Major Gift Fundraising and Engagement
for Engineering Constituencies
SPEAKERS
Anthony Escobar
Major Gift Officer, Cornell University
David Wahls
Senior Associate Director, Fulton Schools of Engineering at ASU
AGENDA
1.
2.
3.
4.
5.
6.
Research & Prep Work
Practical Tips & Trends
Case Studies
EI & Strengths Finder
Summary
Q&A
AGENDA
1.
2.
3.
4.
5.
6.
Research & Prep Work
Practical Tips & Trends
Case Studies
Emotional Intelligence
Summary
Q&A
Income Percentiles
$2,070,574
99.9th Percentile
$815,868
99.5th Percentile
$506,553
99th Percentile
95th Percentile
90th Percentile
75th Percentile
$200,026
$154,131
$85,811
50th Percentile
$42,327
25th Percentile
$19,375
Wealth Across the U.S.
Minimum Visible Wealth by Age Necessary to be Rated with Giving
Capacity of $100K
$10M
$5M
$3.3M
$2.5M
20s - 30s
40s
50s
Major Gift Wealth
60s
$2M
70s+
How much are they likely to give?
5%
4%
3%
2%
1%
20s - 30s
40s
50s
Philanthropic Capacity
60s
70s+
Determining Rating & Capacity
Real Estate
5 Year Income
Other Assets
Mr. Smith, Software Engineer (age: 55) • Mrs. Smith, Family Physician (age: 55)
Income:
Mr. Smith = $100,000 to $150,000 (m = $125,000)
Mrs. Smith = $150,000 to $200,000 (m = $175,000)
Total 5-Year Income = ($125,000+$175,000) X 5 = $1.5 million
Real Estate:
Primary residence = $650,000
Summer residence = $250,000
Total real estate = $900,000
Total Visible Wealth = $1,500,000 + $900,000 = $2.4 million
CAPACITY RATING = $2,400,000 X 3% = $72,000
Visible Wealth
• Receive high annual cash income
• Specialization + Employer
Lawyers
Specializations
Employers
• Corporate
• Patent
• Constitutional
• AM Law 200
• National/International
Firms
Lawyers & Physicians
Physicians
• Orthopedic Surgery
• Plastic Surgery
• Cardiovascular
Surgery
• Large healthcare
systems
• Leading universities
• Age: 20s to mid-30s
• Age: Late 30s to 50s
• Recent MBAs
• Lifelong career in finance
• Bonus not a high % of
income
• Bonus large % of income
• Likely to develop MG
Capacity
• Philanthropic Role Models
• MG Capacity
$2,500,000
$1,200,000
$250,000
Associate
$450,000
Vice
President
$700,000
Director
Managing
Director
Department
Head
Financial Services - Investment Banking
The 1%, Institutional Investors, Pensions, etc. pool their
money into large funds
Private Equity
Funds
Venture Capital
Funds
Hedge Funds
Buy, fix, & sell
existing companies
Invest in
new/growing
companies
Trade stocks and
bonds to beat
market return
80% of Profit to Investors, 20% to Fund
Managers
Financial Services - Private Investment Funds
• Wealth defined by singular liquidity event
• “Liquidity Evaporation”
• May transition careers but usually stay in startup
environment
• Key Wealth Factors: Venture Capital + Exit Strategy
Entrepreneurs
Series A Investment
Founding
Series B Investment
Founders
Founder
Founder
Series A
Series A
Series B
Company Value
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$Founding
Series A
Series B
Entrepreneurs – Start Up Companies
•
•
•
•
•
•
•
•
Cornell Class of 2002
Software Engineer @ Apple, helped
develop iPhone & iPad
Co-founded Push Pop Press,
converting books into iPad/iPhone
formats
Facebook “acqui-hired” in 2011
Founded in 2005 by early
employees of PayPal
November 2005: Series A
Investment, $3.5M
April 2006: Series B Investment,
$8M
October 2006: Google buys for
$1.65B
Entrepreneurs – Acquisition
Founding
February 2004: Zuckerberg launches “The Facebook,”
funded by Eduardo Saverin
Angel Investment
September 2004: Angel Investment of $500,000
Venture Capital Rounds
May 2005: Series A Investment, $12.7M
April 2006: Series B Investment, $27.5M
October 2007: Series C Investment: $375M
May 2009: Series D Investment: $200M
June 2010: Series E Investment: $120M
January 2011: Series F Investment $1.5B
“Exit Strategy”
May 2012: Debut on NASDAQ stock exchange, raising $16B,
company valued at over $100B
Entrepreneurs – IPO
Executives
• Receive high annual cash compensation
• Receive stock awards and options
• Public information for the top 5 named executives
(precise estimates of income!)
