2010 Education Foundations Conference
Oshkosh, Wisconsin
November 18, 2010
Donald R. Gray

Universal Vision Statement for Philanthropy
“You want to compose a good world. It is an honorable and noble profession”
…
Maya Angelou

Mrs. Evelyn Kaufman
Stow High School English Teacher
1958
•
Your words define who you are
- to others
- to yourself.
• Choose them carefully!!!!!!!

A Few Words About
•
•
•
Philanthropy
– Good word
– Has become distorted
– $$$$$
Generosity
– All inclusive
– Captures what we do
Abundance

Gifts and Donations
A GIFT is a tangible symbol of feelings between people
A DONATION is a tangible symbol of support to a cause

Development and Fund Raising
A GIFT is to DEVELOPMENT
( givers) as
A DONATION is to FUND RAISING
(donors)

• hit up
• shake ‘em down
• put the arm on …
• squeeze, milk, dun
• loaded
• should, ought, owes us
• pass the hat
• get into his/her pockets
• low-hanging fruit

Annual vs Major Gifts
• Annual Donations
– frequently given/asked
– discretionary income
– unrestricted fund
– mailings, events, phone
– Internet, social networking
– 2-5% of income
– 90% gifts; 10% dollars
– 1st step to major gift
– very, very important

Importance of Annual Fund in Major Gift
Activity
• For all givers to universities who make a first
“major gift” of $25,000 or more,
– 75% made a first donation of to the annual fund
$250 or less in response
– 83% have given at this level) for almost 60% for at least 11 years at least 5 years ;

Annual vs Major Gifts
• Annual Donations
– frequently given/asked
– discretionary income
– unrestricted fund
– mailings, events, phone
– Internet, social networking
– 2-5% of income
– 90% gifts; 10% dollars
– 1st step to major gift
– very, very important
• Major Gifts
– infrequently given/asked
– from assets: stop/think
– relationship required
– targeted/restricted projects
– 10-20x annual fund gift
– 10% gifts; 90% dollars
– often repeated over time
– critical to success

The Math of Major Gift Work
$ For each major gift (>$25K), you need three possible or probable major givers
$ On average, a major gift is closed after 9 meaningful contacts, or between 6 mos-2yrs
$ Thus to get 5 new major gifts requires 3 x 9 x
5 = 135 meaningful contacts.

ULTIMATE GIFTS
• Once in a Lifetime Gift
• Combination of Giving Methods; Many
People Involved
• Total Commitment to Institution’s Mission
• Long, Emotional Relationship (and several previous major gifts)
• Often Involves Major Naming Opportunity
• 1,000-2,000x Annual Gift/10-20% Net
Incoming-Producing Assets

Oseola McCarty
(1908-1999)
• Life Savings: $150,000
• Size of Gift: $150,000
• Reason for Giving
– To help others avoid a life as hard as hers
• Purpose of Gift
– Scholarships for poor student at the University of Southern Mississippi
Ted Turner, in giving $1 Billion to
UNICEF:
“If that little woman can give away everything she has, then I can give away a billion dollars.”

Top Four Reasons People Give Major and Ultimate Gifts
• Belief in Mission and Stability of the
Organization
• Sense of Civic Responsibility
• To Invest in Projects with Significant Social
Return
• High Regard for Staff and Volunteer
Leadership

Ralph Waldo Emerson

Bottom Three Reasons People Give
Major and Ultimate Gifts
• Guilt and Obligation
• Promotional Materials and Proposals
• Tax Considerations

THE MYSTICAL MINGLING
OF
A JOYFUL GIVER
AN ARTFUL ASKER
A GRATEFUL RECIPIENT

Initial Contact
Additional
Interest
Identification
Show
Creativity
Creating the
Joyful Giver
A ttention
I nterest
D esire
A ction
Making the
Artful Ask
Invoking the Grateful
Recipient yes acknowledge
NO

Want to Learn More?
Fundraising and Development for Nonprofits
June 1-3, 2011
Madison, Wisconsin
Web site: exed.wisc.edu/devconf