The Anatomy of a Donor Relations System Lynne Becker American Red Cross Annual Advancement Academy
Introduction New standard in relationship building Revolutionizing the way we do business Redefining what value added means Turning around the traditional thinking about who works for whom New organization chart
A New Conceptual Framework Pub Coord Writer Market/g/Comm Coord Events Coord Admin Asst Stewardship Coord Program Coordinator Acknowledgment Writer Figure 1
A Prototype Donor Relations Program Realignment occurs when the next project comes on line Cross-functional teams Challenge to change our fundamental approach and beliefs about how we do our jobs With heightened emphasis on relationship building, DR is moving us toward the org structure of the 21 st century A new age for relationship building the core of the advancement enterprise
Components and Characteristics Heightened emphasis on relationship building and stewardship Combined with employee empowerment and cross training Creates a dynamic, five-pointed star program Some examples of activities in each of these areas that logically come together follow
Acknowledgements Receipts (IRS compliant) Thank you s (highly personalized)
Stewardship Service laden communication with our donors and friends Endowment performance reporting Tracking scholarship agreements, assignments and thank you s Holding recognition events for recipients, mentors, and families with scholarship donors Linking to a prospect tracking system that talks about stewardship components (cultivation, follow-up after asks, next moves, population of data fields crucial to the successful execution of the tracking program
Stewardship cont. Database management for constituency codes (affiliations of our donors with various initiatives to raise funds, demonstrated interests in various funds) Attendance codes at all events (visiting day for advisory and volunteer committees, special events for donor giving level societies, donor conference calls) Donor recognition wall ceremonies and upkeep
Events Opportunities to keep donors connected through recognition, education and entertainment Examples: $1m donor recognition receptions, high donor receptions, friends of the discretionary fund for the CEO events, gift planning donor recognition events, giving level events, invitations to attend cultural events and open houses, governing board invitations and receptions, young leaders, junior leaders, and major gift events, volunteer events, luncheons and receptions, ground breaking events
Publications Communicating the messages about priorities and providing recognition in colleges, schools, programs, gift planning, alumni relations, and central advancement collateral materials Other institutional magazines Advertisements in various commercial journals and newspapers Radio and TV public service announcements Collaborative messages with other organizations promoting the value of diversity, education, and life-long learning, donating blood, volunteering, giving back
Marketing and Communications Strategies Coordination throughout the institution about our values, priorities, and messages for philanthropic programs Creation of strategies for market research Product brand development Population of database fields with added value information from various research mechanisms Collaboration about themes and messages via electronic media, especially Web pages and push emails
A Donor Relations Plan The heart of the matter to enhance relationships between the organization and the donors, encouraging a lifetime commitment for support Purpose of the plan is to recognize and engage donors throughout their lives Responsive to annually changing needs of the organization by creating tailored recognition for donors who support endowment, scholarship, capital needs, unrestricted funds, relief efforts
Major Goals Comprehensive tracking across organization of all activities Provide and coordinate organization-wide donor recognition and stewardship Accomplished through events, publications, special projects, and other forms of recognition Giving society memberships, athletic privileges, donor plaques, honorary walls, premiums, Web pages
Major Goals cont. Standardized and baseline donor recognition and stewardship to all Systematic, annual recognition that demonstrates how gifts are used Advantage of existing resources, such as lectures and events, to provide a venue for cost-effective recognition, donor-recipient matches, and donor access to leadership
Major Goals cont. Provide uninterrupted contact with donors despite staff turnover Take advantage of special opportunities to focus on particular groups of donors such as specific cause-giving donors Create consistent message strategies which encompass many, diverse operations within the organization Provide a presence on the organization s Web page(s) in order to advance the mission of donor relations
Benefits Encouraging participation in private voluntary support Contributes to the positive experience and energy a donor feels Increases familiarity with the donor s area of interest Prepares donors and prospects to consider giving to priorities Provides stewardship by providing donors to meet recipients of their support
