UNLEASHING YOUR
INNER FUNDRAISER
Embracing Philanthropy
Fox Theatre Institute
November 9, 2009
Presentation Focus
 From “Good to Great” Nonprofit Organizations
 Fundraising Opportunities & Best Practices
 Understanding the Development Process
1. Identification
3. Cultivation
2. Engagement
4. Solicitation
5. Recognition
Break
 Overcoming the Fear of Fundraising
 Questions
 Group Exercise
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The Mission and the
Challenge…
We’re all in favor of the mission…
…but who’s going to ask for the
money?
The Mission…The Challenge
The Challenge
 How can we become
confident & comfortable with
fundraising ….
“Oh please don’t make me do
that…”
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From Good to Great
 Defining Greatness For Your Organization
 Good resource- “Good to Great and the
Social Sectors” by Jim Collings
 Nonprofits can become Great by following
a 4-Step Process
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Defining Greatness
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Group Discussion
 What does nonprofit greatness look like as
it relates to fundraising?
 How does a great fundraising board act?
 What does a “Level 5 Executive
Director/CEO” do?
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Success Factors
 Has a Vision that can be clearly articulated
 Multi-year strategic Plan
 Revenue Plan
 Board Recruitment & Leadership
Development (receives training and
understands role)
 Strong, trained FD staff
 CEO Commitment & Optimization at the
Top Level
 Culture of Philanthropy & Stewardship
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Fundraising Opportunities
 Individual Giving
 Direct Mail Appeals
 Corporations
 Government Funding
 Foundations
♦ Earned income
(Private vs. Independent)
♦ Special Events
Key Principle: Nonprofits need to have
a Balanced Portfolio
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Sample Revenue Balance
Social Events
15%
Earned Giving
10%
Government Funding
10%
Planned Giving
5%
Institutional Giving
20%
Individual Giving
40%
Earned Revenue
Individual Giving
Inst. Giving
Planned Giving
Gov. Funding
Social Events
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Key Fundraising Principles
 Involvement is key to leadership support
 Cultivation of relationship is key to successful
solicitation (Note: These two are inter-related)
 Giving is top heavy
 Major gift fundraising is more art than science
 Major gifts fundraising is enhanced when top
institutional and volunteer leaders are involved
 Donors give to organizations they believe in,
whose aspirations they share
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Organization’s Focus
 Keep these facts in mind:
1. Focus time and resources on those activities
that will give us the best, long-term return
on investment (may be a combination –
special events and an annual gift)
2. Individual giving leadership gifts should get
the “lion’s share” of time, money, focus!
3. All techniques should be part of your
balanced portfolio
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Executive Director: Best Practices
 65% of Time
– Monitoring progress of development goals
– Developing donor strategies
– Thinking “Outside the Box”
– Problem solving & reassuring donors
– Making in-person visits every week with top
potential donors—top 25-50
– Writing notes and making phone call weekly
– Being visible at important events in the
community
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Board: Best Practices
 100% giving at the leadership level of
$1,000 or more
– Providing about 20% of your annual revenue
 80% or more actively involved in bringing
in money in a variety of ways
 80% or more with organization as top
philanthropy
 40% or more with capacity and inclination
to give a major gift now or in the future
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10 Most Important Rules
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Make Organization #1
Give generously
Build a strong board surrounding
Invest in Fund Development
Know mission, vision and work
Be a Passionate Ambassador
Introduce Others
Make personal visits
Share the joy of “making a difference”
Learn all about Fund Development
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FundraisingTruisms
 The best giving experience is a positive
cultivation and solicitation experience
 Giving begets giving
 Exchanges in the relationship: donors
expect psychic bundles of benefits and to
have the outcomes of their gifts marketed in
compelling human terms.
