gift
MANAGING DONOR WORK
YOUR NEW PASSION DOCUMENTATION! If it isn t documented, it didn t happen Allows everyone in the CF to stay informed Allows you to plan your next moves Helps you to personalize communication Mitigates the impact of the bus
MANAGING FOR SUCCESS PLANNING STAGE Identify resources for development ($ and human) Develop strategies, and identify Board and Staff to implement them Create a framework for Identifying new prospects Cultivating existing donors Developing relationships with professional advisors Set goals and benchmarks Develop and maintain a timeline and calendar. Use it faithfully! Create materials for Board and Staff to use.
PLAN IMPLEMENTATION Widely share the plan, timeline and persons responsible Identify prospects, determine the best way to introduce them to the foundation Identify your hallmarks of stewardship and implement them consistently Cultivate and steward prospects, existing donors and professional advisors Schedule and conduct introductions, visits and meetings Make sure events are truly cultivation events follow up! Document development activities and information Review asset development activities and progress at each board meeting
MEASURING PROGRESS AND SUCCESS Track progress on development outcomes and benchmarks Report progress to Board on a regular basis Reassess strategies and activities annually Use findings to tweak plan for the following year CELEBRATE your success!
MANAGING FOR SUCCESS WORK MANAGEMENT SPREADSHEET Service areas and tasks Purpose/planned result Responsible persons Activities Next steps/progress Due date
THE WHAT AND WHY OF TIERED SERVICES Donor Services & Capacity The Debate 80/20 Rule Or 20/60/20 Rule
What Are Tiered Services? Not the same as stewardship activities Designed to advance relationship with donor Services are delivered based on tiering criteria, and staff capacity Funds with the most potential, receive more services Periodically, staff and Board should discuss opportunities/strategies for donor movement between tiers Tiered Services Tiered services Tiered Services
SAMPLE TIERED SERVICES Lower Tier Services Higher Tier Services Mailed donor handbook Annual call/visit Annual CF updated and impact Anniversary card, milestone acknowledgement Thanksgiving card All of the Lower Tier Services plus: In person meeting for orientation Inclusion in events Proactive sharing of information relevant to interests (articles, research, community news) Lunch with CEO or Board Member Family Philanthropy Services Strategic charitable planning One thing to keep in mind
SAMPLE CRITERIA FOR TIERING Fund size Frequency of gifts Has a planned gift for the Foundation Potential for new/additional gifts or funds Community connections/influence Degree of engagement with the Foundation Grants that make an impact on the community
ANNUAL VISITS AND CALLS CUES o New interest areas o Retirement o Death of older relative o Considering a business, farm or home sale o Kids getting married or graduating from college (insurance) o Concerns about having enough money o Desire to leave an inheritance Prepare for meeting or call Catch up on their news and listen for cues Share the CF news and updates Review their Foundation gift history Review their grants and grant impact Ask them for service feedback, address any issues Discuss future giving plans Lovely parting gifts
COMMUNICATION STRATEGIES Foundation News (Positive Results Trump Needs!) Website Annual report Recognition Thank you calls Board Anniversary note cards Thanksgiving cards End of year emails
BUT I LIVE IN THE REAL WORLD Other activities have external timetables Make it a real priority (change your behavior) Create routine and discipline Power in shared goals Integrate activities into existing contacts Serendipity
SMALL GROUP DISCUSSION MAKING IT WORK Three ways to integrate new development activities into your existing work
RECOMMENDED READING Fundraising and Moves Management Donor Centered Fundraising Penelope Burk The Artful Journey William Sturtevant Seven Faces of Philanthropy Russ A. Prince and Karen M. File Strategic Charitable Planning Inspired Giving Tracy Gary
TOOLKIT DOCUMENTS ON FLASH DRIVE (1 COPY IN PURPLE FOLDER ON EACH TABLE) 1. Annual Donor Call Preparation and Agenda 2. Community Foundation Asset Development Plan 3. Donor Services Time Management and Planning 4. Portfolio Quick Facts 5. Community Foundation Donor Services (types and tiered donor services)
ANNUAL DONOR CALL PREPARATION AND AGENDA
COMMUNITY FOUNDATION ASSET DEVELOPMENT PLAN
DONOR WORK MANAGEMENT GRID-PAGE 1
DONOR WORK MANAGEMENT GRID-PAGE 2
PORTFOLIO QUICK FACTS
FUND TYPES & TIERED DONOR SERVICES SAMPLE Sample Community Foundation Donor Services Stewardship and Fund Services Donor services are delivered based on fund and tiering information, and staff capacity. Funds that have the most potential for community impact and additional gifts, typically receive more services. The following outline identifies possible services for each tier and each type of CF fund. Periodically, all involved staff should discuss opportunities for donor movement between tiers. Stewardship (all donors) Timely thank you for gifts Prompt response to calls/requests Fund statements and investment report Grant reports and/or gift impact letter Email offer of assistance for end-of-year gifts and grants Donor Services Designated Funds Annual stewardship call Respond to calls/requests Thanksgiving card Contact to offer assistance for end of year gifts Future Funds Annual stewardship call CF update and results Thanksgiving card Invitation to thank you event Unrestricted Named Funds and Donors Annual stewardship contact CF update and results Thanksgiving card Invitation to thank you event Charitable Organization Endowment Funds Annual stewardship call Thanksgiving card Invitation to annual fund development workshop Scholarship Funds Annual meeting/call CF update and results Scholarship fund handbook/materials Selection committee preparation, meetings, follow up Student follow up Invitation to an event Thanksgiving card
FUND TYPES & TIERED DONOR SERVICES SAMPLE-PAGE 2 Sample Community Foundation Donor Services Stewardship and Fund Services Donor-Advised Funds Tier Three Donor advisor orientation and handbook - meeting or mailing Annual stewardship phone call Annual CF update and results Anniversary card, milestone acknowledgement Thanksgiving card Tier Two All of the above, plus: Inclusion in select events Annual meeting or call o Grant history report Strategic charitable planning* Limited organization and info topic research* Family Philanthropy services* *(depending on interest, level of engagement and potential for new gifts) Tier One All of the above, plus: Send information relevant to interests (articles, research, community news) Milestone lunches, meeting with CEO Offer of organization and info topic research Site visits, meetings with grant staff Meeting facilitation Major Donor-Advised Funds ($10 million and over) In addition to the above, includes customized services: Proposal/application process development & management Webpage Quarterly call from CEO Annual dinner with CEO and 1-2 board members