Presenter: Daniel Zanella Senior Consultant Saturday, January 9 9:00 am 10:15 am www.artsconsulting.com
} This session will guide participants through various methodologies useful in capital, endowment, and planned giving campaigns. Daniel Zanella, senior consultant at Arts Consulting Group, will assess the efficacy of a variety of fundraising, data collection, and organizational development models. The second part of our fundraising series, this session is suited for professionals with twoto-three years of fundraising experience. 2
} Welcome & Introductions 9:00 am } Assessing Campaign Readiness 9:05 am } Wealth Screening Discussion 9:20 am } Developing a Gift Table & Naming Opportunities 9:35 am } Engaging Campaign Leadership 9:50 am } Question & Answer Opportunities 10:00 am } Adjourn 10:15 am 3
Key Elements: 1. A shared vision of what the organization will be able to accomplish with the necessary resources 2. Alignment of strategic priorities to fulfill community needs and advance your organization s mission 3. A Board that is capable & willing to provide significant volunteer and financial support 4. An active annual donor pool and accurate data demonstrating past support 5. High-level leadership prospects who have been cultivated and stewarded 4
} Tests interest level among prospective supporters } Identifies potential challenges & key messaging } Serves to educate & cultivate leadership gift prospects } Identifies potential volunteers & major gift prospects 5
} Allow approximately 4 6 months for a Study } Create a Planning Committee } Identify twice as many potential interviewees as the number you would like to complete and rank them by must, should, & could see } Share your preliminary case document with prospects in advance of interviews } Test a specific campaign goal and objectives 6
} Cultivates potential campaign leaders & donors } Help identify & rank interview prospects } Review & provide feedback on campaign materials (case, interview questions, letters of invitations) } Encourages prospects to participate in study } Reviews draft of study report and issues recommendation to Board 7
} For Campaign Fundraising, it s primarily about Who You Already Know. The majority of significant capital, endowment, and planned gifts tend to come from your existing donors and are often the result of an extended period of cultivation. Key to successful campaign fundraising is identifying those with both the capacity and interest to support your work. 8
} Identify overlooked capacity and interest in your existing database } Can be utilized to populate & refine prospect lists for campaigns, annual fund activities & planned giving efforts } Provides information to help choose prospective feasibility study candidates } Helps you narrow your list of potential major gift donors and provides significant research on your prospects 9
} Better results with more complete data: Minimum info needed for most services is a name and state of residence, database ID# recommended Home Address Full name (with middle initial) Spouse s/significant Other s name Giving history with your organization: number of gifts 1 st gift date & amount latest gift date & amount total giving 10
} Wealth Indicators Real estate & stock holdings, foundation affiliations, compensation, private business connections } Philanthropic Interests Gift types (annual, capital, endowment), areas of interest, gift levels } Connections Alumni, Social, Business & Community 11
} Net Worth } Private Holdings (individual stock & investment portfolios, pensions, etc.) } Real estate held in trust or those with tax bill sent to an alternate address } All philanthropic activity for a particular individual 12
} Break your results down into manageable segments, e.g.: Priority prospects (generally no more than 50 100) e.g.: arts giving @ $100K+, stock of $5M+, business w/annual sales of $25M+, real estate of $2M+, etc. Major gift potential Philanthropy of $50K+, stock holders, foundation directors, private business owners, compensation of $200K+ Upgrade potential $10K+ giving, boat/plane owners, multiple homes Planned Giving Prospects Property held in trust,10+ gifts to your organization, age: 50+, long-term ticket buyers, $5K+in giving 13
} Review priority & major gift prospects with your Development or Campaign Committee } Rank and assign your priority prospects and develop customized engagement strategies } Develop cultivation protocols for other segments (communications, events, patron services, etc.) } Develop annual fund strategy for upgrade prospects (cultivation activities, target gift levels, solicitation timeline, etc.) 14
} Provides a reality check for planning } Helps set the bar and raise expectations on gift levels } Assists in calculations for number and quality of prospects needed } Can serve as a basis for named gift opportunity levels 15
} The Lead Gift(s) will equal 10% - 15% of your campaign } The top 8 12 gifts will typically account for 50% 60% of your campaign } You ll need 2 3 times as many prospects as total number of gifts you are seeking 16
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} Industry has learned to provide a specific term (e.g. 20 years) for naming opportunities to preserve flexibility for future fundraising needs } Recognition in perpetuity should therefore be negotiated at significantly higher levels } Naming Opportunities are not necessarily correlated to the actual cost of the property to be named, but rather the perceived market value } Have at least 10% more naming opportunities available for each of the 5 6 highest levels on your gift table 18
} Look beyond brick & mortar options } Include named endowments/funds for programs and key personnel } Leverage community engagement offerings as these are often the most attractive for donors interested in giving back (e.g. the John and Martha Smith Residency Fund, a Ticket Subsidy Fund, Master Class underwriting, etc.) 19
} Determine the committee size you ll need to solicit your major gift prospects (a ration of 5:1 or 6:1 prospects to volunteers is preferred where possible) } Committee members should each be recruited with the expectation they will make a significant campaign commitment as this is key to their credibility as campaign leaders and their effectiveness as solicitors } Share a detailed job description for each position (e.g. Chair, Vice-Chair, Committee Member, Campaign Treasurer, etc.) 20
} Serve as the primary spokesperson for the campaign } Provide meaningful financial support to the campaign } Approve agendas for & lead campaign committee meetings } Take responsibility for the identification, recruitment & solicitation of committee members } Take an active role in the identification, cultivation & solicitation of leadership gift prospects } Attend key campaign events (e.g. kick-off/announcement, fundraising events, presentations, closing celebration, etc.) } Assist in developing campaign messaging items (e.g. plan, case for support, etc.) & approve communications materials } Provide regular progress reports to the Board 21
} Where will your campaign s major gifts likely come from? Look for volunteers who can help you access those constituencies. } Do you see significant campaign revenues coming from: Corporations Foundations Government Individuals Specific geographic areas Particularly important community segments 22
} You ll likely need a number of skill sets represented on your committee. It s rare that one person will excel in all the needed areas: Door Opener Strategist Cheerleader Financial expertise Legal expertise (especially in developing gift acceptance policies & planned giving techniques) Cultivator Solicitor Gift Closer Gift Steward 23
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Daniel Zanella, Senior Consultant, Arts Consulting Group 1040 First Avenue, Suite 352, New York, NY 10022-2991 Tel (888) 234-4236 / cell: (201) 306-3201 djzanella@artsconsulting.com Growing Institutions. Advancing Arts & Culture. Enhancing Communities. Arts Consulting Group is the leading provider of hands-on interim management, executive search, revenue enhancement consulting, facilities & program planning, and organizational development services for the arts and culture industry. Offices in Boston, Chicago, Dallas, Denver, Los Angeles, New York, Portland, San Diego, Tampa, Washington DC. ACG consultants are also located in other communities throughout North America to best serve the needs of our clients. 25