Business Owners
• Company value largest factor in determining
wealth
• NOT usually looking for an asset sale
• Often held in the family over generations
Other Usual Suspects
AGENDA
1.
2.
3.
4.
5.
6.
Research & Prep Work
Practical Tips & Trends
Case Studies
Emotional Intelligence
Summary
Q&A
Lawyers
•
•
•
Salary schedule
Events serve multiple
purposes
Historically a difficult
group for fundraising
Doctors
•
•
•
Do not see themselves
as Major Gift Prospects
Timing of Meetings
Historically a difficult
group for fundraising
and engagement
Time Constraints
Convenient Meeting Place
Clear Plan
Financial
EntreBe Direct
Services
preneurs
•
•
•
Networking
Access to senior
leaders
See firm leaders as role
models
•
•
Networking
Willing to be engaged
and take meetings but
challenging for
fundraising
Engagement Opportunities
• Advisory councils or other high level volunteer opportunities
• Speaking roles in classes aligned with areas of expertise (context knowledge)
• Speaking roles with student clubs or informal career talks/lunches with both
undergrads and grad students
• Networking and Events that serve a dual purpose (e.g. lectures for CLE or
CME)
• Specific stewardship benefits at various giving levels
• Access to senior leaders at the college and university
• Firm-based engagement and cultivation activities (law and financial services)
• Bestowing an award (department, college or university level)
And others . . .
Practical Tips & Trends
Lawyers
Doctors
PARENTS!
Child applies and
enrolls at the
university
Financial
Services
Entrepreneurs
Special considerations
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•
•
•
•
Geographic Location – Ex. NYC v. Boston
Utilizing faculty
Working with financial planners
Educating about philanthropy
Young Professionals: matching gift programs
Practical Tips & Trends
AGENDA
1.
2.
3.
4.
5.
6.
Research & Prep Work
Practical Tips & Trends
Case Studies
Emotional Intelligence
Summary
Q&A
• Break up into individual groups:
– Attorneys - Estate Planning and Patent
– Physicians – Lead physicians for partnership, development of products,
clinical trials, lead gifts
– Financial Services – Wall Street/Banking
– Entrepreneurship – CEO’s and Founders
• Objectives:
– Share real stories about successful donor-centric interactions that led
to investments.
– Learn techniques for getting the first visit, advancing your relationships
and closing gifts.
– Discuss leading questions that are most useful in engaging prospects in
a meaningful discussion about their relationship with your school.
– Leave with 1-2 strategies that you want to try out.
Case Study : Discussions
• Please share a personal story of a donor relationship which
led to a significant investment with the group.
– What has worked best for you to get in the door with the constituency
involved? (e.g., phone calls, introductory letters from dean, other
introductory letters or emails, volunteers)
– What clues did you use to determine your donors’ interests?
– How did you leverage knowledge of the donors work and passions to
steward their relationship?
– Who was involved in the solicitation? Why? Was that the right mix?
– How did you know the donor was ready to be asked? How did you set
the amount?
– How was the gift a “win” for the donor?
– What materials are important to present during a solicitation for each
group? Immediately following?