 Donors want to know how their gift is
TRANSFORMATIONAL
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Generation “X” as Donors
Indiana University Center for Philanthropy 2003 Study
 Born between 1965 and 1976
 Want more info
 Distrust large organization
 Want challenges and social connections
 Crave time w/family
 Most diverse
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Millenniums or Gen Y
*Kelly Mahoney, Newport Creative Communications & CBS News




Born between 1977 and 1994
Want to be a part of a community
High expectations of self
Share their voice and make an immediate impact,
immediate responsibility
 Think globally but goal-oriented
 Want tangible results
 Influenced by peers
 Want to give time as well as money
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Three Kinds of Gifts
 Annual or Sustaining Gift (once a year or
multiple times a year; ongoing direct mail)
 Major (Special) Gift (10 to 25 times the
Annual Gift and is an additional gift)
 Ultimate Gift (1,000 -2,000 times Annual
Gift – could be a planned gift)
Note: Annual and special giving are
complimentary
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Characteristics of Major or
Special Gift
 Infrequently given
 More inputs required (not just from donor
but from other individuals associated with
decision)
 Decision becomes emotional
 Takes longer to make a decision because the
consequences are greater
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Understanding the Development
Process
STEP I
IDENTIFICATION
Recognition
Identify the Market, even
more key today
Board directors provide
Information and assist in
the development
strategy
Identification
Solicitation
Engagement
Cultivation
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Understanding the Development
Process
STEP II:
ENGAGEMENT
Recognition
Matching Prospects
& Their Interest
Development staff should
share research and
engage board
Identification
Solicitation
Engagement
Cultivation
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Understanding the Development
Process
STEP II
ENGAGEMENT
What is the prospect interested in?









Education?
Community?
Family?
Children?
Continuity?
Creating a Legacy?
Remembering a family member?
Ego
Or Simply Tax Benefits, Retirement
Income, or Estate Planning
Recognition
Identification
Solicitation
Engagement
Cultivation
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Understanding the Development
Process
STEP III
CULTIVATION
Strengthening the
relationship
Take the time to listen
and uncover what is
important to donor
Board director with
relationship is
involved in cultivation
Recognition
Identification
Solicitation
Engagement
Cultivation
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Understanding the Development
Process
STEP IV
SOLICITATION
Transforming Values
Into Action
Demonstrate HOW their
gift will be
transformational
Involve board director as
appropriate
Recognition
Identification
Solicitation
Engagement
Cultivation
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Understanding the Development
Process
STEP V
RECOGNITION
Recognition
Acknowledging good
deeds
How would they like to
be recognized?
Identification
Solicitation
Engagement
Cultivation
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Moves Management
 “A process that entails managing a series of
steps (moves) with identified prospects, the
number and type of steps depending upon
the individual (corporation/foundation)
involved such that each prospect is moved
from attention to interest to desire to
action and then back to interest until he or
she have given everything that will or can
be given to the organization.”
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Key Players
 Prospect
 Natural Partners
 Primary Player
 Moves Manager (Fundraiser)
– Helps develop strategy
– Tracks relationship
– Plans contacts (moves)
– Implements moves
– Reconfigures strategy (as needed)
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Overcoming Our Fear of
Fundraising
Most communities can
be divided into
“Givers”…
…and “Askers:
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Overcoming The Fear of
Fundraising
We understand the “Giving Part”
 We know how
 We know why
 We know when
 We’ve been doing it for a long time
 We enjoy it
 We take pride in it!
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Overcoming The Fear of
Fundraising
But the “Asking” part….
…Makes us crazy!!!!!
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Overcoming The Fear of
Fundraising
Replacing
Negative
Feelings with
New Attitudes
FIRST
A new attitude toward
the “Campaign” and
the “Cause”
 The goal is not just to
achieve a particular
dollar amount
 The” Campaign Goal”
is about the “Vision
Goal”
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Overcoming The Fear of
Fundraising
Instead: The “ Campaign Goal” is…
Promoting The Vision of Your Organization
By connecting resources and needs
--and by linking values and actions.
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Overcoming The Fear of
Fundraising
The Conversation Changes From:
“I am hear to talk to you about how much
money you can give…”
To
“I’d like to discuss how you can help be a
part of our vision and help change the
future of …”
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Overcoming The Fear of
Fundraising
A New Attitude
Towards The
Giver
SECOND
The Giver is Not:
 A Name on a List
 “The Card”
 A Wrestler
 Stingy
 Insensitive
 The Enemy
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Overcoming The Fear of
Fundraising
Instead, the Giver deserves to be treated
with dignity that goes along with the
act of giving.
