Building an Integrated Major/Planned Gift Development Model A Practical Organisational Guide Roger D. Ali, M.B.A., CFRE Vice President, Development Juravinski Hospital and Cancer Centre Vice President, Integrated Planned Giving Hamilton Health Sciences Foundation Learning Outcomes Learn how to build a successful integrated model Identify steps towards integrating major and planned giving programs Be able to work with development officers more effectively to advance an integrated discussion with donors Develop strategies to build stronger donor relationships The Donor Relationship A simple fact Donors don t give to institutions. They invest in ideas and people in whom they believe. G.T. Smith 1
The Value KCI Trends, 2012 Issue 1 Donor Base The Canadian population: 35,158,300 Life expectancy: 80.93 years Median age is: 40.6 Generation Y: Age 15-35, Generation X: Age 36-43 Baby Boomers: Back end Boomers: Age 44-55 Front end Boomers: Age 56-65 Seniors: Age 65+ Statistics Canada, 2011 Census Canadian Donor Profile Almost 23 million Canadians 84% of the population aged 15 and over made a financial donation to a charitable or other nonprofit organization in a 12- month period The top 25% of donors (who contributed $364 or more annually) accounted for 82% of the total value of donations. The top 10% (who contributed $1,002 or more annually) accounted for 62% of the total value. Description of donor. Older, higher incomes, formal education Statistics Canada s 2007 Caring Canadians, Involved Canadians 2
Profile About 50% of boomers have income over $60,000. Baby boomers make up the largest proportion of the working population. Statistics Canada, 2011 Census Why People Donate? The most frequently reported motivations for making donations were feeling compassion for those in need, wanting to help a cause in which the donor personally believes, and wanting to make a contribution to the community. Donors also give because they or someone they know has been personally affected by the cause of the organization or because of religious obligations or beliefs. Statistics Canada s 2007 Caring Canadians, Involved Canadians Major Gift Model 3
Major Gift Donor Development Identification Qualification Development of Strategy Cultivation Major Gift Donor Development Solicitation Acknowledgement Stewardship Renewal Major Gift Donor Process 4
Major Gift Cultural Assessment Why is it important to my organisation? If you have been trying to make changes in how your organization works, you need to find out how the existing culture aids or hinders you. Edgar Schein, Professor MIT Sloan School of Management Exercise 1: Hamilton Health Sciences Foundation Is a registered charitable organization that works to support Hamilton Health Sciences (HHS) - a family of six unique hospitals and a cancer centre : Chedoke Hospital, Hamilton General Hospital, Juravinski Hospital and Cancer Centre, McMaster Children s Hospital, McMaster University Medical Centre and St. Peter s Hospital Serving more than 2.3 million residents of southcentral Ontario and is affiliated academic with both McMaster University and Mohawk College. 5
Hamilton Health Sciences Foundation Structure Board of Directors Finance & Investment Committee Audit Committee Governance Committee Fundraising Councils Hamilton General Council Juravinski Hospital and Cancer Centre Council St. Peter s Hospital Council McMaster Children s Hospital Council Steps Towards Integrating Major and Planned Giving Programs Donor Identification Staff Training In-house Expert Sharing Understanding Steps Towards Integrating Major and Planned Giving Programs Messaging Regular Meetings Job Accountability Performance Benchmarks 6
Endowment Fundraising Building the Endowment A Growth Strategy Branding Endowment A financial asset used by non-profit groups or institutions Most endowments are designed to keep the principal amount intact while using the investment income from dividends for charitable efforts. Endowments provide ongoing by earning a market rate of interest while keeping the core principal intact to fund future activities. The ratio of principal to income would change year to year based on prevailing market rates. Development Officers A Development Officer builds relationships with potential investors and introduces them to a vision of service to others. They avoid pushing, but constantly provide a gentle pulling for others to make a decision for greater involvement. Key Qualities: 1. Personality that generates enthusiasm and optimism. 2. Highest ethical standards. 3. Productivity that is self initiating. 4. Strong personal organization and knowledge management. 5. Outstanding communications skills. Doug Morrow, CFRE, Principal and CEO, YourTrustedCounsel.com 7
Who Are Your Donors? Recency When was their last donation? Frequency How often do they donate? Affinity Which program or cause? Level of giving The amount as well as capacity How Is A Major/Planned Giving Option Raised With A Donor? Example 8
Building Your Plan What does it take: Time Patience Strategy Checklist For Success A set group of potential donors Well versed, dynamic staff Orchestrated plan A connection and story Summary Elements of a successful integrated model Key steps towards integrating major and planned giving programs Effective development officers Stronger donor relationships 9
Final Thoughts. Fundraising is the gentle art of teaching the joy of giving. Hank Rosso When we recognize that a better word for Fundraising is friend raising, we open limitless doors to creativity in support of our causes. Sue Vineyard The Ultimate Philanthropist.. I resolved to stop accumulating and begin the infinitely more serious and difficult task of wise distribution. Andrew Carnegie (1835-1919) Questions Roger D. Ali, M.B.A., CFRE Vice President, Development Juravinski Hospital and Cancer Centre Vice President, Integrated Planned Giving Hamilton Health Sciences Foundation Email: aliroger@hhsc.ca 10