Case Study : Discussions
•
How have you used these groups as
volunteers
– Advisory boards
– What strategies might work to
encourage board members to assist
with fundraising?
– Have you used volunteers to make
major gift solicitations? What are some
of the pros and cons of involving
volunteers?
• What have you done to train
volunteers or board members
regarding their role as major gift
fundraisers?
– Do you use job descriptions for your
volunteers?
– What are the biggest challenges you
face in working with volunteers? What
are some strategies for overcoming
these challenges?
•
How can you motivate your volunteers to:
– Identify and evaluate prospective
donors
– Open doors
– Set an example
– Provide visionary leadership
– Review strategies and provide practical
– Participate in solicitation strategies
– Thank donors
Case Study : Discussions
Case Study 1: Investment Banking
Investment Banking Industry Scholars
– Historically poor tracking of alumni through the University database
• 0 Managing directors, VP or C suite individuals identified
• Little if any directed alumni giving toward investment banking or support for
students generated from Wall Street
• Students cold calling individuals for job calls
– Use of LinkedIn, company information to verify Finance, Engineering
and Math graduates on Wall Street
• Identified 82 individuals for possible connection – 12 in Managing Director levels
and above
• Creation of initial contacts in the industry to build out network contacts – late
night drinks, early morning coffee, meetings at Banks
– Key is to stay on the individuals – Investment bankers have busy schedules, use e-mail and
look for the gate keeper - investment bankers will turn you down to see how resilient you
are
– Leveraging existing relationships and support
•
•
•
•
Identification of lead volunteers and industry mentors
Social events with key alumni and individuals – sponsored by lead volunteers
Dean and faculty travel and support
Summer intern lunches with alumni
Case Study 1: Investment Banking
Investment Banking Industry Scholars
Results
• Connection with 4 unknown Managing Directors and above
• Creation of a network of alumni across the industry
– New York, San Francisco, London, China, Chicago
• Continuation of alumni events in New York
– Mentoring and networking opportunities for Young alumni and seasoned
professional networks established and run by young alumni in the area
– Attachment to the larger Klein Awards in Economic forecasting
• $3.5M Generated with a secured pipeline of investments – year 1
– $3M Chair - stock
– $400K Scholarship – stock
– 2 - $50K endowed scholarships from individuals under 30
• Make sure to look at matching funding from investment banks, it
can be as high as 2 or 3 times for younger employees and directors
and above have designated amounts to give for charity
Case Study 1: Investment Banking
Case Study 2: Entrepreneurs
CEO Panel
– Limited access to time
• Conference calls – use of time effectively for planning visits to campus
• Tie into events when around your campus
– Passing on knowledge is a key motivating factor
• Creation or connection to student entrepreneurial groups
– Leverage Alumni network to include other individuals and
key investors
Case Study 2: Entrepreneurs
CEO Panel
Key Medical Device Alumnus
• Goal of inspiring more students to create companies
• Set up scholarship for Innovation Scholars
– Includes mentoring on campus, Silicon Valley or industry
specific entrepreneur mentor, trip to Silicon Valley
• Includes other Silicon Valley Entrepreneurs in trip to campus
• Group discussions with BioMedical Engineers
Case Study 2: Entrepreneurs
Case Study 3: Estate Planning Attorneys
Estate Planning Attorneys
– Establish connection
• Network among estate and gift planning
– Connections come from prospects, alumni, estate giving
advisory group
– Information on connections and how individuals can give
through the University
• Joint presentations
– Faculty present to community members about poignant research
topics
– Connections with retirement communities
– Cautions on endorsement or agreements
Case Study 3: Estate Planning Attorneys
Case Study 4: Physicians
Some suggestions for getting visits and commitment to
engagement activities
• Cultivation events around major medical conferences
Small dinners with a dean/senior officer
• Leverage CME lectures and events
• Speaking engagements with pre-med students
• Shadowing programs or other special academic enrichment programs at a
hospital
• Connections to a physician’s research and similar research taking place at
the university
• Get to know the office manager – he/she is the gatekeeper to a physician’s
calendar
Case Study 4: Physicians
AGENDA
1.