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Overcoming The Fear of
Fundraising
The conversation changes from…
“We decided that you ought to be giving
$____...”
to
“Let’s talk about the positive impact you can
have on how we…”
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Overcoming The Fear of
Fundraising
A New Attitude
Towards the Asker
THIRD
The Asker is not:
 The “collection
agency” for the
organization
 The other “arm
wrestler”
 …or worse!
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Overcoming The Fear of
Fundraising
The conversation changes from…
“It’s important to me that you take part in this
effort…”
To
“How can I help you achieve your
philanthropic and personal objectives?”
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Overcoming The Fear of
Fundraising
THE FORMULA FOR SUCCESS
The Donor’s Motivation (Values)
+
Program
(What is it about the program that relates to those values)
The “Benefit Statement”
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Overcoming The Fear of
Fundraising
The “Benefit Statement” tells the Donor:
“Here’s how you ---the Donor---will benefit
by “making it happen,” because your values
will become reality.”
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Overcoming The Fear of
Fundraising
The “Benefit Statement” answers the
question every donor asks:
W.I.I.F.M.?
“What is in for me”?
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Overcoming The Fear of
Fundraising
Nuts & Bolts: The Encounter
 Matching
 Appointment Making
 Opening the Conversation
 Presenting the “Case”
 Make the “Ask”
 Handling Objections
 Closing
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Overcoming The Fear of
Fundraising
Nuts & Bolts: Matching
Distinguish between:
 The Connector
 The Engager
 The Cultivator
 The Asker
Connector
Asker
Prospect
Engager
Cultivator
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Overcoming The Fear of
Fundraising
Nuts and Bolts: Making the Appointment
Actually having an appointment is 80% of
success, but…
…it’s easy to say “no” on the phone
…tone of voice is your only cue
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Overcoming The Fear of
Fundraising
Nuts and Bolts: Making the Appointment
1. Use A Script
2. Follow the Three Rules
 Remember the new attitude
 Remember it is not about a particular $$$
amount
 Remember the campaign goal is the “vision
goal”
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Overcoming The Fear of
Fundraising
Nuts and Bolts: Opening the Conversation
 Get rid of your own butterflies…but give the
donor a chance to relax!
 Ask “open-ended” questions
 Vision for the future
– What do you think…
– What kind of legacy do you want to create?
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Overcoming The Fear of
Fundraising
Nuts and Bolts: Opening the Conversation
Tell you own story, but remember
The Ratio Rule:
We have two ears, and one mouth
Use Them in That Proportion
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Overcoming The Fear of
Fundraising
Nuts and Bolts: Presenting the Case
Every presentation is “tailor-made...”
…and depends on what you learned from and
about the donor!
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Overcoming The Fear of
Fundraising
Nuts and Bolts: Handling the Objections
The response—in every case—should be:
The Three “F’s”
1. I know how you feel
2. I felt that way myself and
3. I found…
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Overcoming The Fear of
Fundraising
Nuts and Bolts: Closing
There is no minimum time!
 You can close the conversation at any time,
and you should be ready to do so
 Look for physical, verbal, emotional cues
 Take note when the donor “ turns the
corner” and “circle back” to the “Ask”
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Overcoming The Fear of
Fundraising
Nuts and Bolts: Closing
…an no matter what, always end with
THANK YOU!
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Questions
 What surprised you?
 What is the most challenging aspect of
fundraising for you personally?
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Mock Group Exercise
 Exercise is intended to simulate a “real
time” experience that will include a donor,
a grantee, and a review panel
 Need to break into groups of 3
 Each group will be given a specific
assignment and you will have 20 minutes to
complete it; decide group roles
 Groups will convene and we’ll take 20 - 25
minutes to actually go through the exercise
and process
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Unleashing Your Inner Fundraiser
Ellen MCCarty
(404) 452-5633
www.mccartyandco.com
e.mccarty@comcast.net
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