Benefits cont. Supports key development strategies Supplements cultivation and solicitation strategies undertaken by satellite entities Inspires increased giving over a lifetime Honors donors who make bequest and other types of planned gifts
Annual Recognition Several giving societies recognize annual gifts above a certain level to any area Some members receive gifts such as personalized ID cards, auto window decals, reduced rates for parking and library borrowing privileges A packet of materials and a letter signed by advancement leadership An annual event is organized
Revocable and Irrevocable Gift Recognition Recognize individuals who have made deferred gift commitments in the form of bequests, life insurance, or trusts Tailored for the age group, gift level, and giving interests events include annual reception, individualized outreach efforts, stewardship, and gift planning publications such as a family of topical brochures describing the many deferred giving vehicles Choice between several gift memorabilia
Major Gift Recognition Increase familiarity and deepen their loyalty in their lifelong donor path Strategic attention to endowment, unrestricted funds and ad hoc priorities Particular topics or fund-raising priorities
Highest Giving Society Recognition Individuals who have achieved a cumulative giving level within a designated amount of time Deferred gifts with a present value of this cutoff amount Confirmed pledge of this amount Special gift in recognition of their support Value declared for tax purposes
Highest Giving Society Recognition cont. Maintain and publish the definitive list of these donors (living, deceased and anonymous) Personal proclamations distributed by the governing body Tailored events
Strategic Stewardship Production and distribution of an annual consolidated endowment fund unit report and stewardship letter Directed toward current endowment donors Financial management partners with a report on the earnings of the particular endowment with a detailed, growth summary
Publications and Marketing Coordination of the recognition and stewardship publications Annual report Family brochures on gift planning Themed annual fund advertisement in alumni magazine and other publications Other advancement publications Cost-effective ways to reach targeted audiences
Publications and Marketing cont. Coordinates marketing for advancement Alumni magazine Local business journals Alumni-targeted, annual giving newsletter Articles about the achievement of students and faculty, heroes of the organization, volunteer stories
Events Plans and delivers regular and ad hoc events Giving society recognition receptions Unique events such as ground-breaking ceremonies Artful execution of an event with timeline and flawless execution Teamwork coordination paramount Cross training of team members Integration of tasks Project management knowledge requirements
Other Forms of Recognition Naming a room, building, facility or physical object Institution policy development Naming committee Board of Governors review Coordinating nomination and approval process of donor walls and permanent recognition devices Ensure organization-wide standards are met
How the Donor Recognition Plan Works Why the proposed type of recognition? Is it permanent? Who will be honored? What wording with be used? When will it be installed and announced? Where is it installed? How will it be funded and maintained? Who is paying?
How the Donor Recognition Plan Works cont. Coordinating interaction between the advancement office, facilities manager, names committee, and donor relations designated personnel Special forms of recognition include engraved pens, personalized jackets, framed institutional photographs, calendars, special coffee table books
Characteristics of Report Plan Gift processing and records management generate and send receipts Keeping up-to-date the type of communication shared with the donor such as level of giving, society membership, name of solicitor and department, number of donors by household, description of group of donors, associated vehicle used for recognition
Conclusion Comprehensive and exacting activity Dedicated staff Opportunity for revolutionary changes in the way we do business
The Five-Pointed Star Donor Relations System Stewardship efforts Events management Publications Other forms of marketing and communications Cross-trained employees working on project teams Donor recognition events, publications, other forms of recognition, market research and product development
The Five-Pointed Star Donor Relations System cont. Marketing and communications strategies for advancement are created in concert with the organization s integrated marketing plan and communications goals Appropriate advisory committees are appointed, convened and facilitated by donor relations
The Five-Pointed Star Donor Relations System cont. Designing and implementing a donor relations system of this nature is a stellar opportunity to bring under one umbrella the varied and extensive ways we communicate with our donors Developing those life-long relationships, a successful philanthropy program is so dependent upon, donor relations becomes the very essence of an effective advancement plan
Questions? Thank you! Lynne Becker American Red Cross National Headquarters ldbecker1@earthlink.net Annual Advancement Academy