2.
3.
4.
5.
6.
Research & Prep Work
Practical Tips & Trends
Case Studies
Emotional Intelligence
Summary
Q&A
Daniel Goleman, PhD
What is Emotional Intelligence?
• The way we manage emotions – both our own and those of others
• Self awareness
• Picking up cues about how others are feeling
• Knowing how to tune into others
• Demonstrating empathy
Three types of Empathy
• Cognitive: understanding how others think
• Emotional: feeling with someone; creates rapport with someone
• Empathic Concern: tuning into people and if you can do something
for them, you help them
Focus and Notice
• Compassion – we are naturally wired to be compassionate
• On ourselves v. others
• Pre-occupation and self absorption
• Taking Notice
Emotional Intelligence
How does this apply to fundraising?
Everyday we attempt to engage prospects – both with philanthropic dollars and
volunteer opportunities
We meet with all different types of personalities who view themselves
differently; sometimes we may even feel the need to “act” in our positions
We understand that the more time spent with a prospect through personal
contact (meetings, events, campus visits, etc) the more likely they will be
engaged
Emotional Intelligence
What is the role of gift officers?
A different framework from which to think about your approach with prospects
Baseline Assumptions
Some key questions:
Lack of time
How do we help prospects focus and
take notice?
Self absorbed &
Narcissistic
What’s in it for me?
How do we build trust?
ROI
How can we turn a donor from viewing
a contribution from a narcissistic focus
to that of altruistic joy?
Competition for attention
from other charities
What are the aims we have in having a
relationship with a prospect?
Emotional Intelligence
What is the role of gift officers?
Sincerity: a genuine interest in what they do, their interests, and how they think
and willingness to equally share of your own personal experiences and stories
Honesty: why do we want a prospect to be engaged? What do we hope to
receive from them and what can they expect in return?
Transparency: being an honest broker for the institution and the donor
Effective Communication: intentions made clear, value propositions are strong
(both in verbal and written communications)
Empathy: understanding their concerns and frustrations and a willingness to
listen and to help (if needed or requested)
Emotional Intelligence
Russ Prince and Karen File
Prince and File share their approach for cultivating relationships with donors by
identifying donors’ motivations for philanthropy.
Communitarian – Doing Good Makes Sense [for the Community]
Devout – Doing Good is God’s Work
Investor – Doing Good is a Business Proposition
Socialite – Doing Good is Fun
Altruist – Doing Good Feels Right
Repayer – Doing Good in Return
Dynast – Doing Good is a Family Tradition
Seven Faces of Philanthropy
Russ Prince and Karen File
• How can knowing your donors’ motivations help you structure the
relationship, and their ultimate investment, in a way that maximizes the
impact of their philanthropy?
• What clues can you use to determine your donors’ motivations?
• What tools do you have available for making matches between donor
interests and ASU priorities?
• How can you adjust your case for support to address donors’ motivations
and interests?
7 Faces of Philanthropy
AGENDA
1.
2.
3.
4.
5.
6.
Research & Prep Work
Practical Tips & Trends
Case Studies
EI & Strengths Finder
Summary
Q&A
Give yourself every opp to succeed; be smart. really understand the
constituency you are working with and make notes of commonalities for others
in your portfolio; read the latest news pertinent to their area
Rely on colleagues in law school med and biz school for engagement ideas and
best practices
Take risks Present something out of left field
Think critically about the value proposition you present; is it strong enough?
Don't undervalue your own experiences but rather use them as baselines /
references
Speak their language and show understanding and empathy. Use methods that
they are accustomed to (spreadsheet)
Have confidence in yourself and your strengths; understand how they work in
tandem with others
Summary
AGENDA
1.
2.
3.
4.
5.
6.
Research & Prep Work
Practical Tips & Trends
Case Studies
Emotional Intelligence
Summary
Q&A